modernizing the electrical grid at three different scales throughout the country is necessary. These scales are the large scale of rural spaces that connect the cities to their generation plants, the scale of the entire city grid and the scale of the city block. These three scales of grid modernization would greatly reduce distribution losses, limit blackouts and streamline energy transmission to every connected building in every city in the Dominican Republic.
9.2.2. Reduction of Fossil Fuel Based Electricity Production
Shifting away from fossil fuel-based electricity production would have a large impact on the Dominican Republic’s economy by reducing by nearly 12% its $17.5 billion USD yearly import bill, which is due to the fossil fuel imports needed for electricity production (Ibid.). Using renewable and passive forms of energy, such as solar and wind, can keep electricity generation state-owned and eliminate the need for importing fossil fuels for generation.
9.3. Proposed Projects
In this section, the energy team proposes projects that are solutions supporting the two major priorities described above. The projects explained below consider the needs of the energy sector, capital investment from foreign entities and integration with other sectors. These projects are proposed to provide the Dominican Republic with more energy independence, a stable electrical grid and reduced carbon emissions.
9.3.1. Large Scale Solar Project
A first step in reducing the Dominican Republic’s dependence on fossil fuels for electricity production is the construction of five large solar arrays in a remote valley near Canoa. This would be funded by diverting money from the two proposed 300 MW coal-fired power plants referred to previously in this chapter to the solar arrays. The amount necessary would be $625 million USD of the $2 billion USD in funding for the coal-fired plants.
Convincing the government to divert the funding to solar projects that yield the same output, last longer, generate more profit and at just over a fourth of the original budget should (in theory) be relatively easy. However, assuming some of the foreign investors would withdraw their funding with the change of project, even with foreign banks wanting to invest in renewable energy projects in the region, and if no new foreign aid is forthcoming, there is still enough capital to begin planning and construction of these arrays. With the Caribbean’s largest solar array already having been built in the Dominican Republic, public approval would support these projects, and there would not be a need to test the concept with a pilot project as the Monte Plata Array (see Figure 27) could act as the pilot project, even if these new arrays would be at a larger scale.
One 120 MW array could be constructed per year for the first three years, and two 120 MW arrays could be completed and operational by the fourth year, so that by the fifth year all arrays would be operational. After a one-year construction phase, the arrays would be producing nearly $45 million USD of passive
Figure 27. High End Apartment Project in Gazcue. Source: https://real-buzz.com/RealEstate-detail/Dominican-Republic_Santo-Domingo_Los-Casicazgos_Luxury-apartments-for-sale-In-Los-Casicazgso-Dom-Rep_10210_house-for-sale_ USD_93074112/html/.
revenue at this scale, including operation and maintenance costs. This means each 120 MW array would have a payback period of under eight years, if the price of solar remains at the current $1 million USD per MW. Trade arrangements could also be made to reduce the price of the arrays by either buying solar panels in large quantities or negotiating with foreign companies to build a factory in the Dominican Republic in order to manufacture solar panels for these arrays and for additional solar projects in the future in the country and the rest of the Caribbean. Thus, the solar panel factory proposed by the industry team in Section 7.4.1 is a proposal that should be adopted. Moreover, Solartech Energy, a Taiwanese solar panel company, could be targeted for an agreement as this solar panel company provided the solar panels for the existing Monte Plata array. Chinese companies are another alternative, especially since the Dominican Republic and China have recently established diplomatic relations.
