Dominican Senate approves Aerodom concession contract extension to 2060

Santo Domingo.- The Dominican Republic’s Senate has approved a new concession contract with Aeropuertos Dominicanos Siglo XXI (Aerodom), extending the existing agreement until 2060. The deal promises an income of 775 million dollars for the country in the upcoming year as an initial payment.

Despite the absence of support from the opposition parties, the People’s Force (FP) and the Dominican Liberation (PLD), the ruling party and its allies, holding the majority, passed the controversial agreement. The contract, having already been sanctioned by the Chamber of Deputies on December 5, now awaits the Executive Branch’s consideration.

Senator Milciades Franjul (PRM-Peravia) led the special commission that studied the contract over eight days. Yván Lorenzo (PLD-Elías Piña), the PLD spokesperson in the Upper House, presented a dissenting report, which was ultimately rejected by the Senate. He criticized the contract, arguing that the 775 million dollars is essentially an advance income tax payment to the government, likening it to a loan.

President Luis Abinader and the Minister of the Presidency, Joel Santos, have defended the contract. They highlight its alignment with Law 66-23 and emphasize the equitable remuneration for the State through the renewal of the concession. The contract includes significant investments in airport development and maintenance, with a minimum estimated amount of 830 million dollars.

This includes a 250 million dollar investment for the new terminal at the José Francisco Peña Gómez International Airport (AILA), along with immediate investments for current infrastructure adaptations.

The renegotiated contract with Aerodom is seen as beneficial for the Dominican Republic’s economic growth, particularly considering the high traffic at international airports and the influx of tourists. The agreement represents a substantial commitment to developing the nation’s airport infrastructure, aiming to enhance the Dominican Republic’s position in the global aviation and tourism industries.