Consorcio Energetico Punta Cana-Macao, S.A. (CEPM)

MIGA has provided BCH International Puerto Rico (BCH), of the United States a guarantee for $5 million to cover its $5.3 million non-shareholder loan to Consorcio Energetico Punta Cana-Macao, S.A. (CEPM) of the Dominican Republic. The coverage is for eight years, and is against the risks of transfer restriction, expropriation, and war and civil disturbance.

The government of the Dominican Republic is working to implement a reform agenda, which includes increased private sector participation, particularly in the infrastructure sector. In addition, the government has targeted the tourism sector as an important potential source for job creation. This project, which expands on an existing investment previously guaranteed by MIGA, is expected to contribute to the realization of both these objectives. The project is a standalone power generating station near the town of Bayahibe, a burgeoning tourist destination in the country's Punta Cana region. The local area economy is dependent on the tourist industry, which is growing rapidly and bringing with it new jobs. However, the area is not connected to the national electricity transmission grid and has long suffered from periodic blackouts. It now relies on CEPM for electricity generation, transmission and distribution. BCH's loan will enable CEPM to purchase and install two new three MW diesel-fired engines, thereby increasing total plant capacity to 13.2 MW, and helping to address the increasing demand for power in the area. In addition to hotels, local residents and businesses will also benefit from the additional, reliable power generated.