<a href=www.vheadline.com>Venezuela's Electronic News Posted: Tuesday, May 20, 2003 By: Patrick J. O'Donoghue

Venezuelan Catholic Education Association (AVEC) president, Father Ramon Rivas says he fears that President Hugo Chavez Frias' alphabetization program announced last Sunday could introduce Venezuelans to Cuban thought patterns. 

"There is a fear ... I can't prove it but within the general context of the current situation, it wouldn't be surprising if each alphabetizer brought in from Cuba tries to get people to think like Cubans and not only learn to read but to assume Cuban ideology." 

Rivas complains that there are plenty of educators in Venezuela and there is no need to bring in Cubans. 

During his Sunday radio broadcast, President Chavez Frias had announced that he would be using the Cuban experience because of its use of broadcast media to complement reading and writing for adults. According to the President, Venezuela has 10% of inhabitants that can't read or write and he made it clear that experts from Venezuela and Cuba would set up the program.

05/19/2003 - Source: Business News Americas (<a href=www.latintrade.com>LatinTrade-BNamericas.com) - The governments of Venezuela and Brazil, together with France's Alstom, are negotiating financing for the US$160mn La Vueltosa hydroelectric dam in western Venezuela, Alstom Brazil systems manager Edwaldo Tamberg told BNamericas.

A consortium of Alstom Brasil's Power Environment unit and the French parent company Alstom signed May 11 a turnkey contract with the Uribante Caparro Development (DESURCA) unit of state power company Cadafe to build the powerhouse, transmission lines and two substations for La Vueltosa.

Talks are ongoing with Brazil's national development bank BNDES and French export development agency Coface, Tamberg said. The final division of work depends on the outcome of these talks, but preliminary calculations suggest 80% will be supplied from Alstom Brazil and 20% from Alstom France, he said.

The whole project is brokered on recent talks between the Brazilian and Venezuelan presidents, Luiz Inacio Lula da Silva and Hugo Chavez, and the prioritization of bilateral trade and partnership, Tamberg said.

As well as determining financing, this also helps mitigate some of the political risk, Tamberg explained. Because the talks are between the two governments any default on payment would be with the government and not Alstom, Tamberg said.

"We understand that as long as both governments are in agreement, secure the financing and regulate the guarantees in the best line of the law, the interests of Alstom will be safeguarded," Tamberg said.

"A default by Venezuela would not be a default with Alstom Brazil but with the Brazilian government. It is a different type of risk," Tamberg said.

This is an evolution of the now extinct Reciprocal Trade Covenant (CCR) agreement that used to exist between Latin American countries, Tamberg said. Under CCR, cross border trade between companies was provided with guarantees between the two governments - but it was killed after the financial chaos of recent months and years.

"CCR will not return in the model that was effective previously and that was bilateral for all countries. We needed a new instrument to substitute it, and that is what is being developed now," Tamberg said. "The conditions are being recreated for foreign trade to start working again."

As well as Venezuela, the Brazilian government has determined that Argentina is a priority, and Alstom will seek opportunities with both these countries, where the chance of securing financing for exports is higher, he said.

Alstom will hire a construction company for the civil works at La Vueltosa, which are expected to be straightforward, as the dam was built 10 years ago and geological risks are therefore low, he said.

Alstom will install two Francis turbines, generation units and all associated equipment for total installed capacity of 514MW.

Work should be completed within 36-38 months from the date when financing is closed.

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Wednesday, April 30, 2003 By: Francisco Rivero

Date: Wed, 30 Apr 2003 13:04:45 -0400 From: Francisco Rivero riverofjr@hotmail.com To: Editor@VHeadline.com Subject: Dear Yasmin and Federico

Dear Yasmin and Federico: There is no need to tell my father what the crowd you reported did on your street ... I'm afraid that will only prove his point ... "nothing good has ever come from hate and resentment?"

On the other hand it will be very difficult for me to do so ... he passed away long time ago! So take it easy and try to ponder words of wisdom. I hope our Elio Cequea also takes stoke on his reckless theory!

