The Louis Berger Group Inc., an American "Independent Engineer and Independent Aviation Systems Consultant, is currently completing the initial due diligence assignment , including a completed economic analysis using Inter-American Development Bank guidelines, a review of the economic regulatory framework for the aviation sector and an evaluation of the economic note of return. After Aerodom has secured the international financing, Berger will begin its construction monitoring activities."
According to a spokesperson from The Louis Berger Group which has been involved under contract with the banks that are structuring the financing for Aerodom's capital program, there have been delays in closing the loan transaction between the banks involved and Aerodom (with the guarantee of the IADB) - as has been the case with many worldwide airport projects - primarily due to 9/11 and the airline industry crisis that followed; and more recently the Iraq war issue. At this time, according to the Louis Berger spokesperson, everyone involved in the Aerodom transaction is working towards finalizing various documents; and they anticipate that financial closing will take place by Spring/Summer 2003.
According to The Louis Berger Group, the El Catey Airport is part of Aerodom's program and it is the understanding that Aerodom will proceed with construction immediately after the approval of the loan by the IADB, if financial closing takes place as anticipated by The Louis Berger Group, hired, as mentioned by the IADB.
Aerodom, according to their spokesperson, also anticipates that the loan and IADB guarantee decision will be made by by the Spring/Summer of 2003; and if so, the El Catey Airport would be open by late 2004 but more realistically fully functioning by the summer of 2005 with most - if not all - major international airlines presently serving the Dominican Republic flying to El Catey Airport as, according to the same spokesman from Aerodom "Samana is one of the most 'asked-about' areas in the Caribbean by the major travel agents in Europe and North America, due to its many pristine beaches and eco-tourism potential".
As far as the Arroyo Barril Airport is concerned, according to the Environmental & Social Impact Briefs/Reports (ESIR) of 1999 and 2002 (see links below), both prepared by The Louis Berger Group and the IADB, the Arroyo Barril expansion did not take place due to the expected negative environmental impact on the area (especially on the shrimp population of The Bay of Samana), as well as the proximity of the mountains to the runway; and the havoc this would create for large body planes. However, reading the March 2002 ESIR one can assume that Arroyo Barril Airport will be utilized eventually as a regional airport serving the Dominican domestic, SE USA and Caribbean markets - and not be closed.
Upon reading the extensive, 44-page ESIR of March 2002, there is much clarity as to the techniques utilized up-to-now and to be utilized concerning the removal and re-inforcing of the soft ground of El Catey Airport as well as the drainage system to be incorporated for heavy rainfall. This should put an end to many of the rumours regarding the site of the new airport and its poor quality soil for this type of project.
According to the Louis Berger Group Report of 2002, "forecasted passenger volumes are to be estimated at 100,000 per year in 2008 and up to 770,110 by the year 2018; 92 percent of the volume is expected to consist of international passengers." It is important to note that some of the more than 500,000 Dominicans living in New York City and 20,000 now in Canada (not to mention Europe) and who do occassionally return to the DR, would most certainly be flying to El Catey Airport as it is closer to their home towns than are Puerto Plata or Santo Domingo.
The ESIR of 2002 makes note of recent passenger volumes through Arroyo Barril Airport which seem very much on the high side. One can assume that the report is simply transferring the pre-9/11 passanger numbers of the Las Terrenas Airport also in the Province of Samana since those passengers, in future, would obviously be routed through El Catey Airport.
For any parties seriously interested in investing in the Samana region, it is highly recommended to read the reports and sites linked below. (Most of the sites are also available in 2nd languages, notably Spanish.) It is apparent that the direct and indirect investors in the Samana Airports ? from Aerodom, the IADB, , Banco San Paolo of Italy, Vancouver Airports not to mention the government-influential Dominican investors involved - are serious and profitable companies with many years of experience in the financing, building and operating of major airports - not only in Latin America, but also worldwide. Besides, Aerodom has paid (or shall pay) U$120,000 as an analysis fee to the IADB (see loan proposal below) thereby suggesting that Aerodom is clear about its intentions and "putting its money where its mouth is". The loan proposal and (subsequent guarantee from the IADB) clearly state that the close to 20% of the U$338 million loan will be used to construct and refurbish El Catey and Arroyo Barril Airports respectively. Aerodom, one suspects, would be legally bound to abide by the contract so one should not expect that money allocated to the two Samana airports would be redirected in any manner as is the history with government-sponsored projects in the country.
