Keep Us Strong WikiLeaks logo

Currently released so far... 143912 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
AORC AS AF AM AJ ASEC AU AMGT APER ACOA ASEAN AG AFFAIRS AR AFIN ABUD AO AEMR ADANA AMED AADP AINF ARF ADB ACS AE AID AL AC AGR ABLD AMCHAMS AECL AINT AND ASIG AUC APECO AFGHANISTAN AY ARABL ACAO ANET AFSN AZ AFLU ALOW ASSK AFSI ACABQ AMB APEC AIDS AA ATRN AMTC AVIATION AESC ASSEMBLY ADPM ASECKFRDCVISKIRFPHUMSMIGEG AGOA ASUP AFPREL ARNOLD ADCO AN ACOTA AODE AROC AMCHAM AT ACKM ASCH AORCUNGA AVIANFLU AVIAN AIT ASECPHUM ATRA AGENDA AIN AFINM APCS AGENGA ABDALLAH ALOWAR AFL AMBASSADOR ARSO AGMT ASPA AOREC AGAO ARR AOMS ASC ALIREZA AORD AORG ASECVE ABER ARABBL ADM AMER ALVAREZ AORCO ARM APERTH AINR AGRI ALZUGUREN ANGEL ACDA AEMED ARC AMGMT AEMRASECCASCKFLOMARRPRELPINRAMGTJMXL ASECAFINGMGRIZOREPTU ABMC AIAG ALJAZEERA ASR ASECARP ALAMI APRM ASECM AMPR AEGR AUSTRALIAGROUP ASE AMGTHA ARNOLDFREDERICK AIDAC AOPC ANTITERRORISM ASEG AMIA ASEX AEMRBC AFOR ABT AMERICA AGENCIES AGS ADRC ASJA AEAID ANARCHISTS AME AEC ALNEA AMGE AMEDCASCKFLO AK ANTONIO ASO AFINIZ ASEDC AOWC ACCOUNT ACTION AMG AFPK AOCR AMEDI AGIT ASOC ACOAAMGT AMLB AZE AORCYM AORL AGRICULTURE ACEC AGUILAR ASCC AFSA ASES ADIP ASED ASCE ASFC ASECTH AFGHAN ANTXON APRC AFAF AFARI ASECEFINKCRMKPAOPTERKHLSAEMRNS AX ALAB ASECAF ASA ASECAFIN ASIC AFZAL AMGTATK ALBE AMT AORCEUNPREFPRELSMIGBN AGUIRRE AAA ABLG ARCH AGRIC AIHRC ADEL AMEX ALI AQ ATFN AORCD ARAS AINFCY AFDB ACBAQ AFDIN AOPR AREP ALEXANDER ALANAZI ABDULRAHMEN ABDULHADI ATRD AEIR AOIC ABLDG AFR ASEK AER ALOUNI AMCT AVERY ASECCASC ARG APR AMAT AEMRS AFU ATPDEA ALL ASECE ANDREW
EAIR ECON ETRD EAGR EAID EFIN ETTC ENRG EMIN ECPS EG EPET EINV ELAB EU ECONOMICS EC EZ EUN EN ECIN EWWT EXTERNAL ENIV ES ESA ELN EFIS EIND EPA ELTN EXIM ET EINT EI ER EAIDAF ETRO ETRDECONWTOCS ECTRD EUR ECOWAS ECUN EBRD ECONOMIC ENGR ECONOMY EFND ELECTIONS EPECO EUMEM ETMIN EXBS EAIRECONRP ERTD EAP ERGR EUREM EFI EIB ENGY ELNTECON EAIDXMXAXBXFFR ECOSOC EEB EINF ETRN ENGRD ESTH ENRC EXPORT EK ENRGMO ECO EGAD EXIMOPIC ETRDPGOV EURM ETRA ENERG ECLAC EINO ENVIRONMENT EFIC ECIP ETRDAORC