MINUTES OF THE III MEETING OF THE DIRECTIVE COMMITTEE (CODI MEETING N 62)
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1 MINUTES OF THE III MEETING OF THE DIRECTIVE COMMITTEE (CODI MEETING N 62) Quito, February 28-29,
2 Minutes of the 62nd Meeting of the Directive Committee (CODI) February 28-29, 2008 Quito, The Directive Committee of OLADE (CODI) held its 62 nd Meeting in the City of Quito,, on February 28 and 29, 2008, with the participation of representatives of the following member countries: Argentina, Brazil, Cuba, El Salvador, Guatemala, Jamaica, Mexico, Dominican Republic, and Venezuela. Delegations of and Uruguay also attended in this Meeting. This CODI meeting was also attended by s Minister of Mines and Petroleum, Mr. Galo Chiriboga, the Secretary of State, Mr. Aristides Fernández Zucco, President of the Comisión Nacional de Energía, and the Argentine Secretary of Energy, Mr. Daniel Cameron, who presided the Meeting, and the Ambassadors of Guatemala and Uruguay. OLADE s Executive Secretary, Mr. Carlos Arturo Flórez Piedrahita, welcomed the local authorities and Member Country representatives. The Argentine Secretary of Energy and the CODI Chairman delivered the meeting s opening remarks, emphasizing the new stage the Permanent Secretariat is beginning with its new technical and administrative team, which will play an important role in the process of regional and sub-regional energy integration. The Secretary of State, Mr. Aristides Fernández Zucco, thanked the CODI Chairman and the Permanent Secretariat for the opportunity he was given to announce the different energy events that will be taking place shortly in the Dominican Republic. He highlighted the importance of the relationship between energy and poverty. The Minister of Mines and Petroleum, Mr. Galo Chiriboga, spoke on the good beginning of the new administration and OLADE s positioning within the context of Latin American and Caribbean integration. He also mentioned that the broad subjects to be discussed within OLADE are equity and justice among producers and consumers, and especially the policies for the poorest countries to ensure their access to energy resources at reasonable prices The Executive Secretary proceeded to introduce to CODI OLADE s international staff that had recently been elected and taken office, as follows: 2
3 Director of Planning and Projects. Mr. Nestor Luna Gonzalez, from Mexico Director of Integration, Mr. Erick Fernando Cabrera Castellanos, from Guatemala Training Coordinator, Mr. Victorio Oxilia Dávalos, from Paraguay Electricity Coordinator, Mr. Tomás Montesinos Yépez, from Peru Hydrocarbons Coordinator, Mr. Mauricio Medinaceli Monroy, of Bolivia He also introduced the Information Coordinator, Mrs. Sircia de Sousa, of Brazil, and the full-time staff working in OLADE. The Directive Committee paid homage to Mrs. Elvia Ortega de Andrade, the Finance and Administration Manager, for her efficient work during the months that she served as OLADE s Interim Executive Secretary. OLADE s institutional video was presentation for the first time, which will be a tool for conveying the Organization s image to the region and the world. The order of business was submitted for consideration, and Argentina requested the following: Presentation of a status report on OLADE s on-going programs and projects. Include a presentation on Nuclear Energy Development in Argentina among the miscellaneous points. Following the proposed amendments, the order of business was approved and the Director of Integration, Doctor Erick Cabrera, was chosen as the Rapporteur. Proceedings of the Meeting: The Committee approved the following order of business: Thursday, February 28, Report of activities and current situation of the Permanent Secretariat 2. Fulfilment of the Ministerial Decisions Coffee break 3. Agenda of events and meetings scheduled for Triennial Work Plan CODI's proposals for the Buenos Aires Statement by the XXXIX Meeting of Ministers 3
4 6. Conclusions of the morning Lunch 7. The Position of OLADE in UNASUR Coffee break 8. Code of Ethics 9. Conclusions of the afternoon End of work day at 18h30 and transportation to the hotel Friday, February 29, IICA Agreement 11. Progress made with CIDA Coffee break 12. Pending issues and conclusions Latin American Energy Efficiency Network Spain as a Participant Country Regional Renewable Energy Observatory - ONUDI Draft agreement to develop the project of an Energy Sector Report for Latin America and the Caribbean (ALADI, ARPEL, CIER, ECLAC, and OLADE) Nuclear energy development in Argentina 13. Approval and signature of the Minutes 14. Closing of the Meeting 1. Report of activities and current situation of the Permanent Secretariat The Executive Secretary proceeded to present the Activities Report of the Permanent Secretariat from January 11 to date, and specifically asked that the following points to be approved: Change the nomenclature of the Directive Committee as per the Executive Secretariat s analysis, since these meetings began. This proposal was submitted for approval by the CODI. This was accepted, making this the sixty-second meeting and adding a list of all events held in an annex to these minutes. Decide whether to use if Member Countries or Member States in OLADE s Mission and Vision. We will continue using the texts approved at the XXXVIII Meeting of Ministers in Medellin. Ask the CODI for authorization for an official mission to Guatemala, which was approved, for the Executive Secretary and the Director of Integration to receive OLADE s Sub-regional Coordinator for Central America into office and launch the activities of the sub-regional office next March 5 to 7. Conduct a study of the staff workload to determine and rationalize its 4
