BNDES, the Brazilian development bank, has approved US$152.5mn to support the construction of two hydroelectric power plants in the Dominican Republic.

BNDES’s post-shipment lines will back the exports of Construtora Norberto Odebrecht and Construtora Andrade Gutierrez, two large Brazilian contractors. Total investment to build the two plants totals US$512.5mn.

The Dominican government will be represented by Corporacin Dominicana de Empresas Electricas Estatales (CDEEE) as the importer.

The transactions will be backed by Convenio de Pagos y Crditos Rec­procos (CCR), a 12-member trade mechanism settled every four months by the central banks involved.

Member countries are Mexico, Cuba, Venezuela, Colombia, Ecuador, Peru, Bolivia, Brazil, Paraguay, Chile, Argentina and Uruguay. CCR handled US$3.9bn in 2005, up by three quarters from US$2.2bn in 2004.

Moreover, export credit insurer SBCE will cover all political and extraordinary risks.

BNDES support to infrastructure projects in the Dominican Republic equals US$310mn.