Caribe Hospitality de la Republica Dominicana
MIGA has provided guarantees of $1 million and $6.4 million to Caribe Hospitality S.A. of Panama and Scotiabank (Cayman Islands) Ltd. of the Cayman Islands, a territory of the United Kingdom, for their respective $5 million and $7.1 million equity investment in, and non-shareholder loan to, Caribe Hospitality de la Republica Dominicana, S.A. in the Dominican Republic. The guarantees are for a period of 15 years and against the risks of Transfer Restriction, Expropriation and War and Civil Disturbance.
The project involves the development of a 146-room hotel in downtown Santo Domingo to primarily serve business clientele. It will provide a much needed supply of hotel rooms in the mid-tier category and help develop the country's business infrastructure. The project will generate direct and indirect employment with an estimated 40 people being employed during the construction phase and an estimated 65 direct employees by the fifth year of operation. Employees will benefit from on-site training will focus on communications, marketing, and technical functions. The project contains numerous upstream benefits as an estimated 70 percent of materials and services will be procured locally during the construction phase and locally sourced goods and services are estimated to be $800,000 annually. The project will indirectly facilitate related industries such as transportation, food processing, hospitality services, infrastructure and financial services. The majority of the local procurement will benefit utilities and suppliers of agricultural goods and souvenirs, most of which are expected to be SMEs.