ENRD EMED EIAR ECPN ELAP ETCC EAC ENEG ESCAP EWWC ELTD ELA EIVN ELF ETR EFTA EMAIL EL EMS EID ELNT ECPSN ERIN ETT EETC ELAN ECHEVARRIA EPWR EVIN ENVR ENRGJM ELBR EUC EARG EAPC EICN EEC EREL EAIS ELBA EPETUN EWWY ETRDGK EV EDU EFN EVN EAIDETRD ENRGTRGYETRDBEXPBTIOSZ ETEX ESCI EAIDHO EENV ETRC ESOC EINDQTRD EINVA EFLU EGEN ECE EAGRBN EON EFINECONCS EIAD ECPC ENV ETDR EAGER ETRDKIPR EWT EDEV ECCP ECCT EARI EINVECON ED ETRDEC EMINETRD EADM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID ETAD ECOM ECONETRDEAGRJA EMINECINECONSENVTBIONS ESSO ETRG ELAM ECA EENG EITC ENG ERA EPSC ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EIPR ELABPGOVBN EURFOR ETRAD EUE EISNLN ECONETRDBESPAR ELAINE EGOVSY EAUD EAGRECONEINVPGOVBN EINVETRD EPIN ECONENRG EDRC ESENV EB ENER ELTNSNAR EURN ECONPGOVBN ETTF ENVT EPIT ESOCI EFINOECD ERD EDUC EUM ETEL EUEAID ENRGY ETD EAGRE EAR EAIDMG EE EET ETER ERICKSON EIAID EX EAG EBEXP ESTN EAIDAORC EING EGOV EEOC EAGRRP EVENTS ENRGKNNPMNUCPARMPRELNPTIAEAJMXL ETRDEMIN EPETEIND EAIDRW ENVI ETRDEINVECINPGOVCS EPEC EDUARDO EGAR EPCS EPRT EAIDPHUMPRELUG EPTED ETRB EPETPGOV ECONQH EAIDS EFINECONEAIDUNGAGM EAIDAR EAGRBTIOBEXPETRDBN ESF EINR ELABPHUMSMIGKCRMBN EIDN ETRK ESTRADA EXEC EAIO EGHG ECN EDA ECOS EPREL EINVKSCA ENNP ELABV ETA EWWTPRELPGOVMASSMARRBN EUCOM EAIDASEC ENR END EP ERNG ESPS EITI EINTECPS EAVI ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID ELTRN EADI ELDIN ELND ECRM EINVEFIN EAOD EFINTS EINDIR ENRGKNNP ETRDEIQ ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD EAIT ECONEINVEFINPGOVIZ EWWI ENERGY ELB EINDETRD EMI ECONEAIR ECONEFIN EHUM EFNI EOXC EISNAR ETRDEINVTINTCS EIN EFIM EMW ETIO ETRDGR EMN EXO EATO EWTR ELIN EAGREAIDPGOVPRELBN EINVETC ETTD EIQ ECONCS EPPD ESS EUEAGR ENRGIZ EISL EUNJ EIDE ENRGSD ELAD ESPINOSA ELEC EAIG ESLCO ENTG ETRDECD EINVECONSENVCSJA EEPET EUNCH ECINECONCS
