Report cites woes affecting investments in Dominican Republic
Washington.- Dominican Republic occupies, next to Bolivia, last place in the preference of investments in infrastructure.
The data is from a report of the World Economic Forum, titled "Benchmarking for Attractiveness of Private Investment in Latin American National Infrastructure," published by the magazine Latin Business Chronicle, in its Monday, April 30 edition.
Chile and Brazil are the most attractive countries for infrastructure investment whereas Republic Dominicana and Bolivia are less attractive. The report, released last week spent, includes an Index of Private Investments Attractiveness in Infrastructure (IPIAI), which analyzed 12 countries in 8 major categories including among others macroeconomic, economic stability, market and growth perspective legal framework including regulatory efficiency, public ethics, the effectiveness of procedures to settle controversies and political risks.
Dominican Republic came in last of the 12 countries analyzed thanks to its low score in several categories, though in macroeconomic terms it did relatively well.
The report says the country lacks sufficient sophistication in its financial market, and inefficient regulatory framework. Almost half -48% - of the investments were cancelled or were in peril.
"Although most of the problems are concentrated in the electrical sector, in which Dominican Republic has a very particular history of subsidies and distortions, it also stops investors in other sectors," says the World Economic Forum.
It also mentions the power company Trust Energy of the West’s (TCW) US$680 million lawsuit agaisnt Dominican Republic’s, for an alleged change of the rules in the power business on the part of the Government.