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Congress approved loans for RD$202.6 billion in first session

SD. In the first ordinary legislative session of this Congress, which ended last Saturday, the National Congress approved several loans, authorizations for the placement of public debt, and international bonds for the Central Government which totaled RD$202.6 billion.

The contracts for financing and projects for laws submitted by the Executive Branch are broken down into dollars, Euros, and Dominican pesos: US$3.8 billion (RD$165.44 billion); €61.0 million (RD$3.8 billion); and RD$33.6 billion, which were calculated at the current rates. (RD$43.65 per dollar and RD$58.81 per Euro).

The largest loan corresponded to the EPC Contract for the engineering, procurement and construction of an Electricity Generation Plant, called Central Punta Catalina, in Bani which will have a net capacity of 674.78 megawatts.

The project, whose contract amounts to a total of US$2.04 billion, consists of two coal-fired generators. The contract was approved in the Chamber of Deputies on 24 June, after being approved by the Senate.

Likewise, the Chamber of Deputies approved last 8 April a legislative proposal that authorized the Executive Branch, through the Ministry of Hacienda, to issue international bonds for a nominal face value of US$1.5 billion, or its equivalent in Dominican pesos. These have already been placed in the international markets at rates and conditions favorable to the country.

That same day, and 24 hours later, after having been received by the Senate, the deputies approved another legislative proposal that authorized the Executive Branch to contract public debt for RD$33.6 billion or its equivalent in US dollars.

Another contract for financing complied with the legal requirement of being ratified by the National Congress. This was the contract signed on 31 July 2013 between the National Bank of Economic and Social Development (BNDES) from Brazil and the Dominican Republic with the intervention of Queiroz Galvão, S.A., for US$71.9 million.

The objective of this loan is to finance the Azua II–Pueblo Viejo-Agricultural Development Project, which is supposed to conclude and recover the infrastructure for irrigation of Azua I and the expansion of the irrigation system for the region of Azua II.

Also ratified by the Congress on last 22 May was the definitive contract and amendments 1 and 2 of the loan for the turn-key project for the construction, supply and installation of the purification system of the residual waters of the Ozama River. This contract was signed by the Santo Domingo Water and Sewer Corporation (CAASD) and the Spanish consulting company Incatema Consulting, S.L. for the amount of €55.7 million. Through amendment #1 the total amount was increased from €44.7 million to the sum of €55.7 million because another €11.0 million was included to recover the Haina, Isabela and Ozama rivers together with the riverbanks of Santo Domingo.

In other business, Congress approved the Credit agreement signed on 30 December 2013 between the Ministry of Hacienda and the Official Credit Institute of the Kingdom of Spain for the amount of €5.3 million.

These resources will be used to finance the water supply and management in the municipality of Los Botados de Yamasá, in the province of Monte Plata, which will be executed by the National Institute of Water and Sewers (INAPA).

In addition, they approved the loan contract signed on 11 June 2014 between the Dominican Republic, through the Ministry of Hacienda and by the National Housing Institute INVI) and the Andina Promotion Corporation, for US$33.0 million, to finance the program of Urban Development and Habitat Phase II.

Likewise, a loan signed between the Dominican Republic and the Inter American Development Bank (IADB) was approved for the amount of US$50.0 million to be used in the project which supports the Ten-year Educational Plan, the second program under the line of Conditional Credit or the Financing of Investment projects.

Also, both legislative chambers approved the addendums #2 and 3 of the Multiple Project for the dam at Monte Grande, and the refurbishment and cooperation with the dame at Sabana Yegua, signed between the National Institute for Hydraulic Resources (Indrhi) and the Monegrande Consortium. In the Addendum #2, they added47.4 million to increase the total amount to US$401.7 million and in Addendum #3 they redistributed these amounts to use in several areas.

A resolution of modified extinctive novation, signed last 22 March between the Dominican Republic, the Spanish Bank of Credit and the Banco Bilbao Vizcaya Argentaria (BBVA) was approved for the sum of US$49.8 million for the financing of the multi-aqueduct of the province of Peravia (Bani).

Loans in the 2014 Budget

The General Budget of the State 2014 establishes a financial plan of the Central Government that amounts to RD$148.3 billion, which represents 6.9% of GDP.

In the Budget Law, they authorized the undertaking of operations of public credit to finance the executions of projects of the electric sector for US$2.3 billion

The first ordinary legislative session began on 27 February. The second session will begin on 16 August.

Source: DiarioLibre

Category: DR News |

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Last updated March 25, 2017 at 5:40 PM
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