The President of the Dominican Republic, Luis Abinader, announced on Tuesday the renegotiation of the concession contract of the Dominican XXI Century Airports, AERODOM, signed in 1999, which did not generate benefits for the Dominican State, and “did not guarantee the best conditions in the infrastructure of the airports”.
The President said that this renegotiation “represents a benefit for the Dominican Republic of between 1,905 and 2,155 million dollars. That is the difference in the negotiations carried out by our government and the previous one”.
During his speech, broadcast on national television and digital platforms, Abinader added that an agreement was reached that, by guaranteeing greater participation of the State in the benefits generated by the operation of the airports, the resources will be used for the benefit of Dominicans.
The bill will be deposited in the next few days in the legislative chamber for its necessary congressional approval.
The negotiation was supervised by a commission made up of public officials and reputable members of society: the Minister of the Presidency, Joel Santos, Franklin Báez Brugal, Juan Lladó, Fernando Enrique, Pedro Silverio, and Jorge Luis Polanco.
Initial payment of US$ 775 million
The aforementioned sums will be received through different channels such as an initial payment or royalty to the State of US$775 million for the right to operate for the extended term of the concession; an investment of US$830 million for improvements in the 6 airports under concession, including the Las Americas airport – José Francisco Peña Gómez – and other variable contributions estimated at between US$300 and US$550 million.
With the US$775 million to be received over a period of six months, the following works will be executed:
- Asphalting in La caleta, Boca Chica, around the airport and an extensive asphalt program in Greater Santo Domingo and other municipalities with an approximate investment of US$350 million.
- Expressway from Plaza de la Bandera, Isabel Aguiar (Pintura), connecting to 6 de noviembre, with an investment of approximately US$148 million.
- The solution of Av. República de Colombia with Av. Los Próceres, expressway to Jacobo Majluta and road solution between República de Colombia and Monumental Avenue, with an investment of approximately US$ 108 million.
- The construction of the drawbridge that will replace the floating bridge on the Ozama River, with an investment of US$50 million.
- The construction of the bridge parallel to the Jacinto Peynado; which joins Máximo Gómez Ave. with Hermanas Mirabal Ave. in Santo Domingo Norte, with an investment of approximately US$ 56 million.
- The level crossing on the Sabana Perdida – La Victoria highway, with the intersection at Charles de Gaulle, with an investment of approximately US$30 million.
- The San Cristóbal Traumatology Unit for US$15 million, in addition to 139 small and medium-sized works in all the provinces of the country, of which 80 are for sports, for a total of US$18 million.
Expansion of Las Americas International Airport
“The extraordinary performance of tourism and the development of the country as a commercial center, which has motivated a double-digit growth in passenger traffic, makes the construction of a new additional terminal at the José Francisco Peña Gómez Las Américas International Airport,” whose forecasts indicate that it will reach 8.4 million passengers in 2030, surpassing its current capacity of approximately 6.5 million passengers, the president emphasized.
In view of these figures, the concessionaire will immediately invest US$16 million to improve, within a period of 12 to 18 months, the airport’s existing terminal.
In addition, work will be carried out on the design that will enable construction of a new terminal to begin in 2025, which will have a capacity of 4 million passengers per year. This project will require an investment of US$250 million.
The President concluded his remarks by stating that “this renegotiation is just the beginning. We are working to ensure that all contracts and agreements are for the greatest benefit of the Dominican people”; he also reiterated his commitment to reach agreements that promote the development of the country and improve the quality of life of all Dominicans.
Vinci Airports Response
Following the President’s speech and in response to the announcement of the renegotiation of AERODOM’s concession contract, the company responded that:
“AERODOM and VINCI Airports appreciate the trust placed by the Dominican Government in selecting VINCI Airports as the long-term operator of the six Dominican airports under its responsibility. We hope that this proposal, which represents important improvements and benefits, will soon be approved by the National Congress”.
The contract will be extended from 2030 to 2060. The airports that will continue to be operated are: José Francisco Peña Gómez International Airport of the Americas (AILA-JFPG); Gregorio Luperón International Airport; El Catey – President Juan Bosch International Airport; María Montez International Airport, Barahona; Arroyo Barril Domestic Aerodrome, Samaná and La Isabela – Doctor Joaquín Balaguer International Airport.
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