Dominican Republic Report for Khaleej Times

DOMINICAN REPUBLIC

Even during a pandemic, President Luis Abinader’s policies have brought unprecedented economic growth, reliable governance, legal security, a boost in investments and international trust.

“Iam very proud to see that economic recovery is real and that substantial improvements in all areas are already being observed”, says president Luis Abinader, reflecting about his time in office so far. Taking over the country in the middle of a global pandemic has certainly not been easy, but the country’s impressive economic indicators show that the current Dominican government has been doing a remarkable job. The Central Bank’s economic growth projections have been revised upwards, reaching 11% in 2021; the best performance in nearly 30 years, according to IMF’s Latinvex analysis. Similarly, the IMF predicts the country’s GDP will expand by 5.5% next year — making it the highest in the region. “One of our main objectives has been to achieve economic recovery, to reactivate all productive sectors, and to recover and create new jobs, so these are forecasts that speak very accurately about the robustness of our economy”, assures president Abinader.

This has been felt in the manufacturing industry, which registered a growth of 14.3% during the first half of 2021, being the sector that has better managed to overcome the challenges of the pandemic and keep the country active. Part of this success is owed to the public-private strategic alliance which has been promoted by the government since its early days. As president Abinader explains, “the Dominican industrial sector is experiencing an awakening never seen before. Not only have production and exports increased, but jobs are recovering at a very good pace. To ensure that there is a good climate of stability that allows each Dominican to have a job, a strategic union with the business sector has been essential.”

Foreign direct investment has also benefited greatly from the government’s business-friendly mentality. At present, the Dominican Republic is the first destination country for FDI in the Caribbean, with US $3 billion in 2021 and an expected 25% increase this year. Interestingly, these numbers are related to the pandemic-induced change of paradigm regarding the ways in which goods and services are produced, distributed and con-

Pablo Matosas International Director Gregoire Assellin

Project Director, Economic Researcher Carlota Porta

Project Coordinator, Creative and Marketing Director Maricruz Rojas Felix

Creative Director and Designer Matias Godoy Chief Editor

sumed. Since global value chains have been shortened, bringing production centers closer to consumer markets, what is now known as “nearshoring” has become the preferred choice. In this context, the Dominican Republic represents a very attractive “nearshore” alternative to Asia for U.S. manufacturers, who are now seeking to restructure their logistics and supply chains. “In this sense, our country is in a privileged position, enjoying a geographic location in the center of the Caribbean, with very stable economic foundations and enviable comparative and competitive advantages”, states president Abinader.

Furthermore, in order to implement this strategy and stay competitive, the Dominican government seeks to eliminate obstacles to investment and trade. That is why, in close collaboration with national and foreign private sectors, they have launched different mechanisms to ensure transparency and fight corruption. One of them, the Zero Bureaucracy Program’, aims to promote the efficiency of public administration through clear, timely and transparent regulatory frameworks for the simplification of procedures and services. Similarly, the ‘National Competitiveness Strategy’ ensures the reg-

A Regional Hub

The Dominican Republic is a major regional hub with 8 international airports connecting the Dominican Republic with 60 international destinations, 3 cruise ports and 12 cargo ports.

ulation and simplification of bureaucratic procedures. As president Abinader explains, with these programs they foresee “efficiency in all the processes with the consequent elimination of administrative obstacles, the increase of the productivity of the companies, the strengthening of the manufacturing sector and the safe generation of new jobs.”

On the other hand, tourism has also started to recover at an impressive rate since president Abinader took over. In the first 11 months of 2021, the country received over 4.2 million tourists, with September to November having record high numbers compared to 2019. The sector received US $550 million in investments last year, and several projects were started or reactivated.

Among them, it is worth highlighting the start, after four years of stagnation, of the second phase of the ‘Santo Domingo Colonial Zone Revitalization Project’ which was financed by the Inter-American Development Bank, and the additional restoration of historic areas of Santiago de los Caballeros and San Francisco de Macorís in the northern part of the island. This gradual improvement in tourism and tourism-related works has positively influenced the labor market, which in turn, had a faster

economic reactivation than expected. “Without a doubt, we are leading the growth of tourism in the region. But although I am happy to see the arrival of tourists, what gives me the most satisfaction is the recovery of Dominican jobs”, states president Abinader.

The Dominican Republic had to face unprecedented challenges in 2020 and 2021, but unlike many other countries its government’s timely and business-savvy economic policies have guaranteed that the country not only recovers but thrives. According to president Abinader, “Despite having experienced times of great stress, the Dominican Republic is one of the most powerful economies in the region. We live in a climate of enviable social peace and security and we work with the business sector in our public-private strategy to create the necessary conditions for foreign investment and sustainable economic growth.”

STAFF

The fact that the Dominican Republic has one of the biggest, most resilient growing economies in Latin America has a lot to do with the leading role that its Central Bank has played in the last two decades. Behind the country’s average 6% yearly growth, and its low and stable inflation, there is one person who stands out: Hector Valdez Albizu, Central Bank governor from 1994 to 2000 and again from 2004 until today. “I have been the Central Bank’s governor for 23 years, and in some way that has helped to create an environment of certainty for investors. The main achievement of this institution, during my mandates, has been the efforts oriented to preserve the macroeconomic stability”, says Valdez, noting nevertheless that it has been a long process with some rocky patches.

While in the 1994-2000 period the bank managed to overcome its liquidity management problems and bring economic stability to the country, the main challenges arrived later, between 2003-2004, when a series of bankruptcies translated into a major economic crisis that costed the country around 20% of its GDP. “When I assumed once again the governorate of the Central Bank in August 2004, we had to face the effects associated with the biggest bank fraud in the history of Dominican Republic. It derived into a systemic financial crisis causing capital outflows, inflation, the fall of GDP and negative international reserves”, recalls Valdez.

However, as a testament to its resilience, the Central Bank managed not only to recover, but to achieve some benefits from that crisis. Firstly, 18 regulations of the Monetary and Financial Law were approved, strengthening the prudential norms in the financial system. Those standards allowed the country to reestab lish its financial position, and from 2004 onward the regulation and supervision of the Dominican financial system was strengthened significantly. The economy returned to a path of growth and stability, and the trust in the economic agents and international investors were key in that process.

Subsequently, the Central Bank created one of the most efficient and dynamic pay ment systems in the region, the ‘Pay ment Interconnection System of Central America and Dominican Republic’ (SIPA), of which has been the institutional manager since 2011. Later, in January 2012, the Central Bank implemented the Inflation Targeting scheme, which has allowed the Central Bank to reduce both the level and volatility of inflation, providing certainty to the private sector.

A resilient institution leading the way to economic stability and growth

With timely measures and strategic management, they have managed to turn the country into one of the

Fund, the Federal Reserve, the State Department of the United States, as well as the State of Israel.

Extraordinary measures for extraordinary times

«In 2019 the Central Bank implemented a Foreign Exchange Trading Platform that has allowed an efficient and transparent management of its foreign exchange operations and of other financial intermediaries»

«I have been the Central Bank’s governor for almost 24 years, and in some way that has helped to create an environment of certainty for investors. The main accomplishment of this institution, during my mandates, has been the effort to preserve the macroeconomic stability»

In order to mitigate the effects of the COVID-19 crisis over households and productive sectors, especially the micro-enterprises and other businesses, the Central Bank responded quickly with monetary flexibilization measures that have proven to be quite effective. The monetary policy rate was reduced 150 basis points, reaching a historic minimum of 3.00% yearly, thus lowering the active interest rate from 13.28% in March 2021 to 9.69% in October 2021. Also, a liquidity provision program of approximately 5.0% of the GDP was implemented, which allowed them to channel about 92 thousand loans and debt restructuring through financial intermediaries.

sectors and to preserve the greatest number of company and independent jobs possible.

As a result of the accelerated recovery of the economy, supported by these monetary and fiscal measures, since August 2021 a gradual return of the resources provided through the liquidity programs is taking place as businesses and households pay their loans at maturity. Now in a second stage, the Central Bank has increased its monetary policy rate by 50 basis points in November 2021; this ensures that inflation converges to its target range in the monetary policy horizon and that inflation expectations remain anchored.

3.50%

«After lowering the monetary policy rate by 150 basis points at the start of the pandemic, reaching a historic minimum of 3.00%, the Central Bank recently increased the rate by 50 basis points to maintain expectations anchored»

VALDEZ ALBIZU

Likewise, in 2019 the Central Bank implemented a ‘Foreign Exchange Trading Platform’ that has allowed efficient and transparent management of its foreign exchange operations and other financial intermediaries. Currently the Central Bank is strengthening its cybersecurity, and that of the financial system as a whole, by creating a modern Sectorial Center of Cybersecurity Incidents Response (CSIRT) that is already in operation and counts the support of the International Monetary

Likewise, the Monetary Board arranged a temporary regulatory measure to moderate the impact over the financial system and incentivize access to financing, including to keep the risk classifications for debtors and provisions in levels prior to the pandemic unchanged. Similarly, the Central Bank managed the disbursement of US$650 million through the International Monetary Fund’s ‘Rapid Credit Facility’ to mitigate the impact of the pandemic over the most vulnerable

Overall, despite the challenges posed by the pandemic, the Dominican financial institutions have shown their capacity for resilience against adverse shocks. The multiple banks that represent more than the 85% of the assets of the financial system continue to present high levels of solvency (19.6%), and a high profitability (over capital, ROE of 21.2% and over assets, ROA of 2.3% until October), as well as low non-performing loans coefficients (1.4% until October 2021). Such data shows that this sector has actually outgrown its numbers during the pandemic. “We have succeeded in getting banks to reinvest their profits to strengthen the capital base”, says Valdez proudly.

Additionally, the private loans have kept their dynamism by growing at around 10%, one of the highest expansions of the region. On the other hand, the deposits are growing at around 12% year-on-year, as a reflection of the liquidity expansion and increase of private savings, which provides enough resources to the financial system to continue satisfying the credit demand in the presence of the economic reactivation process.

YEAR-ON-YEAR INFLATION RATE 2020-2021 IN %

85%

«The Dominican financial institutions have shown their capacity for resilience towards adverse shocks. The multiple banks that represent more than the 85% of the assets of the financial system continue to present high levels of solvency (19.6%), and a high profitability»

HÉCTOR VALDEZ ALBIZU CENTRAL BANK GOVERNOR

NATIONAL EXPORTS AND FREE ZONES 2019-2021 IN MILLIONS OF US$

*Source: Central Bank of the Dominican Republic

5.0-5.5%

«In the upcoming years, the Dominican economy is projected to remain as one of the leaders of the region in terms of economic growth, expanding around its potential of 5.0-5.5%»

Positive and exciting perspectives

The favorable monetary conditions, the efforts of the fiscal policy to preserve jobs and support the productive sectors, along with the extraordinary advances in the vaccination plan, have all favored a faster than expected recovery of the Dominican economy. In this context the growth forecast has been revised upwards from its initial 6.0% estimations in the monetary program. It is expected to reach 11% during 2021, according to the new projections by the Central Bank, relying on the improvement in tourism, reporting record numbers for September and October, and on the dynamics in the free trade zones which have increased 23.2% on a year-to-year basis during the January-October 2021 period.

«The growth forecast has been revised upwards from its initial 6.0% estimations in the monetary program. Nowadays it is expected to reach 11% during 2021 according to the new projections of the Central Bank»

Incentives and opportunities for Foreign Direct Investment

The Dominican Republic is one of the main receptors of FDI in the Caribbean and Central America, with an FDI stock that reached US $3 billion in 2019. While the Central Bank estimated it lowered to US $2,55 billion in 2020, this year’s accelerated economic recovery and the numerous incentives for foreign investment available have set the expectations back to pre-pandemic levels. On the one hand, there are several laws that hold tax incentives and provide legal protection for investors, all in alignment with Sustainable Development Goals towards 2030. Among them we find the Direct Foreign Investment Law (No. 16-95), the Law for Promotion of Tourism Development (No.158-01 and its expansion with the 195-13 Law), The Law for Promotion of Cinematographic Activity in the Dominican Republic (No. 108-10) and the Public Private Alliance Law (No. 47-20).

«There are several laws that hold tax incentives and provide legal protection for investors»

On the other hand, the country possesses a wide variety of sectors with interesting FDI opportunities; for example, tourism, which is experiencing an extraordinary and unique recovery in the region after the COVID-19 pandemic; the free trade zones, especially the ones with a nearshoring strategy due to the incentives in the sector and the advantageous geographic position of the island; the mining exploration, supported by the incentives of public-private alliances; and finally the cinematographic industry, which involves skilled human capital, technological resources and unique locations for its productions.

SECTORS WITH INTERESTING FDI OPPORTUNITIES

These positive perspectives will allow the nominal Gross Domestic Product to reach around US$93 billion by the end of 2021, situating the Dominican Republic as one of the fastest countries in Latin America to surpass the nominal production levels prior to the pandemic (by the close of 2019 and 2020 the GDP was of US$88,906 million and US$78,829 million, respectively). In upcoming years, the Dominican economy is projected to remain as one of the leaders of the region, in terms of economic growth, expanding around its potential of 5.0-5.5%.

