Santo Domingo.- The World Bank published the Doing Business 2010 report which ranks the Dominican Republic in 86th place, out of 183 economies, climbing 16 places, up from 102 in the 2009 report.

 

According to Maria Victoria Abreu, of the National Competitiveness Council (CNC), the difference was made by the new Corporation Law (No. 479-08) promoted by the CNC. The new law calls for new modern corporate structures as well as significantly easing company formation, Abreu stated.

 

Between June 2008 and May 2009, 287 reforms were recorded in 131 economies, 20% more than the year before. Reformers focused on making it easier to start and operate a business, strengthening property rights and improving the efficiency of commercial dispute resolution and bankruptcy procedures.

 

DominicanToday.com, 12 September 2009

 

 

SANTO DOMINGO.- Tourism minister Francisco Javier Garcia affirms that the country's lodging industry is recovering and continues being an attractive "long destination" market, for which new ad campaigns are being created world-wide.

 

He said the Central European markets of Austria, Slovakia and Rumania will be covered by a promotion office in Vienna.

 

"The perspective for tourism in general are evidently good," since this sector has been the least affected by the financial crisis, the official said, interviewed by newspaper El Caribe.

 

He said the figures confirm that the tourist arrivals fell barely 3% in June and July, farm from January's 9%. "What means that the situation been changing favorably."

 

Garcia said that as the result of the new inclusion of tourists from 45 countries, "the arrival of tourists will continue growing; our market will continue being a great attraction for the emitting markets," and cited France, Germany, England and Italy, as "continuing to occupy first place regarding long destinations."

 

The United States and Canada

 

As to the United State Garcia said for this date the numbers were in red at around 10%, and still the tourist market of Dominicans there is at around at 1.5% growth which in his view is good. "Because new flights to markets which are even being inaugurated which we don't have yet established, for example, the Chicago and Puerto Plata flight."

 

The Tourism Minister said the Hispanic market of New Jersey -New York has grown, including Dominicans, although last year their visits from United States fell 11%, but has climbed 7% in the first half.

 

In Canada's case Garcia said it's still a consistent market, with increase of around 6% in the first 6 months this year.

 

DominicanToday.com, 19 August 2009
http://www.dominicantoday.com/dr/tourism/2009/8/19/32966/Dominican-lodging-industry-is-recovering-Tourism-chief-says

 

 

Hello Everybody:

 

Last Wednesday the 12th of August there was published in LA GACETA, Number 151, the Law 694 named: "LEY DE PROMOCION DE INGRESO DE RESIDENTES PENSIONADOS Y RESIDENTES RENTISTAS" which was approved by the National Assembly (Nicaraguan Congress), on June 18th.

 

With this law, The Nicaraguan Government is changing the previous Law #628 from 1974. The new law has several advantages over the last one, such as more details about the procedure to get Residency in the two standard ways: Retirement with Pension or with Private income. There are more definitions and it is going to be useful for Government INTUR - Instituto Nicaragüense de Turismo or the Tourism Nicaraguan Tourism Institute, which is the government's Department in charge of applying this Law.

 

In my opinion it is the result of many years of application of the previous law which had several gaps and we Lawyers, Retirees and INTUR had to figure out what to do with those gaps. Now we have a comprehensive Law and it will not be subject to personal interpretations, most of it at least. The new Law has some of the same benefits as the old one, but they are improved, and it includes some new ones.

 

This commentary is to explain the most important parts, the gist of the law, and not to describe the structure or explain one by one the 27 articles of the Law.

 

The objective of this Law is the promotion of the Special Tourism, and gives many people the opportunity to come to Nicaragua to live for a long period of time as a Resident (five years). To people who can prove an minimum income, it gives a special fiscal treatment with tax exemptions.

