Samana Boondoggle

Keith R

"Believe it!"
Jan 1, 2002
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I'm surprised no one else has commented on this subject yet, given the headlines this week, so I guess I'll have to initiate...

I'd be interested to hear what other DR1ers, especially those located in Samana or with long history of connections with Samana such as Ken, think of this incredible contract Hippo's Hoods are negotiating with some fly-by-night to mortgage away Samana's future. :mad:

Yeah, I'm not trying to hide my own contempt for the whole thing. A 50-yr (not 10, not 20, but 50?????) lease to some company no one has ever heard of that exists only as a PO box in Panama (home to many ficticious firms)? A contract that is incredibly broad in scope and basically says that all risk whatsoever (current fluxuation, downturn in tourism numbers, etc.) must be borne by the government, not the so-called investor? (see today's DR1 news to see what I am talking about). A contract that involves some of Samana's nicer assets, like Cayo Levantado and the Malecon area? A contract whereby if the government decides there is something wrong with what the contractor is doing to the area, it cannot terminate the contract without paying full market value (as decided by whom, using what criteria?) And I am willing to bet that there are no real performance indicators built into the contract by the government to give them an out should the concessionaire not actually meet his obligations.... And what about environmental protections? Does anyone honestly think there are any in this contract? I bet the Environment Ministry has not even been included in the talks.

I don't know about you guys, but the stink of this deal is so strong I can smell it even up here in Virginia. And it PO's me royally to think that this crap is being done with one of the DR's great natural assets.

Where is the outrage, people? :mad:

And why the bloody hell aren't Greenpeace and other eco-NGOs out there raising cain about this?

Your Moderator, Not Feeling Very Moderate Just Now :mad: :mad: :mad:
 

Hillbilly

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Jan 1, 2002
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I am whoileheartedly with you on this and posted to that effect last Monday

This is a swindle of the hugest sort. That is why the Economic editor of Hoy compared it to the attempts of Baez to rent the whole bay back in the 1860s!!!!

This is a super, major ioncredible hoodwinker of a deal...

If the economy sh!ts, the DR has to find the TP and clean it up!!

HB
 

Keith R

"Believe it!"
Jan 1, 2002
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Hillbilly said:
This is a swindle of the hugest sort. That is why the Economic editor of Hoy compared it to the attempts of Baez to rent the whole bay back in the 1860s!!!!

This is a super, major ioncredible hoodwinker of a deal...

If the economy sh!ts, the DR has to find the TP and clean it up!!

HB
Gee, HB, don't know how I missed your earlier post on this issue, otherwise I would have joined in your criticism of this rip-off! Should have known you'd be on the case! :p What I need is a button that allows me to be notified of all posts by HB, then I can stay current on all relevant posts. ;) heehee

Next question becomes, how do we stop it? What levers can be used when dealing with an unscrupulous President who would sell the very air if he could pocket a big commission for it? :mad:
 

Ken

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Jan 1, 2002
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I agree it is terrible.

However, during all the years that I lived in and have been observing Samana, I have seen a lot of huge projects announced, including several marina projects. But for a variety of reasons these projects never come to fruition, not even the ones on which work was begun.

I have also noticed that huge projects were most likely to be announced within a few months of a presidential election. But then when the new government took over, the project died and was never heard of again.

I may be fooling myself, but I tend to believe that this project will go the way of the others, including the railroad that was supposed to be built by a shady company. My fingers are crossed; not much else that I can do.
 

Keith R

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Jan 1, 2002
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Ken said:
I have also noticed that huge projects were most likely to be announced within a few months of a presidential election. But then when the new government took over, the project died and was never heard of again.

I may be fooling myself, but I tend to believe that this project will go the way of the others, including the railroad that was supposed to be built by a shady company. My fingers are crossed; not much else that I can do.
Only problem is, Ken, that the terms of the deal now being negotiated, as I understand them, would have the Dominican government (i.e., the Dominican people) would have to pay for any failure in the project and to break the 50-yr lease and give the concession to someone more worthy. It would not be the first time. For example, one of the reasons SD cannot solve its trash problem is an ironclad long-term giveaway agreement the Balaguer government concluded with firm that failed to include good performance clauses but did require the government to pay big time if it wished to break the agreement. :disappoin

One thing I failed to mention in my prior post is that this deal allows the concessionaire to sublease to some unknown third party. In other words, this whole thing is probably an elaborate scheme to funnel money to this fly-by-night firm serving as middle man, and the real concessionaire waiting in the wings is being hidden from us. Wonder why (shudder, shudder)... :rolleyes:
 
C

Caral

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Where is Philipp's message?

I don't understand. You have a listing for this message, but no message.
 

bhale

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Mar 1, 2004
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You guys are right on. I visited the DR for the first time last November, and I drove all the way to the tip of Samana peninsula to Las Galeras. My trip was an investigative one for real estate opportunities. I saw the port, the dock, the airport, and I think the hotel property in question (white buildings, sits high on the hill over-looking the bay, right?), and this deal is amazing. God wouldn't anyone like to have that kind of gaurantee? I guess it comes down to how much you are willing to pay off the govt.

If the govt. thinks this is such a good deal, why don't they develope the place. If I had the money and the assurance of the govt not to screw everything up, I would definitely do something there. The area needs it and it could be done with class, not screwing up the bay etc. Two simple things could make that area a gold mine. A good road to get there and consistenet electricity.