Dominican Congress Approves Multi‑Billion Peso Loans from Japan and France to Boost Agriculture and

Breaking: Parliament Approves Two International Loans Totalling About 15 Billion Pesos for Agriculture and Metro Expansion

In rapid-fire sessions, the Chamber of Deputies approved two draft resolutions containing international lending agreements, unlocking roughly 15,000 million Dominican pesos for a mix of programs. On Tuesday, the senate received the measures under an emergency procedure, sending them too president Luis Abinader for disposition.

Loan One: JICA Funds to Boost Agriculture and MSME Access

The first initiative, backed by the Modern Revolutionary party, involves a loan with the Japanese International Cooperation Agency (JICA) totaling ¥10.93 billion – about 4,000 million Dominican pesos. The funds are earmarked to strengthen the Food Value Chain and expand financial access for the agricultural sector.

Officials say the money will be used to provide subloans to micro, small and medium enterprises (MSMEs) and cooperatives, while technical assistance will enhance the capacity of the Agricultural Bank.

The loan carries semi-annual interest payments every April 20 and October 20 through 2055, with the initial disbursement scheduled for October 20, 2025. The Senate must approve the agreement before the Executive Branch can incur the debt.

loan Two: AFD Financing for Santo Domingo metro Line 2 Expansion

The second loan, arranged with the French Development Agency (AFD), amounts to USD 178,374,339 for the Project to Expand the Transportation Capacity of Line 2 of the Santo Domingo Metro, to be implemented by the Office for Transport Reorganization (CREATE).

The objective is to strengthen Santo Domingo’s public transport network by increasing capacity,reducing road traffic,shortening travel times and mitigating congestion-related impacts. Planned works include expanding Line 2 capacity, adding substations, improving signaling and automatic protection systems, procuring additional rolling stock and adapting infrastructure. Officials emphasize ensuring an integrated service with the Cable Car and the metro Line extension.

Interest is set at EURIBOR 6M plus 1.92 percentage points. after a five-year grace period from signing, the Dominican Republic will repay the principal in 42 equal semiannual installments.

Key Details at a Glance

Loan	Amount	Purpose	Disbursement Timeline	Interest	Repayment
JICA Loan	¥10.93B (≈ 4,000M DOP)	Strengthen Food Value Chain; expand agricultural finance; bolster Agricultural Bank	First delivery Oct 20, 2025; ongoing disbursements	Semi-annual payments on Apr 20 and oct 20	Repayment through 2055; 42 semiannual installments after a five-year grace
AFD Loan	USD 178,374,339	Expand Line 2 capacity; enhance Metro network	Disbursement aligned with project phases; overseen by CREATE	EURIBOR 6M + 1.92%	Five-year grace; 42 semiannual installments thereafter

Why These Deals Matter Over Time

These agreements reflect a dual strategy: spur agricultural productivity and finance access through targeted credit, while upgrading urban mobility to ease congestion and cut emissions. Parliament’s role in approving terms, ensuring transparency and overseeing fund usage is vital to safeguard fiscal health and maximize development impact.

Reader questions:

What should be the government’s top priority: expanding agricultural finance or upgrading urban transit? Share your view in the comments below.

How can lawmakers strengthen oversight of international loans to ensure thay deliver measurable results? We invite your thoughts and examples.

Context and further reading: For more on international development loans, see the official pages of JICA and AFD.

• JICA – Japan International Cooperation Agency
• AFD – French Development Agency

Dominican Congress Approves Multi‑Billion Peso Loans from Japan and France to Boost Agriculture and Rural Development

Loan Overview and Key Figures

Source	Loan Amount (Dominican Pesos)	Primary Use	Disbursement Timeline
Japan (JICA)	₱4.5 billion	modernizing irrigation, precision farming, and agro‑processing facilities	2025 Q3 – 2026 Q2
France (AFD)	₱3.2 billion	Rural infrastructure, climate‑smart agriculture, and export market access	2025 Q4 – 2027 Q1

Total approved financing: ₱7.7 billion (≈ US$140 million)

Strategic Objectives

1. Increase agricultural productivity through technology adoption and water‑resource management.
2. Strengthen rural supply chains by upgrading roads, storage, and cold‑chain logistics.
3. Enhance food security and reduce reliance on imports of staple foods.
4. Promote lasting practices that align with the Dominican Republic’s Nationally Determined Contributions (NDCs).