Furthermore, as the Dominican Republic starts broadening its horizons towards Middle Eastern markets, new exciting business opportunities are to be expected. Some of those include opportunities for the exports of agricultural products, especially tropical fruits and other edible goods, as well as consumer products like cigars which have been expanding their presence in this region. Business figures in the Dominican Republic are also exploring joint ventures with companies in Dubai and the Middle East countries. For example, there are currently power plants using clean energy as well as port infrastructure that is currently being developed in the country following this model.

«Since taking office, he and his team in the Central Bank have managed to take the country’s economy forward from debt and zero reserves in 2003 to their current US $12.5 billion in reserves (13.4% of GDP), an achievement made possible thanks to the renegotiation of debt and through multilateral agreements»

Throughout his career as Central Bank governor, Hector Valdez Albizu has had to face many turbulent times and crises, but thanks to his timely decisions, a well-trained team and a capacity to adapt and evolve, both he and the institution under his charge have always managed to come out stronger. It is therefore no surprise that since taking office he and his team in the Central Bank have managed to take the country’s economy forward from debt and zero reserves in 2003 to their current US 12.5 billions in reserves (13.4% of GDP), an achievement that was possible thanks to the renegotiation of debt and through multilateral agreements. “One of the biggest accomplishments of my administration has been to preserve macroeconomic and financial stability, and the relative stability of the exchange rate. I also feel very proud of contributing to economic growth with an autonomous Central Bank”, assures Valdez.

Valdez claims that, on a personal level, such impressive results have certainly come with its share of sacrifice, though in the end it has all been worth the effort. “I have sacrificed family time in order to dedicate it to my position. But when I see how the economy has grown over these years, and all the things that can be done with that money like improvements in schools, education, and even giving away scholarships to study higher degrees (Master’s and Ph.D.) in other countries, it makes me very proud of my job”, says Valdez.

Nowadays, thanks to the leading role the Central Bank has played in the country’s economy, the Dominican Republic is one of the region’s most attractive business destinations. “This is a country you can bet on with security. The strength of the macroeconomic fundamentals and the resilience of our economy constitute the main attractiveness for international investors, along with the juridical certainty and social peace”, assures Valdez, adding that it is an economy that has benefited from socio-economic stability, the strategic geographic location of the region and the current trade agreements that allow preferential access to global markets.

“You can count on that, in the Dominican Republic, both the public and the private sector will continue to give their best efforts to attract and preserve the foreign investment, conscious of its benefits for the development of strategic projects as well as the transfer of technology and knowledge that results in the improvement of competitiveness and well-being of the Dominican households”, affirms the Central Bank’s most eminent governor.

«This is a country you can bet on with security. The strength of the macroeconomic fundamentals and the resilience of our economy constitute the main attractiveness for international investors, along with the juridical certainty and social peace»

A lifetime’s work

2000 –

MILLIONS

IN

GROSS INTER NATIONAL RESERVES 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1012 2013 2014 2015 2016 2017 2018 2019 2020 102021 *Source: Central Bank of the Dominican Republic

Offering the best touristic real estate investment in the Caribbean

With the best locations, high quality building materials, complete property management and attractive prices Noval Properties have become the top firm for real estate investment in the region.

«We only build in the best locations, always with beach or golf course access and provide innovation in the real state model, with complete property management and furniture packages available, making our offer “hassle-free” and thus giving added value to clients»

CESAR LATRILLA RODERO

ton, Sheraton, Hyatt, and other big brands”, explains Latrilla. This new trend resulted in great benefits for the country, translated in an increase of around 4% of its GDP in 2021; this is a significant amount if one considers that between 2015 and 2019 annual GDP rose by an average of 6.1%. Such growth has also been felt by the company, which expects an increase in revenues of $250M for 2022, with more than 1,500 lodgings that will be built. “2021 was the best year in Noval’s history”, continues Latrilla.

will be extending its presence to Miches, Santo Domingo, Punta Cana, and Las Terrenas. In the next 18 months alone, they will release an inventory valued at US $650M, almost 3,000 units. “The vision is to keep growing and take advantage of the momentum in the economy, the country’s reputation, and to keep innovating”, assures Latrilla.

More than a construction company, Noval Properties is a world-class development institution with a real estate division, furnishing services and property management. “Noval Properties has a 360-degree vision. We only build in the best locations, always with beach access or golf fields, and provide innovation in the real state model, with complete property management and furniture available, making our offer “hassle-free” and thus giving a lot of value to clients”, assures Cesar Latrilla Rodero, CEO of Noval Properties. Focusing on prime locations in Punta Cana, one of the most sought-after destinations in Latin America and the Caribbean, and guaranteeing a 10% annual ROI, it is not suprising that their investment offer has become widely successful.

Their real estate projects offer an attractive combination of five-star amenities and a uniquely homelike comfort. They are divided into three main groups according to their location: beach, golf and downtown. Moreover, their cost is very affordable — Punta Cana offers the lowest price in residential properties in the Caribbean. Starting at US $199,000 and with a medium price of US $223,000, each square meter has an average value of US $1,800. Apart from their excellent locations and prices, another asset of the residences is the highend quality of their building materials and finishes, with many imported products from the best international brands that add further value to the properties. Additionally, investors who wish to rent or resell their properties profit from other advantages Punta Cana has to offer as an investment location, such as an annual appreciation of 15 to 20%, an average hotel occupancy of 87.7%, the low tax regime (including no tax on foreign pension income), and the fact that more than 3,000,000 passengers arrive every year through Punta Cana International Airport — around 65% of all foreign tourists the country receives annually.

«Their real estate projects offer an attractive combination of five star amenities and the unique comfort of home, and are divided into three main groups according to their locations, beach, golf and downtown»

vision after realising the need for touristic real estate in Punta Cana long before others did. What started as a tourist-oriented furniture and residential villa company with time became a construction company, and later transformed into a promoter. Latrilla explains that by 2014 the company “focused its commercial and knowhow efforts on promoting its buildings, because it was there where the market was going.” Given the investment boom that followed, they were certainly going in the right direction. In 2017 it started its expansion, with revenues increasing from US $11M to $150M, and nowadays they are evolving again, going through a digital transformation by changing their digital and promotional marketing techniques and bringing experts from abroad. “It could be said that today Noval operates like a small multinational, with an international marketing and sales team of 40 people, and more than 2,000 real estate companies with almost 10,000 brokers that can be counted as part of the sales team”, assures Latrilla.

This digitization process also proved to be very effective in counteracting some of the effects of the COVID crisis, like the global increase in prices and its resulting inflation. As Latrilla explains, they coped with those challenges “by adopting digital systems in the company, like Oracle or Microsoft 365, to improve processes and better manage the company’s finances. This management helped us offer good prices to our customers and be competitive, even when that meant cutting our margins.”

This transformation goes in line with the change they have experienced in terms of client origin. During the first decade of the company, around 80% of the clients were international, particularly from the United States, Canada and Spain. Nowadays, 60% of them are either local or expatriate Dominicans who want to enjoy what their country has to offer on a more regular basis, especially now in these post-COVID times.

«The Dominican Republic has the highest economic growth in the region. The real estate and construction sector contributes 14% to the country’s GDP, investing in this market promises to be a safe and profitable choice»

Furthermore, their latest project, ‘Morgan Capital by Noval’, is also focused on the local market, with the idea of building real estate projects that give back to the Dominican society. This includes social housing, student residences, urban hotels, and senior residences. Conceived as a parallel business model, the capital for this project was raised with private and public investors, and it is estimated to produce between 12% to 20% of profitability. Currently, there are 3 projects with US $50M in investment that are being developed: a student residence, an urban hotel from the Radisson brand, and a co-living. With this project, they expect to raise US $1,000M in 5 years from national and international investors.

And while this is a big undertaking, their vision goes even further. For the next few years, Noval Properties has one of the most ambitious construction projects in The Dominican Republic, and it

Nowadays, the Dominican Republic has the highest economic growth in the region. The real estate and construction sector contributes 14% to the country’s GDP — investing in this market promises to be a safe and profitable choice. As Latrilla sees it, “we have several very good years ahead of real estate development in all sectors: touristic, residential, and infrastructure”, and he invites international investors to come and take advantage of all the opportunities available. For the time being, they will continue profiting from the sector’s great moment and through their success keep contributing to the country’s economy. “Our greatest satisfaction is pleasing our clients and joining the collective effort of the Punta Cana brand. We also aim to be the main player in the development of our strong economy.”

Noval Properties began in 2003 with a very clear

On the other hand, whenever there is a crisis there is also an opportunity, and the pandemic brought an interesting and profitable turn in the country’s touristic real estate sector. Due to the low-interest rates in the financial markets associated with COVID, investors started buying touristic properties in Punta Cana with the idea of enjoying them later. “People now think it is as a good opportunity to buy, enjoy, and rent it later on platforms like Airbnb. We are doing the same, selling the apartments and managing them through Hil-

OCEANA by Noval Properties In Punta Cana Dominican Republic

Ocean Bay Luxury Beachfront Residences by Noval Properties

Coral Bay By Noval Properties , located on a Golf Lovers Dream Course

CESAR LATRILLA RODERO CEO of NOVAL PROPERTIES

ur main goal is to have a banking industry with solvency and strength, one that is a pillar for the economic stability of the Dominican Republic”, says Rosanna Ruiz, President of the Association of Multiple Banks of the Dominican Republic (ABA). Founded in 1979, ABA brings together all commercial and multi-service banks operating in the country, seventeen institutions that under its guidance have made the Dominican banking industry one of the strongest in the region. Their latest indicators do not lie. A default rate of 1.5%, a solvency rate of 20% (10% more than the monetary and financial legislation’s demand), ROA and ROE at record levels of 2.29% and 23.38% respectively, and over 20% of net worth growth in the last fourteen months are all sure indicators that the banking sector is on the right track. Ruiz states, “it is amazing because it shows that the banking industry has proper levels of liquidity, profitability, and solvency. It also brings to light how this industry has played a key role in the post pandemic recovery.”

In recent times, ABA’s stabilizing capacity was certainly put to the test with the COVID pandemic. Throughout 2020, the banking industry played a crucial role in the economic stability of both the productive sectors and households, as it continued to operate payments and financial services. Banks worked closely with customers, restructuring and refinancing 50% of their loan portfolio while offering lower rates (near 8%) and longer maturities, bringing relief to sectors that were not able to generate revenue. As Ruiz explains, the pandemic “was a great opportunity to demonstrate that we have strong macroeconomic fundamentals because of our stability and banking solvency. It gave us the chance to alleviate the effects of the most affected sectors, contributing over US $80 million to help those in debt overcome the effects of the crisis through various fee reduction programs.”

And while those measures proved to be successful in the short and mid-term, the majority of ABA’s programs respond to a long-term vision. On the one hand, ABA aims to have a banking industry that is completely digitized. Apart from optimizing digital financial services for loans and investments, they are currently working on the virtualization of their passive accounts so clients can open a new account without having to go to the bank. They are also collaborating with the Superintendency of Banks in order to further innovate their procedures and make them more cost-efficient. One of their projects is a website for the monetary authority that will allow the banking industry to digitally send the corresponding reports to a platform that works jointly with the Central Bank and the Superintendency. Since this was a process that used to be in person, it accounted for elevated costs.

“We are focused on assisting our banks from an efficiency point of view, and to accomplish that we have a close relationship with the Superintendency of Banks to discuss innovation and technology”, assures Ruiz.

In addition, ABA signed an agreement with the Dominican Fintech Association to determine how these financial and technological solutions can allow commercial banks to reduce costs and include the 44% of the local population that does not have access to these financial services. “It is a complimentary synergy that will

«We are open minded in educating ourselves as banks take the leap into the digital sector»

Propelling innovation, solvency and efficiency in the Dominican Republic’s banking industry

ABA’s focus on technology, efficiency and sustainable practices has actively contributed to the country’s excellent financial indicators and macroeconomic stability.

*Source: ABA survey | Values above 50 indicate a favorable outlook for credit

CONFIDENCE INDEX (RD $): ANNUAL VARIATION (%)

«The pandemic was a great opportunity to demonstrate that we have strong macroeconomic fundamentals because of our stability and banking solvency»

ROSANNA RUIZ

MULTIPLE BANK CREDITS TO THE PRIVATE SECTOR

help us on our path towards digitalization, in order to reach the population that has not been able to access the formal banking industry”, says Ruiz. They are also starting to follow the evolution of cryptocurrencies and new technologies like blockchain, since the most recent regulation published by the Central Bank on the country’s payment system includes the digital currencies and will later incorporate different methods that have not been accepted before. “We are open minded in educating ourselves as banks take the leap into the digital sector. That is the future”, Ruiz attests.

Furthermore, being aware that digitization also carries emerging security risks, one of their goals is to set a Comprehensive Risk Management System. So far, the banking industry has invested over US $20 million in cybersecurity management to diminish cyberattacks and guarantee the required support. As part of these efforts, ABA launched the campaign ‘Yo navego seguro’, with its corresponding platform yonavegoseguro.com.do, in order to teach customers how to secure their passwords to help them reduce the possibility of frauds and scams on e-commerce sites and social media.

«We have macroeconomic stability in a time when the whole world is unstable. That says a lot about our investment potential and the strength of our financial system»

On the other hand, ABA is also focusing on legislation, as they strive to find new ways to promote financial inclusion as many of the existing laws have become obsolete with the new digital agenda. Thus, they are working on different legislative initiatives and government policies to support SMEs. One of them is the mutual loan guarantee association law, which will work as an endorsement for SMEs so they can have access to formal credit in better financial conditions. This new law advances public-private efforts towards economic and financial inclusion, a process that according to Ruiz has been going on for over a decade.

