SANTO DOMINGO – The Bank of China and the Foreign Trade Bank of China will provide $462 million in financing for a tourism project in the eastern Dominican Republic being led by Spanish investors, tourism officials in that Caribbean country said.
The transaction marks the first Chinese capital investment in the Dominican Republic and will permit completion of the initial stage of the exclusive Punta Perla complex in the tourist resort of Punta Cana, located in the easternmost province of La Altagracia.
The announcement was made Thursday at the end of Dominican Tourism Minister Francisco Javier Garcia’s meeting with Chinese and Punta Perla executives.
Garcia said this initial investment accord is doubly important because, in addition to ensuring the completion of a large tourist complex, it sets a precedent that will pave the way for Chinese funding of Dominican development projects.
“Now the banks, the large Chinese corporations and the companies that manage Chinese tourism will have a point of reference. They’ll be drawn by the country’s development potential and will be able to see the Dominican Republic strong interest in expanding business with China,” Garcia said.
The first phase of Punta Perla includes 1,500 apartment and villa units, the first stage of its marina, the clubhouse, boutique hotel, golf course and other sports facilities, infrastructure and services.
This first phase is due to be completed within two years starting January 2011 and will ensure fulfillment of residential-unit sales contracts.
The accord leaves open the possibility of Chinese financing for the other three stages of the Punta Perla project, to be developed over a period of eight to 10 years.
The financing agreement was structured by the Thon Yung investment fund with the participation of the IPPR engineering firm and Jiangxi Zhongmei construction company.
Punta Perla is being developed and project-managed by Paraiso Tropical S.A, a Dominican Republic company headed up by Spanish developer Ricardo Miranda. EFE