DOMINICAN REPUBLIC – Law that Authorizes the Dominican State, through the Corporación Dominicana de Empresas Eléctricas Estatales (CDEEE), to Participate in Power Generation

by Manatt, Phelps & Phillips, LLP
Contact

On March 12, 2014, we advised that the Executive Power had introduced an important bill to the Senate (“Bill”) seeking primarily to (a) authorize the Dominican State, through the Corporación Dominicana de Empresas Eléctricas Estatales (“CDEEE”), to participate, on a temporary basis, in the development of power generation projects aimed at changing the national energy matrix and increasing the supply of power generation from low-cost and low-environmental impact sources, either as a developer or owner, directly or in partnership with the private sector (“State-owned Power Generation Projects”), and (b) exempt the development and implementation of State-owned Power Generation Projects from the procedures and terms established by Law No. 340-06 regarding Purchases and Procurement of Goods, Services, Works and Concessions of the State, essentially from the tender processes and associated timelines that, in the absence of such exemption, the CDEEE should carry out/comply with in order to develop and implement State-owned Power Generation Projects.

Recently, the National Congress passed a law as a result of the Bill, which remains subject to the President’s promulgation (“Law”). Among other things, the Law (a) authorizes the State, through the CDEEE, to develop State-owned Power Generation Projects, (b) requires that the State-owned Power Generation Projects be developed and implemented, at each stage, in strict compliance with the constitutional requirements and applicable laws, in particular the General Electricity Law and related regulations, and (c) exempts the distribution companies, while they are owned by the Dominican State, from complying with the tender process mandates required by the General Electricity Law in order for such companies to be able to enter into long-term contracts for the purchase and sale of electricity, to the extent the electricity that is the subject of such contracts is generated by State-owned Power Generation Projects that are wholly owned (100%) by the Dominican State, through the CDEEE, or any other member of the Bloc of State-owned Power Generation Companies.

Likewise, the Law, among other things:

  1. Provides that the authorization granted to the Dominican State to develop State-owned Power Generation Projects, through the CDEEE, includes the granting of definitive concession to build and operate power generation projects in the Wholesale Electricity Market (MEM) of the National Interconnected Electric System (“SENI”), if such projects are wholly owned (100%) by the Dominican State.
  2. Provides that the CDEEE must notify the National Energy Commission (“CNE”) and the Superintendency of Electricity (“SIE”) at least sixty (60) days prior to commencing construction of any State-owned Power Generation Project.
  3. Provides that the CDEEE must deliver to the CNE and the SIE, within the sixty (60) day period referred to above, among other things, the following information/documentation with respect to any State-owned Power Generation Project:
    • Location information;
    • Description of the project’s civil works;
    • Technology to be used, particularly the type of fuel;
    • Lifetime and production capacity;
    • Description of the electrical transmission works and the party responsible for their construction;
    • Electrical study containing, at least, the short circuit analysis, load flow and stability of the Interconnected Grid, for approval by the SIE;
    • Timeline for execution of the project’s works and scheduled date for commissioning;
    • Environmental impact assessment; and
    • Certificate of no objection from the Ministry of Environment and Natural Resources.
  4. Introduces the concept of "Representative of the State-owned Power Generation Companies" for purposes of participation in the Coordinating Board of the Coordinating Body of the National Interconnected Electric System (“SENI”).
  5. Provides that when a State-owned Power Generation Project is connected to the SENI, the Bloc of State-owned Power Generation Companies of the Coordinating Body will consist of (i) the CDEEE, (ii) the Empresa de Generación Hidroeléctrica Dominicana (EGEHID) and (iii) any other company that is wholly owned (100%) by the Dominican State and carries out power generation activities of any kind.
  6. Provides that it repeals any law, decree, resolution or provision that is contrary to it.
  7. Provides that it will enter into effect after its promulgation and publication, as provided by the Constitution, and after expiration of the terms specified in the Dominican Civil Code.

To read the actual text of the Law, including a courtesy translation into English of same, please click here.

 

Written by:

Manatt, Phelps & Phillips, LLP
Contact
more
less

Manatt, Phelps & Phillips, LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.