You are right on the surging of urban slums and shantytowns ... you are wrong when use the fact to disprove the economic and social facts of robust economic growth and improving well-being from the 50s thru the 70s.

You might try to read some of the excellent UN reports about it ... that will more than disprove the theory put forward by Elio.

I do not know how old are, you guys, and whether you have children or not ... let me ask you a couple of questions you only need to ponder about ... What future would you think a humble Venezuelan couple could foresee for their children in the early 60s? What future do you think a humble Venezuelan couple foresees for their children today?

Francisco Rivero riverofjr@hotmail.com Caracas, Venezuela

By Peter Wilson

Caracas, April 28 (<a href=quote.bloomberg.com>Bloomberg) -- Venezuela's military is taking a larger role in state agencies as President Hugo Chavez shuns civilian appointees, El Universal reported.

About 100 military officers now are executives in state companies, such as Petroleos de Venezuela SA, or state agencies, such as the foreign exchange commission, the newspaper said, citing the results of an investigation it conducted.

The largest concentration of military officers is in the state armaments company, CA Venezolana de Industrias Militares.

Since taking office in February 1999, Chavez has relied on military appointees for many key positions, including the defense and interior ministries. Chavez was a former paratrooper.

(EU 4-28, 1-8) For El Universal's Web site, click on {NCNL } Last Updated: April 28, 2003 09:07 EDT

PlanetArk.org BRAZIL: April 28, 2003

RIO DE JANEIRO, Brazil - Investment in new electricity generation projects is important for the growth of Brazil's primary aluminum sector, the head of the Brazilian aluminum association (Abal) said.

It's also necessary also for the continuing presence of this energy-intensive sector in Brazil, said the association's president Joao Beltran Martins.

"Without competitive energy, Brazil's producers can't survive. We are investing to keep our facilities operational. I see no other options," Beltran told Reuters in an interview this week.

Due to the $5 billion investments underway in energy generation in the sector, it's unlikely Brazil's aluminum production will fall in the near future, he said.

"But it is possible output will not grow further once current expansions are completed," Beltran said.

Brazil's aluminum sector should produce a record 1.45 million tonnes of primary metal this year, following the conclusion of expansions delayed by energy rationing in 2001-2.

The sector generates only 13 percent of its own electrical energy, although once the various new projects are completed, self-sufficiency should exceed 50 percent, according to Abal.

LACK OF ENERGY RULES

Beltran however pointed out some projects are being slowed down or complicated by lack of government regulation of the energy sector, transmission costs from remote areas and regional differences in environmental legislation.

"The government still needs to regulate everything to do with the energy sector," he said. "The cost of energy in the free market could change."

Local free-market spot energy costs fell after Brazil ended energy rationing to a fraction of international costs.

However, many smelters are reported to be unable to benefit from low spot market prices because, being intensive users, they are obliged to buy from utilities at contracted prices.

In addition, investment in energy generation is costly.

"The cost of energy also depends on the generator's location. Transmission fees can make certain locations unviable," said Beltran, also president of producer Alcan Aluminio do Brasil, a unit of Canada's Alcan Inc. (AL.TO).

The average cost of energy used by Brazil's existing aluminum smelters is $20-22 per megawatt hour, Beltran said, adding that more than $22 is considered unviable by the sector.

"Energy costs for the aluminum sectors in Venezuela, Iceland, the Middle East and China are all cheaper than in Brazil, although we do have the advantage of having internationally competitive manpower," he said.

"We also need adequate federal environmental legislation," Beltan said. Some new hydro projects are being held up by local environmental lobbies despite having gained operating licenses from federal electrical energy regulatory agency Aneel, he noted.

Brazil has excess electrical energy due to recent heavier than usual rainfall, which has filled the country's reservoirs and ensured full operation at the country's hydroelectric plants, accounting for 90 percent of total electricity output.

However, Beltran admitted speculation is rife in government circles that a new period of rationing could occur in 2005. "Everything depends on rainfall levels. But we have to remember we have thermoelectricity as well," he said.