9.3.2. Small Scale Solar Project
To reduce the load on the electrical grid in the short-term until the grid is modernized, the government could fund individual solar arrays on a building-by-building basis. The funding could come from taxes, or from the $395 million USD the World Bank is already investing in renewable energy projects. The initial building scale solar interventions would be in an older, relatively wealthy mixed-use area of Santo Domingo called Gazcue, with plans to expand to other areas of the city after the 5-year period. The project would start with a 6-month feasibility study costing $200,000 USD that identifies potential buildings that could be pilot studies. A hotel, a high-end apartment building and two restaurants are proposed as each building type has different, but much higher, electricity needs than the average household in Santo Domingo. These studies would showcase the viability of solar in Santo Domingo so that within the 5-year plan period, citizens could sign up for tax incentives that reduce the price of private solar arrays, which would reduce the load on the current grid. The objective of these solar array trials would be to determine the viability of individual solar in the area. The long-term goal would be to expand solar to many of the buildings in Santo Domingo in order to reduce the load of the current electrical grid, improve electricity reliability, reduce the instances of stolen energy and equip households and businesses for electric car hookups. Initially, an apartment building such as the one shown in Figure 26 and a restaurant as seen in Figure 27 would be used and a restaurant similar to the one seen in Figure 28 and a hotel like the one in Figure 29 and Figure 30 would be added to the program later in the 5-year plan.
All four buildings would cost $4 million USD for the solar arrays, and the government would allot $20 million USD of tax incentives to anyone wanting to opt into this program for individual solar arrays.
9.3.3. Underground Electrical Lines in Gazcue
In order to modernize the electrical lines in Santo Domingo, an expansion of the
Figure 29. Boutique restaurant in Gazcue. Source: https://steemkr.com/art/@anadeleonartista/la-fabrica-contemporanea-parte-i.
Figure 30. Hotel in Gazcue. Source: http://hotel-riazor.hotelssantodomingo.net/en/html/.
existing effort to move power and telecommunication lines underground in the nearby Zona Colonial could be planned for Gazcue. Since Gazcue is located on the southern coast, which is susceptible to damage from tropical storms, moving the lines underground would prevent damage to them. Additionally, moving the lines underground would reduce the number of illegal connections as subterranean lines are harder to get to. This project is estimated to cost around $10 million USD for the Gazcue area as underground line installation is more expensive than traditional installations. However, this project is planned in conjunction with the water (See Section 5: Water) and transportation (See Section 8: Transportation) teams to complete three projects in the area at once. The lines would need to be placed under existing sidewalks and usually run next to existing water pipes. The three sector teams would combine projects to replace damaged or old water lines while electrical lines are moved underground, and the damaged existing sidewalks would be replaced after the installation of the utilities under the sidewalks is complete. All three sectors benefit from the project so the higher expense for underground lines can be justified.
9.3.4. Upgraded Transmission Lines
One of the major energy losses in any electrical grid occurs in the transmission from the energy production site to the distribution centers and substations. Usually, transmission lines are high voltage lines to prevent losses and are then stepped down in voltage for typical use by end users. These transmission lines are normally located inland and connect remote towns and major cities to electricity production facilities. With an upgrade project costing $50 million USD, the entire nation would have a connection to energy sources, both renewable and fossil fuel powered; that is, 100% of the population would have electrical connections as opposed to the 88% with connections currently.
9.3.5. Battery Storage Facility
With solar energy production, electricity is lost if more is produced than is used. To counter this, many solar arrays use a battery storage facility that connects to local substations so that any unused electricity can be stored for nighttime use when the arrays cannot produce electricity. With large enough battery storage capacity close to a city like Santo Domingo, blackouts could be eliminated. Currently, during peak electricity use, if the fossil fuel-powered plants cannot ramp up production at the rate at which it being used, the result is a blackout. If electricity were stored in battery facilities near substations, reserves of electricity could be used until normal service resumes (Figure 31).
9.3.6. Electric Bus Fleet
With the large-scale solar arrays being constructed over five years near Canoa, there would need to be several staging areas for the manufacture and shipment of materials for the arrays’ construction. Furthermore, there would be hundreds of skilled workers on site for the construction of the projects, and, because of the remoteness of the site, these workers would be stationed in nearby towns during the construction phase of each of these projects. Some might even become permanent residents. With a fleet of buses for the workers of these plants that have specific routes from nearby towns to the project sites, workers could get to and from the project sites easily and efficiently and at little cost to the company. The buses could be cheap to run if they would use electricity generated from the arrays. In addition, the operation of this fleet could function as a feasibility study for mass electric public transit in urban areas that is truly run on clean solar energy. If the small-scale solar project program gets expanded after the 5-year plan, fleets of buses and individual electric cars could become popular options with charging from the small solar arrays (Figure 32).