5 levels of work. Fill the vacancy for a Coordinator of International Relations. Prior study of the needs. Support the four internal institutional campaigns. The Executive Secretary announced that the Yearly Work Plan will be implemented from March to March and will include the Directors' and Coordinators individual work plans, after holding a strategic planning exercise. Following this presentation, the Dominican Republic congratulated the Executive Secretariat for producing OLADE s corporate image video and requested copies to socialize through the official and public mass media of each Member Country. It also suggested the possibility of creating a virtual energy library to receive all texts and publications of the Member Countries and be placed at OLADE s disposal for distribution among the countries. The Executive Secretary reiterated that OLADE s institutional video will be available to all the Member Countries for wide use. Comments on the Report: The delegate of Argentina emphasized the need to use flexible criteria regarding OLADE s attending forums and events of transcendence and importance to its Member Countries. The CODI Chairman added that it is necessary to practice austerity, but that extra-institutional relations need to be considered as well. Cuba pointed out that this is the first time that the Member Countries have received a transparent, clear report, and agreed with Argentina that OLADE should be the centre of regional and sub-regional energy activities. Brazil made observations on the various abbreviations used for the Permanent Secretariat s Planning and Projects Department: DIP and DPP. Accordingly, the Executive Secretary suggested the use of DPP to abbreviate the name of this Department, which was approved. Jamaica congratulated the Permanent Secretariat for its support with English translation, and also applauded him for his efficient work. The Dominican Republic pointed out that it is necessary to contact other Caribbean countries that are not members of OLADE to retake the process of their incorporation, which was approved. 5
6 2.1 Presentation of the Project Progress Report A presentation was given on the status of the institution s project execution (Annex) by Mr. Byron Chiliquinga, Coordinator of Renewable Sources and the Environment, for the purpose of clarifying any doubts. Comments on the Project Progress Report: Biofuels With regard to the agreement proposed for OLADE and IICA, Cuba said that it needs to be circulated among the Member Countries, to which the Executive Secretary remarked that that document was already sent out. The CODI Chairman pointed out that it is necessary to generate a discussion among the National Coordinators on the issue of Biofuels and define a position on food security and the environment. In turn, Venezuela seconded Cuba s position, emphasized that this is an issue that should be made known to all members, and pointed out that there is still time to consult on the Agreement with IICA. Dispute Resolution Argentina said that this issue should be addressed at the XXXIX Meeting of Ministers in Buenos Aires. In this regard, the Executive Secretariat pointed out that this topic will be discussed from a dispute prevention viewpoint and act as a friendly mediator. AFROLAC The information to be circulated refers only to Latin America and the Caribbean, and does not include information on AFREC. The Executive Secretary mentioned that there is one month to communicate and review the information coming from the African countries. As the host country, Mexico feels it is necessary to make greater efforts, as there is concern regarding the text of the Ministerial Statement and the working paper for the ministerial discussion, because it is lacking Africa s part and it needs to be strengthened with regard to Latin America and the Caribbean. The Cuban delegate added that it is necessary to have a basic background document on the results of first AFROLAC, in order to review it and move forward. The CODI Chairman informed that this is a south-south issue, but that OLADE needs to support AFREC and its member countries in expressing their needs. The Executive Secretary offered to provide information on this matter to the 6
