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NewsWhore
07-21-2009, 06:30 PM
Leonel Fernandez announced measures to reduce blackouts after meeting with key electricity sector executives at the Presidential Palace yesterday. He said the government this month would make US$30 million in payment to AES group to considerably reduce blackouts, and recognized arrears of US$700 million with power generator companies estimated for 2009.
The announcements came on day one after his return from his 10-day trip to the Middle East, leaving behind a country affected by a near total collapse of the electric system. Last Thursday there was a total blackout of the entire country.
Present at the meeting were representatives of EGE-Haina, the Transmission Company, and the AES Dominicana Group, and Radhames Segura, the vice president of the Dominican Corporation of State-owned Electricity Enterprises (CDEEE), the government's leading electricity sector representative.
Segura reported on the decisions reached at the meeting shortly after. He attributed the blackouts to the increased demand for electricity as a result of the heat wave that is affecting the Dominican Republic.
"We have arrived at an agreement with the AES Group that operates the greatest number of generating plants in the country, to provide US$15 million to bring a shipload of natural gas that could put the AES Andres on line together with the turbine of Dominican Power Partners (DPP), simultaneously, for an additional 390 megawatts. The two units will be able to operate continuously until 31 August," according to Segura.
The CDEEE executive explained that the government will deliver funds to the EGE-Haina so that Haina-gas (100 MW), now out of service, so this can be put back on line.
Moreover, he said that they are reaching an agreement with Falconbridge, which had problems with some transformers at a sub-station and can only put 55 MW on line. However, with the repairs, the company will be able to provide 90 MW, he said.
Government plans also call for, according to Segura, getting 300 MW on line as fast as possible with the 90 from DPP, 90 MW more from Siemens-Haina and the 55 MW from Falconbridge.
The government is also negotiating with the San Pedro de Macoris electricity company (formerly Cogentrix) due to the fact that for some time now it is only operating one unit. The idea is to get two of the units back on line for an additional 90 MW.
Segura told reporters that "the government is doing everything possible", to restore 80% of the service on a permanent basis during the summer."
The electric sector estimates a US$700 million deficit this year, but only US$421 million have been provided for in national budget. The problem with collections produced a shortfall among the proportion that was supposed to provide the US$421 million.
For the first six months, the budget estimated US$35 million per month, from which they should have disbursed US$210 million, but the government only made payments of US$187 million, leaving a US$23 million shortfall, according to Segura.
For this month, the government should have disbursed US$35 million, but up until now payments have been US$6 million, plus the US$15 million that will be paid this week.
A recent rate increase, bringing billings in some cases to more than 100%, should bring in a windfall in collections.
Segura had not been available to the press until now as he had traveled to the Middle East accompanying President Leonel Fernandez.

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