The project is sponsored by the Hazoury Group. The Hazoury Group consists of several major Dominican companies controlled by the Hazoury family, including Sinercon S.A., one of the country’s largest construction companies, and Cap Cana, the largest tourism development in the Caribbean. The Hazoury family also leads the Universidad Iberoamericana, one of the country’s primary private universities. Sinercon would execute the EPC Contract for Aerodom. A subsidiary of YVR Airport Services Ltd. (YVRAS), a 90%-owned subsidiary of Vancouver International Airport Authority, would serve as the technical partner and manage all of Aerodom’s airports under an operations and management agreement. The Hazoury Group owns 58.25% of Aerodom through its subsidiaries Operadora de Aeropuertos del Caribe S.A. (50.5%) and Ronal Marketing Inc. (7.75%). Administradora de Aeropuertos del Norte, S.A. (17.0%), Corporación de Inversiones, S.A. (17.0%), and YVRAS. (7.75%) are the other major shareholders in the company.

The total project cost is estimated at $265 million. The proposed IFC investment is a $45 million A Loan for IFC’s own account. A $15 million B Loan could also be provided if required by the company.

45.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	45.0
Equity

* These investment figures are indicative

Aerodom’s airports are the Las Américas International Airport located 13.7 miles (22 kilometers) to the east of Santo Domingo, the capital city of the Dominican Republic; the Gregorio Luperón International Airport located 11.3 miles (18 kilometers) east of Puerto Plata; the Arroyo Barril International Airport and Samaná International Airport located on either side of the Samaná Peninsula; the La Isabela International Airport in El Higüero near Santo Domingo and the María Montez International Airport located in Barahona.

The project supports the Dominican Republic’s efforts to develop its tourism industry. The expansion and modernization of Aerodom’s airports will expand airport capacity and relieve congestion at the Las Américas Airport. In addition, the new Samaná Airport is expected to spur tourism investments in the Samaná area, considered to be the “next tourist destination” in the Dominican Republic. YVRAS’s involvement will bring airport operation and management know-how and result in an upgrading of skills of local workforce. Finally, this project’s success will encourage foreign investments and further private sector participation in airports and other infrastructure sectors such as roads and ports. IFC will provide the long-term financing necessary for a concession-based project at a reasonable cost. Economic difficulties and the uncertain political situation in the Dominican Republic has made it difficult for local companies to obtain foreign funding as foreign banks are unwilling to take long-term exposure in the country. IFC's involvement in the project will act as a catalyst for additional financing through parallel loans from other multilateral financial institutions and the IFC B Loan, if needed.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical environmental, and social information submitted by Aerodom and airport site visits by IFC staff. IFC also reviewed the results of various environmental and social assessments of the Aerodom’s airports conducted since 1999, the EIA for the new La Isabela International Airport prepared by the Dominican Government in 1999, the EIA for the new Samaná International Airport prepared by Aerodom in 2001, and an independent environmental and social review conducted by the Inter-American Development Bank in 2001.
Location of environmental documents in locally affected community
The environmental documents will be made available at Aerodom’s offices at the Las Américas International Airport and La Isabela International Airport in Santo Domingo, the Gregorio Luperón International Airport in Puerto Plata; the Arroyo Barril International Airport in Samaná; and the María Montez International Airport in Barahona.