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Dominican Republic: US$27.5 Million for Water and Sanitation in Tourist Areas

May 22nd, 2009

The Water and Sanitation in Tourist Areas Project will benefit 128,000 Dominicans in poor parts of the region. In addition, it will offer an extra boost to the Dominican government by creating a policy framework and a national strategy for the water sector.

The World Bank’s Board of Directors approved today a US$27.5 million loan to improve the potable water and sanitation supply in the tourist area of Puerto Plata, located in the North of the Dominican Republic.

This initiative will be implemented by a coordination unit of the Ministry of Economy, Planning and Development (SEEPYD) and by the Aqueducts and Sewerage Corporation of Puerto Plata (CORAAPLATA).

“This project will allow more poor families in these tourist areas to have access to quality potable water, while the wastewater treatment and disposal services are carried out in an environmentally adequate manner, avoiding water contamination,” said Roby Senderowitsch, World Bank Country Manager for the Dominican Republic.

This new initiative is consistent with the Country Assistance Strategy (CAS) 2005-2009 between the World Bank and the Dominican Republic, which aims to achieve sustained and equitable economic growth to reduce poverty. Towards this end, the supply of basic services to all Dominicans is a priority.

The project goals include:

• Consolidating the water and sanitation sector in the Dominican Republic to create a national strategy for the sector,

• Improving and expanding access to sanitation and wastewater treatment and disposal services in the Puerto Plata region,

• Improving the financial and operational performance of CORAAPLATA; and,
• Enhancing operational and commercial performance of the regional water and sanitation corporations (CORA) and preparing them to participate in the second phase of the program.

This project will develop a technical assistance component for the sector at the national level, another one to rehabilitate and expand sanitation services in the towns of Playa Dorada, Sosúa, Montellano, Cabarete, La Unión y La Bombita, and a third one for the administrative management of the project.

Besides this new loan, in 2006 the World Bank completed a US$5 million Project for Wastewater Disposal in Tourism Centers, installing small-diameter submarine outfalls and a series of low-cost wastewater disposal technologies in Puerto Plata.

The World Bank fixed-margin loan for US$27.5 million is based on a LIBOR rate and has a 30-year repayment period with a five-year grace period.

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