Announcement of Twenty-One Million US Dollars Loan for Tourism Development in the Dominican Republic on October 31, 1974

• 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 October 31, 1974 Bank Press Release No. 74/82 Subject: $21 million loan for tourism development in the Dominican Republic The World Bank today announced th1; approval of a loan of $21 million to help finance a project for the development of tourism at Playa Dorada and Play a Grande on the North Coast of the Dominican Republic. T.he Dom.inican Republic is one of the few Caribbean countries whi~h did not participate in the tourism boom of the 1960 1 s. Yet it has climatic cultural and econo:m:i.e assets well-suited for· the development of tourism. The Government has recently accorded tourism high priority, created the National Tourism Directorate, enacted a tourism incentives law and assigned to the Central Bank responsibi~ity for developing tourism infrastructure and providing credit to hotel investors. Preparr-~'1. by consultants under a grant from the United Nations Development Program- • me with the Bank acting as Executing Agency, the project is an import ant part of the Government's efforts to develop tourism. It will provide tourism infrastructure and common resort facilities at Playa Dorada and Playa Grande, including site prepa- ration, internal roads, water supply and sewerage systems, electric power, telecom- munications, solid waste disposal, environmental sanitation and airport terminal and navigational facilities. Conceived within a carefully studied physical planning framework, the pro,iect is designed to preserve environmental values through stringent development control measures. Resort sites will be separated by green spaces to allow for recreational uses and to prevent the spread of ribbon type development which has spoiled other coastlines. The project is scheduled to be completed in 1979 at a total estimated cost of' $36 :million. The Central Bank, through its Tourism Infrastructure Department, will be responsible for the execution of the project~ The project will help to increase the country's foreign exchange earnings and to create additional employment opportunities in the economically depressed Puerto Plata region. 'When the project reac~:..es full operation in 1986, it will generate additional net foreign exchange earnings of $19 million per year and provide direct employment to about 4 ,000 people and indirect employment to another 4,000. !he Bank loan to the Central Bank, with the guarantee of the Government, is for a term of 30 years, including 10 years of grace. It will carry an interest rate of 8% per a1:1num • • Note: Money figures are expressed in US dollar equivalent.a. - 0 - PROJECT: T E CHN I CAL Tourism Development DAT A • COUNTRY: The Dominican Republic TOTAL COST: $36 million BA..7'1K FINANCING: $21 million, for 30 years, including 10 years of grace, with an interest rate of 8% per annum. OTHER FINANCING: Banco Central de la Republica Dominicana IMPLEMENTING ORGANIZATION: Banco Central de la Republica Dominicana (through its Tourism Infrastructure Department) Calle Pedro Henriques Urena~ Santo Domingo, D.N., Dominican Republic. PROJECT DESCRIPTION: Water supply, sewerage, power and telephone installations, road trails, sports and other facilities for tourist areas at Playa Dorada and Playa Grande; soil consolidation, a scenic trail, a shopping center and water pollution control. Playa Dorada; site works for a community for hotel personnel near Playa Dorada and water su~ and sewerage for the village of Rio San Juan near Playa Grande; terminal building, navigational aids and other facilities for a new international airport at Puerto Plata; hotel training facilities and technical assistance for project implementation studies and investment promotion. PROCUREMENT: Procurement of goods and services to be financed out of the loan, other than consulting and training services, will be on the basis of international competitive bidding. A contract for soil consolidation at Playa Dorada may be negotiated with a specialized contractor. Some services have already been contracted for soil tests, topographic surveys and general consulting and retroactive financing up to $775,000 has been included for such expenditures incurred after October 1, 1972. ESTIMATED COMPLETION DATE: 1979 •