Figure 32. Battery storage facility connection to grid. Source: https://www.autoevolution.com/news/renault-to-build-europes-largest-ev-battery-energy-storage-facility-128893/html/.
9.4. Capital Costs
The estimated costs for each project are detailed below:
Project 1: Large Scale Solar
Ø 5120 MW arrays at $125 million USD each; therefore, the project total cost is $625 million USD.
Project 2: Small Scale Solar
Ø 6-month feasibility study at $200,000 USD.
Ø 4 small-scale solar array projects at $4 million USD.
Ø Tax incentives and marketing for solar array program at $20 million USD.
Ø The project total cost would be $24.2 million USD.
Project 3: Grid Modernization
Ø Underground electrical line project in Gazcue at $10 million USD.
Ø Rural transmission line upgrades at $50 million USD.
Ø Pilot battery storage facility project near Santo Domingo at $5 million USD.
Ø The project total cost would be $55 million USD
Project 4: Electric Bus Fleet
Ø $1 million USD for a fleet of 10 buses at $200,000 each.
Ø $1 million USD a year for operation and maintenance costs over five years.
Ø The project total cost would be $6 million USD.
The grand total of costs for the four energy projects would, therefore, be $734.4 million USD.
10.1. Role of the Finance Team
For the completion of each project proposed by the sectoral teams, it was imperative that many financial considerations be evaluated concerning capital costs, environmental studies, operation and maintenance, interest rates and available funding. It was the role of the finance team to analyze the various projects based on their area of impact, number of people affected, total cost of the project and the level of priority. A thorough analysis of these factors, in conjunction with the financial circumstances of each project, is what the finance team has used to determine which projects would be selected. The costs of the projects selected have been financed using foreign and domestic sources of funding, including foreign direct investment (FDI), foreign aid, development bank assistance and the Dominican government’s national budget. For each project, financing is assured only for the 5-year period of the environmental plan for Santo Domingo proposed in this paper.
10.2. Proposed Projects in the 5-Year Environmental Plan
The various projects funded here have been proposed to alleviate the environmental problems in various sectors of Santo Domingo. These have been selected from a larger number of projects that have been considered by the six sectoral teams (i.e., poverty alleviation, water, solid waste, industry, transportation and energy) during the research and analysis process of developing the 5-year environmental plan for Santo Domingo.
The finance team first evaluated the Dominican Republic’s overall government budget, foreign direct investment (FDI) and foreign aid. Then, it estimated how much of the national budget would go towards Santo Domingo and projected that for the years 2019 to 2023. Each sector’s budget was first compared to the estimated Santo Domingo budget. Then, if there was still a need for funds, FDI and foreign aid were considered.
10.4. Sources of Funds
10.4.1. Foreign Direct Investment
Foreign Direct Investment (FDI) is a reliable source of international funding in the Dominican Republic, which has become one of the main recipients of FDI in the Caribbean and Central America (Investment Climate Statements in 2018, 2018.). FDI is defined as an investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company.
These investments are determined by the economic and political situation of the country. FDI has played a role in the Dominican Republic’s transition from a commodity export heavy economy to one based on basic manufacturing and services (Investment Policy Review of the Dominican Republic, 2009). Tourism has led in FDI and is projected to continue to increase with the government’s goal to double the number of tourists coming into the country from 5 million 1n 2015 to 10 million by 2022 (Ibid.). Spain has historically dominated the tourism sector with the building of hotels. Spanish investors were the first to bring a hotel chain - the Barceló - to the republic with 19 hotels in total (Ibid.) (Table 3).
Table 3. Foreign direct investment from top ten countries in the Dominican republic, 2016-2018.
Source: Banco Central de la Republica Dominica (2018). Flujos de la Inversión Extranjero Directa por Actividad Económica.
