Spanish investors are major investors in resorts in coastal areas of the Dominican Republic, mainly Punta Cana and Puerto Plata. Now the Council of Ministers of Spain authorized granting a sovereign credit to the Dominican government, under the Fund for the Promotion of Development (Fonprode), for up to US$50,000,000.
The lending program will be co-financed by the IDB, which will provide US$80 million, and by the Korea Infrastructure Development Facility for Latin America and the Caribbean (KIF), which will provide US$60 million, in addition to Fonprode’s US$50 million credit.
The same Spanish government entity authorized the payment of up to US$380,000,000 to the Inter-American Development Bank, under the Fund for the Promotion of Development, for the preparation and supervision of the Universal Sanitation Program in Coastal and Tourist Localities of the Dominican Republic, co-financed with the credit of up to US$50,000,000 granted by the same fund to the Dominican Republic.
The conditions for the loan is payment in 25 years, with a grace period of 5.5 years and equal annual semestral quotas. The announcement does not indicate the interest payments.
The Spanish government says the objective of the loan is to improve the environmental conditions and health of the inhabitants of the beneficiary localities through access to sanitation services managed in a sustainable and safe manner. Its specific objectives are:
• Increase the coverage of safely managed sanitation in the localities intervened by the program;
• Improve the management of drinking water services in these localities and contribute to the strengthen the Water and Sanitation operators and the National Institute of Drinking Water and Sewerage (INAPA).
The Spanish government also said that based on the “Joint Financing Framework Agreement” for the co-financing of operations with sovereign guarantee that Spain and the IDB signed in 2017, Fonprode will pay the IDB a fee for the costs of preparation and supervision of the program, up to a maximum of US$380,000 to the IDB, charged to Fonprode, for the preparation and supervision work of the “Universal Sanitation Program in Coastal and Tourist Localities of the Dominican Republic.”
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Spanish government
17 May 2023