Combined with the construction of the highway from Las Americas Airport near Santo Domingo ? also privately financed ? one can optimistically envisage a Samana in 2005 and beyond in which its citizens and those of the Nagua region will enjoy 2 privately-managed international airports ? with El Catey Airport having cargo facilities for the export of produce and apparel (especially as DR and Canada are expected to have a Free Trade deal signed by the end of 2003); a Free Trade Zone near El Catey Airport; a new network of highways linking the region to Santo Domingo and its private megaport due to be completed approximately the same time; and the influx of Dominican vacationers from Santo Domingo in the summer giving the region year-round tourist potential; and finally a bevy of private construction with the many other small and medium-sized business spin-offs which will postively affect the region?s economic growth and directly assist the local population and significantly lower the high unemployment rate in the area and increase the morale of its citizens and legal residents.
The termination of a Samana international airport and its positive economic windfall is a long-time coming; and will be most welcome so long as rigid regulations are applied and adhered to in matters pertaining to environmental, noise, water and air pollution concerns - not to mention prostitution. This is where the government comes into the picture; and anyone with any experience in the country knows very well that that is the ?wild card?. For example, I have yet to see any progress on the fresh water issue for the tip of the peninsula, including Las Galeras and Rincon which depend primarily on rainwater and a salty underground river. Not only new hotel and condo projects will need sustainable fresh water supplies and modern water treatment facilities, but so does it citizenry, presently and in the long-term.
Finally, it is important to remember that the Louis Berger Group, apparently one of the co-authors of the IADB reports below, was "selected by the InterAmerican Development Bank and Banco San Paolo IMI of Italy to serve as independent consultant and provide due diligence services for the financing of improvements by Aerodom" - and not by Aerodom, the party seeking the over U$300 million loan from the private banks involved and the U$150 loan guarantee through the IADB to refurbish and construct the airports involved in the concession contract, including El Catey and Arroyo Barril airports.
It is just about confirmed that the Peninsula of Samana will have changed dramatically by the end of this decade. And if one looks at similar famous resort bays of the world, such as Acapulco, then one cannot but see the similarities between the bays of Rincon and Las Galeras with that of Acapulco Bay. Except that the former bays have no or little development as of yet. The hills, long sandy beaches and turquoise water. One can envisage the day when from Playa Rincon at the edge of the National Park (let?s hope) of Cabo Cabron to Cabo Samana there will be hotel complexes and private homes. In fact, this will be the scene from at least Las Terrenas and possibly Nagua to Cabo Cabron once the roads have been built along the coast. One hopes that the beaches will remain public for all to use as is the law; and that the hoteliers will see fit to build hotels which are not of the all-inclusive, compound types which serve no great advantage to the local population or the tourist since the two never meet in that type of model; and the majority of the economic benefits are returned overseas and do not stay in the local communities, thereby benefiting local education and nutritional standards.
In conclusion, I would suggest that if you haven?t seen this beautiful region in its mostly pristine state or if you have seen the area and wish to see if once again before the bulldozers stay for good, then I would suggest that you make a trip to Samana before the summer of 2003.
For more information, please see the following links:
See: AERODOM Loan Proposal
http://www.iadb.org/exr/ENGLISH/PROJECTS/dr1418e.pdf
See: Partners? shares involved; and loan guarantee information as of 01.15.03:
http://www.iadb.org/pri/documents/Syndications_Pipeline.PDF
See: Louis Berger Group (under more ?news?):
http://www.louisberger.com/berger/now/
See: Some partners involved:
http://www.impregilo.it/
http://www.yvras.com/operations/index.html
See: Design Company
http://www.initec.es
See: Environmental & Social Impact Brief / Sept. 1999
http://www.uni-mainz.de/~khoppe/karibik/bdr0136.pdf
See: Environmental & Social Impact Report / March 2002
http://www.iadb.org/exr/doc98/pro/rdr0136.pdf
See: Approval of Environmental Assessment / August 2002
http://www.iadb.org/exr/english/projects/eia.htm
Also some interesting news about other private projects slated for Samana:
1. Investors see future of tourism in Samana
The eyes of tourism investors are on Samana, one of the main tourism poles in the Dominican Republic, which this year has the highest number of tourism development projects underway and also some of the largest investments in construction projects within the country. The province, located in the northeastern region of the DR, will have various projects completed in the near future such as a new marina, an international airport, various hotels, villas and residential projects as well as numerous tourism service locales and establishments including vehicle rentals, gas suppliers and banks. The many projects being developed in and around the Samana province and the Samana Bay are detailed in the latest Tourism Projects Report prepared by the Ministry of Tourism. The cost of the projects that have been approved by the ministry (a total of 215 projects) includes an investment of over 141 million dollars. From October 2001 to October 2002 the Ministry evaluated 224 projects, out of which 177 are definitive, 25 have a conditional approval, 13 are pending review and 9 have been denied.
