Dominican Republic approves US$656.8M loan linked to Brazil scandal

Santo Domingo.- The Chamber of Deputies on Tuesday passed a US$656.8 million loan for the construction of two coal-fired power plants at Punta Catalina, Bani (south), despite mounting criticism over air pollution and its potential link to the Petrobras-Odebrecht scandal in Brazil.

The Dominican State-owned electric utility (CDEEE) will manage the funds of the loan from Brazil’s State-owned BNDES bank and Italian Export Credit firm, SACE.

The deputies of the opposition PRM party called the ruling PLD colleagues’ approval of a loan amid the Odebrecht probe on alleged corruption an "act of imprudence."

The loans agreement was already approved by the Senate and now goes to president Danilo Medina who’s expected to sign it into law.