Announcement of World Bank Supports Tourism Project in Dominican Republic on May 21, 1979

FOR JMMEDIA TE RELEASE . • world Bank J 818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 79/87 May 21, 1979 WORLD BANK SUPPORTS TOURISM PRQjECT iN DOMiNiCAN REPUBLIC A project to enhance the appeal of the Dominican Republic as a tourist attraction will be supported by the World Bank with a loan of $25 million. The loan will help finance the construction of tourism facilities in the Puerto Plata region, already a popular stop for Caribbean cruise ships. With a total cost of $71 mlllion, the project will provide funds ~or the construction of about 1,600 hotel and apart-hotel rooms in the resorts of Playa Dorada and Playa Grande and in the city of Puerto Plata. The project will comprise the prov1s1on of tourism facilities such as restaurants, shops, tourism transport, and a 30-boat marina. It will also include urban works aimed at improving Puerto Plata's waterfront • area and central square, and a handicrafts center • The project, which is a part of a regional tourism development program, is expected to have favorable social and economic impact in the Puerto Plata area. Living standards are expected to rise as employment opportunities in tourism enterprises are created, and as self-employment in small tourism-related enterprises becomes widespread. Total permanent employment attributable to the program is expected to exceed 8,000 jobs. Construction works are expected to generate over 10,000 man-years of temporary employment. The $25 mill ion loan to the Central Bank of the Dominican Republic with the guarantee of the government, will have a term of 17 years, including 4 years of grace, with interest at 7.9% per year. In November 1974, the World Bank approved a $21 million loan to help finance infra- structure works and common facilities to develop the sites at Playa Dorada and Playa Grande . • NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T E r. H N I C A L DAT A • PROJECT: Second Puerto Plata Tourism Development COUNTRY: Dominican Republic TOTAL COST: $71 million BANK FINANCING: $25 million for a term of 17 years, including 4 years of grace, with interest at 7.9% per annum OTHER FINANCING: Commercial banks~ $12 mil lion Central Bank of the Dominican Republic, $JO million Investor's equity, $24 mill ion IMPLEMENTING ORGANIZATION: Departamento para el Desarrollo de la lnfraestructura Turistica (INFRATUR), Banco Central de la Rt.i-1ublica Dominicana Santo Domingo, Dominican Repub1 ic Telex: ITT3460052 BANCEN PROJECT DESCRIPTION: It includes: a) a line of credit to f: .. ~i1ce tourist accom- modations and tourist services in Playa Dorada, Playa Grande and Puerto Plata; b) urban works in the low-lying area of the city near the tourism pier; c) an artisan center; and d) technical assistance to strengthen the Direccion Nacional de Turismo e lnformacion--DNTI (National Tourism and Information • Directorate) and INFRATUR (Department for Touris~ Infrastructural Development). PROCUREMENT: Line of Credit: Before subloans are made, prospective borrowers will normally be required to submit at least three bids for civil works accompanied by an evaluation report to INFRATUR. For contracts for the supply and installation of equipment, furniture and fixtures amounting to more than $2,500, the borrower will be required to submit at leost three quotations from qualified suppliers registered with INFRATUR. Prudent shopping will be allowed for purchases of less than $2,500 provided their total amount·wil1 not exceed $10,000 for each project. Other Components: Contracts for civil works, furniture, materials, fixtures and equipment will be let on the basis of competitive bidding after local advertising. CONSULTANTS: A total of 132 man-months of technical assistance to DNTI and INFRATUR are required. Consultant services in specialized fields, such as land development, hotel construction and equipment, are included in the assistance to INFRATUR. An economist and a financial analyst will assist DNTI with sectoral planning, economic evaluation of projects and administration of the tourism incentives. Three instructors will assist in the creation of the handicrafts center. • ECONOMIC RATE OF RETURN: 17.5% EST IMATED COMP LET ION DATE: 1983 - 0 -