According to a spokesperson from The Louis Berger Group which has been involved under contract with the banks that are structuring the financing for Aerodom's capital program, there have been delays in closing the loan transaction between the banks involved and Aerodom (with the guarantee of the IADB) - as has been the case with many worldwide airport projects - primarily due to 9/11 and the airline industry crisis that followed; and more recently the Iraq war issue. At this time, according to the Louis Berger spokesperson, everyone involved in the Aerodom transaction is working towards finalizing various documents; and they anticipate that financial closing will take place by Spring/Summer 2003.
According to The Louis Berger Group, the El Catey Airport is part of Aerodom's program and it is the understanding that Aerodom will proceed with construction immediately after the approval of the loan by the IADB, if financial closing takes place as anticipated by The Louis Berger Group, hired, as mentioned by the IADB.
Aerodom, according to their spokesperson, also anticipates that the loan and IADB guarantee decision will be made by by the Spring/Summer of 2003; and if so, the El Catey Airport would be open by late 2004 but more realistically fully functioning by the summer of 2005 with most - if not all - major international airlines presently serving the Dominican Republic flying to El Catey Airport as, according to the same spokesman from Aerodom "Samana is one of the most 'asked-about' areas in the Caribbean by the major travel agents in Europe and North America, due to its many pristine beaches and eco-tourism potential".
As far as the Arroyo Barril Airport is concerned, according to the Environmental & Social Impact Briefs/Reports (ESIR) of 1999 and 2002 (see links below), both prepared by The Louis Berger Group and the IADB, the Arroyo Barril expansion did not take place due to the expected negative environmental impact on the area (especially on the shrimp population of The Bay of Samana), as well as the proximity of the mountains to the runway; and the havoc this would create for large body planes. However, reading the March 2002 ESIR one can assume that Arroyo Barril Airport will be utilized eventually as a regional airport serving the Dominican domestic, SE USA and Caribbean markets - and not be closed.
Upon reading the extensive, 44-page ESIR of March 2002, there is much clarity as to the techniques utilized up-to-now and to be utilized concerning the removal and re-inforcing of the soft ground of El Catey Airport as well as the drainage system to be incorporated for heavy rainfall. This should put an end to many of the rumours regarding the site of the new airport and its poor quality soil for this type of project.
According to the Louis Berger Group Report of 2002, "forecasted passenger volumes are to be estimated at 100,000 per year in 2008 and up to 770,110 by the year 2018; 92 percent of the volume is expected to consist of international passengers." It is important to note that some of the more than 500,000 Dominicans living in New York City and 20,000 now in Canada (not to mention Europe) and who do occassionally return to the DR, would most certainly be flying to El Catey Airport as it is closer to their home towns than are Puerto Plata or Santo Domingo.
The ESIR of 2002 makes note of recent passenger volumes through Arroyo Barril Airport which seem very much on the high side. One can assume that the report is simply transferring the pre-9/11 passanger numbers of the Las Terrenas Airport also in the Province of Samana since those passengers, in future, would obviously be routed through El Catey Airport.
For any parties seriously interested in investing in the Samana region, it is highly recommended to read the reports and sites linked below. (Most of the sites are also available in 2nd languages, notably Spanish.) It is apparent that the direct and indirect investors in the Samana Airports ? from Aerodom, the IADB, , Banco San Paolo of Italy, Vancouver Airports not to mention the government-influential Dominican investors involved - are serious and profitable companies with many years of experience in the financing, building and operating of major airports - not only in Latin America, but also worldwide. Besides, Aerodom has paid (or shall pay) U$120,000 as an analysis fee to the IADB (see loan proposal below) thereby suggesting that Aerodom is clear about its intentions and "putting its money where its mouth is". The loan proposal and (subsequent guarantee from the IADB) clearly state that the close to 20% of the U$338 million loan will be used to construct and refurbish El Catey and Arroyo Barril Airports respectively. Aerodom, one suspects, would be legally bound to abide by the contract so one should not expect that money allocated to the two Samana airports would be redirected in any manner as is the history with government-sponsored projects in the country.