KPKO KIPR KWBG KPAL KDEM KTFN KNNP KGIC KTIA KCRM KDRG KWMN KJUS KIDE KSUM KTIP KFRD KMCA KMDR KCIP KTDB KPAO KPWR KOMC KU KIRF KCOR KHLS KISL KSCA KGHG KS KSTH KSEP KE KPAI KWAC KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KPRP KVPR KAWC KUNR KZ KPLS KN KSTC KMFO KID KNAR KCFE KRIM KFLO KCSA KG KFSC KSCI KFLU KMIG KRVC KV KVRP KMPI KNEI KAPO KOLY KGIT KSAF KIRC KNSD KBIO KHIV KHDP KBTR KHUM KSAC KACT KRAD KPRV KTEX KPIR KDMR KMPF KPFO KICA KWMM KICC KR KCOM KAID KINR KBCT KOCI KCRS KTER KSPR KDP KFIN KCMR KMOC KUWAIT KIPRZ KSEO KLIG KWIR KISM KLEG KTBD KCUM KMSG KMWN KREL KPREL KAWK KIMT KCSY KESS KWPA KNPT KTBT KCROM KPOW KFTN KPKP KICR KGHA KOMS KJUST KREC KOC KFPC KGLB KMRS KTFIN KCRCM KWNM KHGH KRFD KY KGCC KFEM KVIR KRCM KEMR KIIP KPOA KREF KJRE KRKO KOGL KSCS KGOV KCRIM KEM KCUL KRIF KCEM KITA KCRN KCIS KSEAO KWMEN KEANE KNNC KNAP KEDEM KNEP KHPD KPSC KIRP KUNC KALM KCCP KDEN KSEC KAYLA KIMMITT KO KNUC KSIA KLFU KLAB KTDD KIRCOEXC KECF KIPRETRDKCRM KNDP KIRCHOFF KJAN KFRDSOCIRO KWMNSMIG KEAI KKPO KPOL KRD KWMNPREL KATRINA KBWG KW KPPD KTIAEUN KDHS KRV KBTS KWCI KICT KPALAOIS KPMI KWN KTDM KWM KLHS KLBO KDEMK KT KIDS KWWW KLIP KPRM KSKN KTTB KTRD KNPP KOR KGKG KNN KTIAIC KSRE KDRL KVCORR KDEMGT KOMO KSTCC KMAC KSOC KMCC KCHG KSEPCVIS KGIV KPO KSEI KSTCPL KSI KRMS KFLOA KIND KPPAO KCM KRFR KICCPUR KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KFAM KWWMN KENV KGH KPOP KFCE KNAO KTIAPARM KWMNKDEM KDRM KNNNP KEVIN KEMPI KWIM KGCN KUM KMGT KKOR KSMT KISLSCUL KNRV KPRO KOMCSG KLPM KDTB KFGM KCRP KAUST KNNPPARM KUNH KWAWC KSPA KTSC KUS KSOCI KCMA KTFR KPAOPREL KNNPCH KWGB KSTT KNUP KPGOV KUK KMNP KPAS KHMN KPAD KSTS KCORR KI KLSO KWNN KNP KPTD KESO KMPP KEMS KPAONZ KPOV KTLA KPAOKMDRKE KNMP KWMNCI KWUN KRDP KWKN KPAOY KEIM KGICKS KIPT KREISLER KTAO KJU KLTN KWMNPHUMPRELKPAOZW KEN KQ KWPR KSCT KGHGHIV KEDU KRCIM KFIU KWIC KNNO KILS KTIALG KNNA KMCAJO KINP KRM KLFLO KPA KOMCCO KKIV KHSA KDM KRCS KWBGSY KISLAO KNPPIS KNNPMNUC KCRI KX KWWT KPAM KVRC KERG KK KSUMPHUM KACP KSLG KIF KIVP KHOURY KNPR KUNRAORC KCOG KCFC KWMJN KFTFN KTFM KPDD KMPIO KCERS KDUM KDEMAF KMEPI KHSL KEPREL KAWX KIRL KNNR KOMH KMPT KISLPINR KADM KPER KTPN KSCAECON KA KJUSTH KPIN KDEV KCSI KNRG KAKA KFRP KTSD KINL KJUSKUNR KQM KQRDQ KWBC KMRD KVBL KOM KMPL KEDM KFLD KPRD KRGY KNNF KPROG KIFR KPOKO KM KWMNCS KAWS KLAP KPAK KHIB KOEM KDDG KCGC
