2003News

Deputies call for cancellation of concessions

More than 30 deputies of the southern provinces requested that President Hipolito Mejia rescind the contract signed with the Consorcio Vial Dominicano for the US$85-million construction of the San Cristobal-Bani highway. The concession was signed two years ago with the little-known company and established that the Dominican government awarded the right to collect tolls for 25 years. Multilateral organization funding had been secured for the expansion of the highway, but was turned down by the Mejia administration, preferring instead the modality of concession.
The contract, according to a report in Hoy’s Sunday, 21 September issue, had a 24-month term for its implementation.
Hoy newspaper reports that the reason for the failure of the San Cristobal-Bani concession, and most concessions granted by the Mejia government in general, is that many of the concessionaires are well-connected, but insolvent businesspeople, whose scheme is to resell the contracts.
Other concessionary works that have not been started or been abandoned are the San Cristobal-Duarte Highway, the railroad from Haina to Santiago, the San Pedro de Macoris-La Romana highway, the extension of the Maximo Gomez Avenue, and the Samana highway.