Consorcio Energetico Punta Cana-Macao, S.A.

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MIGA issued a guarantee covering $11.1 million to Banco Central Hispanoamericano International Puerto Rico, Inc. for a loan to Consorcio Energetico Punta Cana-Macao, S.A. (CEPM) to expand its existing facilities in the Dominican Republic. CEPM is jointly owned by CEPM Energy Ltd. (incorporated in the British Virgin Islands) and International Endesa B.V. (incorporated in the Netherlands and a subsidiary of Endesa S.A. of Spain). The guarantee covers the risk of transfer restriction. The loan is intended to increase CEPM's power-generating capacity in the Dominican Republic from 34 to 50 megawatts by expanding an existing diesel fuel power plant. CEPM generates, transmits, and distributes electricity in the Punta Cana-Macao tourist zone, which helps alleviate power shortages in this remote area. Since tourism is a major source of employment and foreign exchange revenues in the Dominican Republic, an investment in developing the tourist zone is likely to generate additional jobs. Expanding its operations will enable CEPM to meet demand for electricity from new hotels (approximately 70 percent of new rooms under construction in the Dominican Republic are in the Punta Cana-Macao tourist zone and supply up to 20,000 residents outside the hotel premises).

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