SECRETARY OF ENERGY ABRAHAM PROPOSES TO "SHED MORE

UNCLAS SANTO DOMINGO 002513 SIPDIS DEPT PASS DOE E.O. 12958: N/A TAGS: DR ENRG OVIP PREL SUBJECT: SECRETARY OF ENERGY ABRAHAM PROPOSES TO "SHED MORE LIGHT" ON DOMINICAN ENERGY SECTOR REF: A. SANTO DOMINGO 01606 ¶B. SECSTATE 83947 ¶1. Summary. United States Secretary of Energy Spencer Abraham visited the Dominican Republic April 15 on his way to the Sixth Western Hemisphere Energy Minister's Meeting in Trinidad & Tobago, April 19 - 21. The Secretary met with Embassy personnel, private sector representatives, and President Mejia and his energy team. Secretary Abraham delivered the message of the need for more transparency, respect for rule of law and regulatory institutions, and certainty of contract. He also offered the Dominican Republic more technical assistance in three areas of energy production and consumption. End Summary. ¶2. U.S. Secretary of Energy Spencer Abraham visited the Dominican Republic April 15 on his way to the Sixth Western Hemisphere Energy Minister's Meeting in Trinidad & Tobago, April 19 - 21. The first stop on the Secretary's visit was a short Embassy briefing session at the Ambassador's Residence. The Embassy session allowed the Ambassador and emboffs to brief the Secretary and his staff on the energy, economic, political, and commercial issues currently affecting the Dominican Republic, including the upcoming presidential elections and International Monetary Fund (IMF) Standby Agreement. ¶3. The Secretary next met with private sector generators to hear their views and concerns as well as their suggestions for possible solutions to the problems in the sector. Representatives of most of the major U.S. companies in the sector were present, including AES, Haina, Itabo, Cogentrix, and Monte Rio (Caterpillar). Speaking for the group were AES Dominicana President Julian Nebreda and Monte Rio President Elena Viyella. Together they presented the Secretary with a short history of the electrical sector, highlighting how the sector entered into its current situation and a list of short-term and long-term solutions. The mix of Mr. Nebreda and Mrs. Viyella was incredibly effective since each represented a different position on the recently signed February 11 agreement between the GODR and a number of generators (REFTEL). Secretary Abraham expressed his concern over the situation, noting the impression he had gathered was that all those present seemed willing to continue operating in the Dominican Republic and that the proper reforms and more confidence could turn the sector into a viable industry and attract more investment. He also informed them that he intended to deliver his message of the need for more transparency, respect for rule of law, strenghtening of regulatory institutions, and certainty of contract to President Mejia. He concluded by opening the possibility of sending personnel down to the Dominican Republic (through USAID) for consultations and assistance. ¶4. Following the private sector roundtable the Ambassador, Secretary, emboffs and energy staffers met with President SIPDIS Mejia and the GODR energy team in the President's office. The meeting included Rafael Calderon, Minister of Finance, George Reinoso, Superintendent of Electricity, Antonio Almonte, Director of the National Energy Commission, and others. The Secretary thanked President Mejia for receiving him and quickly proposed the offer of possible technical assistance (through USAID) in three areas: 1) more energy efficiency in government buildings, 2) new technology for energy generation and 3) fuel cell technology for remote, rural areas. After the meeting, the Secretary spoke to the press outside the President's office and emphasized USG and GODR long standing close collaboration in numerous areas. He stated his intention of closer coordination between the US DOE (through USAID) and the GODR. The Ambassador also spoke to the press explaining how the Secreatry's visit was yet another example of the close bilateral relations between the USG and GODR. ¶5. The meeting with President Mejia also allowed the Ambassador to deliver President Bush's letter on Iraq to President Mejia (REFTEL). President Mejia did not read the letter during the meeting. Embassy will report any response by President Mejia or the GODR. ¶6. Department of Energy did not have an opportunity to clear this cable. HERTELL