Loan for US$656 million approved for coal-fired generators
Several deputies rejected it for alleged overpricing
Tania Molina
SANTO DOMINGO. The Chamber of Deputies approved yesterday in a single reading the contract for a US$656 million loan taken by the Dominican government from the Economic and Social Development Bank (BNDES) for the construction of the Punta Catalina generating plant in Bani.
This loan deals with the two coal-fired generators with which the government seeks to produce 337.39 MW of energy each, and that are being built by the Dominican Corporation of State - owned Electrical Enterprises (CDEEE).
The resources will cover 100% of the value of the Brazilian exports of goods and services which will be required in the construction of the project, according to what the Executive Power has established in the Loan Proposal submitted to the National Congress.
The deputies approved the resolution with 100 votes in favor, 20 against and 12 abstentions. Among the opposition deputies was Minou Tavarez Mirabal an independent deputy, who questioned the onerous conditions under which the contract was signed, in which the Norberto Odebrecht company figures as a participating exporter. The deputy criticized the fact that the state has a 3 ½ year deadline to fulfill its commitment and the payments of 24 consecutive quotas.
She also pointed out that the contract has been questioned regarding overpricing by millions of dollars, as well as for its effects on the environment. "This project lacks a plan for the handling of the toxic materials of the plant, which is going to contaminate the environment and affect the health of everyone," she said.
Also, deputy Nelson Arroyo, the spokesman for the deputies of the Modern Revolutionary Party (PRM), called on the other members of the block to reject the project which he said had little transparency and of which he said, had not been fully explained.
Nevertheless, the spokesman for the Reformist deputies, Ramon Rogelio Genao, expressed his support for the loan given the importance which, it was his understanding, it has for the country with regard to electricity generation.
With yesterday's decision, the project becomes law, since it already had the approval of the Senate of the Republic, which discussed and approved it on 15 April.
The loan contract was signed on 15 February, through the Ministry of Hacienda.
This loan deals with the two coal-fired generators with which the government seeks to produce 337.39 MW of energy each, and that are being built by the Dominican Corporation of State - owned Electrical Enterprises (CDEEE).
The resources will cover 100% of the value of the Brazilian exports of goods and services which will be required in the construction of the project, according to what the Executive Power has established in the Loan Proposal submitted to the National Congress.
The deputies approved the resolution with 100 votes in favor, 20 against and 12 abstentions. Among the opposition deputies was Minou Tavarez Mirabal an independent deputy, who questioned the onerous conditions under which the contract was signed, in which the Norberto Odebrecht company figures as a participating exporter. The deputy criticized the fact that the state has a 3 ½ year deadline to fulfill its commitment and the payments of 24 consecutive quotas.
She also pointed out that the contract has been questioned regarding overpricing by millions of dollars, as well as for its effects on the environment. "This project lacks a plan for the handling of the toxic materials of the plant, which is going to contaminate the environment and affect the health of everyone," she said.
Also, deputy Nelson Arroyo, the spokesman for the deputies of the Modern Revolutionary Party (PRM), called on the other members of the block to reject the project which he said had little transparency and of which he said, had not been fully explained.
Nevertheless, the spokesman for the Reformist deputies, Ramon Rogelio Genao, expressed his support for the loan given the importance which, it was his understanding, it has for the country with regard to electricity generation.
With yesterday's decision, the project becomes law, since it already had the approval of the Senate of the Republic, which discussed and approved it on 15 April.
The loan contract was signed on 15 February, through the Ministry of Hacienda.
Tania Molina
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