10.4.2. Foreign Aid
Foreign aid is also another main source of funding for the Dominican Republic. The Development Assistance Committee (DAC) of the Organization for Economic Cooperation and Development (OECD) defines Official Development Assistance (ODA) as, “government aid that promotes and specifically targets the economic development and welfare of a developing country.” OECD has considered ODA the “gold standard” of foreign aid since 1969, and it remains the main source of financing for development aid (Official Development Assistance (ODA), 2018).
The finance team determined the country’s partners, the sector or sectors relevant to each partner, and their related foreign aid agencies. Consequently, the foreign aid agencies and development banks cited in this report are the ones related to the sectors that were analyzed in previous chapters, i.e., poverty alleviation, water, solid waste, industry energy and transportation.
Among the top ten donors of gross ODA (see Exhibit 38), Korea, Japan, and Germany provide aid in the relevant sectors. Korea’s development agency, KOICA, averaging $14.2 million USD in ODA, focuses its development efforts around a few priority sectors, including health, community development, transportation and telecommunications. Japan’s development agency, JIKA, averaging about $9.8 million USD in ODA, focuses its assistance on poverty reduction (mitigating disparities), improving industrial competitiveness and environmental conservation. Germany’s development agency, KFW DEG, participates heavily in solar and renewable energy (Figure 33).
The recipient sectors of bilateral ODA (see Figure 34) relevant to the sectors of the 5-year environmental plan for Santo Domingo include: other social infrastructure (32%), economic infrastructure (10%), multi-sectors (11%) and production (3%). In addition to bilateral gross ODA, there is funding from multilateral organizations. The total amounts listed in Exhibit 39 below include bilateral ODA, multilateral funding and private funding. The most funding can be found in the Regional Development Banks ($357 million USD) and the least in the Global Fund ($6.5 million USD).
Figure 33. Top ten donors of Gross ODA for Dominican republic, 2015-2016 averages. Source: OECD-DAC http://www.oecd.org/dac/financing-sustainable-development/development-finance-data/aid-at-a-glance.htm.
Figure 34. Bilateral ODA by Sector for Dominican republic, 2015-2016 average. Data Source: OECD-DAC http://www.oecd.org/dac/financing-sustainable-development/development-finance-data/aid-at-a-glance.htm.
Development banks are defined as, “national or regional financial institutions designed to provide medium- and long-term capital for productive investment, often accompanied by technical assistance, in poor countries” (Brittanica, 2017). Development banks make loans to public or private bodies, or alongside other financial institutions, although they are best known for promoting and securing private investment (Ibid.). The largest and most prominent is the World Bank, and the relevant other development banks for the Dominican Republic are the Inter-American Development Bank and the Caribbean Development Bank.
Since it was established in 1959, the Inter-American Development Bank (IDB) has been a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean (Inter-American Development Bank, December 2016). For example, with $750 million USD in resources from IDB and $150 million USD from the Brazilian Development Bank (BNDES), Brazil was able to bolster long- term credit to finance renewable energy and energy efficiency (Ibid.). Yet, according to IDB president Luis Alberto Moreno, the private sector plays a crucial role in securing investment (Ibid.).
10.5. The Government Budget
The government budget is based on both tax revenue and Gross Domestic Product (GDP), as well as expenditures. Therefore, in approaching the amount of funds available from this source, the finance team analyzed the proposed budget report by the Department of Budget and Management for 2017 for all the Dominican Republic. The team determined how much total money is available, and then broke it down into how much is available for each sector from which Santo Domingo would draw.
10.5.1. Government Income
To analyze government income from 2019 to 2023, the finance team looked at GDP data and tax revenue records to estimate government income for Santo Domingo.
1) Gross Domestic Product
The Gross Domestic Product of the Dominican Republic has grown significantly from 2012 to 2017, with the value rising from $60.75 billion USD to $76.09 billion USD. In Exhibit 7.6, the IMF projects the country’s GDP from 2018 to 2022. The GDP value of the Dominican Republic represents 0.12% of the world economy. The GDP of the Dominican Republic averaged $19.34 billion USD from 1960 until 2017, reaching an all-time high of $76.09 billion USD in 2017, with a record low of $0.65 billion USD in 1961. The International Monetary Fund (IMF) has projected the country’s GDP until 2022, which is summarized in Figure 35.
