NewsWhore
05-04-2011, 03:30 PM
Economist Apolinar Veloz warns that it is impossible to control the costs of government investments if purchases of intermediate goods and raw materials are not submitted to efficiency and budgetary effectiveness criteria. His comment comes after local producers complained about procurement practices for the new aqueduct in Bani, Peravia province.
As reported in Hoy newspaper, Veloz said that if the loan agreements do not require that the public investments be the lowest possible in the market given the nature of the project, then the country would lose a lot of public money to the company doing the work.
Veloz continued: "If these public investments are also financed by the same companies that are building the project, there is a risk that the public investment will not be cost-efficient or efficient, since in this context when there is no strict state supervision the companies tend to allow the costs of the project to be overvalued for their own benefit and the government ends up spending it more of its resources whose effects are removed from the local economy, marking the project as inefficient".
The aqueduct project for the province of Peravia that is being handled by the Dominican-Spanish firm of Acciona Agua-Abu-Karram has refused to purchase equipment and materials from local suppliers.
More... (http://www.dr1.com/index.html#6)
As reported in Hoy newspaper, Veloz said that if the loan agreements do not require that the public investments be the lowest possible in the market given the nature of the project, then the country would lose a lot of public money to the company doing the work.
Veloz continued: "If these public investments are also financed by the same companies that are building the project, there is a risk that the public investment will not be cost-efficient or efficient, since in this context when there is no strict state supervision the companies tend to allow the costs of the project to be overvalued for their own benefit and the government ends up spending it more of its resources whose effects are removed from the local economy, marking the project as inefficient".
The aqueduct project for the province of Peravia that is being handled by the Dominican-Spanish firm of Acciona Agua-Abu-Karram has refused to purchase equipment and materials from local suppliers.
More... (http://www.dr1.com/index.html#6)