CABEI funds drive major project in the Dominican Republic
By: BCIE News
The project will allow the development of works for the control of water flows, prevention of floods and minimization of damages caused by natural phenomena.
Santo Domingo, April 9, 2018.- The Executive Vice President of the Central American Bank for Economic Integration (CABEI), Alejandro Rodríguez Zamora, and the Minister of Finance of the Dominican Republic, Donald Guerrero Ortiz, signed a credit agreement for US $249.6 million for the Multiple Project of the Montegrande Dam, Phase III.
The project consists of the construction of a multipurpose dam on the Yaque del Sur riverbed in order to control floods, provide for drinking water, as well as water for agricultural irrigation and the development of aquaculture and tourism activities.
"We are proud to be part of this initiative that will improve the quality of life of families in the area," said the Executive Vice President. He also referred to the financing and development opportunities offered by CABEI to its partner countries.
In the case of the Dominican Republic, CABEI has financed infrastructure and renewable energy projects. To date, CABEI's gross portfolio with this partner is US $296.43 million, he said.
The project will:
• Increase the country's water storage capacities.
• Develop works for the control of water flows, prevention of floods and minimization of damages caused by natural phenomena.
• Increase the amount of water for agricultural activities with the development of new irrigation areas with efficient use of water with the expansion of approximately 18,936 hectares.
A Development Bank for Progress in the Region
In 2016, the Dominican Republic increased its participation in the capital stock of the Bank through a capital subscription process that will generate new cash capital payments for CABEI. This capitalization process is the second in the last four years, when as of 2012, the increase in the Ordinary Capital of the Bank from US $2 billion to US $ 5 billion came into effect.
CABEI is a part of the Central American Integration System created 58 years ago as the financial arm of the region's integration and development. Its resources are continuously invested in projects with an impact on development to reduce poverty and inequalities, giving special attention to environmental sustainability.
"As a result of its financial policies and the implementation of its Institutional Strategy, CABEI stands out for its financial strength and currently has the best risk ratings," Rodríguez said.
It should be noted that the city of La Romana will host the 58th Ordinary Meeting of the CABEI Assembly of Governors to be held later this month. This event will bring together Ministers of Economy, Finance, and Central Banks of the Bank's member countries to review the integration agenda and the efforts made for regional economic and social development.