14/12/2009

Dominican Republic starts to pay Venezuelan oil with food

Caracas, Dec 11. ABN.- The Dominican Republic subscribed this Thursday two agreements to supply Venezuela with 1,500 metric tons of liquid sugar, as the payment method for the oil sent to the island in the framework of the Energy Cooperation Agreement, Petrocaribe.

Telesur informed this Thursday that “the Treasury Department of the Dominican Republic issued a communique to inform that in the days to come another agreement will be signed to send 10,000 tons of black beans to pay the oil invoice.”

The Dominican Minister of Treasure Vicente Bengoa arrived in Caracas last Tuesday night to sign two agreements. One valued in 2.9 million dollars for sugar and the other in 12.5 million for the black beans.

The Government of Dominican Republic committed itself to send to Venezuela 500 tons of liquid sugar monthly until reaching 2,500 tons.

Bengoa, during a tight agenda in Caracas, met with the Minister of Energy and Petroleum of Venezuela Rafael Ramirez attended the ordinary assembly of the Andean Development Corporation (CAF), of which Dominican Republic is member.

During the signing ceremony, the Dominican representative thanked the Government of Venezuela for the solidarity showed through Petrocaribe, for the benefits his country is obtaining, especially the sector with less resources in the island.

Bengoa explained that Venezuela sales oil to his country with especial payment conditions. He pointed out that advantages of this kind of treaties, because the oil and derivatives are sold to the state-owned Dominican Oil Refinery, “without the intervention of private companies as occurred in he past.”

In representation of the Dominican Government attended, besides Bengoa, the Manager for Food Procurement Jorge Parra and the Manager for International Purchases and Procurement of Bigger Projects Luis Hernandez.

Petrocaribe began its operations supplying 50,000 barrels of Venezuelan oil per day and it has reached 121,000 barrels per day under the same cooperation scheme.

The energy bloc was created in 2005 after an initiative of the Venezuelan Government aimed at reducing the cost of fuel for the impoverished economies from the Caribbean and Central America.

Venezuela committed itself to sell oil and derivatives to the member countries of Petrocaribe with special payment conditions, giving them up to 25 years to pay at an interest rate of 1%. It was agreed also to pay with food.