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Starting Monday generators are called to electricity tender

SANTO DOMINGO. The Dominican Corporation of State – owned Electricity Enterprises (CDEEE) announced on Sunday that they would soon invite tenders for new contracts for energy purchase by the distribution companies, so that he called on the national and international companies and consortiums to present, starting this Monday, their interest in participating.

Different from the contracts that are expiring, such as those of the Madrid Accords, which are long-term (in some cases 16 years), the new contracts will be for short periods, estimated at some two years. Nevertheless for the new investment projects for generation, the contracts could be for a longer-term, as a way of guaranteeing them, reported Carmen Carvajal, the press officer of the CDEEE, to this newspaper.

One of those new projects is the construction of the two coal-fired generators which, with an installed capacity of more than 700 MW, are being built by the government in Punta Catalina, in Bani. It is expected that in 2017 one of these generators will go into operation.

Milton Morrison, the Executive Vice President of the Dominican Association of Electricity Industries (ADIE), feels that the new short-term contracts for the distribution companies are legitimate. However, he observed that “once a tender is held, they have to start organizing the next one” as a way of guaranteeing the fluidity of these operations.

However, he also defended the contracts that are long-term as a form of achieving “a guarantee of the supply.”

The tenders seek to replace the contracts that have expired and are about to expire, between the distribution companies which channel the energy to the different companies and homes, and those of the generators, which produce it and sell it on the retail market.

Ruben Jimenez Bichara, the Executive Vice President of the CDEEE, declared that the tender process will be redirected to the contracting of electric energy for different future periods, the first of these starting in August 2016. He explained that this will be done according to what is governed by Article 110 of the General Law of Electricity 125 – 01, and its modifications.

Expired contracts

Milton Morrison, the Vice President of the ADIE, reported that so far two contracts for the purchase and sale of energy have expired. The first expired in October 2014, and belongs to the Puerto Plata Electricity Company, whose manager is the current president of the ADI E, Marcos Cochon. This company has two generation plants in which have a total capacity of 67 MW. The second contract belongs to the San Felipe Generator LP, which operates a combined cycle plant with 180 MW, located in the city of Puerto Plata and the North area of the Dominican Republic, and that at the present time supplies nearly 8% of the electricity demand of the national interconnected electric system. In June 2016 the rest of the contracts for the purchase and sale of energy signed in 2001 as the result of the questionable negotiations called the Madrid Accords will also expire.

Source: DiarioLibre

February 16, 2015

Category: DR News |

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