 

To take advantage of this law and get its benefits, people who are going to apply must prove a monthly income of Six hundred US dollars ($ 600.00) for Retiree (on pension) and Seven hundred fifty US dollars ( $ 750.00) for people with privates incomes; i.e. benefits or incomes from Investments, Certificate of Deposits for five years, Bonus, Revenues, Stocks, Rents, Retirement Plans, etc. Dependants could be parents of the applicant, spouse (husband or wife), children under 21 years old; or any other relative in the four grades who are dependents of the applicant. The applicant must have an income of One hundred fifty US dollars ($150.00) for each dependent.

 

Nicaraguans who have been living more than ten years abroad and have an income coming from abroad, according to the Law, also can get the benefits of this Law.

 

The Benefits are:

 

1. Right to Residency for five years.

 

2. Exemption from payment of the one way ticket out of the country for the applicant/resident.

 

3. A tax exemption for a vehicle C.I.F. (Cost, Insurance and Freight), up to twenty five thousand dollars ($ 25,000.00); if the price of the vehicle is over twenty five thousand dollars ($ 25,000.00) the Resident will pay taxes on the difference. This vehicle can be changed with tax exemption every four years. Vehicles can be imported from the country where the applicant comes from or bought in Nicaragua in both cases there will be a tax exemption.

 

4. A tax exemption of twenty thousand dollars ($ 20,000.00) for household goods. There is a comprehensive list of articles that can be considered household goods. i.e.: "household goods are the new or used goods that help or allow living comfortably in a house".

 

5. A tax exemption of fifty thousand dollars ($ 50,000.00) of the VAT (value added tax) on construction materials to build a house to live in.

 

6. Tax exemption of the VAT on rental cars of the Resident, for his personal use in Nicaragua.

 

Requirements: People who want to apply and get these benefits must submit these documents:

 

1. Application form.
2. Income certification
3. Birth Certificate
4. Two pictures
5. Health Certificate
6. Photocopy of the passport
7. Marriage License (where relevant)
8. Police Record Certificate
9. List of the household goods and vehicle's documentation
10. Naturalization Certificate for people who have a different nationality than where they were born.

 

The whole documentation must be Apostilled (given Consular Legalization) and Authenticated in the country where the documents come from, for the Nicaraguan Consulate.

 

Obligations:

 

1. Live in Nicaragua at least six months per year, it could be continuous or discontinuous. However, with INTUR's authorization there could be exemptions, e.g. heath reasons or having investments in real estate over Seventy five thousand dollars ($ 75,000.00) in Nicaragua.

 

2. Submit every year to INTUR, documentation to prove that his/her income (in the amounts specified above) comes into Nicaragua.

 

3. The renewal every five years of the Residency according to the Residency Law of the Immigration Department.

 

Prohibition:

 

1. The Resident can't work in Nicaragua with government money; but could do private investments in a business and make investments in real estate over Seventy five thousand dollars ( $ 75,000.00) in Nicaragua in accordance with the Ministry of Economy and Development's approval. People such as scientists or professors in Universities or Research Institutes will be able to work in Nicaragua.

 

2. People who build a house for personal or private use, with tax exemptions in construction materials, can't transfer/sell the house for ten years or they must pay the taxes on those materials.

 

The age to apply:

 

The legal age to apply for both Retiree and Private Income applicants is forty five years old, however the same Law in article 23 exempts people who are previously retired for medical reasons or with private income clearly proven. That means, to apply as Resident with Private Income there are in fact no limitations.

 

The previous Law of 1974's effect and Existing Residents:

 

People who got residency before this law went into effect will not be affected, even if their incomes are lower than that required by the new law; the law doesn't have a retroactive effect, so the people who actually are resident under the previous law don't have to prove or raise their incomes and will get the same benefits as new residents.

 

REGULATIONS:

 

INTUR is at the present time working on the regulations of this Law, that is, the rules of application. I will send my opinion to the Director of the Legal Department about the gaps and suggestions that, based on my expertise, must be considered.

 

This is a modern Law which offers several advantages over the last one, and I am pretty sure it will be a wonderful tool for "ex pats" who want to live in Nicaragua.