7 Member Countries. Energy Efficiency The CODI Chairman said that since energy efficiency is a new topic that the member countries are tackling, it would be interesting to homologate any standards written on these matters by all member countries, and that each country should subsequently decide on the scopes, depth and terms for enforcement within their jurisdictions. This should improve the overall position of the member countries regarding the goods involved. SUPER OLADE Regarding energy planning, Guatemala mentioned the need to develop the Central American energy matrix, which requires this tool, and asked why it has a cost. The Executive Secretary answered that this program is seeking to be self-sufficient, with preferential treatment for the governments. Natural Gas The CODI Chairman commented on the progress made in the studies of the Southern Gas Pipeline Network, which was initially financed by the IADB and later by the World Bank. He recommended consulting the members of the group of countries involved to kindly review the completion of such studies, with two clear purposes: either complete the work or consolidate it at the point reached, including its respective approvals. The Dominican Republic addressed the issue of introducing natural gas into Central America and the Dominican Republic through the Programa de Integración Energética Mesoamericana (PIEM). There should be some type of coordination between OLADE and this sub regional forum in order to avoid parallel efforts. 2. Fulfilment of the Ministerial Decisions The Executive Secretary informed CODI about the follow-up of the Ministerial Decisions according to the document circulated to the Member Countries, which will be under control. 3. Agenda of events and meetings scheduled for 2008 CODI was informed about the 2008 events of OLADE. Accordingly, the following was pointed out: 7
8 IV CODI and the III Biofuels Seminar The delegate of the Dominican Republic requested GAF about the logistic requirements of the event. The Executive Secretary explained that OLADE has fact sheets which will be sent to the Member Countries in charge of holding events and meetings. Cuba suggests flipping the dates of both events, holding the Biofuels Seminar first and the CODI afterwards. This suggestion is approved. AFROLAC II Mexico gave a presentation on progress made in organizing the event, thanked the ministers attending from Argentina and the Dominican Republic for confirming their participation, as well as the other countries that did so, and asked the CODI for help to confirm the participation of all ministers to the event. He requested that in addition to confirming in writing, they register through the page The delegate asked OLADE for help to confirm the countries of Latin America and the Caribbean and the international organizations. The Executive Secretary will send a letter in support of the invitation process. The Latin American and the Caribbean Energy Efficiency Seminar We reviewed the proposals of the following countries to host the seminar: Colombia, El Salvador, Guatemala, Honduras, Mexico, Uruguay, and Venezuela. The CODI encouraged the candidate countries to discuss this issue amongst themselves and take a position. The countries presented their proposals in the following order: Venezuela, Uruguay, Guatemala, and El Salvador, which countries highlighted the advantages of their hosting the event. In turn, Cuba mentioned that several countries have held events on energy efficiency and proposed to hold this event in Venezuela. Mexico supports the proposal of the delegate of El Salvador to hold this Seminar in Guatemala. The CODI agreed to hold the event for 2008 in Venezuela. In view of the position taken by most countries, Guatemala expressed its interest in the 2009 Seminar being held in its country. In turn, the delegate of Venezuela thanks the support expressed by Brazil, Cuba,, and Jamaica to hold the venue in that country. 8
9 Criteria for selecting venues for events As a consequence of the analysis done to select the venue for the above event, the CODI Chairman suggested that the Permanent Secretariat design a method to facilitate the decision, taking into account the need to alternate between sub regions. The CODI approved the suggestion, and the Permanent Secretariat will present a proposal at the next CODI meeting. He also asked us to consider the comments made by the different countries: The Dominican Republic suggested that all countries should have the opportunity to hold an event, and the countries that have not held events and have declined will be the next countries in the order established in the same sub region. Mexico suggested a balance per sub region, to prevent them from hosting the same topics on various occasions. It also proposed seeking to alternate within each sub region. El Salvador requests to attests his agreement with the opinion of the delegates of Mexico and the Dominican Republic in the pursuit of fair venue selection since Central America is at a disadvantage and might never hold events. In light of the above, the following schedule of events was established: AFROLAC II, Cancun, Mexico, April 1-3 III Latin-American and the Caribbean Biofuels Seminar in the Dominican Republic on May IV Meeting of the Directive Committee (CODI Nº 63), Dominican Republic, May I Latin American and the Caribbean Energy Efficiency Seminar, Venezuela, July V Meeting of the Directive Committee (CODI Nº 64), Guatemala August III Latin American and Caribbean Carbon Forum, Santiago, Chile, October VI Meeting of the Directive Committee (CODI Nº 65), Buenos Aires, Argentina, November 10 XXXVIII Council of Experts of OLADE, Buenos Aires, Argentina, November 11 9
