NewsWhore
10-16-2007, 05:20 PM
State-run Electricity Company (CDEEE) administrator Radhames Segura has announced the signing of an agreement with AES Dominicana for the construction of a 40km natural gas line from Andres, Boca Chica to San Pedro de Macoris. Speaking yesterday, Segura said that the gas line would feed the plants at Cogentrix that are due to be converted to run on natural gas. Once the transformation is complete, Segura said the CDEEE would save RD$7.9 million per month. Diario Libre reports that if Cogentrix switches from diesel number 6 to natural gas, savings could reach US$95 million in the first year. The gas line will cost US$40 million and AES Dominicana will foot the cost in advance. The project will be completed in 10 months. Meanwhile Cogentrix will invest US$15 million over the next four months to convert the plants into natural gas plants.
Listin Diario reports that since signing a contract with Cogentrix in 1998 the government has lost a total of US$837.9 million, or the equivalent of US$100 million per year. The losses are the result of the bad contract negotiated during the first PLD administration by the CDEEE that was also headed by Radhames Segura. At present, the government is contractually obliged to purchase energy from Cogentrix at 15.4 US cents and then resell it to the power distributors at 10.09 US cents, resulting in the losses. Segura says the new deal is expected to bring the cost of energy produced down to 10.1 US cents, or US$95 million in losses.
More... (http://www.dr1.com/index.html#3)
Listin Diario reports that since signing a contract with Cogentrix in 1998 the government has lost a total of US$837.9 million, or the equivalent of US$100 million per year. The losses are the result of the bad contract negotiated during the first PLD administration by the CDEEE that was also headed by Radhames Segura. At present, the government is contractually obliged to purchase energy from Cogentrix at 15.4 US cents and then resell it to the power distributors at 10.09 US cents, resulting in the losses. Segura says the new deal is expected to bring the cost of energy produced down to 10.1 US cents, or US$95 million in losses.
More... (http://www.dr1.com/index.html#3)