“In the last ten years, the banking industry has tripled its SMEs and housing portfolio, thanks to the mortgage market and trust law that gave different incentives for lowcost housing.”

PROJECTION 2021

Another important aspect of finan-

cial inclusion is education. That is why ABA has reached agreements with the Ministry of Education to create and provide different resources that encourage a nationwide culture of savings, “a financial culture that will give customers the information they need to use their finances in a more responsible way”, assures Ruiz. One of these resources is the online ABA classroom. Developed with a Chilean Microsoft branch, it is a platform designed to offer different courses to financial intermediaries where users will have access to top-of-the-line education, including free webinars and lessons. The learning material will be given by international facilitators and groups such as Visa, Mastercard and local universities, and it will be focused on five main topics: corporate government, comprehensive risk management, prevention of money laundering, digital transformation and within the data architecture, it involves (big data, science data, artificial intelligence, biometry and cyber-security). Additionally, they are currently working with local universities on a subscription group for financial education aimed at students. As Ruiz explains, their goal is to create a job market that will focus on crucial talents that are needed for the banking industry, “We will certificate those students and once they graduate, they will get their first job in the banking industry. That will reduce staff turnover because they will not need any training once they get a new job.”

ABA is also focusing on inter-institutional agreements with the public sector to prevent money laundering. In addition, given the fact hat, apart from commercial banks, they also represent financial intermediaries and have a seat in the Economic and Social Council, a constitutional body where structural reforms are discussed, ABA is establishing an association of financial intermediaries in order to consolidate its lead position regarding regulatory, fiscal, and public policies matters.

*Source: BCRD

Moreover, ABA has been part of the Sustainable Banking Network since 2018. This organization is a forum led by the International Finance Corporation (IFC), whose objective is to promote the adoption of the best environmental practices by the actors of the Financial System, and currently has the participation of 53 members — including banks and financial regulators in more than 40 countries around the world.

Within the framework of this agreement, with the support of the IFC and its representation in the Dominican Republic, a roadmap has been designed that culminates with the adoption of the World Bank’s Green Protocol that will serve as a guide for the adoption of environmentally sustainable practices by Dominican banks.

Next year, ABA is holding several events that will help attract investors and promote networking around crucial topics like the role of digital transformation in improving foreign trade, SMEs and e-commerce, or the best practices to promote a circular, orange, and/or sustainable economies. Among their various events, they will host Felaban’s Latin American Foreign Trade Congress (CLACE), an event that gathers over 1000 banks in the region and will be held in Punta Cana. They expect this edition to be especially versatile because they will work with world-class experts, including the International Monetary Fund and Nobel laureates.

Given all the projects and programs they are currently promoting, these are certainly busy and exciting times for ABA. While there are still many challenges ahead, particularly when it comes to disparities in the banks’ capacity to respond to the demands of the digital agenda, they are confident that their innovative efforts will continue to bring positive results. As Ruiz proudly states, “the Dominican Republic will close this year with US $3 billion in foreign investment, and that says a lot about our investment potential and the strength of our financial system, because we have macroeconomic stability in a time when the whole world is unstable.”

An investment haven that keeps on growing

The Dominican Republic’s great socioeconomic indicators and market resilience have made it the first investment destination in the region.

“Our economic growth, strategic geographical position and the trust the government has forged are crucial aspects when it comes to foreign direct investment”, states Minister of Presidency José Ignacio Paliza, signaling some of the country’s excellent conditions for private and public investments. Indeed, the Dominican Republic is today the first country for foreign direct investment in the Caribbean, with a FDI increase of 35% from January to September, reaching US $2,484.9 billion. Undoubtedly, the new administration and their philosophy have contributed significantly to this growth. As Minister Paliza says, “our government is very open for business and wants to keep on generating new jobs, eliminating bureaucracy, fighting against corruption and working on institutional strengthening and transparency. These are all good indicators for the international markets.”

In terms of the manufacturing industry, there are many reasons to be hopeful. According to Central Bank data, this sector grew 14.3% during the first half of 2021, overcoming the challenges of the pandemic and managing to reinstate pre-COVID employment rates, or surpass them all together, by becoming more efficient and/or innovating their offer. The free-trade zones are the perfect example. Thanks to their tax incentives, the diversification into the textile and pharmaceutical industry, as well as technological and procedural improvements, they grew over 30% and now hold over 180,000 direct jobs. “The Dominican Republic has become a leading example in the region when it comes to exports.

The tourism sector has also shown great resilience in the face of recent global challenges. It has recovered significantly and continues to grow because of its good reputation and the timely measures taken by the government, like providing subsidies and exemptions to businesses or COVID medical insurance and zero-tax financing to visitors. As an example, last year Grupo Melia, one of the world’s biggest hotel chains,

announced an investment of over US $400 million in Punta Cana to build an amusement park and other projects that will help consolidate this area. But growth is not only limited to Punta Cana. Other destinations like Miches, Puerto Plata and Pedernales are also expected to receive important investments in the coming years. Like Minister Paliza says, “the tourism sector has demonstrated it has everything in its power to get through any challenging scenario.”

To continue increasing the country’s competitiveness and boosting investments, the government recently launched the “Zero Bureaucracy” project. This aims to create a simple system in which permits can be granted in just one place and within a fixed period, to speed the process of business structuring and help investors use their resources more efficiently. “Our current administration is breaking old bureaucratic standards and offering a more transparent government that goes along the lines of the international markets”, explains Minister Paliza. Moreover, in a public-private synergy, they started promoting their “country brand” to showcase what the country can offer to both visitors and investors as well as the meaning of being Dominican. Throughout the challenges of the last couple of years, the Dominican Republic has demonstrated it has a diverse, resilient and stable market ready to welcome a wide range of investments. In fact, as Minister Paliza highlights, “the pandemic has made us more efficient. Our growth rate allows us to be optimistic regarding future challenges we might face”.

Positioning the Dominican Republic as a regional export and investment’s hub

Through

For more than 40 years they have been offering first-rate legal, regulatory and consulting services to multinationals and local clients.

“

From the very moment you step into our office you realize what our motto is, we are in the business of adding value”, says Luis Rafael Pellerano, Managing Partner at Pellerano Nadal Law & Consulting.

Working along with clients in the development of their business ventures, Pellerano Nadal offers them solutions in all aspects and stages of the process, from providing legal and advisory services when investing in existing businesses, setting up local operations or launching startups; to offering representation to negotiate the best contractual terms and secure governmental authorizations and permits. Their lawyers have consistently been ranked among the most prominent in the Dominican Republic, and through their innovative approach have managed to solve complex cases and become one of the leading firms in the country. “What makes us stand out in the industry is to be able to achieve what no one else can, always within the legal framework”, assures Pellerano.

They have a vast experience advising foreign and multinational companies that enter the Dominican market, which last year represented 92% of their total client base. Their international and domestic customers work in specialized industries such as mining, energy, emerging technologies, aviation, tourism, financial services and telecommunications, among many others. “These are industries that are filled with challenges, so we have established good relationships with the respective authorities to match the speed that the business requires”, says Pellerano, explaining that part of their success resides precisely on having a clear knowledge of how these industries operate. “We care a lot about understanding the industries in which our clients work and listening to what they think they might need in the future”, states Pellerano.

Pellerano Nadal has an experienced team of lawyers who throughout their careers have assisted in securing

«As lawyers, we can be excellent strategic partners to our clients»

some of the biggest landmark transactions in the country, such as the largest acquisition of a Dominican company at the time, a brewing company valued at over US$2 billion; the largest foreign investment in the country, a gold investment project in the mines of Pueblo Viejo for over US$6 billion; the only international IPO and listing of a Dominican company on the New York Stock Exchange, and the first ever issuance of debt in the international capital markets by the Dominican government.

“These projects can be complex because of their dimension, but part of our success is to be able to guide these clients. I do not participate in these transactions just because it is part of my job, I do it because I want to add value to it”, assures Pellerano. During the pandemic, Pellerano Nadal invested on further improving their connectivity, adding another competitive advantage to their already impressive portfolio, because as Pellerano says, “the world has changed, and businesses need to be prepared for that.” In the next years, they expect to have a higher demand of tax and environmental services, and above all to continue offering innovative solutions to the most complex and challenging cases. Like Pellerano assures, “as lawyers, we can be excellent strategic partners to our clients. Sometimes things are possible, other times they are impossible, but sometimes the problem can be that your project does not have the proper regulations. Those are the kind of challenges that we like to work on, the ones that seem impossible.”

Behind the country’s current economic resilience, diversification and growth, there is one institution that has played a key role: the Center for Export and Investment of the Dominican Republic, ProDominicana. Certainly, ProDominicana’s comprehensive services to investors, exporters and buyers have actively contributed to the latest record numbers. From January to November 2021, the country’s exports reached historical levels, with an accumulated US $10,814 million, a growth of over 21.05% compared to the same period of 2020. Also, from January to September 2021, Foreign Direct Investment (FDI) increased 35%, going from US $1,835.9 million in 2020 to US $2,484.9 million in 2021, which confirms investors confidence in the Dominican Republic. “There has been a resilience of the country’s industrial and export sectors, and at the same time, the measures taken have reduced the impact of the pandemic, increased trust from investors, and opened doors to new business opportunities in the Dominican Republic”, assures Biviana Riveiro Disla, Executive Director of ProDominicana.

On the export front, some of these measures include new platforms and services that have improved access to international markets, like the Directory of Exporters, the Export Guide, the offer of the FDI markets service and the training of more than 2,000 people to create a digital ecosystem of services. As Riveiro explains, this digital platform integrates ProDominicana Capacita and Data Market, with all the information related to exports and access to international markets; as well as ProDominicana Connect, a B2B platform that connects international to local buyers. “We want to facilitate access to these platforms to micro, small and medium entrepreneurs as well”, says Riveiro.

Furthermore, the Free Zone sector, which comprises around 60% of exports, has been positively influenced by the new Customs Law’s significant tax exemptions of up

to 100% in installation and operation’s processes. Consequently, the sector grew 24% from January to November 2021 with US $6.6 billion of exports, there are now over 75 parks with more than 700 free zone companies installed in the country. They also have the opportunity to start selling to the domestic market without limitation. “Free zones are an essential sector that has undergone a very profitable revitalization process. We hope to grow to more than a thousand companies in the coming years, thanks to the facilities that are being granted to them”, assures Riveiro.

Regarding investments, ProDominicana offers investors technical assistance, information and support in all the necessary steps and requirements for the installation, development and/or expansion of their projects in the country. In order to further facilitate this process and favor investments, the government has implemented the zero bureaucracy program, including the “One-Stop Shop”, which as Riveiro explains, “has the purpose of simplifying procedures and saving investors time and money by integrating all the necessary procedures in the same platform.” Moreover, ProDominicana aims to keep promoting the public-private investment scheme to diversify into sectors such as renewable energies or other types of tourism. Like Riveiro projects, “this will allow the development of major infrastructure projects with a high socioeconomic impact.”

Given the country’s outstanding economic markers, beneficial legal framework and the excellent services and facilities offered to exporters and investors by ProDominicana and other governmental offices, ProDominicana’s Executive Director has no doubts regarding the country’s potential. “With one of the best telecommunications infrastructures in Latin America, more than 19,000 km2 of roads, eight international airports, twelve seaports, and three cruise ports, we already are the logistics hub of the Caribbean. Now, we intend to be the export and logistics hub in the region.”

expert guidance, training and/or inter-institutional cooperation, ProDominicana helps national exporters and foreign investors find better ways to do business.

«Our measures have reduced the impact of the pandemic, increased trust from investors, and opened doors to new business opportunities in the Dominican Republic»

Internationally experienced firm provides the best value-added legal advice and representation

«What makes us stand out in the industry is to be able to achieve what no one else can, always within the legal framework»

«The Dominican Republic has become a leading example in the region when it comes to exports»

«Our growth rate allows us to be optimistic regarding future challenges we might face»

A long awaited boost for one of the country’s key economic sectors

Following an ambitious seven-pillar strategy, the Dominican Republic is investing in a more technological, cost-efficient, sustainable and export-oriented agricultural sector.

“Our main goal with this administration is to produce more with less”, states Minister of Agriculture Limber Cruz. While the Dominican Republic is recognized for its worldclass agricultural products like tobacco, bananas, cane sugar, cocoa and avocados, a special focus on the agricultural sector was long overdue. The Ministry’s strategy is based on seven lines of action: financing, water, local roads, training and technical assistance, research, safety and commercialization. “We worked hard to establish these fundamental pillars to help the agricultural financial policies, because as an industry it had been left behind”, recalls Minister Cruz.

The first step was securing government financing to guarantee food security during the pandemic and counteract the decrease in the tourism sector’s demand of rural products, the Ministry received over US $80 million at a zero tax rate, in addition to credits at normal 6 to 8% rates, benefiting thousands of small and medium-sized producers. “We had to help our farmers and the government responded accordingly. As a result, despite the global context there was never a food shortage and we could set production programs for the short, medium and long term”, assures Minister Cruz.