10 III Regional Energy Integration Forum (FIER 2008), Buenos Aires, Argentina, November XXXIX Meeting of Ministers of OLADE, Buenos Aires, Argentina, November 14 Visit to a Nuclear Energy Plant in Buenos Aires, Argentina, on November 15 Proposed events The delegate of the Dominican Republic recommended creating a regional seminar on clean production centres. In this regard, Cuba said that it has developed several centres in the country within the context of UNIDO, and stated the need to involve OLADE in this activity. 4. Triennial Work Plan The Executive Secretary presented the Permanent Secretariat s proposed Triennial Plan, which takes into account the matters of importance proposed by the candidates to OLADE s Executive Secretary, as agreed at the XXXVIII Meeting of Ministers. Under this point the Integration Department presented a draft proposal for sub regionalization of the organization, and the CODI decided that the Permanent Secretariat should circulate an official document on this proposal to be discussed at the next CODI meeting. Jamaica suggested that in order for OLADE s English-speaking countries to achieve better coordination with the institution, the sub regional office should be located in one of the English-speaking countries, which could be Jamaica or Trinidad & Tobago. 5. CODI's proposals for the Buenos Aires Statement by the XXXIX Meeting of Ministers The following themes were presented to CODI for discussion: Strategies to attenuate vulnerabilities and enhance energy security in the region and its sub regions vis-à-vis oil prices Latin America and the Caribbean in relation to Climate Change Diversifying the Latin American and Caribbean Energy Matrix Sustainable Energy Development Agenda 10
11 The delegate of the Dominican Republic suggests the inclusion of the theme Energy and Poverty and "Clean production centres Venezuela supports this proposal. suggests that the Buenos Aires Statement should be modern and visionary, with specific actions and purpose. Cuba said that we should concentrate on solving problems and not talking about them, and that it is better to propose solutions in three areas: energy integration, energy efficiency, and alternative energy, discussing how the region can solve them and proposing solutions. The Dominican Republic talks about the development conditions that our countries can not meet and our economies can not afford. There are conditions that are very important to achieve development in our nations, including the cost of energy development. According to the CODI Chairman, in this climate situation all should contribute to sustainable development with equal weights. Uruguay said that it is necessary to further develop the concept of Latin America and the Caribbean vis-à-vis Climate Change. Mexico asks to review and write down the proposals about Renewable Energies and Biofuels. The CODI Chairman suggests enriching such proposal or recommending more themes to be discussed taking care to fit the reality of the region and subregion. This proposal will be consolidated by the Executive Secretary to be discussed at the next CODI meeting. 6. OLADE s Position in UNASUR The Executive Secretary suggested that the CODI offer OLADE as UNASUR s Technical Secretariat for energy matters. Venezuela informed the committee that the UNASUR Summit will be held on March 27 and 28 in Cartagena, Colombia, where the South American Energy Council will inform the Presidents and Heads of State of UNASUR the progress made in the tasks entrusted in the Margarita Statement. Once the Summit is over, it should be possible to determine OLADE s role within UNASUR. An exchange of ideas took place among the participating countries, which concluded that the Permanent Secretariat should inform UNASUR of its 11
12 potential to do its work as a decision-making element regarding OLADE s role in UNASUR. The UNASUR Energy Council will be the one to assign OLADE s final role. 7. Code of Ethics It was approved with the clarification that when the involved officials are members of the Court of Ethics, the CODI will be the one to solve the problem. 8. IICA Agreement The Executive Secretary read the Memorandum of Understanding between OLADE and IICA. The CODI decided that the document will be made available to the member countries during March. If there are no significant comments, it will continue the process. Otherwise, it will be discussed again at the next CODI meeting. 