 

Thank you, and of course I will be pleased to assist everyone.

 

Paul Tiffer

Attorney at law, Public Notary

Tiffer & Associates

Cell Phone: (505) 88841652

Managua, Nicaragua

ptiffer@cablenet.com.ni

 

 

Esteemed Investors and Collaborators,

 

As part of our efforts to maintain all of our clients updated, and regardless of the fact that we are already planning a more complete issue of our Newsletter after the holiday season, we have put together a little selection of pictures taken over this past month of the construction works in the Punta Perla site that we wanted to share with you.

 

Specifically, these pictures correspond to the finished on-site technical office on the site and to the current works on the bungalows of the Hotel Boutique and the Beach Club.

 

Also, we wanted to share with you the new design of our Newsletter, which coincides with the re-launch of one of our websites, http://www.puntaperlasa.com, with a new look and format. This will be a very dynamic site, and it will be frequently updated. We are very excited about this announcement, which comes to show a small part of all the work that is being done by the Punta Perla Golf, Marina and Spa, S.A. team in the last months.

 

Lastly, we remind you to stay tuned for the next communications, which will be filled with positive and exciting news from different Departments of the company.

 

We hope you are enjoying a peaceful and relaxing summer together with your loved ones, and look forward to sharing all the exciting advances with you next fall.

 

 

PICTURES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHERS NEWS

 

Last July, a meeting took place in the development company's offices in Madrid with various members of Punta Perla's Executive Board, a couple of investors' representatives and two of our main commercial agents, Mark Andrew and Nick Kier.

 

Midway through the meeting, we all shared a relaxed lunch at a local restaurant before returning to the offices to resume our conversations regarding the project.

 

Among other things, we explained once again the causes behind the past delays, the current state of the construction works and the exciting future ahead.

 

The overall impression of the meeting and all the matters discussed was very positive and with a very high level of understanding between all the participants.

 

ISSUE 4  August 2009

 

Eva Sotres

Investor Relations Manager

 

 

As of Friday, June 5, 2009 we have a new Coastal Law. After five years of negotiations, discussions and meetings, the Ley de Desarrollo de Zonas Costeras ("Coastal Law") became law by unanimous vote. The passage of the Law brings to a conclusion the uncertainties engendered by five years of rumors and unknowns.

 

Below are some highlights of the new Law.

 

Article 2 of the Agrarian Law of 1917
Article 2 established that the State owned all vacant and untitled (as of 1917) land within 2 kilometers of the coast. The new Law, in Article 62, states that if there is a conflict between existing laws the Coastal Law will prevail over all previous laws. The new Law neither affects nor restricts legally acquired possessor and private property rights that were acquired prior to the passage of the Coastal Law. Article 62 specifically states that this Article is intended to give judicial security for investments and the use and enjoyment of property. The Article further states that whenever the Coastal Law refers to ownership and use of the coastal zone, especially the demarcation of the public use area, the new Coastal Law is the law to apply. All other previous laws that oppose or contradict the new Law are without effect. The diputados believe that this Article makes the Law a non-confiscatory law. Although ANID and the private sector wanted Article 2 to be annulled, Article 62 was the agreed upon compromise. It is hoped that the interpretation of the term “legally acquired’ does not become a weapon for governments in the future to use against rightful property owners.

 

Access
The Coastal Law states that public access to the beach will be located at all times at historical access points. Historic access is defined in the Law as having been customarily used for ten years or more.

 

If there is no historical access and none is planned either in the developer’s master plan or in the public development plan, then a new access path will be established. The establishment of the new access path will be done with the approval of the Commission for Coastal Development (CDZC), the Municipality and the landowner and will be 10 meters wide.

 

Definitions and Concepts
The Coastal Law defines Coastal as being the area or land between the low tide and the maximum high tide along the ocean.

 

Coastal Zone is defined as the area that is a variable width along the border between the dry land and the wet land.