PGOV PREL PK PTER PINR PO PHUM PARM PREF PINF PRL PM PINS PROP PALESTINIAN PE PBTS PNAT PHSA PL PA PSEPC POSTS POLITICS POLICY POL PU PAHO PHUMPGOV PGOG PARALYMPIC PGOC PNR PREFA PMIL POLITICAL PROV PRUM PBIO PAK POV POLG PAR POLM PHUMPREL PKO PUNE PROG PEL PROPERTY PKAO PRE PSOE PHAS PNUM PGOVE PY PIRF PRES POWELL PP PREM PCON PGOVPTER PGOVPREL PODC PTBS PTEL PGOVTI PHSAPREL PD PG PRC PVOV PLO PRELL PEPFAR PREK PEREZ PINT POLI PPOL PARTIES PT PRELUN PH PENA PIN PGPV PKST PROTESTS PHSAK PRM PROLIFERATION PGOVBL PAS PUM PMIG PGIC PTERPGOV PSHA PHM PHARM PRELHA PELOSI PGOVKCMABN PQM PETER PJUS PKK POUS PTE PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PERM PRELGOV PAO PNIR PARMP PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PHYTRP PHUML PFOV PDEM PUOS PN PRESIDENT PERURENA PRIVATIZATION PHUH PIF POG PERL PKPA PREI PTERKU PSEC PRELKSUMXABN PETROL PRIL POLUN PPD PRELUNSC PREZ PCUL PREO PGOVZI POLMIL PERSONS PREFL PASS PV PETERS PING PQL PETR PARMS PNUC PS PARLIAMENT PINSCE PROTECTION PLAB PGV PBS PGOVENRGCVISMASSEAIDOPRCEWWTBN PKNP PSOCI PSI PTERM PLUM PF PVIP PARP PHUMQHA PRELNP PHIM PRELBR PUBLIC PHUMKPAL PHAM PUAS PBOV PRELTBIOBA PGOVU PHUMPINS PICES PGOVENRG PRELKPKO PHU PHUMKCRS POGV PATTY PSOC PRELSP PREC PSO PAIGH PKPO PARK PRELPLS PRELPK PHUS PPREL PTERPREL PROL PDA PRELPGOV PRELAF PAGE PGOVGM PGOVECON PHUMIZNL PMAR PGOVAF PMDL PKBL PARN PARMIR PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PDD PRELKPAO PKMN PRELEZ PHUMPRELPGOV PARTM PGOVEAGRKMCAKNARBN PPEL PGOVPRELPINRBN PGOVSOCI PWBG PGOVEAID PGOVPM PBST PKEAID PRAM PRELEVU PHUMA PGOR PPA PINSO PROVE PRELKPAOIZ PPAO PHUMPRELBN PGVO PHUMPTER PAGR PMIN PBTSEWWT PHUMR PDOV PINO PARAGRAPH PACE PINL PKPAL PTERE PGOVAU PGOF PBTSRU PRGOV PRHUM PCI PGO PRELEUN PAC PRESL PORG PKFK PEPR PRELP PMR PRTER PNG PGOVPHUMKPAO PRELECON PRELNL PINOCHET PAARM PKPAO PFOR PGOVLO PHUMBA POPDC PRELC PHUME PER PHJM POLINT PGOVPZ PGOVKCRM PAUL PHALANAGE PARTY PPEF PECON PEACE PROCESS PPGOV PLN PRELSW PHUMS PRF PEDRO PHUMKDEM PUNR PVPR PATRICK PGOVKMCAPHUMBN PRELA PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PBT PAMQ

