Dominican Republic awards first PPP contract to build cruise terminal

The Dominican Republic government has awarded the country's first PPP contract to build a cruise terminal to the consortium ITM Port Investments. 

The contract involves adapting the current Duarte-Arroyo Barril port in Samaná northeast of capital Santo Domingo into a terminal capable of receiving Oasis cruises. It has estimated capex of 3.8bn pesos (US$68mn), according to the general PPP authority (DGAPP) and the Dominican port authority (Apordom).

The contract will allow the company to design, build and operate the port as a tourist destination for 33 years. It is the first time the country has awarded the operation of a port under a PPP rather than through a concession. 

The aim of the project is to help position the country as a cruise hub in the Caribbean, as well as to invigorate tourism and trade in Samaná province, according to the executive director of DGAPP, Sigmund Freund. 

Once rebuilt, the facilities, which currently serve as a freight port with only a score of employees, are expected to receive more than 160 cruise ships per year with an estimated 400,000 passengers starting in 2026. Oasis-type cruise ships are expected to arrive from Miami, Cañaveral, Everglades, Puerto Rico, Cuba, Curaçao, Barbados, Montego Bay, Santa Lucía, Tampa Bay and New York.

The executive director of Apordom, Jean Luis Rodríguez, said that “the terminal is designed to receive up to 1mn visitors per year, which will undoubtedly lead us to the consolidation of our country as a cruise hub in the Caribbean.”  

There are currently four terminals capable of receiving these types of cruise ships in the Dominican Republic: Amber Cove, Taino Bay, Romana Cruise and Port Cabo Rojo.  

The State is estimated to receive net income of US$1.75 per cruise ship passenger and USD$0.53/m2 per month for the monthly lease, which would produce total revenues of US$116mn during the 33-year contract term.