Another pillar is water. After the government created the Commission on Water to prevent water scarcity and fight drought in low rain areas, the Ministry of Agriculture started implementing short-term projects like water wells, reservoirs, and drip irrigation systems. On the other hand, having adequate roads to transport rural products has always been a key demand, so the Ministry is working on the restoration and completion of over 1000 km of roads. Regarding training and technical assistance, they are offering thousands of virtual and onsite courses in its eight regional offices. These programs are supported by a digital platform that connects technical experts and produc ers with the Ministry.

As for research, the Minis try invests on recovering plant and animal laboratories, in troducing new resources like artificial insemination and embryo transfer to repro duce the best genetic va rieties of milk and beef, as well as expanding crop varieties with pest-free

CACAO PODS

seedlings to boost production. Like Minister Cruz explains, “research is crucial if we want to produce more goods of better quality. We have already accomplished a boost in productivity with the new varieties of crops like rice, of which we had one of the best crops in fifteen years.”

Another fundamental pillar is commercialization, and the Ministry has implemented a double approach by targeting the internal and external markets. For the internal trade they work closely with platforms like the Price Stabilization Institute (INESPRE) and Merca Santo Domingo to guarantee fair prices for both producers and consumers. “When we started, there were a lot of products at an all-time high. We visited farmers to gather these products directly and avoid intermediaries, payed a little more to motivate them, and brought these products to the market at affordable prices”, assures Minister Cruz.

For the external markets, the government has placed a strong focus on increasing agroexports by offering a great price-quality ratio. Their strategy is two-fold. They take advantage of the country’s free trade zones and trade agreements, and they focus on producing high-quality, internationally certified organic products that are highly competitive globally. Consequently, agricultural exports have grown, trade to the United States increased by 37%, and new markets are opening with the exportation of cigars, coffee and fruits to the Middle East. For instance, YSM Capital recently became the first local company exporting Dominican fruits to the UAE. Their pineapples, mangoes and avocados are now being distributed in Emirati su

With all these initiatives, the government’s plan to relaunch agriculture as one of the main pillars for economic growth is going in the right direction. Right now, as Minister Cruz states, “the biggest challenge for the agricultural sector is to penetrate large markets without forgetting ficient sector, and since we have been here,

Actively supporting Dominican productive sectors

The Ministry’s determined support has directly contributed to the outstanding dynamism and growth of the country’s industry.

The industrial sector has grown 14.3% year on year, contributes 24% of total government tax revenues and has increased sales by 25% in 2021 making the Dominican Republic, one of the fastest growing economies in the Caribbean and Latam region. Behind those numbers, the policies and programs of the Ministry of Industry and Commerce have played a crucial role.

In 2021, the Ministry enacted several laws aimed at boosting productivity and foreign direct investment such as the Customs Law which adapts the legislation to international trade agreements and generates greater legal security for foreign trade actors; the Regulatory Improvement and Simplification of Procedures (Zero Bureaucracy); or the Special Zone for Comprehensive Border Development, which provides incentives to border provinces. They have also launched the 2030 Digital Agenda to promote digital transformation in the country with projects such as “Dispatch in 24 hours” which allows customs to dispatch goods in 24 hours at the country’s ports, it used to be up to 6 days. The Ministry has approved 71 free zone companies and 5 industrial parks, with a projected investment of US $146.27 million for the former and US $42.67 millions for the latter.

Moreover, the Ministry plans to boost free trade zones by improving permissions for special regimes, promoting productive chains and investment, strengthening infrastructure and access to financing.The Dominican Republic is a pioneer in implementing the free trade zone model; in the last 10 months these zones registered record export numbers, representing 61% of the total exports, and about 180,000 direct jobs. “For more than half a century, this sector has contributed to the eco nomic and social development of the country and, despite the pandemic, it continues to show ex traordinary results with a 30% growth, 77 free zone parks and more than 700 com panies”, states Minister of Industry and Commerce Victor Bisonó.

Modernizing cocoa industry in the Dominican Republic

Thanks to its new processing plant, Grupo CONACADO is paving the way for the future.

With an annual production of about 72.000 tons and revenues of US $212 million, there is no doubt cocoa is one of the country’s main exports. Even more, the Dominican Republic produces about 60% of the world’s exported organic cocoa, making it a global leader in this sector. However, behind those impressive numbers lie some challenging facts: cocoa is still a rather traditional industry that depends highly on the weather, 80% of its producers are small farmers close to retiring, and the younger generations do not seem too keen to replace them. That is why Grupo CONACADO, the leading holding company in the production, processing, and marketing of cocoa in the Dominican Republic, is intent in modernizing the sector and making it more attractive to the younger generations. Working under the guidelines of their star project “the farmer

CONACADO Processing Plant, San Francisco de Macoris

Wiener, to open a state of-the-art cocoa processing plant that will produce cocoa liquor, cocoa butter, cake, powder and other by-products, as well as its first chocolate production. Being one of the world’s leading manufacturers within the global cocoa, chocolate and nuts & seeds processing industry, Royal Duyvis Wiener has manufactured and provided all major equipment and expertise to facilitate the complete production process.

On the first phase of the line, cocoa beans are broken and pre-sieved, after which the uniquely designed winnower separates shells and nibs. Later comes the most prized piece of equipment and epicenter of the processing plant, the alkalizer and patented roaster combination, a ground-breaking roaster that defines the flavour and colour of the end product.

The plant also counts with a second grinding line to guarantee the adequate separation of alkalized and natural products, three Royal Duyvis Wiener presses, with an option to extend as production increases in the future, as well as a classic state-of-the-art Classifier Mill with stabilizing silos to grind the cocoa cake.

This combination of a new and efficient processing line and the premium natural cocoa harvested by CONACADO not only guarantees the fineness, colour and stability of the end product but allows them to further expand such quality to a wide range of new alkalized products. As De la Rosa explains, this plant “will be the most advanced in the Dominican Republic, Central America, and the Caribbean.

It will guarantee an added value for the generations we want to draw in, along with the promotion of artisan

chocolate, with the pro motion of artisan chocolate. This new generation will develop personal projects to pro mote purely Dominican chocolate while increas ing chocolate tourism.”

In addition to the plant, Grupo CONAC ADO currently has an agreement with the French Development Agency to promote Cacao forest, an agroforestry system based on the mix of cocoa and forests that has been historically implemented in the Dominican Republic. Since past innovations like cocoa mono-cropping gained popularity but lead to deforestation and other risks to biodiversity, their project aims to return to traditional farming systems but supported with modern technologies so it can foster real sustainable development. “We are demonstrating that traditional farming can be something appealing for the younger generations with the help of new technologies”, assures De la Rosa, explaining that this project’s success is crucial due to its high social impact, as some 42,000 families benefit from it and there is an entire commercial and industrial infrastructure that depends on it.

In the future, De la Rosa expects Grupo CONACADO will continue producing high-quality cocoa and expanding to new by-products and new markets. Currently 70% of their exports go to Europe, mainly to Italy, England, Belgium, and the Netherlands; and the remaining 30% go to the United States, a historically low-price market that is changing favorably as the high-quality organic niche prospers. Furthermore, once the new plant starts producing, they expect to add the China and Arab markets into the equation, as well as expanding their presence in Japan.

Long gone are the days, back in 1985, when the German and Dominican governments cooperated to create the Confederation of Dominican Cacao Farmers. Their idea was

The country has preferential access to the main international markets as a result of its trade agreements with 50 countries, potentially reaching nearly 900 million consumers in the United States, Europe, Central America and the Caribbean. Furthermore, aligned with productive development policies, the government will implement the National Plan for the Promotion of Exports of the Dominican Republic 2020-2030, to expand and improve its exportable offer. They also launched the National Strategy for the Export of Modern Services to boost exports of the creative economy, like the audiovisual industry.

The Ministry is also keen on improving the country’s position in the Doing Business and in the Global Competitiveness Index by implementing several initiatives such as the Single Window for Formalization launched in 2013 to facilitate the opening and formalization of companies; the Single Investment Window to simplify investment processes; the Single Window for Construction Permits to reduce time, costs and procedures; or the Electronic System of Secured Transactions to promote the financial inclusion of MSMEs. It is also important to mention the presidency led national dialogue to discuss key

«This plant will be the most advanced in the Dominican Republic,

to provide credit and technical assistance to small cocoa farmers so they could reach different markets and better prices. Nowadays, CONACADO has become a world export leader and is further modernizing the cocoa industry to provide younger generations the technology needed to continue growing, There is an exciting future ahead. As De la Rosa proudly states, “this organization is my greatest satisfaction, the chocolate sector had never been this organized, furthermore being a global leader in organic cacao, a sector that didn’t exist before makes us very proud.”

«With the help of new technologies, traditional farming can be something appealing for the younger generations»

DE LA ROSA

Central America, and the Caribbean»

Dominican coffe cherries

Minister Limber Cruz visiting the Linda Group tomato plantation

Ports & Logistics

An exciting new adventure for Dominican Republic’s top tourism pioneers

Being an authentic Dominican fishing town located in El Seibo province, an ecotourism hotspot of mountains and beaches only 45 minutes away from the airport, they expected it to become a different touristic product with a much lower density than Punta Cana, more focused on the environment and local ways of living. As Rainieri explains, the hotel resorts that will be built in the area “will have a strong interaction with the town, in contrast to what happened in Punta Cana, where there was no town, it was created around the hotels. In Miches, there is culture, there is an opportunity for tourists to come and enjoy the Dominican culture and gastronomy. ” While they have recently started building a 540-room hotel in the area and two more are on the way, they expect that within the next five to ten years it will have more than 8 to 10 thousand hotel rooms, making it the second biggest tourist region in the Dominican Republic.

Another project is to maintain Punta Cana International Airport’s top quality and further improve its services. Not only it is the biggest and most important airport in the country, it has been ranked for the 5th consecutive year as the best airport in the 5-15 million

passengers’ category in Latin America and the Caribbean by the Airport Service Quality (ASQ). Behind such an achievement is the same pioneering mentality that characterizes all Grupo Puntacana’s business ventures. Investing in top notch technology at the e-gates or kiosks, passengers now spend as little time as possible being able to self-check-in, go through customs and have fastspeed Wi-Fi. Furthermore, in what certainly is a stroke of genius that will bring a competitive advantage to the country, they will implement a pre-authorization process so that passengers flying into the United States can go through American migration services in the Dominican Republic and be able to enter the United States as locals, allowing them to travel to over 50 American cities that do not have immigration services. “At the Punta Cana International Airport, we do not handle business as if it was an airport. We handle it as a hotel, a place of service, with a first-world class passenger experience”, assures Rainieri.

On the other hand, they are also expanding their corporate social responsibility projects. Apart from the three educational centers and four free clinics they sponsor, they now work on major environmental projects like transforming their energy matrix, restoring more than 10km of the coral bar and fostering the reproduction of native fish and birds. “A business cannot be successful if its community is not successful. We have to push our community to prepare and adapt to the times”, says Rainieri, showing once again how their company’s ethos permeates all their activities. In the end, it is this mentality that has allowed them to both grow as a company and promote the country’s development. “We are the Singapore of America. We have a socially and politically stable country, with very strong legal security, where longterm insured investments are possible. Being so close to the United States and with so many flight connections to Europe, Russia and the Middle East, we enjoy an enviable geographic location that makes us a suitable place for investment in free trade zones.”

Punta Cana International Airport

Handling of about 90 weekly ships with direct routes to North America, Europe, Asia, the Caribbean and South America

«This project will position Punta Cana and the Dominican Republic as a leader in international trade and foreign investment»

FRANK ELÍAS RAINIERI

A pioneering and progressive company leading the logistics industry in the Dominican Republic

Steering the shipping industry since 1924, E.T. Heinsen continue to offer efficient and reliable sea, air and land transportation services.

company “Transporte Impala”, which provides container transportation services all around the country with its GPS-controlled trucks.

Moreover, they have expanded into air transportation services, being representatives of Lufthansa Cargo and Condor Airlines, as well as offering handling services and sales in air operations, including quoting cargo services from any airport in the world, thus maximizing the efficiency and speed of the logistics chain. “Many passengers arrive at Punta Cana and Puerto Plata Airport, and soon we will have direct flights from Frankfurt to Santo Domingo. We also ship a significant amount of air cargo from Europe to Santo Domingo, so our business involves cargo and passengers”, explains Heinsen.

If the shipping industry is one of the pillars holding Dominican Republic’s economy, E.T. Heinsen is certainly one of its founding members. Throughout the last years, it has consistently worked to expand and improve how cargo transportation is done, efficiently connecting the country with the rest of the world. A family business since its inception, it started as a shipping company and stevedore agency for a few European lines. As commerce with Europe increased considerably in the next decades, so did the number of lines they represented, reaching up to ten lines in the 1970s. Later on, when lines started facing shortages due to global financial constraints, they decided to diversify investing in port development and logistics in Rio Haina. “Our diversification was mainly toward ports because we saw a considerable expansion capacity” says Teddy Heinsen, Director of E.T. Heinsen and president of the Shippers Association of the Dominican Republic.