Browse by classification

Community resources

courage is contagious

Viewing cable 06SANTODOMINGO987, DOMINICAN ELECTRICITY CRISIS CONTINUES--NO CHANGE

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06SANTODOMINGO987.
Reference ID Created Released Classification Origin
06SANTODOMINGO987 2006-03-22 12:57 2011-08-26 00:00 UNCLASSIFIED Embassy Santo Domingo
VZCZCXYZ0001
PP RUEHWEB

DE RUEHDG #0987/01 0811257
ZNR UUUUU ZZH
P 221257Z MAR 06
FM AMEMBASSY SANTO DOMINGO
TO SECSTATE WASHDC PRIORITY 4108
UNCLAS SANTO DOMINGO 000987 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR WHA/CAR, EB/IFD/OMA, EB/ESC/IEC/EPC 
 
E.O. 12958: N/A 
TAGS: DR ENRG PGOV
SUBJECT: DOMINICAN ELECTRICITY CRISIS CONTINUES--NO CHANGE 
EXPECTED BEFORE MAY ELECTIONS 
 
REF: A. 2005 SANTO DOMINGO 04036 
 
     B. 2004 SANTO DOMINGO 02988 
     C. 2004 SANTO DOMINGO 02957 
     D. 2006 SANTO DOMINGO 00006 
 
1. Summary.   The Dominican Republic continues to experience 
frequent localized electrical power blackouts that can last 
more than twelve hours a day.  Energy sector problems hinder 
economic competitiveness and create widespread public 
dissatisfaction.  Supply shortfalls in the sector can be 
attributed mainly to the distributors' inability to collect 
sufficient funds from consumers.  Contributing to the 
problem, authorities have declined to allow electricity 
tariffs to adjust to reflect world fuel price levels.  The 
Dominican electric sector subsidy has grown in the last 18 
months to USD 712 million.  The projected subsidy for 2006 is 
USD 600 million.  The executive, focused on the May 2006 
congressional elections, is unlikely to make any 
controversial sector reforms*-including allowing the tariff 
to increase, reducing subsidies to the poor, or increasing 
collections.  End Summary 
 
------------------------------------------ 
IMF/WB Programmatic Power Sector Reform Loan 
------------------------------------------ 
 
2. The World Bank has sought for years to achieve consensus 
on reform in the energy sector.  In 2002 the Bank supported 
negotiation of the "Madrid Accord," which would have resulted 
in a one)time payment to generators by the World Bank, in 
return for renegotiated contract rates.  Because of the 
financial crisis resulting from major banking frauds, which 
came to light in 2003, the government was never able to 
qualify for the loan (reftels B and C). 
 
3. In 2004, the World Bank redesigned the structural loan, 
which was associated with a USAID energy stabilization plan. 
 The policy-based loan of USD 150 million was designed to 
support the initial phases of the financial recovery of the 
sector, using conditionality to encourage collections and to 
deal with arrears.  Collection improvement criteria were 
specified for the three electricity distributor companies, 
two of which are entirely government owned. 
 
4. The World Bank planned to disburse the loan in three 
tranches of USD 50 million.  The first tranche, for June 
2005, required that the distribution companies reduce losses 
and improve collections to specified percentages of 
electricity furnished.  It also required that the government 
remain current on its electricity bills, transfer the 
budgeted funds to the distribution companies via the 
Dominican Corporation of State Electric Companies (CDEEE), 
and allow the automatic adjustment of retail tariffs for 
variations in the exchange rate, fuel prices, and inflation. 
Sector participants failed to satisfy these conditions and 
the World Bank did not release the loan.  While the USAID 
plan estimated government subsidies of USD 350 million for 
2005, the final figure, owing in part to higher world 
petroleum prices, was USD 500 million. 
 
5.  Since January the CDEEE has refused to authorize 
increases in electricity tariffs.  Director General Radhames 
Segura complained publicly about World Bank intransigence, 
prompting the Bank,s office to issue an explanation of the 
agreed criteria for the loan.  Segura advocated 
"triangulation" of financing, a euphemism for a bridge loan 
from the government-owned Banco de Reservas.  The reality is 
that the administration wants to avoid tariff rises during 
the congressional election campaign that culminates in the 
May 16 elections. 
 
 
--------------------------------------------- ---- 
The Anti-Blackout Program 
--------------------------------------------- ------ 
 
6. Poor neighborhoods are particularly affected by power 
outages because almost no one has a backup generator.   The 
shortage of electricity in these areas increases the risk of 
night crime and worsens already meager medical and 
educational services.  It disrupts local businesses. 
 
7.  In 2001 the administration of President Mejia created 
electricity subsidies for poor urban neighborhoods with the 
Blackout Reduction Program (Programa Nacional de Reduccion de 
Apagones ) PRA).  PRA offered consumers in subsidized poor 
neighborhoods electricity for 20 hours a day, with 75 percent 
of the cost financed by the government and 25 percent by the 
distributors.  PRA consumers were assigned fixed monthly 
payments, not affected by changes in fuel prices or the 
exchange rate. 
 
