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Weekly Report - 3 May 2007
COSTA RICA: State of emergency called over power shortage
President Oscar Arias declared a state of emergency last week due to a national power shortage. As a short-term measure, Arias signed an executive decree to buy three oil-burning electric plants for US$150m to cover a 200MW deficit. The government blamed the shortages on reservoirs reaching record low levels as a result of El Niño: Costa Rica relies on hydroelectric energy to supply 90% of its energy requirements. The state-owned Instituto Costarricense de Electricidad (ICE) said it had foreseen the problem four years ago but the government had refused to act.
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