SANTO DOMINGO – The rapid growth of Punta Cana is no longer measured solely by hotel rooms or tourist arrivals, but also by the strain it places on its basic services. In this context, President Luis Abinader submitted a $400 million loan to the National Congress to upgrade the area's drinking water and sanitation system.
According to documents presented to Congress and reports from the Inter-American Development Bank (IDB), the financing seeks to prevent tourism expansion from compromising access to water and sanitation sustainability in the region.
The financing, signed with the international organization, corresponds to the third phase of the Comprehensive Program for Drinking Water, Universal Sanitation and Reuse, which will be executed by the National Institute of Drinking Water and Sewerage.
Three components
The project includes three key components: expansion of drinking water infrastructure, development of the sanitation system, and strengthening of water resource management, including reuse. According to the IDB report, the initiative aims to improve public health, protect the coastal aquifer, and expand access to basic services in priority communities.
The program's scope includes tens of thousands of households in the Verón–Punta Cana municipal district, one of the country's fastest-growing urban areas, where growth has exceeded the installed capacity of services.
Payment method
In financial terms, the contract establishes a repayment period of 19.5 years, with a grace period of 5.5 years and semi-annual payments. The interest rate will be variable, calculated based on the international market, as stipulated in the agreement.
The document also specifies that the agreement must be approved by both houses of Congress and enacted by the Executive Branch to take effect. If these requirements are not met within one year of its signing, the contract will be null and void.
According to the president's announcement, the initiative is part of a broader sanitation strategy in coastal areas, where access to water and the management of liquid waste have become determining factors for the sustainability of tourism development.
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