Cabo Rojo Tourism Corporation approved by Senate in initial reading

Santo Domingo.- Last Tuesday, the Senate of the Dominican Republic approved in first reading a bill to create the Cabo Rojo Tourism Corporation. This initiative, proposed by the Executive Branch, aims to facilitate the development of the Cabo Rojo Tourism Project in the province of Pedernales.

The bill establishes that this corporation will receive private financial contributions and will allow the State to transfer assets and rights related to the tourism project.

The Cabo Rojo Tourism Corporation will operate as a public limited company, dependent on the Ministry of the Presidency. Its main objective is to develop and manage various infrastructures, including service, hotel and commercial facilities, within the Cabo Rojo Tourism Project.

The corporation’s activities will encompass a variety of functions such as construction, project execution, commercial projects, investments, marketing and general project management. It is designed to be a mixed capital entity, and the bill stipulates that state investment must always remain above 51% to avoid outright privatization.

As reported by Diario Libre, the company will have its own assets and legal status, and will have the power to contract commercial and contractual debts. The Dominican State is also given the option of transferring assets and rights to the heritage of the tourism project as social capital for the corporation, especially if government resources are insufficient to meet its investment quota.

In addition, the legislation proposes the formation of an administrative council for the commercial company. This council will be made up of an odd number of members, with a minimum of three.

For the bill to become law, it will have to go through one more round of approval in the Senate before moving to the Chamber of Deputies for consideration.

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