DOMINICAN REPUBLIC. Minister of the Hacienda Vicente Bengoa announced yesterday that he would take a legislative proposal from the Executive Branch to the Congress today in order to modify the 2009 Budget Law.

He explained that this modification will basically seek to include an additional US$137 million to what has already been assigned to the electricity subsidy, bringing the grand total to US$566 million for this year.

The official said that at the present time there US$429 million assigned to the Dominican Corporation of State-owned electricity Enterprises (CDEEE). He reported that in the proposal additional resources are assigned to the sector bringing the total to US$496.6 million, which represents the 1.1% of GDP "such as was consigned in the Letter of Intention that was given to the International Monetary Fund".

Another US$70 million will be assigned for investment, he added. Bengoa underlined that "the Ministry of the hacienda has always complied with what is established in the law" with regard to the financial requirements of the electric sector.

"They have received the resources as the law requires", he added. He referred, likewise, to the commitment taken on with the IMF that is that the subsidy for this sector be gradually reduced.

He said that in 2008 the subsidy was 2.7% of GDP, and in this year it would be 1.1% of GDP, while in 2010 there would be 0.8% of GDP for the subsidy and "in 2012 there will be no subsidies or transfers".

Minister Bengoa spoke at a press conference offered in his office yesterday afternoon, during which he mentioned that other details of the proposal would be publicized when the proposal is delivered to the Congress.

De Diario Libre