2) Government Tax Revenue
The report by the World Bank, Gearing up for a More Efficient Tax System in the Dominican Republic, proposes alternatives to improve the efficiency of the nation’s tax system to support the government in its efforts to increase public revenue and to promote inclusive growth and a competitive business climate. These options include better policies to increase tax revenue, better targeting of fiscal spending to benefit the poorest, and an increase of the tax base (World Bank, n.d.).
Figure 35. Dominican republic GDP in Current Prices from 2012 to 2022 (in billion USD) in 1961). Source: IMF, 2018 https://www.statista.com/statistics/527457/gross-domestic-product-gdp-in-dominican-republic/.
The report notes that losses in tax collection caused by fiscal evasion, fraud, and poor management of the Transfer of Industrialized Goods and Services Tax (ITBIS, in Spanish), are among the largest in Latin America and the Caribbean. The diagnosis recalls that the Dominican Republic is following an exemplary growth trajectory compared to its regional neighbors.
However, tax revenues between 2004 and 2014 represented, on average, 13.4% of GDP, which is below the 14.3% regional average. In 2016, total revenue only reached 14.6% of GDP, well below the 2007 high of 16.6% and the revenues from several comparable countries in the region with a lower per capita GDP.
10.5.2. Government Budget Expenditures
The General Budget Directorate (Dirección General de Presupuesto - DIGEPRES) of the Dominican Republic is the institution responsible for the management of the national budget after annual congressional approval.
According to this institution, for 2018, the Government of the Dominican Republic had a total budget of $13,854 million USD ($692,728 million RD). From this budget, the government will spend $6511 million USD ($327,609 million RD) for social services, $2185 million USD ($109,969 million RD) for general services, $2485 million USD ($125,021 million RD) for economic services, and $2286 million USD ($115,017 million RD) for debt burden (DIGEPRES, 2018). However, DIGEPRES estimates that debt payments will decrease more each year, so there will be additional available funding in the budget for both social and economic services (Ibid.). The General Budget Directorate (Dirección General de Presupuesto, DIGEPRES) of the Dominican Republic is the institution responsible for the management of the national budget after annual congressional approval.
Dominican Republic GDP-Composition by Sector
Exhibit 41 shows where production took place in the Dominican economy in 2017. The distribution gives the percentage contribution of agriculture, industry and services to total GDP. Agriculture includes farming, fishing and forestry. Industry includes mining, manufacturing, energy production and construction. Services cover government activities, communications, transportation, finance and all other private economic activities that do not produce material goods (Table 4).
To estimate the budget for the city of Santo Domingo, the finance team made the following assumptions: 1) the GDP projections in Table 4 made by the IMF
Table 4. GDP breakdown by major economic sector in 2017.
have a 95% degree of confidence; 2) the contribution to the Santo Domingo’s GDP by economic sector will follow the same trend for the next five years; 3) the city that has the most inhabitants in the Dominican Republic is Santo Domingo, and its population represents 25% of the total population; 4) the population of Santo Domingo will increase for the next five years at the rate of 1% per year, and 5) the share of the national budget considers the number of inhabitants of each city to identify which areas need more facilities and projects for development.
Consequently, the finance team projected the budget for the next five years for the city of Santo Domingo in Exhibit 42. It considered 1) the projection of national GDP for the next five years, 2) the trends in the contribution of each sector to GDP and 3) a population on Santo Domingo representing 25% of the total population of the Dominican Republic (Table 5).
10.5.3. Foreign Direct Investment
The amount of Foreign Direct Investment (FDI) available to Santo Domingo was calculated as follows. The finance team used the average growth rate of total FDI flows from 2015 to 2018 and the average population growth rate and population share of Santo Domingo (25%) to project Santo Domingo’s total FDI flows for 2019 to 2023. The projection for each individual sector was calculated using its average percent contribution to total FDI. Thus, Santo Domingo is projected to receive $5.0449 billion USD in FDI over the five years from 2019 to 2023. Of that total, $1.7522 billion USD is relevant to three of the sectors of this report: Industry, Energy and Transportation. The figures are summarized in Table 5.
