Opposition Alleges Tripled Budget for Monte Grande Dam
The Dominican Republic is once again at the center of a budget dispute concerning the Monte Grande dam, a major infrastructure project in the country's southern region. The opposition Partido de la Liberación Dominicana (PLD), led by former President Danilo Medina, recently reiterated claims that the dam's budget has escalated dramatically, alleging an increase from an initial US$249 million to potentially exceeding US$800 million. Medina emphasized the need for transparency regarding public funds, particularly for projects vital to national development.
Government Rejects Claims, Cites Original Contract and Prior Increases
The government has swiftly denied the PLD's assertions. Olmedo Caba Romano, Executive Director of the National Institute of Hydraulic Resources (INDRHI), countered the opposition's figures by presenting the original contract for the Monte Grande dam, which he stated was signed in July 2009 for US$354 million. Caba Romano further highlighted that an addendum in 2013, during a previous administration, had already raised the project's cost to US$401 million. President Luis Abinader's administration has stated that upon taking office, the project was only 40% complete in August 2020, with his government overseeing the completion of the remaining 60% amidst global challenges.
Project Background and Varying Cost Estimates
The Monte Grande dam, located on the lower part of the Yaque del Sur River in the Azua and Barahona provinces, is a multipurpose project designed for irrigation, human consumption, flood control, and future power generation. Construction on the dam began around 2009 or 2010. While the PLD cites an initial budget of US$249 million, other reports indicate varying figures. News outlets have reported a 'latest estimate' for the dam at US$623 million. Additionally, President Abinader mentioned that complementary works for the dam were estimated to cost US$336 million. The project received partial funding through a US$250 million loan from the Central American Bank for Economic Integration (CABEI).
Dam Inaugurated Amidst Ongoing Financial Scrutiny
Despite the ongoing financial debate, the Monte Grande dam was officially inaugurated on January 25, 2024, by President Luis Abinader. The project aims to significantly boost irrigated land in the area from 25,000 hectares to 43,000 hectares and provide water for approximately 400,000 people. Compensation payments to residents affected by the dam's construction and reservoir are also an ongoing process, with significant disbursements made by the government. The recent statements by the PLD leadership have brought the long-standing financial aspects of the project back into the public discourse.
5 Comments
Raphael
They inaugurated it but can't provide a straight answer on the cost. This is unacceptable.
Michelangelo
The benefits of increased irrigation and water for 400,000 people are significant for the southern provinces. But the ongoing financial scrutiny, especially regarding the 'complementary works,' suggests that the full cost picture remains opaque.
Habibi
This dam is a vital step for our country's development! Water security is paramount.
Muchacho
Addressing water scarcity is a critical goal for the Dominican Republic, and the dam contributes to this. Yet, the dispute over the initial budget versus the final cost, with such large discrepancies, raises valid questions about financial oversight.
Habibi
It's unfair to blame the current administration for cost increases from previous years. They got it done!