World

 

Brazil

Mexico

Bolivia

Peru

Trinidad &
Tobago

Venezuela







Very usefull links



 

 


Editorial / Commentary / Opinion

 

 

 

VenEconomy : “Oversights”
that are destroying the country

 

 

There is not a sector, service or economic activity that has escaped sliding backwards light years since Chávez came to power, from the erstwhile efficient PDVSA, today immersed in inefficiency and unproductiveness, to the health system and the administration of justice, to the imminent collapse of the national electricity system that is threatening to plunge the country into darkness.

The extremes of bad management achieved by the Chávez administration are such that, within the space of less than two months, the President himself has had to admit “failures” in two sectors that are important in the everyday life of the population. The first was on September 19, when he declared an emergency in the health sector and admitted that, owing to an “oversight,” some 2,000 Barrio Adentro (primary health care program) modules were in a state of abandonment; and the second came this Sunday, October 25, when he admitted that the serious problems facing the country’s electricity system were due to “faults in planning and maintenance; we’re very careless.” Quite an admission, particularly for someone who has been ten years in office and who has had at his command huge amounts of petrodollars to use at his discretion, the like of which nearly no president of Venezuela and possibly of Latin America has enjoyed.

But this time Hugo Chávez is right. The chaotic state of the domestic electricity sector is due almost entirely to the lack of coherent planning in this area by his government as well as to the lack of maintenance and new investment in generation, transmission, and distribution carried over from years back and, particularly, from the past ten years.

The present crisis in the country’s electricity system is a direct consequence of the President’s policy of discarding any proposal or project that came from preceding administrations. This disastrous Chavista practice has resulted in: 1) coherent projects in the area of hydro- and thermoelectricity being discarded; 2) Edelca’s traditional managerial efficiency being consigned to oblivion; 3) one of the works of national pride, Guri, the country’s main reservoir and the second in Latin America, having eight of its 20 turbines out of service, thereby reducing its capacity by 20%; and, worse still, Guri’s turbine room being on the point of a collapse of unimaginable proportions, which could cut electricity generation by 60%, according to local press reports in Bolívar state; and 4) the already inefficient Planta Centro power station reducing still further its generating capacity and, according to press reports, in just one of its five turbines is operating, and then only at less than 60% of its capacity (400 Mw) at best.

The chaos in the electricity sector is also due to the Chávez administration’s irrationality in not only nationalizing the electricity companies that had been operating efficiently but also in dispensing with the industry’s managerial, professional, and technical talent for merely political reasons and replacing them with military personnel or politicians sympathetic to the regime but who have scant knowledge of management.

All of this has been combined with a bad habit that seems to be firmly entrenched in the ranks of Chavismo, the extremely opaque manner in which it handles the funds entrusted to it to administer. According to the experts, no one knows where 75% of the funds allocated to the electricity sector have been invested.

What the President did not come up with –yet again- were sensible proposals for solving the critical situation in the electricity industry. For example, it is not by threatening to cut off the supply of electricity to shopping malls that will restore power for the rest of the population, a measure that will simply leave thousands of people without jobs; nor is ordering those same shopping malls to have their own generators a solution to the collapse of the electricity system, first because the generation of electricity is a state monopoly and second because diesel generators are highly pollutant.

Announcing his third Investment Plan since 2007 isn’t the answer either, as it will more than likely come to nothing like its two predecessors, with the risk that Venezuela will be condemned to backwardness typical of the 19th century. The development of the country is won by governing and not by being hell bent on copying failed projects of involution.


VenEconomy has been a Venezuela's leading specialized publisher on financial, political and economic data since 1982. VenEconomy's Points of View on the issues of the day, as seen by VenEconomy during the last week. Petroleumworld does not necessarily share these views.

Editor's Note: This commentary was originally published by VeneEconomy on 10/26/2009. Petroleumworld reprint this article in the interest of our readers .

All comments posted and published on Petroleumworld, do not reflect either for or against the opinion expressed in the comment as an endorsement of Petroleumworld. All comments expressed are private comments and do not necessary reflect the view of this website. All comments are posted and published without liability to Petroleumworld.

Fair use Notice: This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of issues of environmental and humanitarian significance. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml.

All works published by Petroleumworld are in accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.Petroleumworld has no affiliation whatsoever with the originator of this article nor is Petroleumworld endorsed or sponsored by the originator.Petroleumworld encourages persons to reproduce, reprint, or broadcast Petroleumworld articles provided that any such reproduction identify the original source, http://www.petroleumworld.com or else and it is done within the fair use as provided for in section 107 of the US Copyright Law.
If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.
Internet web links to http://www.petroleumworld.com are appreciated

Petroleumworld welcomes your feedback and comments, share your thoughts on this article, your feedback is important to us!We invite all our readers to share with us their views and comments about this article, write to editor@petroleumworld.com

Petroleumworld News 11/02/09

Copyright© 2008 respective author or news agency. All rights reserved.

We welcome the use of Petroleumworld™ stories by anyone provided it mentions Petroleumworld.com as the source. Other stories you have to get authorization by its authors

Send this story to a friend Any question or suggestions,

please write to:
editor@petroleumworld.com

Best Viewed with IE 5.01+
Windows NT 4.0, '95, '98 and ME +/ 800x600 pixels

 


TOP

Contact: editor@petroleumworld.com/phone:(58 212) 635 7252, (58 412) 996 3730 or
(58  412) 952 5301

Editor:Elio C. Ohep A/Producer - Publisher:Elio Ohep /
Contact Email: editor@petroleumworld.com
CopyRight © 1999-2006, Elio Ohep - All Rights Reserved. Legal Information
- CCS office Tele
phone/Teléfonos Oficina: (58 212) 635 7252
PW in Top 100 Energy Sites

Technorati Profile

Fair use notice of copyrighted material:
This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.