NewsWhore
11-03-2011, 03:30 PM
Sources linked to the power generation sector have revealed that there might be an energy deficit if the government does not back investment in new production facilities. The private enterprises are asking for the government's backing because they say that there are difficulties obtaining financing through banking channels. This interesting situation came to light during the Corripio Group luncheon that is held each week by the publishers of Hoy newspaper. Tito Sanjurjo, the president of the Dominican Electricity Industry Association, told Hoy reporter Aleida Placencia that the country needed 300 more megawatts of additional generation to be installed and ready to produce well before 2015.
According to Sanjurjo, the cost of these new generation facilities will run between US$300 and US$600 million, depending on the technology used. His point about the government backing referred to what are called sovereign guarantees, because the banks require guarantee for investments of this size, and the generators have to have guarantees from their clients, in this case the distributors. Sanjurjo noted that "the distributors do not have the best finances" which makes the government's role in all this even more important.
More... (http://www.dr1.com/index.html#5)
According to Sanjurjo, the cost of these new generation facilities will run between US$300 and US$600 million, depending on the technology used. His point about the government backing referred to what are called sovereign guarantees, because the banks require guarantee for investments of this size, and the generators have to have guarantees from their clients, in this case the distributors. Sanjurjo noted that "the distributors do not have the best finances" which makes the government's role in all this even more important.
More... (http://www.dr1.com/index.html#5)