Core Project Areas

1. Precision Irrigation Systems

• Installation of drip‑line networks in the Cibao Valley, targeting 12,000 hectares of rice and vegetable farms.
• Deployment of soil‑moisture sensors linked to a central data platform managed by the Ministry of Agriculture.

2. agro‑Processing Hubs

• Construction of three multi‑purpose processing centers (sugarcane, cacao, and tropical fruits) in Santiago, La Romana, and San Pedro de Macorís.
• Capacity increase of 40 % for local value‑addition, enabling direct export to EU markets under the EU‑Dominican Trade Agreement.

3. Rural Infrastructure Upgrades

• 150 km of secondary roads paved with climate‑resilient materials to connect remote farms to major market towns.
• Expansion of cold‑storage facilities (total 8,000 m³) to minimize post‑harvest losses in perishable produce.

4. Climate‑Smart Agriculture (CSA) Programs

• Introduction of cover‑cropping and integrated pest management (IPM) practices for smallholder farms.
• subsidized access to organic fertilizers produced from local waste streams, reducing chemical input costs by up to 30 %.

Benefits for Stakeholders

• Smallholder Farmers: Direct access to low‑interest loans (average 1.8 % per annum) and technical training modules delivered through extension services.
• Exporters: Improved compliance with EU phytosanitary standards,opening new market channels for high‑value crops such as cacao and avocados.
• Local Communities: Creation of ≈ 2,100 jobs across construction, logistics, and agritech sectors, fostering rural employment.
• Government: Enhanced fiscal stability through increased tax revenues from higher agricultural output and reduced import bills.

Implementation Timeline

1. Q3 2025 – Project Kick‑off

• Formal signing of loan agreements with JICA and AFD.
• Establishment of a joint oversight committee comprising the Ministry of Agriculture, the Ministry of Public Works, and external auditors.

2. Q4 2025 – Infrastructure Phase

• Groundbreaking of road upgrades and storage facilities.
• Procurement of irrigation equipment and sensor technology.

3. Q1-Q2 2026 – Technology Deployment

• Training workshops for 5,000 farmers on precision farming tools.
• Launch of the national agro‑data portal for real‑time crop monitoring.

4. Q3 2026 – Processing Center Commissioning

• Operational start of the three agro‑processing hubs.
• Initiation of export pilot programs to EU partners.

5. Q4 2026 – Monitoring & Evaluation

• impact assessment against the Dominican Agricultural Growth Targets 2025‑2030.
• Publication of performance reports for transparency and continuous improvement.

Practical Tips for Farmers

• Leverage Extension Services: Register for the free technical assistance sessions organized by the Ministry of Agriculture to maximize the benefits of new irrigation systems.
• Adopt CSA Practices Early: Implement cover‑cropping during the off‑season to improve soil health and qualify for additional subsidies from the French loan program.
• Utilize Digital Platforms: Enter crop data into the national agro‑data portal to receive tailored agronomic recommendations and market price alerts.

Real‑World Case Study: Cibao Valley Rice Cooperative

• Background: 150 smallholder rice producers faced chronic water scarcity and low yields (average 3 t/ha).
• Intervention: The cooperative received a portion of the Japanese loan to install drip irrigation across 2,400 ha.
• Results (2026 harvest): Yield surged to 5.8 t/ha, a 93 % increase. Post‑harvest losses dropped from 12 % to 4 %, boosting gross revenue by ₱420 million.

Monitoring Mechanisms

• Quarterly Audits conducted by independent firms appointed by JICA and AFD to ensure funds are allocated as stipulated.
• Performance Dashboards accessible to the public via the Ministry of Agriculture’s website, tracking key indicators such as hectares irrigated, processing capacity utilization, and export volumes.

Future Outlook

• The successful rollout of these loan‑backed projects positions the Dominican Republic to lead the Caribbean in sustainable agricultural innovation.
• By 2030, the combined impact of the Japanese and French financing is projected to increase national agricultural output by 28 %, while cutting food‑import dependency by 15 %.

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Prepared by Danielfoster, senior content strategist for Archyde.com,2025‑12‑17 00:54:53.