NewsWhore
03-27-2007, 02:11 PM
Electricity expert Bernardo Castellanos criticizes that the government again seeks to grant privileges to foreign companies and their local associates that seek to enter the Dominican electricity market, as reported in the Listin Diario.
He criticized as damaging the contract that has been allotted to Chinese investors for the installation of a coal-fired plant. The contract is up for approval in the PLD-majority Congress. Castellanos said that the country should have learned its lessons and never again grant preferential guarantees to electrical generation contracts. Despite very negative experiences in the past, that the contract that is now pending congressional approval provides the sovereign guarantee of the state and the government also commits to carry out investments of US$70 million in each plant, as it is responsible for purchasing the ground where the plants will be installed and for the installation of the transmission line connection to the national power grid. Furthermore, the contract establishes a penalty of US$600,000 to US$9 million if the CDEEE is late on keeping these commitments.
In addition, the government commits to supply the coal for the operation of the plants, reducing the financial burden of the company.
Castellanos was furthermore critical of the advantageous conditions granted to the new owners of the Cogentrix power plant in San Pedro de Macoris. The deal came about because the previous deal signed by the same present authorities that are negotiating similar concessions with the Chinese made it less costly to keep it shut down than operate it.
More... (http://www.dr1.com/index.html#6)
He criticized as damaging the contract that has been allotted to Chinese investors for the installation of a coal-fired plant. The contract is up for approval in the PLD-majority Congress. Castellanos said that the country should have learned its lessons and never again grant preferential guarantees to electrical generation contracts. Despite very negative experiences in the past, that the contract that is now pending congressional approval provides the sovereign guarantee of the state and the government also commits to carry out investments of US$70 million in each plant, as it is responsible for purchasing the ground where the plants will be installed and for the installation of the transmission line connection to the national power grid. Furthermore, the contract establishes a penalty of US$600,000 to US$9 million if the CDEEE is late on keeping these commitments.
In addition, the government commits to supply the coal for the operation of the plants, reducing the financial burden of the company.
Castellanos was furthermore critical of the advantageous conditions granted to the new owners of the Cogentrix power plant in San Pedro de Macoris. The deal came about because the previous deal signed by the same present authorities that are negotiating similar concessions with the Chinese made it less costly to keep it shut down than operate it.
More... (http://www.dr1.com/index.html#6)