Title: Opposition Criticizes Approval of Six Loans Totaling Over $623 Million in the Chamber of Deputies
Subtitle: Legislators express concern over the increasing debt burden on the Dominican Republic
Date: [Current Date]
In a single reading, the Chamber of Deputies approved six new loans totaling $623,508,568.00, prompting criticism from opposition lawmakers who referred to it as a “loan festival.” The loans were proposed by the Executive Power and received favorable reports and agreements from the National Congress.
The first loan, agreement No.9392-DO, signed on July 26, 2022, between the Dominican Republic and the International Bank for Reconstruction and Development (BIRF), amounts to $100,000,000.00. It aims to finance the Support Project for the National Housing Program, which will be executed by the Ministry of the Presidency (Minpre). This loan requires approval from the Senate of the Republic.
The second loan, contract No. DO 21/2016, signed on March 10, 2022, between the Santo Domingo Aqueduct and Sewerage Corporation (CAASD) and the Consorcio Acciona Infraestructuras SA, amounts to $101,308,568.35. It is dedicated to the design and execution of the eastern aqueduct expansion project, salinity barrier, and transfer to Santo Domingo Norte. This loan was awarded through an international public bidding procedure.
The third credit agreement, No.1088 01 U, signed on December 21, 2022, between the Dominican Republic and the French Development Agency (AFD), totals $200,000,000.00. The funds will be utilized as budgetary support for the Support, Mobility, Land Transportation, and Road Safety program in the Dominican Republic, Phase II. The agreement is pending approval from the Senate.
The fourth approved financing, No.5678/OC-DR, signed on January 16, 2023, between the Dominican Republic and the Inter-American Development Bank (IDB), involves an amount of $44,200,000.00. Its purpose is to implement the Integral and Sustainable Management Program for Solid Waste in Greater Santo Domingo. This loan also awaits approval from the Senate.
The fifth loan, labeled No.5643/OC-DR, signed on December 23, 2022, between the Dominican Republic and the Inter-American Development Bank (IDB), stands at $38,000,000.00. It will facilitate the financing and execution of the Support program for the Flexible Employment System RD-Trabaja, to be overseen by the Ministry of Labor. This loan requires approval from the Senate.
Lastly, the sixth loan, identified as No.5637/OC-DR and 5638/KI-DR, signed on December 23, 2022, between the Dominican Republic and the Inter-American Development Bank (IDB), amounts to $140,000,000.00. It will finance the execution of the Universal Sanitation Program for Tourist and Coastal Cities, to be carried out by the National Institute of Drinking Water and Sewerage (Inapa).
During the approval of the fourth loan, legislators from the Dominican Liberation Party (PLD) left the congressional session in protest, describing the situation as an unprecedented festival of loans in over 17 years. The People’s Force, while still present in the chamber, voted against the loans and used their voices to express concerns to the official legislators.
Representative Pedro Botello from the Reform Party urged his colleagues not to abuse the increasing debt and emphasized the need to prioritize the well-being of the people. He called attention to the diminishing trust in the political class following the approval of these contracts.
Juan Julio Campos, spokesperson for the PLD in the Chamber of Deputies, highlighted the difference in public perception between loans taken during the PLD’s government and those under the current PRM government. He expressed frustration, which led the PLD bench to withdraw from the chamber.
Tobias Crespo from the People’s Force declared that this day, July 4, should be remembered as the fateful day of loans in the National Congress.
In response to the mounting tension, Chamber of Deputies President Alfredo Pacheco attempted to pacify the situation, remarking that the approval of multiple loans is not an isolated incident but had occurred in the past as well.
The deputy of the People’s Force, Heriberto Aracena, voiced concern over the overall debt, stating that the loans approved by this government exceed $30 billion. He anticipated that the people will hold the government accountable for their decision.
As the country faces an increasing debt burden, concerns persist over the long-term impact and the government’s ability to manage the repayment of these loans while ensuring the welfare of its citizens.
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