US embassy cable - 04SANTODOMINGO2513

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