NOVEMBER 2011

Road El Catey-Las Terrenas: landowners complain

Lands road El Catey-Las TerrenasThey are still waiting for the Ministry of Public Works to pay them

After the controversy caused by the high price of the road El Catey-Las Terrenas, another controversy arises.

According to a letter sent by one of our readers, several owners of lands on which the new road passes are still waiting of the Ministry of Public Works to pay them.

This is the explanation given by one of the owners concerned, Mr. Papazian, regarding this topic:

The Dominican government decided to build a road, called the Atlantic Tourist Boulevard, and signed a concession contract with the BTA, a company with private capital.

This consortium was intended to collect the necessary funds for the construction and the operation of this road.

In order to reach that goal, the BTA consortium made a loan of $ 151 million with 4 international banks & institutions.

The Dominican government did not disburse any money for the construction of the road.

These 151 million were financed by the following institutions and banks:

  • EIB: European Investment Bank;

  • CAF: Corporación Andina de Fomento;

  • PROPARCO: French Development Agency;

  • IDB: Inter-American Development Bank.

The Dominican Republic was charged to buy the lands to the owners and make them available so the construction works could begin.

The facts

The private lands were evaluated by the Dominican land registry in late 2009. On 20/01/2010 I received the valuation which I accepted.

The work began in several areas but not on my land since I refused to give BTA the permission to access to it without first having in my hands a purchase contract by the government.

In March 2011, a delegation of representatives of the Ministry of Public Works accompanied by Mr. Carlos Rivas BTA consortium, visited the office of my lawyer Ismael Vanderhorst & Asocs.Consultants / Attorneys in Las Terrenas.

They had in their hands a check corresponding to one twelfth of the value of my land.

Following the advice of my lawyer, I accepted the money and signed a conditional sale agreement with monthly contractual terms and a final amount for the last term scheduled for January 7, 2012.

I also had to agree to sign a permission of access in order that the works could begin in my land.

Today, the road is open and I no longer can use my land. However, I only received 4 payment and 5 terms were not paid.

During the latest meeting with a high official of the ministry, the response of the Public Works was we haven’t money, when only 4 days before the inauguration of the road by President Leonel Fernandez, the Carlos Rivas, representing the BTA, called me personally to tell me that I would receive all the unpaid money in 3 or 4 days.

Today, the conditional sale contract has not been signed yet by the Minister Díaz Rúa despite numerous requests.

In conclusion

First

it is scandalous for the State to behave this way, if that would have happened between individuals, the conflict would have been solved a long time ago, either through an amicable agreement or by the legal way.

Second

French and foreign banks involved in financing of such projects have the obligation to ensure that such development operations are carried on efficiently.

The BTA consortium is also part of this questionable behavior.

The French presence in the Dominican Republic must also ensure that French investments made in the country are protected.

Third

I am determined to get my money, and all of it, including interests according to the rates of the Banco de Reservas, and this by all legal means.

I remember the Paiewonsky case, in which 500 people had invaded a land. This situation was resolved with the army and the expulsion of the belligerents based on Article 1 of the 5869 Law on Private Property Violation of April 24, 1962.

Let’s be clear that I own this land, although now there is asphalt instead of coconut trees, and several homeowners are in this same situation…

I remain at your disposal for any information you may ask.

See all the news

Las Terrenas Live, 08.11.11, 2.55 p.m.

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