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Business: "The ownership of the coal-fired generation plant at Catalina should have a tender"

They say that the function of the state is regulatory

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Business: The ownership of the coal-fired generation plant at Catalina should have a tender

SANTO DOMINGO. "We want them to carry out transparent tender procedures. For example, in the case of the coal-fired generation plants, we want them to have a tender not only for operation and maintenance, but also for ownership," explains businesswoman Mari sol Vicens, a lawyer and the deputy secretary of the National Council of Private Enterprise (Conep).

Vicens issued this opinion, as she recalled the statement on 9 April by Ruben Bichara, the vice president of the Dominican Corporation of State - owned Electricity Enterprises (CDEEE), relating to the coal-fired generation plant that is being built at Punta Catalina. That day he stated that they are only thinking about issuing a tender for the "operation and maintenance," while the administration of the Plant will remain in the hands of the state.

Early on Tuesday afternoon, the principal executives of Conep met with the economic editors of the nation's newspapers. In the context of this luncheon, held at Conep headquarters and chaired by Rafael Blanco Canto, the Conep president, the entity explained its proposals "for the sustainability and development of the electricity sector."

In an 18 page document, the organization, which brings together the most powerful business group in the country, explained their position which they based on nine principles.

One of them, perhaps the most controversial, has to do with "the role of the State and its institutions," where they propose that the government should transfer to the private sector, and within a timeframe of no greater than five years," those activities in which they are currently participating, which are not the transmission of electricity and hydroelectric generation.

With this proposal, the Conep suggests that the State sell to the private sector their participation in the generation companies which use coal, petroleum derivatives, or any other source of energy which is not water.

"The principle role of the State should be regulatory, supervisory and disciplinary," says Conep. They feel that the "distortions which historically have been produced by the multiplication of its roles, have prevented the State from having "an efficient and independent regulatory role," which has affected the equal treatment of all the sectors.

They note that in the financial sector, they (the State) also operate public banks, and that the State is the regulator. "There they have also had problems," responds Rafael Blanco Canto, who comes from the tourist industry of La Romana and Bayahibe.

The Conep sets out its proposal in the context of the national discussions held precious to the Electricity Pact, a requirement of the National Development Strategy (END).

And precisely today the Dominican Corporation of State - owned Electricity Enterprises (CD EEE) is holding, at the Sheraton hotel, a program of socialization, called "The Electricity Sector as Seen by the administrators of the CDEEE."

This has the unusual feature that taking part, besides Bichara, the current vice president of the CDEEE, will be all of the former administrators of this state enterprise in the electric sector, which is the owner of 75% of the interconnected system, according to Blanco Canto.

Among this number of administrators, one stands out, the former Conep president, businessman Celso Marranzini, the Czar of the state electric sector between August 2009 and August 2012.

Among the former administrators are also included the agronomist, and expert in the plants of the vegetable kingdom, Amilcar Romero (1995 - 1996), and engineer Marcelo Jorge, who occupied the position during the government of President Jorge Blanco, when the CDEEE was called "the CDE."

In the meantime, the Conep argues for "judicial security", in order to promote private investment in the sector, as well as free trade and transparency in the purchase and sale of energy by the distributors.

The Conep principles

The principles of the proposal by the Conep include, in addition, the guarantee of electricity service to all of the population; the promotion of renewable energies; the support of private investment, which includes the promotion of free trade. Likewise, they propose the autonomy (from political decisions) of the distribution companies, whether these are public or private. Equally, they suggest an electricity market that is efficient and which responds to signals of adequate pricing, and a system that guarantees opportune financial flows.