Combined with the construction of the highway from Las Americas Airport near Santo Domingo ? also privately financed ? one can optimistically envisage a Samana in 2005 and beyond in which its citizens and those of the Nagua region will enjoy 2 privately-managed international airports ? with El Catey Airport having cargo facilities for the export of produce and apparel (especially as DR and Canada are expected to have a Free Trade deal signed by the end of 2003); a Free Trade Zone near El Catey Airport; a new network of highways linking the region to Santo Domingo and its private megaport due to be completed approximately the same time; and the influx of Dominican vacationers from Santo Domingo in the summer giving the region year-round tourist potential; and finally a bevy of private construction with the many other small and medium-sized business spin-offs which will postively affect the region?s economic growth and directly assist the local population and significantly lower the high unemployment rate in the area and increase the morale of its citizens and legal residents.
The termination of a Samana international airport and its positive economic windfall is a long-time coming; and will be most welcome so long as rigid regulations are applied and adhered to in matters pertaining to environmental, noise, water and air pollution concerns - not to mention prostitution. This is where the government comes into the picture; and anyone with any experience in the country knows very well that that is the ?wild card?. For example, I have yet to see any progress on the fresh water issue for the tip of the peninsula, including Las Galeras and Rincon which depend primarily on rainwater and a salty underground river. Not only new hotel and condo projects will need sustainable fresh water supplies and modern water treatment facilities, but so does it citizenry, presently and in the long-term.
Finally, it is important to remember that the Louis Berger Group, apparently one of the co-authors of the IADB reports below, was "selected by the InterAmerican Development Bank and Banco San Paolo IMI of Italy to serve as independent consultant and provide due diligence services for the financing of improvements by Aerodom" - and not by Aerodom, the party seeking the over U$300 million loan from the private banks involved and the U$150 loan guarantee through the IADB to refurbish and construct the airports involved in the concession contract, including El Catey and Arroyo Barril airports.
It is just about confirmed that the Peninsula of Samana will have changed dramatically by the end of this decade. And if one looks at similar famous resort bays of the world, such as Acapulco, then one cannot but see the similarities between the bays of Rincon and Las Galeras with that of Acapulco Bay. Except that the former bays have no or little development as of yet. The hills, long sandy beaches and turquoise water. One can envisage the day when from Playa Rincon at the edge of the National Park (let?s hope) of Cabo Cabron to Cabo Samana there will be hotel complexes and private homes. In fact, this will be the scene from at least Las Terrenas and possibly Nagua to Cabo Cabron once the roads have been built along the coast. One hopes that the beaches will remain public for all to use as is the law; and that the hoteliers will see fit to build hotels which are not of the all-inclusive, compound types which serve no great advantage to the local population or the tourist since the two never meet in that type of model; and the majority of the economic benefits are returned overseas and do not stay in the local communities, thereby benefiting local education and nutritional standards.
In conclusion, I would suggest that if you haven?t seen this beautiful region in its mostly pristine state or if you have seen the area and wish to see if once again before the bulldozers stay for good, then I would suggest that you make a trip to Samana before the summer of 2003.
For more information, please see the following links:
See: AERODOM Loan Proposal
http://www.iadb.org/exr/ENGLISH/PROJECTS/dr1418e.pdf
See: Partners? shares involved; and loan guarantee information as of 01.15.03:
http://www.iadb.org/pri/documents/Syndications_Pipeline.PDF
See: Louis Berger Group (under more ?news?):
http://www.louisberger.com/berger/now/
See: Some partners involved:
http://www.impregilo.it/
http://www.yvras.com/operations/index.html
See: Design Company
http://www.initec.es
See: Environmental & Social Impact Brief / Sept. 1999
http://www.uni-mainz.de/~khoppe/karibik/bdr0136.pdf
See: Environmental & Social Impact Report / March 2002
http://www.iadb.org/exr/doc98/pro/rdr0136.pdf
See: Approval of Environmental Assessment / August 2002
http://www.iadb.org/exr/english/projects/eia.htm
Also some interesting news about other private projects slated for Samana:
1. Investors see future of tourism in Samana
The eyes of tourism investors are on Samana, one of the main tourism poles in the Dominican Republic, which this year has the highest number of tourism development projects underway and also some of the largest investments in construction projects within the country. The province, located in the northeastern region of the DR, will have various projects completed in the near future such as a new marina, an international airport, various hotels, villas and residential projects as well as numerous tourism service locales and establishments including vehicle rentals, gas suppliers and banks. The many projects being developed in and around the Samana province and the Samana Bay are detailed in the latest Tourism Projects Report prepared by the Ministry of Tourism. The cost of the projects that have been approved by the ministry (a total of 215 projects) includes an investment of over 141 million dollars. From October 2001 to October 2002 the Ministry evaluated 224 projects, out of which 177 are definitive, 25 have a conditional approval, 13 are pending review and 9 have been denied.