Just as they predicted, in the last 15 years the port sector has grown considerably, receiving over US $900 million in investments, and shaping the evolution of the company in turn. Serving as cargo intermediaries,

they represent various international shipping lines, such as Hapag-Lloyd, they also move consolidated cargo from anywhere in the world and deconsolidate it in their own warehouses in the Dominican Republic. With more than 36.000 m2 of storage in their private terminals in Rio Haina and Caucedo, they specialize in cargo consolidation (LCL), Full Containers (FCL), Full Consolidated Containers (CFCL) and Loose Cargo (B/B). “The business as we knew it has changed significantly, it is now focused on logistics. The entire process requires an investment in trucks, warehouses, and refrigerated warehouses, we have grown greatly in that aspect”, says Heinsen. Indeed, one of their most exciting new projects is Frio Box Logistics S.A.S, a 10m high and 19,200m2 refrigerated warehouse dedicated to cold chain storage, logistics and conservation. Using state-of the art technology, it has been designed to comply with the highest international standards, managing all logistics and allowing clients 24/7 visibility, its third phase will be completed in 2022.

Furthermore, E.T. Heinsen not only specializes in maritime transport and logistics. They also have their own land transportation system through their sister

A technology-savvy and forward looking logistics company

“Technology is the future of logistics”, assures Miguel Melo, CEO of M.C. Logistics. Being one of the country’s top companies in the management of logistics services, they are keenly aware of the importance of using technology to maintain a good flow of information with clients and guarantee an efficient supply chain. Since its beginnings in 2005, the company identified the need to bring information to the market in a time when logistics were a traditionally manual sector and those in charge were acting passively. “We started to make things happen instead of just being receptive agents”, says Melo.

This innovative spirit has led them far. Today, they are the first logistics company in the Dominican Republic offering clients a native App that not only tracks their orders but allows them see the entire cycle from its placing to its dispatch. Clients can request services digitally and deal with different requirements, from customs to risk management levels, without going to a warehouse, port, or airport. “Our added value is that we understand supply chain flows and processes. We think the client must see the order’s status because of how unstable the supply chain has been lately.

A conscious client can make the right decisions on time. That is why information is one of our pillars; it has given us a competitive edge”, assures Melo.

This is the initial phase of the supply chain. The next step, as Melo explains, is to digitally integrate their suppliers and stakeholders. In this regard, they

will soon start a project with stakeholders to promote electronic data exchange so they can communicate with the shipping agents in real-time. In this way, while the stakeholder works on the ships, they can transmit the data required by the authorities. “We are copying, or rather, learning from what airlines do. Nowadays, immigration is handled with passports containing the information of the airport of origin. We are working on something like that: electronic data exchange with our partner companies on a global scale”, says Melo. Furthermore, as they document every step of the chain, they are meeting and exceeding the requirements that regulatory bodies ask for, and at the same time offering their clients the tools that they usually lack.

Additionally, they will start implementing electronic payments using platforms that will allow clients to place their orders online directly from the App.

Given all these facilities, it is no surprise that so far they have a diverse and satisfied customer portfolio, most of it small and medium-sized enterprises (SMEs). “The clients that are now part of our portfolio have grown with us during these past 16 years”, says Melo. Moreover, given the global supply crisis brought by COVID-19, they have not only managed to keep their clients by continue working during the pandemic, but recover quickly, and even improve their performance: “We have a team of motivated and energetic professionals, and our vi-

They have also invested heavily in air procedures and X-ray machines, especially in Punta Cana International Airport, where customs used to check, resulting in undue time delays and expenses. New customs procedures such as the new system for authorized economic operators (AEO) accredits some importers in order to save time. “When you are an importer with that certificate, there is no need to go through the typical time-consuming process. You just have to pay your taxes, and you will be able to unload your containers. It is crucial to ease the commerce processes”, assures Heinsen.

E.T. Heinsen is focusing on innovation by further improving the transparency of the logistics process for their clients. As Heisen explains, “the client needs to be able to track their cargo during the whole transportation process”. In line with this, the new customs law expects to ease the relationship between customs, importers and exporters by giving clear, concise and updated. It establishes that containers need to be picked up during the first three months and updated guidance on the upcoming cargo manifests with two days notice before ship arrival. “That way, the client will

be able to work on the customs paperwork before the cargo arrives. That is something the law did not allow before, and it simplifies imports and exports processes”, says Heinsen. In the future, all these improvements will not only make their business more profitable, they will continue to serve the country’s economic interests, just as they did 90 years ago. Since current overcapacity in ports will allow a smooth expansion during the next 5 to 10 years, and international shipping lines are analyzing how they can change lines locally to other minor ports, there are certainly many reasons to be optimistic. “I see great potential in the Dominican Republic becoming an international hub, not only by offering storage opportunities and adequate laws, but also by attracting international firms to the country”, says Heinsen confidently.

sion towards technology has given us a competitive lead in the logistics sector in the Dominican Republic”, says Melo proudly.

However, as it is usually the case, even more so in the past year, these achievements have also been accompanied by particular challenges. On an international level, the challenge has been related to the supply chain breakage of ships and airplanes in Europe and Asia, and of land transport in the United States. As Melo explains, there is a problem with ships and airplanes: with the maritime industry the demand has exceeded the offer, while the air industry is facing an international pause with tourism, which has caused a shortfall on air freight carriers.

“When a chain component breaks, even if it is just one, it causes a domino effect in the entire chain. All these factors have created the perfect storm that we have today”, assures Melo. Fortunately, on the local level, past challenges are now opportunities that the government is seizing to improve the integration processes between the international and local chains, and currently they do not face other challenges than those normally associated with the daily management of their companies.

In the future, backing the government’s vision, M.C. Logistics wants to turn the Dominican Republic into a regional platform that connects Latin America, the Caribbean and the rest of the world, taking advantage of the country’s unbeatable geographical position and well developed infrastructure. “Thanks to our location and a group of visionary leaders, 20 years ago our country began investing and expanding its logistics infrastructure. Other countries in the region have fallen behind. Right now, and during the next 20 years, it is our turn”, assures Melo, adding that to continue having this competitive edge the Dominican companies need to build a united front to attract investors and profit from the ideal scenario they have today: ports and airports that have not met their capacity yet, warehouses that only have 60% of their volume occupied. “That is what infrastructure means. If you ask me how we define logistics, I would say it is the blend of technology and infrastructure”. Given the company’s line of business, they seem to be not only in the best possible location, but also in the most capable hands.

«Our diversification was mainly toward ports because we saw a considerable expansion capacity»

«We also ship a significant amount of air cargo from Europe to Santo Domingo, so our business involves cargo and passengers»

International shipping line Hapag-LLoyd in Puerto Caucedo

Investing on technological development to become the logistics platform of choice in the Dominican Republic.

Busy cargo port Photo by Chuttersnap on Unsplash

«Logistics, for us, is where technology meets infrastructure»

TEDDY HEINSEN CEO of E.T. HEINSEN

“Our strategy is based on providing world-class services, all in one place”, highlights Guillermo Alba, Founder of Nodo and CEO of Alba Sánchez. Whether it is services related to customs, transport, storage, added value for the

World-class logistic solutions adding value to local and multinational clients

First-class facilities, digital traceability, all-in-one services and internationally experienced personnel make Nodo one of the best Dominican logistic companies.

tegically located in Santo Domingo, only 8.4 km from Rio Haina Port, their state of the art 43.000 m2 storage facilities were purposely designed to meet all their clients needs. “Every little detail was taken into account.

We have first-class facilities with fire protection and digital traceability systems that allow our clients to know the status of their merchandise from anywhere

in the world. These systems have been integrated from the beginning to provide our clients a traceability that not many agencies can offer”, assures Alba.

Nodo was born out of Alba Sánchez’s vision to diversify into logistics services when the government issued new legislation “reassuring local and international business people that the sector is supported by

«We have first-class facilities with fire protection and digital traceability systems that allow our clients to know the status of their merchandise from anywhere

graphical position and excellent sea, air and land class logistic services like Nodo becomes all the more important. That is why, as Alba proudly says, “we serve both local and multinational companies that tribute their products on a regional and global scale. ment of the country and to its trustworthiness on an international level by providing first rate services

Construction Advancing urban development in the Dominican Republic

Always working with the highest standards and on the front foot in terms of innovation, Albá Sanchez has built some of the country’s most important road and horizontal construction works.

For almost four decades, Alba Sánchez has gained its place among the most important companies of the Dominican Republic’s construction sector. The company has grown greatly due to the professionalism of its workforce and its continuous evolution and innovation, advancing hand in hand with the country. “One of our main values is that we are always innovating, and this has contributed to the country’s own development. For instance, the Dominican Republic has developed cutting-edge technology for the construction of infrastructures, as a consequence it is not necessary to bring trained people to work in construction projects”, assures Guillermo Alba, CEO of Alba Sánchez and founder of Nodo.

Alba Sánchez was founded in 1984 by engineer Alfredo Alba Sánchez, one of the most prominent figures in the construction of infrastructure works since the 1950s. After a few years working on successful road construction tenders, Alba Sánchez began producing controlled quality aggregates, construction materials and hot asphalt concrete to supply its own projects. In the late 1980s, the success of its production led them to new investments in the aggregates industry to supply other clients, thus creating their first division, Aggregates.

Later, when the Dominican Republic became world headquarters of the Fifth Centennial of the Discovery of America, the renovation of the city that ensued from these celebrations stimulated new growth in the asphalt sector, further consolidating Alba Sánchez with new production plants to provide to the market’s increasing needs. This eventually led them to create two new divisions, Asphalt and Transportation, their services cover the principal needs of the horizontal construction market. According to Alba, “we are focused on all things related to urban development. We have paved the main roads of Santo Domingo and our country, and we are located all across the Dominican Republic.”

Indeed, throughout this period, Alba Sánchez has developed some of the most important horizontal construction works of the Dominican Republic. Among their extensive project portfolio, they have built main public roads like the Duarte Highway and the Santo Domingo bypass, as well as private sector projects like

«One of our main values is that we are always innovating, and this has contributed to the country’s own development»

the rebuilding of Port Caucedo’s pavements, currently owned by Dubai Ports, the main runway of Punta Cana Airport, and the Urbanización Lagos, both owned by Grupo Puntacana. They have also built the runways of María Montez Airport (Barahona), San Isidro Airport and Las Américas Airport, and lately they have started international projects with the construction of Pont Sondé Mirebalais, one of Haiti’s main new roads.

The success of these projects reflects a key aspect of Alba Sánchez’s philosophy, recognizing their clients as one of their fundamental pillars. As Alba explains, “the trust that our clients give to our services is very important for us. Port Caucedo is an example, we have become

their favorite supplier to build infrastructures and provide asphalt concrete services as well as pavement to all their roads. This serves to consolidate Alba Sánchez as an internationally recognized firm.”

Furthermore, since Alba Sánchez is a company that is always growing and looking for new niche markets, a few years ago they decided to diversify into logistics and created Nodo, a world-class, all in one logistic solutions provider. “The Dominican Republic is focusing on the logistics sector, and at Alba Sánchez we are determined to contribute to this growth, while also providing solutions to companies on a global scale”, says Alba.

In the future, they look forward to new opportunities which are expected to arrive as the Dominican Republic becomes a strategic business partner to the United Arab Emirates, a relationship that has had a solid start with the presence of companies like DP World, which has invested in facilities such as ports and freetrade zones in the country. “The Dominican Republic can act as a meeting point for any company that exists

«You do not have to be a politician to contribute to your country. You can do so privately through your businesses, creating projects that will grow and give more visibility to the Dominican Republic»

in Dubai to provide its services to the Americas. We have the advantages of near-shoring, communications and time zones that will make transactions easier”, assures Alba.

For the time being, Alba Sánchez is proud of their growth and diversification, the great projects they have developed over the years and the role they have played supporting the economic development of the Dominican Republic. After all, as Alba says, “you do not have to be a politician to contribute to your country. You can also do so privately through your businesses, creating projects that will grow and give more visibility to the Dominican Republic. I am very proud of all our achievements, and this feeling is shared by everyone in our company Alba Sánchez.”

Several projects of Nodo

Modernizing the Dominican Republic’s construction sector

For more than 30 years, Hageco has been developing innovative projects with the highest standards in the

e build structures as if they were for ourselves”, says Michel El-Hage, CEO of Hageco Engineers and Architects, when asked about the reason behind their success. From the design, construction, and promotion, Hageco offers their clients a complete experience adapted to each project’s specific needs, with the latest technologies and high est quality standards.

Being leaders in the sector, they have built throughout the years some of the most modern and versatile buildings in the Dominican Republic, contributing not only to their growth as a company but to the development of the country’s thriving construction sector. Their excellence is not only confirmed by their cli ents´ satisfaction but also by the relevance and importance of the developed projects, some of which have obtained several awards from the Dominican Chamber of Construction (Residential and Commercial sector) and the Cemex Building Award. These have highlighted Hageco’s innovation, relevance, and outstanding building standards.

Coming from a family of Lebanese merchants, El-Hage learned from an early age the values of hard work, disci

faction. That is how we measure success”, assures ElHage, emphasizing the importance of building trust to maintain a solid reputation.

Another reason behind Hageco’s achievements is their diversification. Their varied portfolio includes shopping centers, corporate buildings, hotels, housing departments and industrial warehouses, among others.

On the other hand, having a clear business vision has also been a key factor in the company’s success.

As Hageco’s CEO explains, this vision is related to “Vertical Integration”. That is, being capable of developing projects with their own equipment and resources, keeping outsourcing to the minimum. In order to develop this strategy, they acquired a large fleet of heavy equipment and machinery that is managed by specialized employees, and entered a strategic alliance with Steeltec, a company specialized in the development, manufacture and commercialization of metallic structures.

