May 2, 2000
The World Bank last week approved a $5 million loan to pilot a new approach for providing wastewater disposal services to promote the environment and tourism in the Dominican Republic.
"This pilot could lead the way for significant improvements in how coastal environments are maintained in the Dominican Republic's tourism centers," said Project Manager Oscar Alvarado, a senior water and sanitation specialist. "With this project, we hope to learn two things: The best way to get private companies involved in providing wastewater services in the Dominican Republic, and how new technologies can improve the existing services and keep the environment cleaner and healthier for people."
The project will be carried out in the Puerto Plata, Sosua, and Cabarete areas to:
Apply and test innovative technology for environmentally sound disposal of treated wastewater (the use of very small pipes extended and submerged in the deep sea).
Prepare and implement the first ever model to have private companies provide water supply and sewerage services in tourism centers.
A major goal of the government is to maintain a healthy coastal environment, particularly in busy tourism centers. The tourist industry is a key economic activity in the country, requiring infrastructure and public services to maintain it and the coastal environment upon which it depends.
The government and the Bank believe that private companies will provide better water and sewerage services in Puerto Plata, Sosua, and Cabarete, three main tourist centers. The state-owned companies that now provide these services are unable to attend to environmental issues facing the tourism industry and residential areas adjacent to hotel resorts.
This learning and innovation loan is the first of two small projects requested by the government to test technical and institutional approaches for wastewater disposal and solid waste management, respectively. The $5 million, single-currency, LIBOR-based loan carries a four-year grace period, and matures 17 years.