Two questions, separate but related to ports since I am not aware how such businesses work in general:
1) China has provided various countries with loans to be able develop and improve their ports. Countries then default on the loans then and China keeps the ports. I see how this helps China in their global power grab. How would this help the DR?
2) Someone invests in the DR ports in a way that they are improved and still are controlled by Dominicans.
Let us say China does this in good faith. ( A stretch, I know)
This allows the flow of goods in and out of the DR to be improved. How does China (or any other country that would improve the ports in the DR benefit from the DR having better ports aside from perhaps getting some of the profit from port fees?
Unlike other infrastructure loans made to the countries as posted, China requires no guarantees other than the facilities themselves if the country fails to repay the Liana under the terms agreed.
The terms are sanctioned under international trade agreements and restrictions. They are also audited by third parties to confirm that they can be repaid as contracted if both sides follow the stipulations in the agreement.
The problem for developing countries and economies in development, comes at the point of corruption and financial mishandling of debt repayment priorities.
Money that was originated from the infrastructure themselves(part of the financial viability of the agreements as formulated) is redirected to fund other gov projects or outright stolen by corruption in the gobs.
Since all China has -as guarantees- is the infrastructure themselves as such, they take over operations of the project and under a third party accounting supervisory, continue the payments as fully agreed.
The bulk of infrastructure projects funded by other nations would require a guarantee in the form of gov debt that can be amortized in the private sector or via the IMF-WB and other schemes to force the countries to adopt austerity measures and/or fiscal reforms.
China belt and roads financing only focuses on debt repayment with direct control of financial operations. Port operations remains in the same setup of the one it operated under, but with Chinese overseers(managers).
The DR has a bigger potential on returns than anything China’s program can throw at it.
For the DR the belt and roads is Godsent.
More so now that corruption is being prosecuted vigorously, unlike months ago.
Each time the DR has invested into the port facilities, the returns have been magnified beyond the projections.
Much like Caucedo made a 180 for the country as a transshipment logistics hub after upgrades.
Puerto Plata would be a key point to that end as well as other ports in the DR.
China means biz, and soon to be the largest economy in the world, a priority for the DR to insert itself into their market.
