Infrastructure and logistics in the Dominican Republic

<p>A practical research guide for evaluating Dominican projects and established operations. Separate official national context from the evidence required for a particular transaction. The discussion below identifies market considerations, legal frameworks and questions for professional due diligence; it does not recommend an investment.</p><h2>At a glance</h2><table><thead><tr><th>Indicator</th><th>Figure and year</th><th>Source</th></tr></thead><tbody><tr><td>Real GDP growth</td><td>5.0%, 2024</td><td><a href="https://cdn.bancentral.gov.do/documents/publicaciones-economicas/informe-de-la-economia-dominicana/documents/infeco_definitivo2024-12.pdf">Banco Central, Informe de la economía dominicana 2024, publicado 2025</a></td></tr><tr><td>PPP long-term definition</td><td>At least 5 years, 2020 framework</td><td><a href="https://dgapp.gob.do/preguntas-frecuentes/">DGAPP, Preguntas frecuentes, marco de 2020</a></td></tr><tr><td>Free-zone exports, national</td><td>US$8,425.9 million, 2024</td><td><a href="https://cnzfe.gob.do/wp-content/uploads/2025/08/Informe-Estadistico-2024.pdf">CNZFE, Informe estadístico 2024, 2025</a></td></tr></tbody></table><h2>Market: a connected platform, not guaranteed demand</h2><p>Dominican infrastructure connects domestic consumption, manufacturing, tourism and international trade. Ports, airports, access roads and water systems must be assessed as an operating network rather than isolated assets. The logistics-hub thesis depends on reliable shipping connections, customs processes and usable inland distribution. Proximity on a map does not prove lower delivered costs. Compare actual quotations, schedules, cargo handling and customer requirements before underwriting a facility. National activity provides context, not evidence that a particular warehouse or terminal will attract business.</p><h2>Ports: Caucedo and Haina</h2><p>The Port Authority’s 2022 list identifies Caucedo in Santo Domingo province as private and supervised by the state, and Río Haina as state-owned and concessioned to private operators. It also distinguishes commercial ports from cruise terminals, including Amber Cove and Taino Bay in Puerto Plata. <a href="https://portuaria.gob.do/listado-de-puertos-comerciales-dominicanos-terminales-turisticas-fondeaderos-muelles-y-marinas/">Autoridad Portuaria, listado de puertos, 2022</a> These classifications matter: buying neighbouring land does not confer terminal access or operating rights. Request the relevant concession and user agreements. Confirm cargo compatibility, truck access, insurance, customs arrangements and the ability to move goods during peak periods.</p><h2>Airports, roads and water</h2><p>Las Américas serves the Santo Domingo area and Gregorio Luperón serves Puerto Plata, as identified by their operator. <a href="https://aerodom.com/aerodom/">Aerodom, Sobre Aerodom, sin fecha, identificación de aeropuertos únicamente</a> The operator page contains legacy information, so its concession end date and passenger totals are not used here. Airside access and cargo permissions require separate verification. For road-dependent assets, test delivery routes and legal access rather than assuming a highway entrance will be approved. For water projects, establish supply rights, treatment requirements, discharge permissions, the paying customer and collection mechanisms. A need for infrastructure is not itself a bankable revenue contract.</p><h2>Law 47-20 and DGAPP</h2><p>The 2020 public-private partnership framework provides for competitive selection, private investment, a public contribution, risk allocation and remuneration linked to contractual performance. DGAPP structures, promotes, supervises and regulates partnerships; the National PPP Council is its superior body. <a href="https://dgapp.gob.do/preguntas-frecuentes/">DGAPP, Preguntas frecuentes, marco de 2020</a> <a href="https://dgapp.gob.do/wp-content/uploads/2021/03/LAW-NO-47-20-EN.pdf">Law 47-20, public-private partnerships, 2020</a> Public and private initiatives do not eliminate evaluation and selection requirements. An entry in a project bank is not a signed concession, a funding commitment or an invitation to invest. Obtain the applicable procurement documents and current procedural status from the responsible authority.</p><h2>How private capital participates</h2><p>Capital can enter through sponsor equity, lending, acquisitions of interests in existing operators, private warehouses and logistics services. These are distinct routes, not interchangeable legal permissions. An operating concession may require consent before a shareholder change or security assignment. A private logistics park needs land rights and customers even when it does not use the PPP framework. In a public-service contract, examine tariff or availability-payment mechanics, performance deductions, termination compensation and handback obligations. Allocate construction, demand and payment risks explicitly; do not assume the state guarantees private debt.</p><h2>Incentives and infrastructure-specific risks</h2><p>Export-zone incentives arise from a separate regime under Law 8-90 of 1990, not merely from marketing a development as a logistics hub. <a href="https://cnzfe.gob.do/wp-content/uploads/2023/06/Ley-No.-8-90-del-15-de-enero-1990.pdf">Ley 8-90 sobre zonas francas, 1990</a> Determine whether the operator, tenant and activity each qualify and how domestic sales are treated. Infrastructure also introduces public-counterparty, procurement, environmental and community risks. Check rights of way, resettlement exposure, marine or flood conditions and operating resilience. Independent engineers should review lifecycle maintenance and interface risks between terminal operators, utilities and road authorities. Model delays and reduced utilisation without assuming refinancing will always be available.