By means of a special power of attorney granted by the President of the Republic, Luis Abinader, the Dominican Port Authority (Apordom), as the contracting unit, signed the first public-private partnership contract with PDAB Port Investments Sociedad Gestora, S.A. for the execution of the project to convert the Duarte Port in Arroyo Barril-Samaná into a cruise terminal.
The document was signed at the National Palace by the executive director of the Port Authority, Jean Luis Rodríguez, on behalf of the Dominican State and the general manager of PDAB Port Investments Sociedad Gestora, S.A., Mauricio Hamui; in the presence of the Minister of the Presidency, Joel Santos and the deputy technical director of the DGAPP, Eliardo Cairo, on behalf of the structuring unit of the project to be carried out under the PPP model.
This initiative, which was awarded at the end of March of this year after an open and transparent competitive process for the selection of the winning bidder, proposes the rehabilitation and construction of an infrastructure that will allow the arrival of Oasis-class vessels, the largest in the cruise industry, as well as the development of a terminal with the capacity to receive four cruise ships at the same time.
This new cruise terminal, to be developed in Arroyo Barril, would be added to the existing Amber Cove and Taino Bay in Puerto Plata, Romana Cruise Terminal in La Romana, and Port Cabo Rojo in Pedernales, and with this, the country would be provided with five tourist ports with adequate infrastructure to receive large capacity vessels.
For the operation of this terminal, it is estimated that PDAB Port Investments Sociedad Gestora, S.A. will make an investment of US$68 million, equivalent to RD$3.8 billion and, according to estimates, during the term of the contract, the State will receive a net income of US$1.75 per cruise passenger and US$0.53 per square meter per month in rent per square meter used in the project, which in the 33 years of the contract will generate US$115.6 million in income for the Dominican State.
The Minister of the Presidency, Joel Santos Echavarría, said that “this cruise terminal in Samaná is part of the strategic plan of one of the most booming sectors of the economy, which is the tourism sector, which, in turn, has a relationship with many other sectors of the economy, emphasizing that, within this same line, “we as a country have gone out to place ourselves on the map in different destinations and to seek tourists of different categories where the cruise tourist is found”.
The official assured that for this cruise strategy to work, which is very particular, it requires a specialty and emphasized that PDAB Port Investments Sociedad Gestora, has a high qualification to not only be a suitable partner in this type of project but will also be doing so with the Government in Pedernales and Barahona.
Santos Echavarría also emphasized that they are strengthening this complementary offer through a theme park, which is not only of interest to the cruise terminal itself but also to the province of Samaná, which has both hotel and real estate development.
“The DGAPP has done an excellent job in promoting public-private alliances and is also another important element under which this government is paying a lot of attention,” he said.
Likewise, the executive director of Apordom, Jean Luis Rodríguez, indicated that this is the first time in the history of the Dominican Republic that the consignment of a port is carried out through a public-private alliance since they are usually established through concessions, as provided for in Law 70-70, which creates the Dominican Port Authority.
OPPORTUNITIES
He assured that this new cruise terminal will represent an opportunity to generate new jobs and entrepreneurship in Samaná and to strengthen the tourist offer, which he said will result in social and economic development for all the Northeast region and Central Cibao.
Rodríguez explained that this terminal is expected to receive 161 ships per year, with approximately 3,300 passengers, coming from Miami, Port Canaveral, Port Everglades, Puerto Rico, Puerto Rico, Cuba, Curacao, Barbados, Montego Bay, St. Lucia, Tampa Bay, and New York. “This terminal is designed to welcome up to one million visitors annually, which will undoubtedly lead us towards the consolidation of our country as a Caribbean Cruise Hub,” said the official.
SOURCE OF JOBS
The general manager or CEO of PDAB Port Investments Sociedad Gestora, S.A., Mauricio Hamui, pointed out that the Port of Arroyo Barril will be an engine of the economy for the entire province of Samaná, will bring wealth to all the ends of the province and will generate sources of employment in this locality.
FIRST APP CONTRACT
In a brief speech, the deputy technical director of the DGAPP, Eliardo Cairo, stressed his satisfaction with what he said is “a great milestone for the country, as this is the first infrastructure project to be developed through a public-private partnership contract, under the tutelage of Law 47-20, which is only three years old and has been in force in Dominican legislation.
Cairo emphasized that this project is part of the decision of the Government of President Luis Abinader to position the country as a “Hub” of cruises in the Caribbean and added that this new terminal will promote a greater dynamism of tourism and commerce in the province, creating about 1,050 jobs between direct and indirect.
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