Economy June 2, 2016 | 7:38 am

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Brazil bank’s woes halt major Dominican Republic projects

Santo Domingo.- The internal problems within Brazil’s State-ownedBNDES bank have delayed two of the most important infrastructure projects alreadybegun in the Dominican Republic: the Monte Grande dam (west) and the PuntaCatalina power plants (south), reports Thursday.

The completion of the major projects face delays of up to twoyears taking into account the original timetable.

Since 2000 BNDES has been one of the main sources offunding for the construction of dams, aqueducts and canals in the DominicanRepublic, in hydroelectric and.

The Brazilian bank giant also funded the purchase of the SuperTucano military aircraft acquired by the Dominican government from Brazil in2007.

BNDES’ ever-increasing loans for infrastructure made BrazilDominican Republic’s biggest creditor, displacing Venezuela since January 2015.

Brazil’s internal woes however have slowed BNDES’ loans tothe Dominican Republic in the last two years, when investigations halted loandisbursements for public works in the Caribbean country.

The Monte Grande dam and the Punta Catalina coal-firedpower plants-two key projects for the south and west region, were victims of theimpasse in the BNDES.

The Monte Grande dam has been subjected to the longest delay,as the work by Brazilian construction giant Andrade Gutierrez has been completelyhalted.

The government has said the work –expected to vitalize theeconomy of a vast region- would resume in one month, and will be completed inDecember 2018. Its original plan was to finish it by April 30, 2016.

Andrade Gutierrez’s problems however, among other factors, hadprevented its timely completion.

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