20% of Dominican Republic territory at risk from fossil fuel auction

(Bank Track, Nijmegen, 26 November 26, 2019) Ahead of the November 27 auctioning of exploration licenses for 14 onshore and offshore oil and gas blocks in the Dominican Republic, environmental groups warned financiers not to back companies which may end up being awarded licenses. Dominican NGO CNLCC, Italy's Re:Common and BankTrack have raised concerns over the major climate risks and adverse environmental and social impacts which would result from the opening up of fossil fuel blocks in the country’s Cibao, Enriquillo, Azua, and San Pedro basins which together cover more than 20 percent of Dominican territory. A major corruption scandal has plagued the Dominican Republic involving the Brazilian construction company Odebrecht, which received the Punta Catalina coal-fired power plant contract due to an opaque, allegedly criminal tendering process. European banks were compelled in 2018 to freeze their project finance disbursements.