IFC’s financing for Indomina supports economic growth and employment in the Dominican Republic
Santo Domingo/Washington, DC.- IFC, a member of the World Bank Group, is investing $20 million in the Dominican Republic’s first full-service film and television studio facility to help diversify the country’s economy and generate high-skilled jobs, growth, and tax revenues in the fast-growing media sector. In addition to its direct investment, IFC is also helping to mobilize a US$10 million syndicated loan, for a total transaction value of $30 million.
Pinewood Indomina Studios will offer integrated production and post-production services for regional and international film and television productions. The facility is expected to significantly contribute to the local film industry, creating more than 1,000 direct jobs and 600 indirect jobs among small and mid-sized suppliers over the next five years. Indomina has also established a film training program in the Dominican Republic, in collaboration with international academic organizations, to help build the technical and creative skills necessary to support this growing industry. It is offering specialized training in a wide range of technical areas, including production, film accounting, set design, and post-production.
“Indomina’s partnership with IFC is a key milestone in the company’s evolution,” said Indomina’s Chief Financial Officer Antonio Gennari. “IFC’s financing enables us to invest in Pinewood Indomina Studios, the media park, and Indomina’s film production, as well as execute top quality training initiatives for small and medium businesses that will provide services to the film and television industry.”
Located approximately 40 miles east of the capital of Santo Domingo, Pinewood Indomina Studios is expected to start its operations in 2013 and will attract foreign and domestic film projects. In its initial phase, expected to be inaugurated in June, the studios will include three state-of-the-art soundproof sound stages, a world class 60,000 sq ft ocean-front water filming facility, and a wide range of supporting facilities, including offices and workshops. These facilities will consolidate industry service providers, creating a competitive cluster.
“The film industry is a powerful driver of economic growth for many countries and, increasingly, for emerging markets,” said Ary Naim, IFC’s Country Head for the Dominican Republic. “With its diverse landscapes, good infrastructure and proximity to the United States, the Dominican Republic is well positioned to compete in this dynamic sector and capitalize on its benefits – from job creation to innovation and development.”
Despite the recent global recession, the film industry continues to report increasing revenues and, in some countries, has grown faster than the overall economy. Recognizing the potential for economic growth and employment opportunities, some governments, including Brazil, Colombia, the Dominican Republic, Mexico and Argentina, have created specific incentives and policies to promote this sector.
The Dominican Republic has recently enacted a comprehensive cinema law that introduces film incentives to position the country as a competitive film production destination in the global marketplace.
IFC supports companies across the telecommunications, media and technology value chains in emerging markets and currently has a US$1.5 billion portfolio in this sector. This is IFC’s first investment in a media park.
Since the Dominican Republic became a member of IFC in 1961, IFC has invested US$937.9 million in the country’s private sector, including US$292.6 million in mobilization. IFC also implements advisory programs to improve the business climate, build skills of local entrepreneurs, and promote access to finance and markets for small businesses.
Category: DR News |