9. Progress made with CIDA The Executive Secretary read the progress report on activities carried out within the framework of the CIDA University of Calgary OLADE Agreement. The CODI Chairman welcomed the CIDA representative, Paul Ragusa, and the University of Calgary representatives, Julie Rowney and Leda Sánchez. Mr. Ragusa said that progress has been made in important issues for the countries in the areas of training and rural electrification programs. The Canadian Government has made progress in matters of importance to the world, and many successful activities have been developed under the sponsorship of the Canadian Government. The Executive Secretary gave them a cordial greeting and congratulated the CIDA OLADE Council on its 1 st phase since 1996 and 2 nd phase since He announced that the CODI has approved the Three year Development Plan for , which is to be the organization s navigation chart. The CIDA representative thanked him for the invitation to this meeting. For the Canadian Government, cooperating with OLADE is very important, and many outcomes have been had from these two project phases, although one year is left to complete the 2 nd phase. He stated his interest in studying the possibility of a 3 rd phase, which should be reviewed by the parties together with CIDA. 12
13 The University of Calgary representative said that the university centres its actions on energy, community, health and wellbeing, and culture, and that they are interested in supporting the sustainable energy development efforts. 10. Pending issues and conclusions Latin American Energy Efficiency Network Spain as a Participant Country The CODI Chairman said that this topic is a link of communication with Europe and that it is deemed timely to present it. The Dominican Republic mentioned that it is important to take advantage of this openness and opportunity, as Portugal and Spain have set up a program in which their firms can receive tax deductions on energy investments in Latin America. The CODI agreed that the document be sent to each of the countries, and during his next visit to Spain the Executive Secretary will carry OLADE s message of manifest interest. Regional Renewable Energy Observatory - ONUDI The CODI regards with interest OLADE s participation in the observatory in order to avoid duplicating efforts and save resources in this regard. It is essential for OLADE to defend its role as the official interlocutor for the countries of the region in energy matters. The CODI agreed that OLADE should recommence the communications crossed previously with the UNIDO Director General. Progress within UNIDO will not be possible without the help of OLADE. Draft agreement to develop the project of an Energy Sector Report for Latin America and the Caribbean (ALADI, ARPEL, CIER, ECLAC, and OLADE) The draft agreement was read. Guatemala said that it would be advisable to mention the SICA in the agreement, as this entity is coordinating the matrix of energy activities in Central 13
14 America. Accordingly, the Executive Secretary will communicate this request to the organizations. The Executive Secretary reported that the organizations are seeking technical support from OLADE in the form of information for integration. During the virtual meeting with the organizations, the scope of competence of each one of the entities will be defined. Nuclear energy development in Argentina The CODI Chairman reported on the findings of the studies on pacific use of nuclear reactors, particularly the development of the CAREM project, which is a compact nuclear reactor of 25 to 250 megawatts, which could eventually reach 300 megawatts. This reactor could be situated between the third and fourth generation. They hope to share this experience at the FIER in Buenos Aires. The Dominican Republic announced that Brazil is also developing a compact fixed bed nuclear reactor project. The CODI feels that this is a very important topic and that we should begin down the road of nuclear technology for peaceful uses. For this purpose we need to compile documentation and inform the member countries in a timely fashion, if possible send out a periodic atomic technology bulletin to announce progress made, similar to that for biofuels. 11. Approval and signature of the Minutes The Committee approved the minutes of its sixty-second meeting in Quito on February 29, 2008, at 2:05 p.m. 12. Closing of the Meeting The Chair of CODI's 62 nd Meeting thanked the attending delegations for their cooperation during the course of the deliberations. The CODI thanked the Permanent Secretariat for their excellent organization of this Meeting. 14
15 Attendants from the Directive Committee's Member Countries Daniel Cameron, Argentina Juan Gerardo Meira, Argentina Helena Claudia Cantizano, Brazil Dolores Marrero, Cuba Roberto González Vale, Cuba Juan Manuel Bolaños, El Salvador Juan León, Guatemala Victor Hugo Araujo, Guatemala Conroy Watson, Jamaica Laura Lira Urdiana, Mexico Fabiola González Solorio, Mexico Alejandro Rivera Becerra, Mexico Aristides Fernández Zucco, The Dominican Republic Lenin Bandres, Venezuela 15
16 Emilio Farías, Venezuela Attendants from OLADE's Member Countries Galo Chiriboga Zambrano, Guillermo Granja, Wilson Jara López, Gustavo Vanerio Balbela, Uruguay Antonella Delbono, Uruguay 16
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