Economy August 23, 2016 | 8:19 am

Utility to call for electricity tenders; buys in spot market until yearend

Santo Domingo.- Dominican Republic’s State-owned electric utility(CDEEE) announced Monday a call for tenders this week for new energy contracts,and supply coal and operation of the Punta Catalina coal-fired power plants.

CEO Ruben Jimenez Bichara said the terms of reference forthe contracts that were pending the call are ready, and that the information willbe published.

After the "Madrid Agreement" contracts expired onJuly 31, the distribution companies have been supplying on the so-called"spot market," based on supply and demand for energy, a formula theofficial said will continue at least until yearend.

"Right now we are dealing in the spot market that willremain until year end but the impact so far is very positive, because the priceof spot is very considerable, good price, and allows us to manage without majorrisks thus far," he said

Unprecedented

Jimenez said the tenders correspond to new long-term purchaseagreements for the electricity distribution companies; contracting the supplyof coal for Punta Catalina, and "restricted process" to contract operationsand maintenance services of the energy project.

The head of the CDEEE said the delay to announce the tenderis the result of what he affirms is a process that has no precedent in thecountry, which has even had the assistance of agencies such as theInter-American Development Bank (IDB) and specialized international firms.

"It’s a process to bid for energy that had never been donehere, and therefore carries an armor and a legal structure that must compliedwith step by step, without having any kind of vulnerability or weakness,"the official told reporters.

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