Having control of these resources has allowed them to improve execution times and increase technical developments, thus adding value to their projects. “At high-level projects, you cannot rely heavily on third parties. And if you outsource, keep the activities under your control. At Hageco, we have our

MICHEL EL-HAGE

own equipment and a metal factory to manufacture our structures, so we depend less on others”, says El-Hage.

In the next ten years, Hageco aims to keep growing at a planning and industrial level. They know that industrializing the business will make them more efficient, allowing them to reinvest the earnings in the company and keep growing. In the same line, they are also promoting digitalization in all stages of the building process. “Technology and digitalization are helping us be at the forefront of the industry and will continue to be a cornerstone of our sustained growth”, assures El-Hage. Furthermore, as part of their growth strategy, they plan to continue investing in their human capital.

It is a matter of pride that their 120 direct collaborators and associates have been working with them for an average of 15 years, and as Hageco keeps growing with more than 800 indirect workers at present, they want them to thrive in their professional careers too. “These people are the key to delivering exceptional customer service, making us stand out in this business”, assures El-Hage.

Since the construction sector is at the forefront of the country’s economy, representing 14% of the GDP and generating over 400,000 direct jobs and

1.2M indirect ones, investing in the sector’s human capital becomes a crucial element. As El-Hage explains, “construction is a “multiplier industry.” It impacts all the activities that revolve around it from the beginning to the end of the project: material suppliers, services, wholesalers. They all benefit and create jobs in turn.”

Given the steady growth both Hageco and the construction sector have seen in the last decades, there is no doubt they will continue to play a key role in increasing the country’s prosperity. Like El-Hage confidently says, “numbers sustain that the Dominican Republic is a good place for foreign investors to do business. They can trust to have the support of developed construction companies to fulfill their needs.”

Supermercado Nacional / Commercial

Triatec Este / Residential

Tienda Garrido / Commercial

«The key to remaining strong in a competitive world, with a high professional level,

«Technology and digitalization is helping us be at the forefront of the industry and will continue to be a cornerstone of our sustained growth»

“We are proud to have a long-term relationship with our clients, which we have built through excellent client service”, says Rafael Aybar Medrano, President of Constructora Aybar. Indeed, since Constructora Aybar’s foundation in 1987, one of the keys of their success has been the relationship they build with their clients. As Aybar recalls, it all began while offering private touristic residences to high-level clients, who liked their services so much they started recommending them within their social circles. With time, this word-ofmouth clientele opened up new business horizons: “we started offering luxury residential services, and they ended up wanting us to work with them in their enterprise projects too”, assures Aybar.

Being both constructors and developers, Constructora Aybar has fully expanded into commercial and industrial building, working with clients like Banco Popular, Marítima Dominicana and MercaSID, plus several banks, stores and clubs, among many others. Simultaneously, they continued developing projects for the tourism sector, building hotels such as the Colonial Zone and Casas del XVI, as well as touristic residences in Casa de Campo, Punta Cana, Cap Cana and Cana

Luxurious and client-based construction services with the highest quality in the market

Constructora Aybar specializes on large tourist, commercial and industrial projects built with the highest standards and service.

Bay, some of the most important tourist complexes in the Dominican Republic. So far, Constructora Aybar has executed more than 30 construction projects in the country, comprising over 50.000 m2 of civil, electrical and sanitary works, with an approximate cost of US $30 million. “One of our main goals is to keep being relevant in all segments, without disregarding any of them”, says Aybar, showing another reason behind their longterm success.

Currently, Constructora Aybar is developing hotels such as the Hyatt, the Club Med, Iberostar and Playa Serena, as well as 15 touristic villas in Casa de Campo and 7 villas in Punta Cana. They are also developing innovative mix-use projects like Distrito Piantini, which combines offices, restaurants, apartments and open spaces all in one single building; and Murales, a 41,500 m2 project that aims to renew the pier by making it a Wynwood-like park with murals

made by artists, corporate towers and more than 700 apartments. “We love what we do, and that shows”, states Aybar proudly. In the future, they expect to continue evolving and improving as they have been doing in the past decades. According to Aybar, “before thinking about growth, we should think about being able to keep delivering quality, it is our main concern. We also believe offering good customer service to our clients is crucial.” The quality aspect is achieved by always choosing the leading architects, interior designers, suppliers and materials, all according to the type of project and the client’s preference.

This commitment to the highest standards is particularly important in these uncertain times, when price variation has affected businesses worldwide, forcing many to sacrifice quality in order to lower costs and make margins. But for Constructora Aybar, putting quality and client

Innovative and refined real state solutions for the most demanding clients

With original concepts, high-quality materials and exquisite finishes, Contemega are recognized as one of the best construction, investment and project development companies in the country.

also dreaming of new projects.”

“Everyone is waiting to see what we do next”, says Roberto Lamarche, Head of Operations at Contemega. For the last 20 years, Contemega has recognized the changing needs of the real estate market and turned them into innovative and successful projects. Combining construction and promotion, they have developed more than thirty projects, around 600 apartments, with investments of US $250 million. Their innovations go from design elements, like building materials and use of new technologies, to developing new concepts like mix-use buildings or hotel apartments with complete management services. As Lamarche explains, “one of our strengths has been identifying which niche markets needed attention and then working on that niche. We are constantly innovating because it is a competitive sector. We are always one step ahead. This has allowed us to achieve good results while

RAFAEL AYBAR PRESIDENT AT CONSTRUCTORA AYBAR

satisfaction first is an imperative they are not willing to leave aside. “We don’t want to lower the quality of our materials. The mission of the company speaks about delivering the best product, and we do our best to accomplish that. Even when we are challenged to find specialized workforce, we endure it by training our personal”, assures Aybar.

Given Constructora Aybar’s priorities, it is no wonder their clients keep coming back. As Aybar says, “what makes me feel proud is seeing our clients’ satisfaction with the projects that we deliver. Also, developing relationships with our clients is really fulfilling, since at the end of the projects they end up being friends.”

LAMARCHE

For instance, the new governmental directives for Land Use Planning aims to create a more organized urban housing system and improve land use in populated areas; Contemega has already taken the initiative and started developing mix-use buildings that combine apartments, hotels, restaurants and offices all in one place. “You can have entertainment, go to work and do your daily activities in a single building. That is the trend right now in dense cities, we are one of the first companies working on it”, says Ernesto Mejía, President of Contemega. They are also developing progressive residential units such as their Attico Project, which combines the latest technology such as digital sensors, green energy solutions like solar panels and a two-level design. “The Attico Project is innovative because it is one of the first projects in the city where every apartment is a penthouse. For clients that want to live in a

house while having the comforts of a building, we have mixed those two elements in one tower”, assures Lamarche.

Furthermore, although all Contemega’s projects are treated with the same level of detail and dedica-

tion, their investment project is one they feel particularly proud about. They build apartments intended to be used as hotels and offer investors all the required management services from the moment they buy them until they are ready to move in or resell them.

“These projects aim to maximize investors’ profitability because we sell you the apartment and help you make it into a business, as it will complement the hotel supply in Santo Domingo, , it also includes a restaurant and rooftop bar”, explains Contemega’s President.

Compared to other renting platforms, Contemega adds value to their offer by supplying all management services, including booking, housekeeping and

room service through their own channel managers.

“There is a lot you can do besides Airbnb. It is like buying an iPhone to make calls, you can make calls with it, but it can also do so much more! So logically, anyone renting an apartment will prefer to have the commodities of a hotel and we can assist you with that”, says Mejía. Currently they are developing Central, their latest investment project located in downtown Santo Domingo, and given the success these hotel apartments have had so far they are confident it will not be their last. As Contemega’s Head of Operations states, “this project is close to our hearts because it is way more than just selling apartments to clients. We are involved, and we stay with them so they can make the most of their profits, that is our goal. We do not want to finish the project. We want to make sure that it keeps working.”

In the future, Contemega plans to bring their housing projects to some of the most important touristic spots in the country, such as Punta Cana, Puerto Plata and Las Terrenas, so they can reach a more foreign market. “Right now, we are looking for projects like these to sell to the world. That is one of the reasons why we are going to the United Arab Emirates, to find the investors that will help us develop them. In Santo Domingo, visitors go to the city to work, and maybe never come back compared to beach visitors which have a high repeat rate, the world is our market”, assures Mejía.

For the time being, they are satisfied with what they have built in the last two decades. As Lamarche confidently states, ‘Contemega has had a careful and firm growth. We have a good reputation, we are successful on every project we start, and we stay there for our clients to assist them even after the project finishes. That evolution has put us among the top-trusted companies in the country and if clients feel certain about investing with us, then they will not need anyone else.”

Playa Serena

Construction

«Before thinking about growth, we should think about being able to keep delivering quality»

«Developing relationships with our clients is really fulfilling, since at the end of the projects they end up being friends»

«We are proud to have a long-term relationship with our clients, which we have built through excellent client service»

«Logically, anyone renting an apartment will prefer to have the commodities of a hotel, and we can assist you with that»

REGATTA Del Sol

Distrito Piantini

Central By REGATTA

Regatta Altos del Parque Regatta Attico

«We are always one step ahead. This has allowed us to achieve good results while also dreaming of new projects»

ROBERTO LAMARCHE COO of CONTEMEGA

ERNESTO MEJÍA CEO of CONTEMEGA

Working towards a more efficient, diversified and sustainable energy sector

Similarly, as part of its “Zero Bureaucracy” program, the government is committed to increasing transparency and speed in the process of granting permits for renewable energy investments. According to Minister Almonte, “wind and solar projects have to go through several people to be approved, generating delays, losses and uncertainty to investors. With this in mind, the government is making paperwork easy for renewable investments.” So far, since the Ministry started handing facilities to national and foreign investors for the installation of solar parks and wind farms, seven energy trading contracts have been signed, with five more wind power energy deals to be closed in the coming weeks. “We are on the way of substituting fossil fuels for power generation and reducing our dependence on electricity”, assures Minister Almonte.

The Dominican Republic is determined to have an energy transformation. To start, the country has committed to reduce its carbon dioxide emissions by a third in accordance to UN’s 2030 development goals, since more than 71% of the electrical power generation depends on coal and natural gas. Those goals are in line with president Luis Abidaner’s diversification of the country’s energy matrix with cleaner technologies, a strategy that aims to increase the sector’s competitiveness and that is being implemented by the Ministry of Energy and Mines. “The government will bet on renewable energies to stop resorting to unstable, expensive and polluting power plants”, assures Antonio Almonte Reynoso, Minister of Energy and Mines.

In order to achieve this, the government is supporting a new law project that will modify the application of the 2007 Renewable Energy Incentives Law, restoring to the original 75% the level of fiscal credit for investments in renewable energies. “This new regulation will allow the energy trading contracts to be bid for competitively, hiring just the ones that will benefit the country”, says Minister Almonte. With this adjustment, they expect to reach their goal of increasing the contribution of renewable energy sources in electricity generation to at least 25% by 2030.

On the other hand, several efforts have been made to increase the efficiency and coverage of the country’s electric power system. On February 2021, the government signed the Electricity Pact, a structural reform that aims to reduce losses in the

of energy distributors and improve competitiveness and quality of life. They are also working on the expansion of the electric power system, which is expected to be ready by 2023, and on the installation of new energy generating plants fueled by natural gas. “These projects will help reduce stress in the country’s energy supply”, states Minister Almonte.

So far, most sustainable energy projects have come from the private sector or from private-public partnerships. Among them, it is worth highlighting those run by CEPM, the Consorcio Energético Punta Cana–Macao, a privately owned utility company that provides energy to more than 65% of the country’s touristic sector, and to over 47.000 residential customers. In 2011, CEPM inaugurated the first 8.25 MW wind farm in the country, and two years later their international parent company InterEnergy Holdings (IEH) obtained a US $100 million equity investment from World Bank Group’s IFC to develop cleaner and more efficient energy sources in the Caribbean and Latin America. Last year, they also converted three major 730 MW electric plants fueled by diesel to natural gas,

adding an extra contribution to the country’s transition to cleaner energies.

CEPM is also committed to sustainable mobility. They have installed over 300 units of state-of-theart electric vehicle charging stations nationwide and started converting their own fleet to electric vehicles, which they expect to be 100% electric by the end of the year. The company installing the chargers is Evergo, a sister company of CEPM as they are both part of the InterEnergy Group. “The private sector has played a pivotal role in helping the country reduce its carbon emissions by supporting renewable energy generation with solar, wind and biomass projects”, assures Roberto Herrera, Country Director of InterEnergy Group and Executive Director of CEPM.

In order to guarantee the continuity of this process of energy transformation, the Dominican government is actively seeking private investors interested by renewable energy initiatives, electrical power generation and distribution, and/or system maintenance projects. As Minister Almonte states, “the only way to move forward and continue strengthening the energy sector is through capital investment by the private sector. Investments that promote technological changes will lead to the generation of electricity and the use of renewable resources for the production of electric energy. Because of the country’s potential, there are great opportunities for everyone to win.”

Innovative and efficient mining adding shared value to the Dominican Republic

Groundbreaking techniques and an active participation of locals have made their ferronickel production more cost-efficient and environmentally sustainable.

