Vision for Development

What opportunities has the decline in oil prices brought to the Dominican Republic?

The drop in oil prices enabled the country to reduce its current account deficit to a more manageable level, which was important. In 2014, oil imports represented 7.5% of our GDP, whereas in 2015 it was 4.4%. This enabled us to invest in other areas such as education, where we increased investment by 4%. Therefore, the savings in terms of oil prices allowed us to invest in other areas very important to the country. The total oil bill is also down by more than USD1.3 billion, according to the Central Bank. This has helped to reduce inflation levels and reduced the government expenditures on electricity subsidies.

What is your vision for the development of the local hydrocarbons industry?

When we arrived at the ministry, there was no regulatory framework in place for the hydrocarbons industry. The Dominican Republic could not continue being a net importer of oil. It required a joint effort to explore the reality of potential oil wells in our territory, as had proven the case in the past. We started a process to open bidding to have foreign companies explore oil potential in the Dominican Republic. We also started to digitalize all the necessary data and make it available online to make it as easy as possible for companies. We started to capture seismic data of the ocean floor up to 200km below the surface in several different parts of the country. With that data now available, foreign companies have been analyzing to determine which blocks have the greatest potential and how to proceed. This entire process has been transparent and placed the Dominican Republic on the radar for international oil companies. In mining, the country has given out plenty of concessions, whereas in the oil industry, we are still brand new. We thus put in a great deal of effort at the beginning to create the regulatory framework the oil industry lacked and developed a strategy for the country’s energy resources, including renewables.

What role do renewable energies currently play in the country’s economy?

There are currently 187MW installed of renewable energies—solar, wind and biomass. The country’s objective is to have over 400MW of renewable energies installed across the Dominican Republic. I am optimistic in this regard. There are commercial agreements in place for projects that represent more than 230MW. For example, Monte Plata currently represents 30MW, but its full potential is around 60MW. When it comes to hydroelectric energy, we currently have an installed capacity of 204MW. For example, we recently recorded a day in which 30% of the energy used came from just this source. We want to continue to promote its usage and the necessary regulatory framework behind it.

How do you find the proper balance between attracting foreign investment in mining and promoting the development of local communities?

The country is rich in minerals; however, this comes with great risk to the environment and thus requires a vision of sustainable development. Our challenge is to exploit current resources while investing in sustainable growth and development for future generations. We need to promote the development of the mining industry within a clear regulatory framework and with a common vision to protect the country’s ecosystem. Large mining projects today are better managed from both an environmental and social point of view. The challenge remains in the small-scale mines. In the last few years, we have seen the arrival of foreign buyers and intermediaries coming to exploit certain resources, not caring about the environment or community. Hence, we work hard to structure and better manage the small mining industry. We also seek to develop a better ecological awareness, while trying to improve working and living conditions. This is one of the main challenges we have in the industry today, as there are over 5,000 miners in the country.