Santo Domingo.- A high debt with 400 contractors could halt construction of the Santo Domingo Metro’s second line, landmark work of president Leonel Fernandez’s current term,
Several sources close to the construction said of the around RD$3.6 billion debt, the contractors have been paid only RD$1.2 billion, leaving a staggering RD$2.4 billion.
The Metro’s second line, being built by the Transport Reform Office (OPRET), will span a route from the entrance of the subdivision Los Alcarrizos to the western part of the bridge “La 17”.
News source hoy.com.do, quoting an engineer of the project, reports that the work’s rate has radically changed, from the several shifts in the Metro’s forward edge to “everybody’s ready to go home by 5 p.m.”
And because the work is financed with the Government’s own funds, the accumulated debt results from the lack of allocations. “Okay, we all know that Government income hasn’t been as fluid as in other occasions, but why don’t they do with the Metro what they do with other works, so that if there’s a shortage to spread it among all,” the engineer said.
From: United States, FREEPORT, Long Island.... (Look, beyond the words)
I'm NOT surprised....There is no other alternative... When doing business with the Government of DR, these types of shenanigans is to be expected...
NOW WATCH THE TAILSPIN, ITS NOT A STUNT. IT's THE LACK OF EDUCATION.
Written by: juanb, 13 Sep 2010 9:57 AM
From: Dominican Republic
So now that we know where are tax money wasn't going maybe we can find out where it was going.
Written by: xwill7, 13 Sep 2010 10:15 AM
From: United States, El cuarto bate
josean grab a shovel... I know that you are reading
From: Botswana, La reconnaissance est une lachete'
Now you might understand why they sticky fingers are all over that little piggy bank The Pension Fund, shortfalls everywhere.
Where is Goodnews Ricky, he is quickly becoming like Waldo lately.
From: United States
firstly, we heard the laughable press release that the metro was going to be funded by PRIVATE BUSINESSMEN. yes, guys with money were going to sink 3 billion into a venture that never makes money, since the only subway on earth which runs in the black is in singapore. now, the truth is out, and it is another government boondoggle , which is coming up against hard times. combine that with the ongoing negotiations with the IMF for money to fund the budget, plus the 800 million dollar bond offerings being "debated" in the senate, we have a perfect storm of bad financial outcomes. some of us saw it coming, others do not like to look.
Written by: juanb, 13 Sep 2010 11:01 AM
From: Dominican Republic
Dread:
+1
Written by: zooma, 13 Sep 2010 11:28 AM
From: United States
If the politicians donate a week of their salaries toward the project it would be paid for. This just shows where the government's priorities are.
From: United States
juanb, give yourself a plus too, because you said the same things. us guys who can figure these things out are not really that bright. it is just that those who cannot are really that dumb.
From: United States, FREEPORT, Long Island.... (Look, beyond the words)
Leo's plan to start the project with "private funds" backfired, he didn't know how to package the deal for the investers underwritter to approve,now the dominican republic is going to be stuck with a hole in the ground, its more than just asking for money....I told you once b4 leo, your track record is insufficient, you don't have the experience..... Next, will be an attempt to create a hedge fund for the ladder to the moon Leonel always wanted.
Written by: Rainman, 13 Sep 2010 11:42 AM
From: United States
Most governments will seek outside fiance for such a large project, a small country cant afford a project of this magnitude. Now the only option is to find outside sources to cover the shortage, if they want me to I can get them the 600 million or so US they are short by .
From: United States, Killeen, TX - Home of the 1st Cavalry
The biggest problem with DR Government financing and budgeting is that the "legislators" skim off the top of every budget they submit and vote on.
Its always nice that they can vote on a bill for getting another loan, but they never take a good look at the way they intend to repay those loans.
Instead of repaying the principal, they renege on the interest and try to blame the shortfall on something that has no bearing on the principal at all.
One almost begins to believe that these "legislators" can't even balance their own checkbooks, since they're always voting themselves yet another raise.
TexasBill
From: United States
Dread is correct, these liars including LF said there would be private monies.
How much private monies? $1.98?
From: United States, Yonkers, NY
The wrong project at the wrong time. This doesn't come as a surprise at all. The Metro will sink the DR government. The party is over. last one out turn off the lights, oops never mind, they're already off. Another bill that wasn't paid.
From: United States
yes, gmiller. if my memory serves me right, the claim was that some french business consortium was going to finance the project. i posted that such a story was absolute nonsense, and took a lashing from metro supporters, who labelled me a "hater". well, i am. at least right now. because this project is going to break the bank, and leave a giant crevasse in the ground, into which mountains of garbage will accumulate.
Written by: THINK, 13 Sep 2010 1:48 PM
From: United States, SDQ -- Mia --NY
$ 3.6 BILLIONS DEBT, LET'S BREAK IT DOWN:
30% rebate to government officials, 20% inflate the cost of materials/constructions, 30% contractors desired/fixed profit.......
So, only 20% of the money allocated to the construction of the work.
No problem, everybody shares the wasting of the money, except Lie-onel and his groups.
From: United States, Brooklyn
People don't be alarmed... EL METRO VA!
Written by: ateo2010 
, 13 Sep 2010 9:55 PM
From: Dominican Republic, Owning Noobs
Asii mismo Carlitoos Franco e pa lantee!!
Written by: abc200, 14 Sep 2010 12:22 AM
From: United Kingdom, Dominican Republic
Just a small phasing problem. Sometimes its better to progress more slowly for a while - produces better value for money than unlimited overtime etc.
S.
From: United States
the small phasing problem is in your brain
From: Dominican Republic, Puerto Plata
I suppose the private funding could have been feasible .
That is, without the bribes, tariffs, secret commissions, bakchich, and run-of-the-mill day to day aggravation that make this kind of project impossible to realize by civilized standards.
Where is Diandino Peña? Where is Felix Bautista? How come they did not execute Phase II?
Because they knew damn well no international lending would be possible on this one.
So now we got ourselves one helluva big nuclear shelter.
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NOW WATCH THE TAILSPIN, ITS NOT A STUNT. IT's THE LACK OF EDUCATION.
So now that we know where are tax money wasn't going maybe we can find out where it was going.
Where is Goodnews Ricky, he is quickly becoming like Waldo lately.
+1
If the politicians donate a week of their salaries toward the project it would be paid for. This just shows where the government's priorities are.
Its always nice that they can vote on a bill for getting another loan, but they never take a good look at the way they intend to repay those loans.
Instead of repaying the principal, they renege on the interest and try to blame the shortfall on something that has no bearing on the principal at all.
One almost begins to believe that these "legislators" can't even balance their own checkbooks, since they're always voting themselves yet another raise.
TexasBill
Dread is correct, these liars including LF said there would be private monies.
How much private monies? $1.98?
30% rebate to government officials, 20% inflate the cost of materials/constructions, 30% contractors desired/fixed profit.......
So, only 20% of the money allocated to the construction of the work.
No problem, everybody shares the wasting of the money, except Lie-onel and his groups.
People don't be alarmed... EL METRO VA!
S.
That is, without the bribes, tariffs, secret commissions, bakchich, and run-of-the-mill day to day aggravation that make this kind of project impossible to realize by civilized standards.
Where is Diandino Peña? Where is Felix Bautista? How come they did not execute Phase II?
Because they knew damn well no international lending would be possible on this one.
So now we got ourselves one helluva big nuclear shelter.