“Going from a maintenance status to where we are today is something that makes us all proud”, says Ionnis Moutafis, President and General Manager of Falconbridge Dominicana, also called Falcondo, when reflecting about the outstanding evolution the company has gone through in the last decade. Since its acquisition by Americano Nickel in 2015, Falcondo has managed to evolve from a 120 employee maintenance operation to being one of the country’s biggest exporters and employers thanks to its precise management, strict costs control, innovations in the mining and metallurgic methods, and cooperation between employees, stakeholders, government and local population. Their success is currently demonstrated by their two fully operative production lines, 2000 employees, and over US $400 million in exports coming from their operations in Bonao, where Falcondo manages one of the largest and most efficiently produced nickel deposits worldwide. “Our results and numbers, plus the atmosphere among our people and the surrounding communities, is what makes Falcondo successful”, assures Moutafis.

Behind those achievements, several innovating techniques developed by Falcondo in the last 11 years have contributed to maximize efficiency and reduce costs. One innovation is the application of selective mining in the first phase of operations. Instead of using the traditional big tracks, they hire contractors with smaller excavators and experts trained in portable analyzers, allowing them to go deeper without extracting large amounts of material that

« Our results and numbers, plus the atmosphere among our people and the surrounding communities, is what makes Falcondo successful »

later has to be disposed. “Starting with a lot less volume, you end up with the same nickel units, and have a great reduction of excavation, transportation, fuel and energy costs in the later stage of the process”, states Moutafis.

Another innovation is replacing naphtha, the traditionally used fuel, which has translated in reduced energy costs in the process plant as well as gas emissions in their chimney. Moreover, Falcondo aims to take this process even further by applying the new technology of electrostatic precipitators, that so far has only been used by three companies in the world, to minimize the visual impact of their chimney and thus reduce emissions. A third innovation is their granulation system. Before, the company used to produce ferrocenes, but they replaced them with ferronickel granules, proven to be more commercial and easier to handle. “With this system, we have a reduction in our costs because it is a lot less demanding in mechanical maintenance and consumables, so eventually it is more environmentally friendly too”, explains Moutafis.

«Since we live here and have an everyday presence in the area, we identify the real needs of the people, and through targeted social investment, we build a beneficial relationship between the foundation, the company, and the people»

favorable conditions of the metal markets, particularly the increase in the demand of nickel and zinc, that are now used to produce electric car batteries. As Moutafis explains, “it is the first time we have a direct interaction between the car industry and the metal producers. We have identified this opportunity, and the company today is on track of an investment of more than US $80 million in this particular field of production.”

On the other hand, one of Falcondo’s trademarks and another key to their success is the emphasis they place on working and creating shared values with local communities. Firstly, by integrating the local population who have worked at the plant for years and combining their knowledge of ferronickel production with the expertise of foreign employees who also reside in the Bonao area. Secondly, their local content policy includes hiring people from the surrounding communities without demanding conditions they cannot meet, such as university degrees for certain jobs, as such they can improve their livelihoods, and strengthen the ties between them by becoming part of the company.

Furthermore, Falcondo actively engages with the

Falcondo’s success is also supported by the current

communities by identifying the most relevant local issues and investing on them through their Social Responsibility Department and the Falcondo Foundation. Their focus has always been on high impact projects, such as the remodeling of a primary school center, the construction of a bridge linking two communities in the area, aqueducts and irrigation canals and tennis courts and sports stadiums, as well as the repair and maintenance of roads and the sponsorship of sports tournaments in several disciplines. According to Moutafis, “since we live here and have an everyday presence in the area, we identify the real needs of the people, and through targeted social investment, we build a beneficial relationship between the foundation, the company, and the people.”

In the future, Falcondo aims to continue researching and developing the mining industry in the country, particularly the raw materials associated with car batteries, as well as securing their energy needs by diversifying their supply. Being a company that privileges an innovative and efficiency-oriented approach to business, as well as a long-term commitment to their employees, stakeholders, management and local communities, Falcondo’s success in all its future endeavours is to be expected. As Moutafis confidently anticipates, “we feel very satisfied with how our investment has evolved up to now, and I believe our success will continue in the future.”

CEPM Power Plant

distribution network, promote the financial reliability

To promote diversification with renewable energies, expand the country’s electricity supply and reduce losses in the distribution network are some of the government’s main goals.

«The government will bet on renewable energies to stop resorting to unstable, expensive and polluting plants»

Evergo electric car charger

IONNIS MOUTAFIS PRESIDENT AND GENERAL MANAGER OF FALCONDO

Cooperativa Agropecuaria (COOPYUNA)

ANTONIO ALMONTE REYNOSO MINISTER OF ENERGY AND MINES

With different types of tourism, unexplored areas, and closer relationships with local communities, Dominican tourism is opening up to fresh and exciting options.

Dominican tourism pioneers keep moving the industry forward

Always open to new approaches, Grupo Puntacana sees a more environmentally sustainable and diversified tourism offering in the future.

Tourism has always been a staple of the Dominican Republic’s economy. Even in the post-COVID era, tourism industry accounted for over 11% of the country’s GDP. It is the main channel for attracting foreign investment, employs one out of five people in the country and brought more than 4.5 million visitors last year alone. What is new, however, is the Ministry of Tourism’s new direction.

First, the Ministry began strengthening the existing regulatory framework and implementing a public-private investment plan to diversify tourism and make it more sustainable and inclusive. In the next 10 years, they expect strong investments in different touristic locations, including new zones, with projects for all kinds of tourism, from adventure, sports and ecotourism to cultural, gastronomic and luxury offerings. As Minister of Tourism David Collado states, “our goal is to exceed 10 million tourists, diversifying our offer, welcoming visitors from new countries and consolidating ourselves as a sustainable destination.”

One of the main projects being developed is the revitalization of the Colonial City of Santo Domingo, a UNESCO World Heritage Site, projected as a new space for investment, promotion of culture and integration with the community. Another project is the relaunching of the North Coast, with a plan that seeks to combine tourism, innovation and the film industry. Similarly, the Ministry is support-

ing sports tourism in northern Cabarete Beach, one of the world’s best water sports destinations, as well as nautical tourism with ongoing fishing tournaments. They also promote the country as the main golf destination in the Caribbean, with 28 first class golf courses.

In addition, the Ministry is supporting sustainable tourism in Miches with its virgin beaches, and together with the Japanese Cooperation Agency, JICA, they began implementing their Community Tourism strategy, which so far has certified several businesses in the northern area. “We are developing a more inclusive tourism, closer to the community, to strengthen the relationship between tourism, export, culture and citizenship, as well as promoting all our products and our national brand”, assures Minister Collado.

Above all, as Minister Collado states, “the most important objective is to recover 100% of employment throughout the value chain, by increasing the average occupancy rate above 75% and attracting new investments.”

In order to achieve this, one of the Ministry’s long-term strategies is to develop the Middle Eastern tourism market. So far, major airlines like Turkish Airways will start flying regularly to the country, and others from Qatar and Israel are expected to follow soon.

Given all the projects that are taking place, Minister Collado has many reasons to be optimistic “tourism awaits the best decade in history, and we are working tirelessly to be ready to lift more Dominicans out of poverty, create more and better jobs and strengthen our relationship with the rest of the world.”

It is all about persistence. 52 years ago, when Frank Rainieri first arrived to Punta Cana, there were only fifty-three families there, and the tourism industry believed this area was too far away and not worth investing in. “It took a lot of persistence from us, but it also opened the debate for creativity and innovation”, says Simón Bolívar Suárez, Vice-president of Institutional Relations and Special Projects of Grupo Puntacana, recalling how they designed, built and ran the first international private airport in the world. “That was the first step for touristic development, because we had an airport before we had proper roads”, says Bolívar. As the airport started attracting European hotel companies to the country, both the company and the tourism sector grew considerably.

“We reached 22% of total foreign investment, and we have kept on growing”, assures Bolívar.

Nowadays, Grupo Puntacana is improving their carbon footprint by gradually moving into renewable

Building high quality and innovative integral solutions for the tourism sector

For over three decades, Cinter Construccion have been leaders in the construction, supervision and management of top quality, cost-efficient and green engineering building projects.

Cinter Construcción is one of the leading and most progressive construction companies of the Dominican Republic. Covering all phases in the development of their projects, from the design and construction to the supervision and management, Cinter Construcción offers their clients the best quality projects in a timely and cost-efficient manner. Their competitive advantage is based on working with the best specialized and professional teams, following strict ISO 9001 standards, and constantly incorporating new techniques and processes that allow projects to be developed in a more efficient and environmentally friendly way. They are pioneers in the application of the LEED certification (Leadership in Energy and Environmental Design) in the Dominican Republic.

Since its foundation in 1988, Cinter Construcción has worked on a wide range of projects all over the country, from hospitals and schools to corporate offices and residential units. However, their main focus has always been hotels and tourism related projects such as bars and restaurants, currently 70% of their clients are international hotel chains. Cinter has been in the market for 33 years and has remodeled more

than 6,500 hotel units. We can say the company has significantly collaborated in increasing the hotel offer in the Dominican Republic”, says Carlos Vásquez, President of Cinter Construcción.

Despite the decrease in projects that came with COVID related restrictions, 2021 saw an important recovery for Cinter Construcción. Among the numerous projects they developed this year are the construction of the Costa Caribe Hotel and 223 apartments in Boca Chica, as well as completing ongoing projects for Marriott Hotel and other private sector works such as offices. Moreover, they expect 2022 will be a take-off year, as they have several confirmed projects set to begin. Among them, Cinter Construcción has signed contracts for 129 Villas in Puerto Plata, 117 apartments in Garden Residences, 200 apartments for sale within a hotel, 253 apartments in Dominico’s Residence, 160 villas of 180m2 in Mountain View, Wave apartments in Puerto Plata and the construc-

tion of the W Hotel with 201 rooms and 65 suites. And if that wasn’t enough, in the next six years they will work with the Dominican government to develop 9,125 affordable housing apartments for low-income residents in the northeast of Santo Domingo.

Furthermore, as they continue to grow steadily, Cinter Construcción aims to implement new technologies that will allow them to maintain high construction standards without increasing their operation costs.

As Vásquez explains, “part of our growth strategy is to continue working with high quality while maintaining cost control. To achieve this, we want to develop the technological side of the business, so we will implement the PROCOR system, which allows

energies with their pilot program at Punta Cana International Airport, reducing their solid waste loss and improving the treatment of corals. In addition, with their new CEO Frank Elías Rainieri, they are ready to try a more diversified approach focused on ecotourism and sports in new locations. “Lately, tourists seem more interested in non-conventional activities that make their experiences unique. This allows us to explore diverse areas of the country that have not been seen as tourist zones before”, explains Bolívar.

Just like in the past, Grupo Puntacana is ready to face a new tourism reality. Only now, as Bolívar says, “it will require better technology and a sense of environmental self-awareness. We must offer a more diverse product and profit from the forgotten touristic resources we have.” Given Grupo Puntacana’s long history of creativity and persistence, we expect exciting new projects that will keep innovating the tourism industry.

Waves Tower

«Part of our growth strategy is to continue working with high quality while maintaining cost control. To achieve this, we want to develop the technological side of the business»

all the modifications, visits, and plans to be together in a real-time platform to improve communication between areas and productivity.”

In the future, Cinter Construcción knows that in order to continue being leaders in the sector, they must keep making significant investments in the construction and renovation of hotels, as well as in the sustained qualification of its workforce. According to Vásquez, “the biggest challenge is to efficiently manage resources and projects while maintaining adequate quality and productivity standards. For this, it is necessary to have qualified personnel, and to focus towards innovation, quality, and growth, which is precisely what we are working on.”

Working towards a more diversified, inclusive and sustainable tourism offering

«Tourism awaits the best decade in history, and we are working tirelessly to create more and better jobs and strengthen our relationship with the rest of the world»

Kitesurf in Cabarete |

Photo by Ministry of Tourism ©

Laguna de Oviedo |

Photo by Ministry of Tourism ©

Dominicus Residences

CARLOS VÁSQUEZ PRESIDENT CINTER CONSTRUCCIÓN

«Cinter has been in the market for 33 years and has remodeled more than 6,500 hotel units»

Boulevard del Atlántico Cave, Samaná | Photo by Dominican Republic Ministry of Tourism ©

Samaná, frontón beach |

Photo by Dominican Republic Ministry of Tourism ©

DAVID COLLADO MINISTER OF TOURISM

Being the only one-of-its-kind in Santo Domingo, Casas del XVI has accomplished what few hotels around the world have: to offer its guests not just a luxurious environment but a truly singular experience. “It is more than a boutique hotel of special status; it is a project in Ciudad Colonial that has set a precedent with the restoration of the Dominican architectural heritage”, says the hotel’s manager director, Ignacio Peñalver, explaining that the hotel consists of individual houses –some dating as far back as the 16th century- that have been meticulously restored and combined into one inviting hotel experience, where stays can be arranged in the exclusivity of a complete house or in a traditional manner of a single room within the house, as is best suited to solo travelers or couples.

Part of their success as a luxury boutique hotel has a lot to do with how they understand luxury. As Peñalver explains, “for us, luxury is an experience to be felt, not

One-of-its-kind luxury experience in Ciudad Colonial

A unique collection of carefully restored historic houses offers its visitors private, safe and personalized accommodation in the heart of the city.

