News from Venezuela

[The Village Idiot]

Higher water level in Guri Dam fails to solve power crisis

http://www.eluniversal.com/2010/05/17/en_eco_art_higher-water-level-i_17A3888051.shtml

Energy
The rainy season is arriving in Venezuela and the water level of the Guri reservoir is starting to increase, but concerns about the serious power crisis facing the country remain.

In fact, the National Electricity Corporation (Corpoelec) informed the authorities of state-run steelmaker Siderúrgica del Orinoco (Sidor) that electricity rationing in the main Venezuelan mill would be implemented throughout the year. This means that the steelmaker company will have to maintain its current production level. That is, a maximum power consumption of 300 megawatts, which allows for operation of one furnace only.

Further, Venezuelan authorities are likely to extend the power saving plan implemented in Caracas to the rest of the country. In a press release issued last week by state-run power utility Electrificación del Caroní (Edelca), Luis Durán, a manager at public utility Electricidad de Caracas (ECD), said "that consistent with the energy saving measures implemented in Caracas and its positive results, Corpoelec has decided to implement this policy in the whole country."

Although the situation of the Guri Dam improves, thermal power generation has not expanded. Therefore, government authorities have decided to be cautious with the use of energy.

[The Village Idiot]

Socialist brigades to monitor power consumption in Monagas state

http://www.eluniversal.com/2010/05/17/en_eco_art_socialist-brigades-t_17A3888619.shtml

Energy
The establishment of a Socialist Electric Brigade in the states of Monagas and Delta Amacuro started on Monday. The brigade will monitor energy consumption among special subscribers, said state-run news agency ABN.

Carlos Gerdez, a manager of state-run power utility Cadafe, said that the brigades would include workers of state-run power utility Cadafe, a member of Francisco de Miranda Front -a group that channels the social work of Chávez's movement in Venezuela, a member of the military and a member of social missions or a public university.

"There will be about 25 groups in Monagas, and three groups in Delta Amacuro. They will have to monitor rational use of energy," he said.

[The Village Idiot]

Business chamber reasserts rejection of expropriations

http://www.eluniversal.com/2010/05/17/en_eco_art_business-chamber-rea_17A3888491.shtml

If the socialist economy trumpeted by government spokesmen aims at eliminating private property, the right to employment and an expanding dependence on imports, Venezuela is on the wrong track, said Venezuelan business association Fedecámaras

Venezuelan business chamber Fedecámaras reiterated its firm rejection of the growing wave of expropriations executed by the government.

Lope Mendoza, the acting president of Fedecámaras, said in a statement that measures such as the expropriation of food processing plant Monaca further deteriorated food sovereignty in Venezuela.

He added that legal uncertainty discourages domestic and foreign investments that are necessary for urgent reindustrialization of Venezuela, especially in a context of high inflation, and declining GDP and consumption.

The business leader warned that if the socialist economy trumpeted by the Venezuelan government intends to eliminate private property, the right to employment and expand dependence on imports, Venezuela is on the wrong track

[The Village Idiot]

Business associations fear expropriations to hit employment

A new wave of expropriations promoted by the government raises fears among the productive sector and is rejected by entrepreneurs

http://www.eluniversal.com/2010/05/18/en_eco_art_business-association_18A3890699.shtml

Lope Mendoza, the acting president of the Venezuelan Federation of Trade and Industry Chambers (Fedecámaras), the main business association in Venezuela, said in a press release that "when property is disrespected and someone tries to eliminate this right at a stroke, the goal is to eliminate the jobs of thousand Venezuelans who will be left with no income to support their families."

Víctor Maldonado, the executive director of the Caracas Chamber of Commerce, Industry and Services, said that "in recent times the government has made every possible effort to buy assets belonging to the private sector rather than to produce."

Expropriations have had negative effects. "We could have double quality jobs available for Venezuelans, but on the contrary, there is this strategy where the social body eats itself and the government thrives on the success of others," Maldonado told private radio station Unión Radio.

About 30 percent of companies in Venezuela have been affected by the decline of trade dynamics, the business leaders told the Venezuelan radio station

[The Village Idiot]

Chávez expropriates Matesi and nationalizes NorPro

http://www.eluniversal.com/2010/05/17/en_eco_art_chavez-expropriates_17A3888133.shtml

The Venezuelan government is implementing a new wave of expropriations. President Hugo Chávez ordered nationalization of bauxite processing plant NorPro de Venezuela, as well as nationalization of transport of raw materials for basic industries in Guayana.

"Nationalize NorPro. It will be taken by Pdvsa," said the Venezuelan president during a ceremony to swear in the presidents and boards of directors of Guayana's basic industries, in the state of Bolívar.

NorPro de Venezuela is a subsidiary of a US-based company partially owned by French group Stain Gobain.

The company Chávez expropriated is Materiales Siderúrgicos Matesi, owned by Argentine group Tenaris.

Chávez also stressed the need to put and end to outsourcers and replace them with socially owned enterprises