(Santo Domingo) March 24, 2006 -- Export Development Canada (EDC) announced today the signing of an agreement with Sinercon S.A. of the Dominican Republic for a USD 10 million line of credit. The funds will be used to purchase Canadian goods and services for Sinercon's contracts with major Dominican development projects, such as the Cap Cana real estate and resort project, procurement for airport refurbishment contracts with Aerodom and corporate fixed assets.
As part of the financing agreement, Sinercon S.A. will procure USD 10 million from Canadian companies over the next two years. EDC has already identified the capacity and expertise within Canada for Sinercon's needs and is identifying new buyers.
"EDC continues to develop relationships in the Dominican Republic for Canadian exporters, conducting more that CAN 160 million in business volume there in 2005 alone and we see a very strong pipeline for the next couple of years with both the Government and private sector," said Rob Wright, President and CEO of EDC. "We are delighted with our ongoing relationship with Sinercon S.A., resulting in millions more in new exports. By developing such key relationships and providing timely transaction support, EDC will continue to help Canadian companies maximize their emerging market export opportunities"
Sinercon, S.A. is one of the Dominican Republic's largest construction companies with approximately USD950 million in executed projects spanning large-scale infrastructure and buildings for prestigious clients such as the United States Embassy in the Dominican Republic, Verizon Dominicana, the Dominican Republic Government, Grupo Punta Cana, Viaggi del Ventaglio, Grupo Sol Melia, Occidental Hotels, Aerodom and Cap Cana.
Trade between Canada and the Dominican Republic is significant and growing steadily. Canadian direct exports average $103 million annually and are predominantly comprised of paper products, fish, cereals, vegetables, automobile parts and electrical equipment. In addition, significant Canadian exports destined for the Dominican Republic are trans-shipped through the United States. Canada is one of the largest foreign investors in the Dominican Republic. USD 1.2 billion has been invested in sectors such as telecommunications, mining, banking and tourism.
One of the principal areas of Canadian export opportunity is electrical generation and distribution, where there is a great need for efficient power generation. Equipment and technology, including turbines, generators, transformers and control equipment are needed to address the nation's energy demands. In addition, consulting firms and companies with experience in the commercial economics of energy production, transmission and distribution will be well positioned within this market.
EDC is Canada's export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC's knowledge and partnerships are used by 7,000 Canadian companies and their global customers in up to 200 markets worldwide each year. EDC is financially self-sustaining and is a recognized leader in financial reporting, economic analysis and human resource management.
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Media contact: Phil TaylorPublic AffairsExport Development Canada (613) 598-2904 ptaylor@edc.ca
