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REGION

Guatemala, Honduras & Costa Rica condemn Cuba in UN

According to the Costa Rican Electricity Institute, (ICE, in Spanish) growing demand for electricity in the country has made it necessary to build a new hydroelectric plant using water from the Pacuare river. As a pre-requisite to build the dam, ICE published an Environmental Impact Study (EIA) guaranteeing protection to the environment and riverside communities. Upon reviewing and analyzing this, the National Secretariat for Environmental Works (SETENA, in Spanish) found errors and released a statement regarding what it found. According to spokespersons from ICE, the statement is just one of the obstacles that the government plans to impose on the management of electricity at a national level. Although other analysts support ICE, they believe that the institution should rework their energy model so that it incorporates other forms of generation besides hydroelectric. The same analysts also believe ICE should clarify whether its aim is simply to supply internal demand or respond to external pressure to convert Costa Rica into an electricity exporter.

COSTA RICA

Hydroelectric project put on hold

According to the Costa Rican Electricity Institute, (ICE, in Spanish) growing demand for electricity in the country has made it necessary to build a new hydroelectric plant using water from the Pacuare river. As a pre-requisite to build the dam, ICE published an Environmental Impact Study (EIA) guaranteeing protection to the environment and riverside communities. Upon reviewing and analyzing this, the National Secretariat for Environmental Works (SETENA, in Spanish) found errors and released a statement regarding what it found. According to spokespersons from ICE, the statement is just one of the obstacles that the government plans to impose on the management of electricity at a national level. Although other analysts support ICE, they believe that the institution should rework their energy model so that it incorporates other forms of generation besides hydroelectric. The same analysts also believe ICE should clarify whether its aim is simply to supply internal demand or respond to external pressure to convert Costa Rica into an electricity exporter.

GUATEMALA

Government and Montana a glittering alliance

There has been much speculation about possible family connections between officials and stakeholders in the mining company Montana Exploradora and the President and Vice-president of Guatemala. Some of the names that have emerged help explain the significant backing that the Berger government has given to the mining effort in general and to Montana in particular. Possible bribes and vote buying to garner support for the mining projects have also come to light. Although local communities are consulted about their needs and desires, the vice minister of Energy and Mines, Jorge García, categorically maintains that the consultancies will not ultimately decide whether or not the project will continue.

Flawed water law

Despite the fact that the Water Law initiative, currently under discussion in a congressional Commission, improves national water management, critics have voiced fears that it does not sufficiently prepare for partial privatization. The national regulator proposed by the law will be able to grant concessions to private companies, thereby flirting with the global water market, of which 70% is controlled by two firms (Vivendi and Suez). With an initiative that suffers from various ambiguities and no tariff controls, critics fear that market interests will prevail.

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SALVADOR

Oil prices reach record level

TWith oil prices reaching a record 5.13% at the beginning of April, petroleum importers are voicing mounting concern. The Salvadoran government proposes energy saving measures and promotes competition. Business and public service representatives anticipate an increase in prices of goods and services while ecologists are proposing initiatives to seek alternative fuels.

Corruption index worsens

A recent Transparency International study reveals that corruption in Belize is getting worse, with the current PUP (People's United Party) government repeatedly plagued by corruption scandals. Traditionally the lack of transparency has been attributed to the size of the country and lack of anonymity. However, an alternative "watchdog" has emerged in the form of a website, "freeBelize.org" which could provide one possibility for addressing the problem.

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Inforpress Centroamericana inforpre@inforpressca.com

22 April 2005