‘Shadow toll’ costs Dominican Republic US$85.5M
Santo Domingo.- While the Government analyzes three proposals to solve the “infamous” -as President Luis Abinader called it- shadow toll that pays for the Santo Domingo-Samaná highway, a new item to cover this commitment is consigned in the budget for 2022, amounting to RD$4.7 billion (US$85.5 million).
The amount is slightly lower than the RD$4.9 billion consigned in the budget for 2021, but higher than the individual amount to come proposed by the Executive Power for the ministries of Sports, Labor, Culture, Women, Youth, and Public Administration and Energy and Mines.
Also the Accounts Chamber, the Constitutional and Superior Electoral courts, the Ombudsman and the Senate.
This shadow toll is one of the biggest rip offs of the Dominican public. The past PLD administrations are responsible for this. There was some kind of politely said sweetheart deal for the government to pay a low construction cost in turn for allowing the contractor’s private toll collectors to collect high fees over a 30 year period . This arrangement has backfired by cause of the government having to pay to the company any shortfall of expected tolls during the 30 year period. Had the government fully funded the construction at the beginning the country would not be saddled with the costs of shadow tolls that add above the original estimated costs of the road.
The government subsidizing things leads to never ending debt for society…we keep paying for it through faulty applied taxes…