«We can do much more than offer beautiful beaches. We have more attractions that will appeal to different visitors»

seen.” This singular approach is based on three main axes: privacy, uniqueness, and personalized service. Guests have full exclusivity of the historic houses, and therefore are free to use them as they will, while enjoying personalized services of private butler, concierge, chef and housekeeping. Unlike big hotel properties, the houses are only accessible to registered guests, who can enjoy a sense of serenity and privacy in exquisitely decorated surroundings. Similarly, regarding their outreach strategy, they privilege a more direct and purposeful approach. As Peñalver explains, “even during the pandemic we continued to work with a low-key profile.” All these peculiarities allow guests to “fully enjoy personalized treatment and tailor-made experiences during their visit”, assures Peñalver.

Moreover, the hotel’s special configuration has proven particularly attractive during these times of global pandemic, as guests enjoy a safe hotel alternative thanks to the complete and exclusive access to the villas. This feeling of safety is also reinforced by the country’s efficient management of the COVID-19 crisis, which was done allowing the private sector to take an active part in the decision-making process. As of today, the Dominican Republic has achieved a very high rate of vaccination, soon to reach a 70% mark. “We have been able to apply safety and precaution measures, which have made possible a continuous and successful reopening with results that keep getting better. Other countries have not acted as fast as we have”, says Peñalver.

In the future, Casas del XVI plans to integrate even more activities in Ciudad Colonial by offering guests the chance to take part in traditional cultural enterprises such as taking pottery lessons in Casa Alfarera, joining espadrille-mak-

«It is more than a boutique hotel of special status, it is a project in Ciudad Colonial based on restoring the Dominican architectural heritage»

ing tours, or visiting the booming offer of museums and exhibitions. “We support these high-valued initiatives; I get goosebumps from the idea of offering those opportunities to our guests”, assures Peñalver. Such initiatives are certainly in line with current public and private efforts to strengthen and diversify the tourism sector in order to go beyond the image of a sun and beach all-inclusive destination and attract a wider variety of visitors.

As Peñalver states, investing in the development and promotion of different types of tourism like cultural, adventure and congress tourism, as well as ecotourism, has become a more active approach, as it certainly is the case for Casas del XVI and other projects being undertaken by the Terra República Dominicana Real Estate Investment Fund, that is co-managed by its parent company Terra RD Partners and INICIA. “We have a long-term vision, we are cautious with every step we take. We make sure that every

decision harmonizes with our purpose: to offer unique high-end accommodations while restoring the architectural heritage of this historical city”, assures Peñalver. By developing a unique business concept that profits from the country’s solid economic trajectory, this luxury boutique hotel has demonstrated that it is possible to stay true to your values and offer a one-of-a-kind luxurious experience to its well discerned guests.

Reinventing the hotel sector in the Dominican Republic

Focusing on experience-based tourism and combining real estate administration, boutique hotel operations, and rental programs, HMS and its brand Mint Hotels and Residences, have created a new niche in the market.

It is not about staying in a hotel room with a pretty view and air conditioner. Any hotel can offer that. It is about diving into the culture, the taste, the community. You leave satisfied because you live an interesting experience, that is what Mint Hotels is about”, says Miguelina Butron, Vice President of Sales & Marketing at Mint Hotels and Residences, when asked about the philosophy of their brand. They specialize in boutique hotels where high-quality services, exquisite cuisine and spectacular natural or cultural settings are a priority. As Mint Hotels and Residences’ CEO and founder, Abelardo Melgen Acra explains, “we realized that in the Dominican Republic the mainstream was the all-inclusive, so independent hotels could not add themselves to the market on their own, nor had the capital to do so. As a company, we gave them the opportunity to make themselves known internationally and began to pave the way for independent and experience-hotels.”

Mint’s hotels are located all around the Dominican Republic, surrounded by virgin beaches, mountains, rivers or city life, and guests can choose two or more destinations within one visit to create a truly unique experience. Their country-circuits include “Mint Retreat”, where guests stay at the exclusive Bannister Yacht Club hotel in Samaná, a coastal city in the northeast of the island, and experience days of relaxation at Mee Spa, yacht trips through beautiful Samaná Bay, and hiking to Salto del Limón, one of the country’s most scenic waterfalls.

Another circuit, “Three Destinations One Culture”, takes visitors to Regatta, an apartment condominium with hotel services in central Santo Domingo, to experience the cultural and gastronomic offer of the Capital and the

«HMS is a group that is on the lookout for trends, that is not afraid of being the first in something and getting involved in that niche»

“Ciudad Colonial”, the first city in the Americas, and then brings them north to Natura Cabana ecolodge, a nature lover’s paradise facing the Atlantic Ocean and surrounded by mountains. There guests can relish in the exquisite and locally harvested organic cuisine, have a relaxing spa experience, practice surfing or kitesurfing, go hiking, or enjoy yoga classes in the extraordinary sea-facing, tree covered YayaGym. “We have been able to come up with four combinations under Mint’s philosophy, to give visitors some insight into what this country is, a country that surprises you”, assures Butron.

As a brand, Mint Hotels and Residences is part of HMS, Hospitality Management Solutions. HMS was created as an integral company, so both hoteliers and real estate developers could receive operational assistance to start

a hospitality project. It was born out of the

2008 global financial crisis, which in the Dominican Republic left a large number of prime properties that couldn’t be easily sold. Taking advantage of this situation, they came up with the idea to manage them as hotels, bringing the hospitality services into the real estate product. “We saw an opportunity to profit from all the unsold properties and came up with a concept of luxury hotels, so we reinvented the sector”, recalls Butron, who is also partner at HMS. Nowadays, HMS functions as their holding company, offering a variety of services like hotel operations and rental programs, consultancy, condominium administration, project conceptualizations, sales and marketing.

As time went by they saw the need to specialize, so they kept HMS as their holding and developed several brands for the different business they operated. That is how Mint Hotels and Residences was born, but also United Brookers, a real estate brand, and Mee Spa, a spa brand working in the Dominican

«We are a regional brand with presence in Dominican Republic and Panama, planning to keep on growing»

Republic and Panama. In 2013, HMS opened a branch in Panama located in the most important building in the city, and they currently manage 25 projects there. “We are now a regional brand and we plan to keep on growing”, states Melgen.

Their latest project, Homebelike, is another example of that pioneering mentality. Launched a year ago, it is an exclusive vacation home rental platform that offers additional services that are not available in common rentals, such as 24/7 customized concierge services provided by highly-qualified “experience specialists”. Homebelike counts with a unique collection of vetted and verified rental homes, apartments and townhouses in six destinations in the Dominican Republic and two more in Panama and Colombia. They also offer a wide selection of experiences guests can enjoy, from zip-line line adventures in Punta Cana to a Jack Nicklaus signature golf course in Punta Espada. Homelike is a vacation rental that provides you with a personalized service before, during, and after your stay”, explains Melgen.

In the next couple of years, HMS plans to continue expanding their brands regionally, adding new properties, and taking new trends such as vacation rentals and experience hotels to the spots they already manage. After all, as Helgen highlights, “HMS identifies as a group that is on the lookout for trends, that is not afraid of being the first in something and getting involved in that niche.”

Casas del XVI - Casa de los Mapas -Bedroom

Casas del XVI - Casa del Diseñador and Courtyard

Mint Experience at Haitises National Park, Samaná

Casas-del-XVI-Casa-Macoris-Sala

IGNACIO PEÑALVER

MELGEN

Casas del XVI Bedroom Detail Orchid

Culture & Development

Her office aims to recover public spaces, promote alternative and collective mobility, improve accessibility and safety.

“We want to guarantee that once I finish my term, those who live here can say they have a better living standard”, says Carolina Mejía, Mayor of Santo Domingo and General Secretary of the Modern Revolutionary Party. Mayor Mejía is the first woman to run the city, and for over a year she has been working on several programs oriented towards that vision, to make Santo Domingo a healthier, safer and friendlier place for all.

Her first challenge came soon after she took office, when she was confronted with the COVID pandemic. Having to deal with the uncertainty of those first months, her office immediately took action and adapted to the new reality. “The government plan designed for the city had to be postponed and what mattered was the safety of the people, their health. Therefore, from the beginning, we changed our strategy”, recalls Mayor Mejía. The first measures were aimed at cleaning the city and exhorting the population to stay at home, keeping their distance, using masks and even gloves as well as making PPE suits mandatory for government employees. “All our efforts focused on keeping the citizens safe, to make them understand that they should stay at home and follow government measures”, assures Mayoress Mejía.

As time went by, Mayor Mejía and her team incorporated cultural initiatives, developed with local and multilateral international organizations, to stimulate creativity from home and help citizens cope with the exceptional situation. Fifteen months later, with the city’s population almost fully vaccinated and life resembling normality, they were able to resume the execution of pending works in the city. One of Mayor Mejía’s main focus has been on recovering and redeveloping public spaces. As it was stated in the 2030 strategic plan, a lot of efforts have been directed towards rebuilding parks and squares, improving green areas and children playgrounds, as well as installing new energy saving street lighting, in order for people to access public spaces where they can recreate healthily and safely. “The vision is that Santo Domingo becomes a more walkable city, closer to the citizen”, states Mayor Mejía.

So far, more than forty parks have been rebuilt and are now being enjoyed by citizens of all ages and conditions, including those with disabilities. Similarly, Mayoress Mejía’s office has been working on “linear parks”, sidewalk extensions that are being planted with trees to create shade and adapted so people can walk, bicycle and practice other types of exercise, thus promoting alternative forms of mobility beyond the use of private cars. According to Mayor Mejía, “we have a beautiful program called “Plant your city” because it is essential to promote walking in Santo Domingo. As we have hot temperatures here, we’re making sure the linear parks are shaded by our endemic trees.” They have also been promoting the use of collective transportation, and re-routing cargo vehicles out of the city after the success of their pilot program “Ponte en Ruta DN”, a joint public-private effort aimed at reducing traffic congestion and its resulting air and noise pollution in urban areas. These measures resulted in a reduction of around 60% in traffic of cargo vehicles inside Santo Domingo, the equivalent of 4,000 fewer lorries. “There has been a positive response on the part of the business community, which together with the public sector, is willing to embrace these changes with us”, assures Mayor Mejía.

In addition, they have been working on recovering public areas that were being used inadequately for economic activities. In order to transform such traditional

uses of public space, Mayor Mejía and her team have been applying diverse strategies that involve relocating street vendors to other places of the city, renovating spaces so they can be better adapted to new uses, as well as educating citizens on cleaner and healthier ways to use and maintain public spaces. As Mayor Mejía explains, “the works that we’ve carried out have revolved around the recovery of public spaces so they are clean, painted, filled with trees, illuminated and well kept. With that, we wanted to transmit the idea that citizens deserve and should be treated with dignity.”

Another important element in this process of citizen empowerment have been the efforts Mayor Mejía’s office has placed into inclusion practices. One the one hand, they have been adapting parks, squares and other public spaces so they can be used by people with disabilities, for whom access ramps and other special features have been installed. They have also trained governmental employees on disability sensitization programs, and have promoted a historic agreement between INDOTEL, the Dominican Telecommunication Institute and the country’s telecom companies, to support access to their services to people with disabilities. One the other hand, Mayor Mejía and her team have fully backed up the creation of the first Support and Protection Unit for Women, Minors, the Elderly and the Disabled of the Municipal Police, whose purpose is to support and protect these groups, being one

of its key work goals to address street harassment. “Everything we do is directed towards these objectives, that no matter who you are, you feel good, safe and comfortable in your city”, says Mayor Mejía.

Given the special attention Mayoress Mejía has placed on promoting social inclusion since the beginning of her mandate, it is no surprise her office has started being recognized for it. Last December, the Mayor’s Authority of the National District (ADN) received the gold seal at the RD Incluye 2021 Award Ceremony, an event organized by the National Council on Disability (CONADIS) and the United Nations Development Program (UNDP), which recognizes public and private entities for their good inclusive practices. Apart from her aforementioned efforts, the prize highlights Mayor Mejía’s initiative of creating the first Department of Inclusion in the country, as well as being a pioneer in employing an official municipal sign language interpreter.

Throughout her time in office, Mayor Mejía has demonstrated the citizens of Santo Domingo that with the right investments and through common efforts, it is possible to have a cleaner, greener, more human and inclusive city. No matter what challenges await, we expect they will be handle with the same combination of efficiency, transparency and humanity, always putting people needs first. After all, according to Mayor Mejía, “I have embraced public service from the heart, without particular interests, and with the sole objective of improving the quality of life of my people.”

Pabellón de las Naciones, an emblematic public space recovered by the mayor of Santo Domingo

«We want to guarantee that once I finished my term, those who live here can say they have a better life standard»

«With our works we wanted to transmit the idea that citizens deserve and should be treated with dignity»

Building a more inclusive, green and safe city where people take center stage

Parque Mirador Sur - Av Anacaona, Santo Domingo |

Photo by Dominican Republic Ministry of Tourism © Alcazar de Colon, Ciudad Colonial, Santo Domingo |

Photo by Dominican Republic Ministry of Tourism ©

Carnaval Dominicano, Santo Domingo | Photo by Dominican Republic Ministry of Tourism ©

Calle Arzobispo Meriño, Ciudad Colonial, Santo Domingo |

Photo by Dominican Republic Ministry of Tourism ©

monastery, and fortress