Identifier
Created
Classification
Origin
05SANTODOMINGO4292
2005-09-14 11:45:00
UNCLASSIFIED
Embassy Santo Domingo
Cable title:  

DOMINICAN FUEL CONSERVATION PLAN DOES LITTLE TO

Tags:  DR ENRG EPET ETRD UNGA 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 02 SANTO DOMINGO 004292 

SIPDIS

DEPT FOR WHA, WHA/CAR, INR; NSC FOR SHANNON; USSOUTHCOM
ALSO FOR POLAD; TREASURY FOR OASIA-MAUREEN WAFER; USDA FOR
FAS; USDOC FOR 4322/ITA/MAC/WH/CARIBBEAN BASIN DIVISION;
USDOC FOR 3134/ITA/USFCS/RD/WH; DHS FOR CIS-CARLOS ITURREGUI

E.O. 12958: N/A
TAGS: DR ENRG EPET ETRD UNGA
SUBJECT: DOMINICAN FUEL CONSERVATION PLAN DOES LITTLE TO
LIMIT DEMAND

REF: A. SANTO DOMINGO 4215

B. SANTO DOMINGO 4269 (NOTAL)

UNCLAS SECTION 01 OF 02 SANTO DOMINGO 004292

SIPDIS

DEPT FOR WHA, WHA/CAR, INR; NSC FOR SHANNON; USSOUTHCOM
ALSO FOR POLAD; TREASURY FOR OASIA-MAUREEN WAFER; USDA FOR
FAS; USDOC FOR 4322/ITA/MAC/WH/CARIBBEAN BASIN DIVISION;
USDOC FOR 3134/ITA/USFCS/RD/WH; DHS FOR CIS-CARLOS ITURREGUI

E.O. 12958: N/A
TAGS: DR ENRG EPET ETRD UNGA
SUBJECT: DOMINICAN FUEL CONSERVATION PLAN DOES LITTLE TO
LIMIT DEMAND

REF: A. SANTO DOMINGO 4215

B. SANTO DOMINGO 4269 (NOTAL)


1. On September 11 Dominican President Leonel Fernandez
issued a second, not much improved version of a promised
energy conservation plan meant to reassure the country that
the government is reacting to the recent sharp rises in
gasoline and diesel prices. Instead of imposing modest
restrictions on vehicle circulation, as previously suggested,
the government is shutting down gasoline stations nationwide
after 8 p.m at night and all day Sundays. On Saturday nights
the stations remain open until midnight.


2. In a speech recorded before his departure on a ten-day
trip to Washington and New York, Fernandez warned the country
that cheap fuel "will not be coming back, and we must adjust
to new realities." He outlined various measures meant to
smooth traffic flow, including a decision to limit public
transport vehicles on the street to only one-half the fleet
on any given day.


3. Fernandez promised that in New York he would urge world
leaders to convene a "world summit" to discuss the effects of
high fuel prices on the world economy, especially upon
developing nations. He expressed concern over possible
effects on inflation, fiscal stability, exchange rates, the
nation's trade balance, and economic growth.


4. On Monday, September 12 the armed forces sent armed
soldiers to a number of gasoline stations in the capital to
make sure they shut off service as required. The Association
of Gasoline Distributors complained and said its members
would lay off half of their employhees.


5. Fernandez's plan provoked initial disappointment and anger
from many. The measures are little more than window
dressing. Closing gasoline stations will shift demand to work
hours, creating queues and inconvenience without limiting
demand.


6. Minor fixes to make traffic flow more smoothly -- such as
express lanes and removal of the ubiquitous speed bumps --
are welcome, but immobilizing half the fleet of public buses
each day will save little and will irritate commuters who

fight for place on board. Transport union officials angrily
insisting to journalists that the many privately owned buses
have to keep rolling in order to make expenses and meet
interest payments.


7. Fernandez suggested that public buses should use diesel
fuel rather than gasoline engines -- as most already do. The
plan does nothing to limit the use of subsidised cooking gas
rather than gasoline for fuel, and garages are reported to be
busily converting more and newer vehicles.


8. The President's idea of setting up vehicle inspection
stations and emissions certification is a fine suggestion for
the medium term, but the inefficiency of traffic law
enforcement suggests that modest individual bribes will
undermine enforcement efforts. The President's promise to
deploy more traffic police is unlikely to be effective in
enforcing the new rules.


9. Official vehicles are to remain out of circulation over
weekends, a change which Fernandez said would save 20 percent
of official gasoline consumption. This comment inadvertently
acknowledged how routinely these government resources are
improperly used for private transportation, a perk that
functionaries will not readily give up.


10. The government will distribute 5 million florescent tube
lamps in the countryside in its program, "Turn Off a Bulb."


11. In connection with the announced package, Fernandez
signed a decree renaming the largely discredited Office for
the Metro to the Office for the Reordering of Transportation
(OPRET),still headed by Diandino Pena. OPRET has a mandate
to design and implement an "Autonomous and Single Authority
of Transit and Transport" to regulate such services
nationwide. T


12. Many people have complained about Fernandez flying off
to his high-level conferences and leaving Dominicans behind
to deal with ever higher gasoline prices. So in an
increasingly characteristic spin, the Palace decided that the
President will cancel a visit to Puerto Rico scheduled for
September 19, where he was going to participate in a trade
mission.


13. There are supportive voices. Former president Mejia and
daily "Listin Diario," immediately supported Fernandez's
plan, but cautioned that he must set an example by cutting
back on the government's use of SUVs and fleet vehicles.
"Listin" columnist Orlando Gil argued that at least the
authorities are doing something to address an emergent
problem and that constructive criticism so far has been
scarce. He said that one of the proposed measures,
alternating days for public transport vehicles, were in
effect years ago in the Dominican Republic and could work
again. But he predicted that limiting gas station hours
would only spawn a black market in fuels.


14. Santo Domingo mayor Robert Salcedo, with his background
as an actor and broadcaster, provided his own public
relations moment last week, getting himself and a clutch of
aides photographed bicycling in the Mirador Sur park.
Salcedo promised that the city government would start
studying, soon, the possibility of establishing bike routes
across the city.


15. GEORGETOWN MINIMIZE CONSIDERED.
KUBISKE