Nice People Networking

Loan approved for coal-fired electricity plant

The Chamber of Deputies has approved the US$656 million loan contract the government is taking on with the Economic and Social Development Bank (BNDES), the Brazilian government export bank, for financing the construction of two coal-fired power plants in Punta Catalina in Peravia province (Bani) in the southwest of the country. The two coal-fired power plants will generate 337.39 Mw each.

Brazilian company Odebrecht is the main contractor for the construction of the coal-fired plant that will come under the umbrella of the Dominican Public Electricity Corporation (CDEEE).

In reaction yesterday, Tuesday, 21 April 2015, former Minister of Environment Max Puig, who is the president of the Alianza Por la Democracia minority party, described the Chamber of Deputies’ approval of the loan as a “criminal act”. He said the construction had been overvalued by around US$1 billion, its environmental permit was issued irregularly, and it will affect the environment and health of the people who live in the southwestern province of Peravia (Bani).

He said it is a crime for Congress to continue to take on more debt for the country. Puig said the loan is not enough to cover the overvaluation of the power plants.

Independent deputy Minou Tavarez Mirabal said the conditions on which the government was contracting the loan were onerous as there would only be three-and-a-half years to pay it off in 24 consecutive installments. She added that the contract has been questioned due to an overvaluation of millions of dollars, as well as for the environmental effects.

Deputy Nelson Arroyo, PRM spokesman called on other PRM Deputies to reject the resolution, saying that it was far from transparent.

Ramon Rogelio Genao, from the PRSC however, supported the loan, on the grounds that it would help the country in its battle to generate energy.

With yesterday’s decision the financing for the Peravia province power plant passes on to the Presidency. It has already passed in the PLD-majority Senate.

Source: DR1, DiarioLibre

April 22, 2015

Category: DR News |

Leave a comment

You must be logged in to post a comment.

Last updated March 24, 2017 at 2:14 PM
stats for wordpress
View Statistics Report
Facebook Twitter