SANTO DOMINGO– Sigmund Freund, executive director of the General Directorate of Public-Private Partnerships (DGAPP), highlighted that public-private partnerships represent an ideal model for the development of infrastructure projects, considering that they are an efficient, effective and transparent financing mechanism, which has demonstrated its ability to make public spending more efficient and control corruption.
While delivering the lecture “Strategic Vision for Infrastructure Development in the Dominican Republic”, within the framework of the International Conference “Development & Financing of Infrastructure Projects”, the official stated that the development of quality infrastructure is a fundamental pillar for the socio-economic development of any country.
He explained that, in the Dominican Republic, infrastructure spending averaged 2% of gross domestic product (GDP) between 2008 and 2015, an investment well below the average invested in the region, which is estimated at 3%, a figure that he said is also low when compared to other regions that are between 4 and 8%.
Freund argued that, according to calculations from the study conducted by the Inter-American Development Bank (IDB) in 2023 on “The Infrastructure Gap in Latin America and the Caribbean”, approximately US$2.2 billion needs to be invested in the water, sanitation, energy, transport and telecommunications sectors in order to expand and maintain the necessary infrastructure and meet the Sustainable Development Goals (SDGs).
The DGAPP executive highlighted that public-private partnerships are an efficient financing mechanism to promote the development of quality infrastructure that will reduce the investment gap that the country has suffered for decades, a result of limitations in public resources.
He highlighted that the country has a strong regulatory framework for PPPs, which has allowed it to rank sixth in the region in terms of regulations and institutions.
Among the positive qualities of the model, Freund highlighted: efficient risk allocation, greater transparency, supervision and accountability, legal certainty, efficient and transparent processes, clarity in deadlines and procedures, among others.
About the event
The International Conference “Development & Financing of Infrastructure Projects”, organized by the Aula Hispana School of Business and Finance and the Santo Domingo Institute of Finance (IFI), aimed to provide a space for the exchange of knowledge and experiences on the Development & Financing of Infrastructure Projects.
The event featured two panels with the participation of Federico Villalobos, International Infrastructure Consultant – FV Infraestructura; César Cañedo, CEO of the Inter-American Corporation for Infrastructure Financing (CIFI); Magali Ross Chain, Trust and Legal Structure Consultant – Fiduciaria In Commendam; Andrés Vander Horst, General Manager of Fiduciaria Reservas; André Sanlley, Executive Director of APP Quisqueya; and José Gior Ariza, Senior Partner of Investa Capital Partners.