Table 5. 2019- 2023 Projections of national budget for Santo Domingo project sectors.
Notes: 1) Improvements in drinking water and sanitation. Water and sanitation management and new infrastructure: water treatment plants and solid waste management; 2) Include the expansion and repair of road infrastructure, all type of improve in public transport including the transportation services; 3) It includes the budget for the following industries: food, beverages and tobacco, manufacturing and construction; 4) It includes the annual budget of the National Institute of Hydraulic Resources, the construction of the Dam “Monte Grande”, and the rehabilitation and complementation of the Dam “SabanaYegua”, Construction of Irrigations Systems and Program of Culture of Water; 5) It includes the budget for promote the use of alternative energy, the Improvements of the National Electric distributions system, the program for produce Ethanol, and the total expenses in economic services in Energy and Fuels. Source: Prepared by Laura Mendez and Cintya Aguirre, 2019.
10.5.4. Foreign Aid
Foreign aid for Santo Domingo was calculated using the OECD breakdown by sector of Bilateral ODA Commitment 2015-2016 averages (OECD, 2018) and multiplying them by the Santo Domingo population share (0.25). This was not projected over the 2019-2023 time span for various reasons. These include that 1) amounts have been fairly consistent every year without much growth overall; 2) most of the project sector’s budget will be covered by the government budget; thus, most of the foreign aid would just be an additional source; energy would have access to the most foreign aid ($10.8 million USD), and transportation the least amount of foreign aid available ($0.05 million USD) (Table 6 and Table 7).
Table 7 compares each project sector’s proposed budget (or what would still be needed after finding its own funding) to the Santo Domingo budget. On the left-hand side, each color indicates additional funding: foreign investment, foreign aid, private investment. The budgets highlighted in green indicate budgets that could be fully covered by the Santo Domingo budget. This includes solid waste, water and transportation.
The initiatives of industry would be better funded privately or with foreign investment. The Santo Domingo budget encompasses 33% of the investment in
Table 6. Santo Domingo foreign direct investment projections 2019-2023 (in million USD).
Source: Calculated by Laura Mendez and Cintya Aguirre, 2019.
Table 7. Bilateral ODA commitments by sector for Santo Domingo (in million USD).
(1) Used Dominican Republic Country Average and not the calculated Santo Domingo estimate. *Amount is calculated multiplying the Dominican Republic averaged amounts by Santo Domingo population factor (0.25). Source: Calculated by Laura Mendez and Cintya Aguirre, 2019.
the initiatives the industry team proposed as well as funding for the construction of the buildings. The $6.38 million USD still unaccounted for in the industry budget set by the Santo Domingo budget would be covered by the tourism ministry as the government has a given high priority to initiatives that bring business and tourism to the country. These are upfront costs and would be distributed in the first three years.
The energy team indicated that its budget would be fully covered, assuming that the two currently proposed coal-fired power plants would be replaced by solar power arrays. Much of its funding would also be private investment gathered by development banks such as the IDB.
The energy sector would benefit from impact investment. The poverty alleviation team’s project in slum upgrading would be part of an existing UN project; thus, it would have funding for the first four years. To finance the fifth year, the sector could look to development banks such as the IDB group. The team’s Elemental Housing Project could be funded fully by impact investment facilitated by the IDB as it has funded similar projects previously. Since the finance team has been working closely with the sectoral teams and advising them of the available funds, it helped enable them to make sound proposals.
Several sector teams have identified potential collaborations as some of their projects complement each other or are similar, thus making financing more efficient and affordable. For example, the energy team assumes that if it can make a case to replace the proposed two coal-fired power plants with solar arrays, it would save two-thirds of the funding allocated to the two power plants. That money could be redirected to fund some of the energy team’s other projects, the water team’s project to upgrade its infrastructure and the transportation team’s project to repair the sidewalks.
