CANADA WELCOMES THE SIGNING OF NEW AGREEMENTS IN THE DOMINICAN REPUBLIC

April 15, 2003
Santo Domingo, Dominican Republic

Prime Minister Jean Chrétien today welcomed the signing of seven new agreements between Canadian institutions and their counterparts in the Dominican Republic. These agreements will enhance cooperation on trade, power generation, construction and renewable energy. The Prime Minister witnessed the signing of these agreements with Dominican Republic President Hipólito Mejía in Santo Domingo.

"These agreements are indicative of the considerable investment potential in the Dominican Republic, " said Prime Minister Chrétien. "Companies in both countries are realizing the gains that can be made from enhanced cooperation, which lays the groundwork for broader and deeper partnerships."

The Prime Minister also welcomed the news that projects by Canada's SNC-Lavalin and Placer Dome could now proceed as a result of recent Dominican congressional approvals. He also noted that the Canadian International Development Agency would provide CDN$17.8 million for two development cooperation programs with the Dominican Republic in the areas of watershed management and HIV/AIDS.

Additional information on the agreements is attached.

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PMO Press Office: (613) 957-5555

NEW CANADA-DOMINICAN REPUBLIC AGREEMENTS
Backgrounder

Memorandum of Understanding: Renewable Energy Power Project development

Acres International Ltd./MAK Alliances and Monte Rio S.A./Indescorp S.A. signed a memorandum of understanding to develop a 20-25 megawatt renewable energy power generation plant. Suitable sites for wind turbines in the north-west (Puerto Plata area) and the south-west (Barahona to Haiti Border area), as well as other technologies such as solar and biomass, will be investigated. The project value is estimated between US$25-35 million (depending on the final configuration of technologies).

Memorandum of Understanding: Feasibility Study for the Yasica Hydroelectric Project development

CCC, the Canadian Commercial Corporation, and the Dominican Electricity Corporation (CDE) signed a memorandum of understanding to study the development of a 17 megawatt hydroelectric power plant to increase the power supply of the Yasica region, located in the northern part of the country. The work will be carried out by AMEC Inc. The total project value is estimated at up to US$35 million.

Contract for the Rehabilitation of the Guajimía Canal Project

CCC and the Santo Domingo Water and Sewage Authority (CAASD) signed a contract to provide management services on a project to build sewage drains, sanitary sewer lines, a waste water treatment plant, approximately 2,500 homes and ten kilometres of green space, and reconstruct seven kilometres of roads. The work will be undertaken by Montreal-based Dessau-Soprin at an estimated total project value of up to US$80 million.

Agreement on the Framework for Finance and Execution of the Río Haina Potable Water Project

CCC and CAASD signed a design-build contract for the Río Haina Potable Water Project which includes a water treatment plant, an aqueduct system and a hydroelectric plant. The work is to be undertaken by Montreal-based company SNC-Lavalin. Tecsult International Ltd. has been selected as the owner's engineer to oversee the feasibility study and the work. The total value of the project is estimated at up to US$150 million.

Memorandum of Understanding: Modernization of the Dominican Republic Postal Service

Canada Post International Ltd. and the Dominican Republic Postal Service (INPOSDOM) signed a memorandum of understanding to modernize and reform the postal sector in the Dominican Republic. As a first step, the parties will develop a feasibility study plan.

Delivery of Mining Permit for the Cerro de Maimón Deposit development

The Secretariat of Industry and Commerce signed a mining permit allowing Toronto-based GlobeStar Mining Corporation to mine the Cerro de Maimón gold and copper deposits, subject to compliance with an environmental impact study. The mine is expected to provide in excess of US$350 million in metals over its lifespan. This is the first metals mine to open in the Dominican Republic since Falconbridge's Falcondo nickel mine 32 years ago.

Memorandum of Understanding: Feasibility Study Conclusion for the Bypass Expressway Project

Montreal-based Tecsult International Ltd. and the Municipality of Santiago signed a memorandum of understanding to conduct a feasibility study for a four-lane, 25 kilometre bypass expressway around the city of Santiago. This project is headed by the MAP Consortium, comprising one US and two Dominican companies.

RELATED DEVELOPMENTS AND ANNOUNCEMENTS

Barahona, Baoruco and Independencia Aqueduct Project:

As of April 10, 2003, both the Dominican Republic's Senate and House of Deputies has approved the loan agreements for a 150 kilometre aqueduct project to be undertaken by Montreal-based SNC Lavalin. SNC Lavalin and the Dominican Republic National Water Authority (INAPA) signed the commercial contract in December 2001 for a US$126 million aqueduct, involving the construction of an intake structure, a water treatment plant to supply potable water to the provinces of Barahona, Baoruco and Independencia (southwest Dominican Republic).

Pueblo Viejo Gold Mine Project

As of April 14, 2003, both the Dominican Republic' Senate and House of Deputies has approved the amendment of Article 19 of the Mining Law allowing Vancouver-based Placer Dome Inc. to move ahead with its Pueblo Viejo Gold Mine project. The Congress had approved the 25-year concession contract on August 15, 2002, but with amendment to the Law pending. The total investment is estimated at US$350 million. Placer Dome Inc. was awarded in July 2001, after an international competition, the exploitation rights for the Pueblo Viejo gold mine – one of the world's largest gold reserves located in central Dominican Republic.

The Artibonite River Watershed Project

Canada will provide CDN$10 million over 10 years for development and first-steps rehabilitation of the most important watershed along the border between the Dominican Republic and Haiti. Canada and other donors will assist both countries in managing the natural resources on both sides of the border.

The Hispaniola's HIV/AIDS Epidemic Response Enhancing Project

Canada will contribute CDN$7.8 million to a project to be implemented by the Caribbean Epidemiology Centre, a specialized regional centre of the Pan American Health Organization. The project will enhance efforts to reduce the spread and impact of HIV/AIDS on Hispaniola Island through increased inter-country cooperation, and strengthen capacities to respond to the epidemic.