IMF defends Dominican energy sector

[NewsWhore]

The International Monetary Fund has voiced its support for the Dominican energy sector, saying that it had exceeded expectations set forth by the Stand-by Arrangement. The IMF's comments, though positive, are contradicted by statements made by engineer Bernardo Castellanos, who mentioned that during the last four years the budget for the energy sector in the DR had reached US$2 billion (RD$65 billion). Castellanos said that the distributors have been unable to make significant reductions in corporate losses and have failed to fulfill commitments made with the IMF or the World Bank. Still, IMF country representative Andy Wolfe says that so far the energy sector has done what it's been required to do. State Run Electricity Companies (CDEEE) vice president Radhames Segura has announced that he will ask Congress to pass the Modifications to General Electricity Law 125-01, which forms part of a pact with the IMF. Wolfe, quoted in Hoy, said that the government was able to reduce energy sector subsidies from US$530 million to US$400 million. Wolfe said that though the Stand-by agreement concedes that there should be subsidies for the energy sector, the aim is to reduce them gradually.

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