The water team and the solid waste team both want to develop a school curriculum for students and their families about water quality and waste management (i.e., recycling).
The proposed budgets of the water, solid waste and transportation teams could all be covered by the projected Santo Domingo budget, and the solid waste team’s budget makes up less than 10% of the Santo Domingo budget for four out of the five years of the plan period, and still less than half for the other year. For the transportation and water teams, their budgets only make up less than half of a percent of the Santo Domingo budget.
The reason for their very large Santo Domingo budgets is the fact that there are large projects already being implemented (e.g., construction of a new wastewater treatment plant, the addition of new Metro lines, etc.). The available money for the projects of these teams in the government budget might be a lot smaller than projected, but it should still be enough. In case that more than the government budget is needed, the solid waste and water sectors have an estimated yearly amount of $5.9 million USD available in foreign aid. Compared to the transportation team’s proposed budget, there is more than enough potential funding in foreign aid and FDI to supplement the government budget.
The projects of the industry, energy and poverty alleviation teams would depend mostly on private investment, FDI and foreign aid. Tourism would receive the most Foreign Direct Investment; it would account for 28% of the total FDI. Industry would also be able to pull funding from FDI.
The sector that requires the most funding would be the energy sector. It would rely heavily on the following sources - the World Bank and the Inter-American Development Bank and private investment, although the government does have some money in its budget in case extra financing is necessary. With its proposed cost savings, however, the energy team believes this sector would be able to help finance other sectors (Table 8).
Table 8. Comparisons of Budget Projections 2019-2023 (In million USD).
Notes: (1) Budget will be covered by IDB funds, World Bank and the redirected funds and left-over funds from the replacement of the coal power plant with the solar plant; (2) The budget assignment for poverty and alleviation comes from different ministries; thus, a specific budget was not determined. Budget will be covered by foreign aid sources. Source: Prepared by Laura Mendez and Cintya, Aguirre, 2019.
11. Concluding Remarks
The intent of this project was to bring the contemporary thinking and practice of Urban Environmental Management to the solution of real problems in Santo Domingo, the largest city in the Caribbean. The objective was to replicate as much as possible the conditions under which a team of expatriate consultants would operate in this context so that they could develop ideas and procedures that fit the circumstances they would likely confront as professional planners working on such projects for international development banks (e.g., the World Bank, the Inter-American Development Bank (IDB) or the Caribbean Development Bank), multilateral donors in the United Nations system such as the United Nations Development Program (UNDP), the Food and Agricultural Organization (FAO), the Industrial Development Organization (UNIDO) or HABITAT, as well as the numerous bilateral donors of the developed countries, which are primarily known by the alphabet soup of their initials (USAID, JICA, SIDA, CIDA, GTZ, DANIDA, NORAD, AFD, etc.). Major countries include the United States, Japan, Canada, Australia, United Kingdom, Germany, France, the Netherlands, Belgium, Switzerland, Sweden, Denmark, Norway, Finland, Italy and Spain. Projects funded by these institutions, agencies and countries are carried out not only by consulting firms from the donor countries names, but increasingly from countries such as Brazil, India, China and Korea as well, and the staffs of experts they provide come from many of the countries named (Edelman, 2014; Edelman, 2018).
In this working environment, it was instructive for the students to formulate a 5-year plan of solutions to the environmental problems and issues they faced rather than being told how to deal with them. This expanded their analytical skills and taught them how to utilize the limited knowledge and resources available to come up with implementable solutions for the benefit of the people of Santo Domingo. They learned that such skills are transferable to other projects, and they gained a greater appreciation of the skill set that they are developing as planners (Edelman, 2016). Bringing the reality of development to the classroom and asking students to confront it gives them an appreciation of professional practice that the study of theory alone does not. Consequently, this project has attempted not only to expand the education of graduate student, but also to provide a meaningful contribution to planning pedagogy (Edelman, 2015).
Conflicts of Interest
The authors declare no conflicts of interest.
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