</p><h2>Deal structures and investment governance</h2><p>Distinguish ownership of a company from ownership of its underlying assets. A minority subscription, a controlling acquisition, a secured loan and a development partnership create different rights. Describe who appoints management, approves budgets, commits additional capital and authorises related-party transactions. Agree information rights and a realistic exit process before negotiating headline valuation. A holding company does not remove liabilities at the operating level. Obtain independent legal and tax opinions on the actual structure rather than assuming another transaction provides a template.</p><h2>Permits, title and incentives</h2><p>Prepare an approvals matrix identifying the competent authority, applicant, outstanding conditions and evidence required before operations begin. Ask local counsel to confirm land title, encumbrances, zoning, environmental authorisation and sector licences where applicable. Separate an application from an approval, and an approval from permission to commence operations. Incentives should enter the financial model only after the adviser confirms eligibility, the relevant resolution, remaining duration and any restrictions on a change of ownership. A nearby successful project does not establish that the proposed site has the same rights.</p><h2>Financial and commercial due diligence</h2><p>Reconcile management accounts with bank statements, tax returns, customer invoices and material contracts. Examine receivable ageing, inventory condition, supplier dependence and maintenance spending that may have been deferred. Separate recurring trading performance from related-party income, exceptional gains and owner expenses. Obtain independent evidence of customer demand rather than relying exclusively on a sponsor forecast. Test how delayed collections, higher operating costs and a slower launch affect liquidity. Treat forecasts as scenarios, not verified facts or promises about future performance.</p><h2>Currency, climate and execution risks</h2><p>Match the currency of revenues with operating costs, debt service and distributions. A business can report growing sales while struggling to obtain enough cash to pay foreign-currency obligations. Examine insurance exclusions, deductibles, storm exposure, drainage and business-interruption arrangements. Have engineers review asset condition and replacement requirements. A construction budget should specify contingencies and responsibility for overruns. For existing operations, inspect backup power, water security, cybersecurity and the ability to continue serving customers after disruption. These are diligence questions, not assertions that every site has the same weaknesses.</p><h2>Negotiating protections and closing conditions</h2><p>Use a controlled data room and verify the identity and authority of the people supplying documents. Specify conditions precedent, representations, disclosure schedules, indemnities and any retention or escrow with counsel. Identify how unresolved tax assessments, employee claims and permit defects will be treated in the price. Review enforceability and dispute resolution rather than assuming an overseas contract automatically provides effective local remedies. Do not release acquisition funds solely against a presentation. Closing evidence should demonstrate that the agreed ownership, consents and security arrangements can actually be delivered.</p><h2>Practical next steps</h2><p>Define the target sector, geographic scope, desired control and capacity to fund follow-on requirements. Build a preliminary investment memorandum that separates confirmed evidence, assumptions and unresolved questions. Commission local legal, tax and technical reviews before making a binding commitment. Obtain a written plan for operations after closing, including management transition, reporting and capital expenditure. Sponsors can <a href="https://dominicaninvesting.com/for-projects">list a project</a>; prospective investors can <a href="https://dominicaninvesting.com/for-investors">register as an investor</a>. Introductions are not a substitute for independent verification. This guide is general information, not investment, legal or tax advice, and does not promise returns.</p><h2>Sources</h2><ul><li><a href="https://dgapp.gob.do/preguntas-frecuentes/">DGAPP, Preguntas frecuentes, marco de 2020</a></li><li><a href="https://dgapp.gob.do/wp-content/uploads/2021/03/LAW-NO-47-20-EN.pdf">Law 47-20, public-private partnerships, 2020</a></li><li><a href="https://portuaria.gob.do/listado-de-puertos-comerciales-dominicanos-terminales-turisticas-fondeaderos-muelles-y-marinas/">Autoridad Portuaria, listado de puertos, 2022</a></li><li><a href="https://aerodom.com/aerodom/">Aerodom, Sobre Aerodom, sin fecha, identificación de aeropuertos únicamente</a></li><li><a href="https://cnzfe.gob.do/wp-content/uploads/2023/06/Ley-No.-8-90-del-15-de-enero-1990.pdf">Ley 8-90 sobre zonas francas, 1990</a></li><li><a href="https://cnzfe.gob.do/wp-content/uploads/2025/08/Informe-Estadistico-2024.pdf">CNZFE, Informe estadístico 2024, 2025</a></li><li><a href="https://cdn.bancentral.gov.do/documents/publicaciones-economicas/informe-de-la-economia-dominicana/documents/infeco_definitivo2024-12.pdf">Banco Central, Informe de la economía dominicana 2024, publicado 2025</a></li></ul>