Senate approves the Cabo Rojo Tourism Corporation in first reading
Santo Domingo.- Last Tuesday, the Dominican Republic Senate passed in its first reading a bill to establish the Cabo Rojo Tourism Corporation. This initiative, proposed by the Executive Branch, aims to facilitate the development of the Cabo Rojo Tourism Project in Pedernales province. The bill outlines that this corporation will receive private financial contributions and will allow the state to transfer assets and rights related to the tourism project.
The Cabo Rojo Tourism Corporation is set to function as a public limited company, operating under the Ministry of the Presidency. Its primary objective is to develop and manage various infrastructures, including service, hotel, and commercial facilities, within the Cabo Rojo Tourism Project.
The corporation’s activities will encompass a range of functions such as construction, project execution, business ventures, investment, marketing, and overall project administration. It is designed to be a mixed capital entity, with the bill stipulating that the state’s investment should always remain above 51% to prevent full privatization.
As per the Diario Libre report, the corporation will possess its own assets and legal status, and it will have the authority to incur commercial and contractual debts. The Dominican State is also provided the option to transfer assets and rights from the tourism project estate as social capital for the corporation, especially if government resources are insufficient to meet its investment quota.
Additionally, the legislation proposes the formation of an administrative council for the commercial company. This council will consist of an odd number of members, with a minimum of three.
For the bill to become law, it must undergo one more round of approval in the Senate before proceeding to the Chamber of Deputies for consideration.