 
8.  The system had some initial success in addressing social 
unrest created by blackouts, but it established negative 
incentives.  The system of fixed payments encouraged energy 
waste and the cheap service attracted migration to the PRA 
areas.  Originally scheduled to last only 2 years, the PRA is 
still in place, five years after its inception. 
 
--------------------------------------------- ------- 
A Misguided Approach:  Increasing Generation Capacity 
--------------------------------------------- --- 
 
9. The Fernandez administration's response to the nation's 
electricity problems has included a push to increase 
generating capacity, even though experts on energy agree that 
there is no lack of capacity.  The Dominican Republic's 
installed generation capacity is over 3000 megawatts while 
the average daily peak demand is around 1800 megawatts 
(reftel A). 
 
10. The government recently contracted the construction of 
two coal-fired electric generation plants.  It awarded the 
first plant contract to United Arab Emirates corporation 
Emirates Power DR, S.A. and is negotiating with Chinese firm 
Sichuan Machinery for construction of the second facility. 
The 600-megawatt plants, to be located in the northwestern 
coastal town of Monte Cristi and the southwestern town of 
Azua, represent an estimated combined investment of USD 1.2 
to 1.4 billion and are projected to be operational in 2009. 
The government contends the new plants will produce 
electricity at less than half the cost of plants powered with 
gas and fuel oil (USD 0.03/kwh versus USD 0.08/kwh). 
Proponents, including the President, argue that finding a 
cheaper source of fuel is key to eliminating regular 
blackouts. 
 
11. With cheaper coal-generated electricity, distribution 
companies stand to save significantly over more expensive 
energy from current generators.  One possible motive for 
adding coal-fired generating capacity is that the government 
plans to use the alternative source of electricity to force 
existing generators to renegotiate their contracts to include 
lower energy tariffs. 
 
12. The outcome of the initiative is not clear.  The 
authorities have not included externalities such as 
environmental damage in the cost calculation.  Nor have they 
provided estimates of the cost of building high-tension 
transmission lines to connect the new installations to the 
grid.  It is unclear how the government, already pressed to 
find funds for subsidies to keep the system running, intends 
to finance completion of the project. 
 
-------------------------------------------- 
Uncertain Prospects for 2006 
-------------------------------------------- 
 
13. On March 1, the government, distributors, and most 
generators signed the "General Agreement of the Dominican 
Electricity Sector for 2006."  The agreement is a promise of 
timely payment for all electricity purchased by the 
distributors from the generators, valued at about USD 90 
million per month.  The agreement freezes the remainder of 
pre-2006 debt, estimated at more than USD 500 million, 
although the government commits to paying interest on the 
debt. 
 
14. Several days after the agreement was signed, Finance 
Minister Vicente Bengoa publicly complained that his ministry 
had not been consulted.  Bengoa indicated that he was not 
willing to approve the agreement until after a thorough 
review. 
 
15. President Fernandez acknowledges electricity problems to 
be one of the biggest challenges facing his government, and 
his administration is focusing on coal fired production and 
securing energy deals with coal- or petroleum-rich countries, 
including Venezuela, Mexico, Colombia, and Qatar (reftel D). 
The administration has also decided, once again, to establish 
an energy commission of generators, distributors, and 
international organizations to help design approaches to the 
sector's problems. 
 
16. The fundamental flaw of the system is the culture of 
nonpayment for energy services.  Contracts, commissions, and 
new coal plants may address small parts of the electricity 
sector dilemma but the core problem--poor performance of the 
distribution companies on collections--remains unresolved, 
although in late 2005 the two government-owned distributors 
hired experienced Latin American expatriates to direct their 
operations.  The distribution companies collect around USD 
 
0.50 of every USD 1.00 of electricity sold and the consequent 
delay in payments to generators results in plants being off 
line when they need to be producing electricity.  Raising 
tariffs, enforcing collections, and reducing subsidies are 
necessary steps to fix the sector's problems.  Due to the 
population's great sensitivity to these proposed changes, it 
is unlikely that the government will make any considerable 
reforms in these areas prior to May congressional elections. 
 
End cable 
HERTELL