President Luis Abinader establishes “Infrastructure Development Fund” through decree

Santo Domingo.- President Luis Abinader has enacted decree 581-23, forming the “Fund for the Development of Infrastructure.” This decision follows the Contract Review Commission’s proposal regarding the disposition of land owned by the State Sugar Council (CEA), advocating for a public trust.

The commission’s recommendation emerged after a thorough review of the CEA lands, which were entangled in irregular sales processes. This measure aims to ensure efficient and transparent management of these assets. The “Infrastructure Development Fund” will operate as a public trust focusing on real estate development and investment. It’s designed to bolster infrastructure across various sectors, including mass transportation, housing, water supply, and impactful socioeconomic projects nationwide.

The Fund’s purpose encompasses the commercial management and administration of lands identified by the Dominican State. Its objectives include capturing, managing, investing, financing, and allocating resources acquired through sales, rentals, and leases. These funds will primarily support infrastructure development in the aforementioned sectors.

The trust will comprise the Dominican State, represented by the Ministry of the Presidency as trustor and trustee, with Fiduciaria Reservas serving as the fiduciary.

According to the decree, the National Congress must approve the transfer of identified lands to the public trust, in line with Law no. 28-23 on Public Trusts. The public trust’s responsibilities include managing the land contribution processes, identifying land potential for commercialization, promoting projects for human and social development, and overseeing infrastructure studies and initiatives.

Additionally, the trust will manage advisors for project evaluation and implement control and audit mechanisms. It will also sign agreements with public entities to structure and design initiatives aligned with the trust’s objectives.

The Infrastructure Development Fund will be governed by a Technical Council, including the Minister of the Presidency (president), the Minister of Finance, and the Minister of Economy, Planning and Development.

The decree underscores the public and social interest in seeking economic growth, job creation, and improved living conditions in the Dominican Republic. It emphasizes the need for legal frameworks to boost local industry competitiveness in international markets through new mechanisms, such as logistics facilitation and promotion of exports.

Recognizing the Dominican Republic’s territories as having high potential for sustainable development, the decree aims to generate policies for social inclusion and national development.

The Contract Review Commission, established by President Abinader through decree 273-23, consists of notable members including Enriquillo Reyes (president), the executive director of the CEA (vice president), and others. The commission’s creation of the public trust is a strategic move towards the effective and transparent administration of these significant state assets.