- Thread starter PICHARDO
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Public Infrastructure!
??????
There are public "licitaciones" for all INAPA projects 100%! What happens most of the time is that the locations are so remote in the country for most tenders that very few companies are willing to risk the logistics behind the heavy equipment movement to the sites.
Let me put it this way: The Loma de Cabrera station had to wait until the gov had built a paved road all the way to the property, before work was started after the tender and not one company risked bidding without such compromise.
The DR still is a lot of monte y culebras if you understand the pun!
What you mean to say maybe, is why you seldom if ever hear about these infrastructure projects in the media and the answer is simply nobody cares for that. They want gossip and political dirt, instead of whom got water next...
And another aspect is that the contracts stipulate soft financing for long term in most cases!
So that the gov can pay for it in partials over so many years!
The big boys in the DR KNOW which projects to bid on and which are not worth their time!
Why don't you just state the obvious. There are no firms sophisticated enough in the DR to do those 'big' projects. Also the big projects go to the big foreigners because their governments are the ones providing the loans and aid to the government of DR to earmark this revenue...
Out of curiousity where does this money come from? Reason, most times when other countries provide investment capital for infrastructure projects, they are looking for either a stronghold on the resource (if applicable) or provide jobs for their companies doing the construction. This is proven worldwide by China escpecially in the billion dollar projects they do in Africa.
All in all this is a good thing for both parties (countries) as the receiving country realizes the new infrastructure upgrade even if they dont get the tender for construction.
That's probably so!!! What Pick doesn't realize is that none of us here have an issues with all this. The problem is where is the money coming from to build all this junk. If it was coming from savings the DR govt saved over time, then I'd be all for it. It doesn't because the DR govt has NO SAVINGS. It is in debt up to its eyeballs and it continues borrowing. With rates worldwide at rock bottom levels, the DR govt has had no restraint in the amounts it borrows. They frankly don't give a DAMn. They have a similar mentality to Pick's.
It (DR govt) doesn't care what the source of the money is as long as it's money they'll take it. Consequences? So what! They'll deal with that baby when it arrives. The DR govt is as reckless as many Dominican families. You'd expect that. The family unit is the basis of the nation. Many poor families within the DR have children without regard. A typical Dominican saying states,"cada nino nace con un pan debajo de los brazos" Every child is born with bread under his arms. With that type of nonsensical sayings, you can begin to understand why the DR govt is so reckless.
They aren't looking at the long term consequences of such indebtedness. They figure as they always have that the IMF or Uncle Sam will come in and save the day. They figure they can continue borrowing as long as they can make minimum payments on the national credit card. So they keep borrowing and borrowing and borrowing and will continue borrowing until they can borrow no more. From the looks of it in close concert with central banks worldwide, that trend is not about to stop anytime soon. Only when the fundamental laws of economic gravity assert their will once again will order and discipline be restored.
Companies like Odebrecht and others of foreign source obtain soft loan approvals to carry out projects in the region or other side of the world from local (Brazil) financing sources, which include their country's own import/export bank to bid and carry out the works.
The profit for them is that the DR has never defaulted on a single collateral loan of public infrastructure. So even when the work is carried out under the soft terms, they get paid on the spot by their financing source minus a very minimal escrow amount from the payment for financial safety under the financial institution's terms.
The profit for the financing part, even when they are soft loans over a mid to long term, is the level of interest charged. This amount will always surpass many of the private investments in their portfolios and balance the mid to long term risks of the institution.
Dominican companies are not worried about the competition on these tenders, as they have more than enough tenders to look for from other public works year round. As a matter of fact, relating to the same foreign companies winning the tenders, they are mandated by LAW to have local participation of local contractors and companies to carry out the works. Case in point the Autopista El Coral, Corredor Duarte and many other major works carried out by foreign companies, alongside the locals, which didn't need to secured the funds in the first place!
The cash cow for companies like the one listed above, is that they set a foothold in the country with minimal direct foreign investment. They use the profits to cement their companies in the country and further their contracts within the private sector via partnerships with other local companies. After a while, they're able to carry out self financed private projects in the country with minimal exposure and high returns, beyond the one they could get as an outsider.
Just recently many U.S. based construction firms have been very active in the DR via these types of contracts, but from the private sector. Most of the largest projects carried out in the country so far, have been done with foreign companies involvement to some degree.
It's not the other country's that are looking to invest, but their biz sector with ample support from their own financial sectors including the public financial institutions that need a stable portfolio.
Metro de Santo Domingo (L-2) will be the first Metro system of the world to be powered by Bio-gas
Santo Domingo. - When the second line of the Santo Domingo metro starts running, the Dominican Republic will have the first public transport with the[FONT=arial, sans-serif] [/FONT]Clean Development Mechanism (CDM), since work on a bio-gas system is currently being installed.
The project of degassing on the Duquesa landfill is underway, which will in turn provide 10 mega watts of power, enough to provide for the Metro operations, whose stations cross Luperon Avenue in the west to the bridge "The 17 "in the east.
The country will also receive funding from carbon emissions bonds from fossil fuels, such as the Kyoto protocol stipulates. Colombia is the only country that one CDM project in public transport so far, with the bus service in Bogota of the transmillenio.
The DR would be the second public transport and the first of a Metro system that works on bio-gas.
The country already receives four million euros with the primary funds from the Kyoto protocol of the proposed gas extraction in Duquesa, where plastics are also recycled are exported.
Santo Domingo. - When the second line of the Santo Domingo metro starts running, the Dominican Republic will have the first public transport with the[FONT=arial, sans-serif] [/FONT]Clean Development Mechanism (CDM), since work on a bio-gas system is currently being installed.
The project of degassing on the Duquesa landfill is underway, which will in turn provide 10 mega watts of power, enough to provide for the Metro operations, whose stations cross Luperon Avenue in the west to the bridge "The 17 "in the east.
The country will also receive funding from carbon emissions bonds from fossil fuels, such as the Kyoto protocol stipulates. Colombia is the only country that one CDM project in public transport so far, with the bus service in Bogota of the transmillenio.
The DR would be the second public transport and the first of a Metro system that works on bio-gas.
The country already receives four million euros with the primary funds from the Kyoto protocol of the proposed gas extraction in Duquesa, where plastics are also recycled are exported.
Hospitals, schools, roads, aqueducts and general infrastructures is junk? Ok, thanks for the clarification.
I'm sure you're right, as other countries in the world adhere to the principles of saving first to then construct hospital, schools, roads and general infrastructure. Silly me, I thought that most government around the world finance their public projects. Finance, you know, as in borrow money from a lending institution but I guess I'm mistaken. I wonder where the US debt of ~US$15,957,242,400,000* comes from if they are following your golden rule of save first spend later. The US, just like the DR, must not be aware of your economic golden rule. You must share your economic prowess with these unfortunate nations to save them from themselves.
* U.S. National Debt Clock : Real Time
NotLurking
