CABEI has approved US$783.8 million to support competitiveness, social development and health protection in the Dominican Republic

Tegucigalpa, November 17, 2020.- From 2007 to date, the Central American Bank for Economic Integration (CABEI) has contributed to improve the quality of life of families in the Dominican Republic with the approval of financing for a total amount of US$783.8 million directed to the public and private sectors of the country. 

Through the execution of these initiatives more than 6 million people have been directly benefited in the areas of influence of the projects, in addition to the end users of road projects financed by CABEI.

Currently, in credit matters for the Dominican Republic, the financing of US$249.6 million for the construction of the Montegrande Phase III Multipurpose Dam stands out, as well as the approval of a global line of credit of US$100.0 million for the Banco Popular and US$100.0 million for the Banco de Reservas, the construction of a gas pipeline with a loan of US$54.0 to the company AES Dominicana, in addition to its contributions against the COVID-19 Pandemic.

CABEI's President, Dante Mossi, stated that: "the realization of the Montegrande Multipurpose Dam project includes the development of a population center to provide the inhabitants with decent housing and sufficient space for the production of agricultural products for the families that will be relocated during the construction of the project”.

The Montegrande Phase III Multipurpose Dam Project is located in the province of Barahona, on the border with the province of Azua, on the Yaque del Sur River. As of September 2020, the construction of the dam shows a physical progress of 54.6% and the population center registers a physical progress of 70.72%. As of August 31st, US$180.68 million has been disbursed to this project that will have a great impact on the southwestern region of the Dominican Republic.

The project will bring multiple benefits to the Dominican population, including the generation of direct and indirect jobs, flood control in the area and the increase of available water for drinking and irrigation. The dam will serve to supply water to the existing Barahona-Bahoruco-Independencia Regional Aqueduct drinking water plant and distribution network, which provides drinking water to 51 communities in the area. It will also increase the water available for irrigation of the different agricultural activities in the sector where the work is being carried out, which will result in 26,588.77 hectares benefiting from irrigation channels, and in later stages develop aquaculture and tourism activities.

Pandemic

To counteract the Pandemic, the Bank approved US$2.1 million in non-reimbursable financial cooperation to SICA member states, with the Dominican Republic as one of the beneficiary countries.

As a result of this cooperation, the multilateral organization delivered to the country, 26 thousand tests for early detection of the virus at the beginning of the pandemic, 21,504 extraction units ExiPrepTM96 Viral DNA/RNA and an automated extraction equipment for testing the disease.

Initiatives and completed projects

In terms of infrastructure projects, CABEI in the Dominican Republic financed four main projects in both the public and private sectors that had a great impact on families:

• Palomino Hydroelectric Project, with a clean and renewable energy generation capacity of 80 Megawatts, is located in the Province of San Juan. For its execution the Bank destined the financing for a total amount of US$ 130.0 million.
• Coral Highway Project, consisted in the construction of a 70 km long road, composed of 4 lanes. A financing of US$ 70.0 million was allocated for the works.
• The Improvement and Expansion Execution Program of the Eastern Road Corridor allowed specifically for the road sections: San Pedro de Macorís-La Romana Section, Circunvalación de La Romana Section and Bulevar Turístico del Este Section, which add up to 78 kilometers in length a better road infrastructure in the country.
• Construction of a 50 kilometer gas pipeline in San Pedro de Macoris, loan in favor of the Dominican company AES for a total amount of US$54.00 million

Virtual meeting

This Wednesday, November 18, the virtual meeting "Business and Investment Opportunities for the Private Sector of the Dominican Republic" will be held, with the objective of identifying business and investment opportunities for the country.

Through the conference, CABEI and its local management will seek to identify investment opportunities, explain the support provided to date to the current Government and learn about the diversification of the loan portfolio with the objective of contributing to the development of the country.