Dominican Government Authorizes More Than US$4 Billion for Strategic Projects in 2026
The General State Budget for fiscal year 2026, approved through Law No. 99-25, authorizes the Dominican Government to enter into credit operations for a combined maximum amount exceeding US$4.354 billion, earmarked for the execution of 23 strategic projects in key sectors for the country’s economic, social, environmental, and institutional development, as set forth in Article 71.
Water Infrastructure and Sanitation
A substantial portion of the authorized resources is allocated to drinking water, sanitary sewerage, and water resource management projects, primarily through the National Institute of Drinking Water and Sewerage (INAPA) and the National Institute of Hydraulic Resources (INDRHI).
The projects include:
- Southwest Region Multiple Aqueduct Project (ASURO): up to US$80.9 million.
- Expansion of the San Juan de la Maguana–Juan Herrera–Las Matas de Farfán Multiple Aqueduct: US$84.5 million.
- Integrated Drinking Water, Universal Sanitation and Reuse Project Punta Cana–Bávaro, Phase III: authorization of up to US$400 million.
- Expansion and improvement of the drinking water and sanitary sewerage network of San Francisco de Macorís: US$85 million.
- Construction of the sanitary sewerage system of Nagua, María Trinidad Sánchez province: US$60 million.
- Expansion of the sanitary sewerage system of Samaná: US$40 million.
- Construction of the sewerage network of San Cristóbal: US$100 million.
- Construction of the sewerage system of the municipality of San Juan: US$60 million.
- Water transfer from the Hatillo dam reservoir to the Santo Domingo aqueduct: maximum authorized amount of US$700 million.
In the area of irrigation and watershed management, the following are also authorized:
- Yuna River Basin Management Plan: US$267 million.
- Pressurization of the irrigation system of the José Joaquín Puello Canal, San Juan Valley (Phase I): US$85 million.
- Construction of the Alto Mao Canal, Valverde province: US$250 million.
Transportation and Urban Mobility
The transportation sector concentrates high-impact projects aimed at strengthening the mass mobility system:
- Expansion of the transport capacity of Santo Domingo Metro Line 2: maximum authorized amount of US$371.55 million.
- Construction of the Santo Domingo Metropolitan Train: US$500 million.
Energy and Energy Transition
In the energy sector, the 2026 budget authorizes financing to strengthen national electricity infrastructure and promote the integration of renewable energy sources:
- Transmission infrastructure projects for the integration of renewable sources, executed by ETED: US$328 million.
- National Project for the Modernization, Rehabilitation and Repowering of the Hydroelectric Park, executed by EGEHID: US$120 million.
- Program for network improvement and customer normalization of Edesur, Edenorte and Edeeste: US$120 million.
Environment, Territorial Development and the Productive Sector
Article 71 also includes projects linked to environmental sustainability, productive development, and climate resilience:
- Environmental management and social resilience to climate change in the Yaque del Sur River basin: US$20 million.
- Comprehensive and Sustainable Territorial Development Program, executed by the Ministry of the Presidency: US$100 million.
- Agroforestry Rehabilitation Program for Dominican Cocoa Plantations (PRACAO): US$100 million.
Security, Institutional Strengthening and Other Strategic Sectors
The authorizations also include:
- Implementation of the National Road Safety Policy: US$200 million.
- Reform and Modernization Program of the Penitentiary System: US$266.54 million.
- Research project on the potential of rare earth elements in the Ávila Fiscal Reserve, Pedernales province: US$16.16 million.
Financial Scope of the Authorizations
Taken together, the projects detailed in Article 71 of the 2026 General State Budget authorize credit operations for an approximate maximum amount of US$4.3546 billion, reflecting the scale of the projected public investment and its cross-cutting impact on strategic sectors of the country.
These authorizations do not imply the immediate execution of the projects, but rather enable the Executive Branch to manage the corresponding financing in accordance with the applicable legal and contractual framework.
The breadth and diversity of the projects authorized in the 2026 General State Budget highlight significant opportunities for companies, developers, contractors, financial institutions, and investors interested in participating in infrastructure, energy, transportation, environmental, and territorial development initiatives in the Dominican Republic.
In this context, Pellerano & Herrera offers comprehensive legal advisory services in project structuring, public and private financing, public procurement, regulatory compliance, and risk management, supporting its clients at every stage of the process to ensure sound decision-making.