 

Restricted Zone is the area within the coast and the coastal zones.

 

The Coastal Public Use Zone includes the beaches (which is defined as the area that is covered by water at any time) and the area between high and low tide plus 50 meters inland from the mean high tide, but legally acquired rights will be respected. However, the 50 meters will have zoning restriction and a requirement for environmental impact studies on privately owned land. (See Article 19.)

 

The Public Use Zone along natural lakes and lagoons is the mean high water line plus 5 meters inland. For artificial and man-made lakes, the originally established public domain boundary will control.

 

The Coastal Restricted Use Zone along ocean lands is the area where the public use zone ends plus 200 meters inland where the land is owned by the State and was not legally acquired prior to passage of the Law.

 

The Coastal and the Coastal Zones are in the public domain and owned by the State, unless the rights to these areas were legally acquired prior to enactment of the Law.

 

Private property is described as titles legally acquired prior to passage of the Law.

 

State owned lands cannot be sold, privatized or transferred. Legally acquired titles that were acquired prior to the passage of the law will be recognized.

 

Islands are owned by the State unless they were legally acquired prior to the passage of the Law.

 

Lands belonging to indigenous communities are not in the public domain.

 

Increases in land along the Coastal Zone shall be property of the State regardless of whether the increases were caused by natural or man-made events.

 

Possession of publicly owned lands will not, under any circumstances, imply right of possession or title.

 

CDZC
The Law requires the creation of a Commission for the Development of the Coastal Zones (Comisión para el Desarrollo de las Zonas Costeras (CDZC)). The Commission will be composed of representatives from the Instituto Nicaragüense de Turismo (INTUR), Instituto Nicaragüense de Estudios Territoriales (INETER), Ministerio de Trasporte e Infraestructura (MTI), Ministerio del Ambiente y Recursos Naturales (MARENA), the Nicaraguan Army, the National Police, COSEP, RAAN, RAAS, and the Municipalities (AMUNIC),

 

CDZC will be responsible for overseeing the development of a Coastal Zone map (to be done within 3 years) and delineating public and private zones (to be done within 5 years). It will also oversee the granting of concessions by the Municipalities and the creation of a Development Plan for the Coastal Zones.

 

Public Use Zone
The Coastal Law establishes a public use area belonging to the State of 50 meters along the oceans measured inland from the mean high tide line, unless the property was legally acquired prior to passage of the Law. The line for public use areas along natural lakes and lagoons (including Laguna de Apoyo and Laguna de Masaya) is 5 meters from the mean high water line.

 

Nevertheless, the Law specifically states that if a property owner has legally acquired land and his legal title includes land within the public use zone, the private property owner’s rights and title will be respected. Nevertheless, the government may impose use or zoning restrictions on the area defined as the public use zone.

 

Some of the allowed activities in the public use zone are: sun and beach tourism; sports; public walkways; emergency vehicle circulation; and temporary lifesaving structures. The prohibited activities include: residential structures; walls; fences; roadways; high tension electric lines; permanent commercial buildings; and parking areas for cars. Nothing will be allowed to be constructed that will obstruct the free use of the public zone by the public.

 

Concessions
Concessions will be granted on publicly owned land. Publicly owned land includes the coastal zone, the public use zone and restricted use zone so long as these areas are owned by the State. Concessions are not applicable to privately owned land.

 

Municipalities will have the right to grant concessions with the coordination of the central government. Concessions, once granted, will be registered in a Concession Registry.

 

Concessions may be granted to Nicaraguans, Nicaraguan corporations and resident foreigners. The procedures and requirements to acquire a concession are to be established by Regulation. The Law lists some requirements to apply for a concession which depend upon the purpose of the requested concession (commercial, tourism, or residential). A bond or guaranty will be required to apply for a concession. Only one concession per person (or his spouse or minor children) may be granted. A concession will be granted for 20 years or in the case of a tourism development for a period of 59 years.

 

The priority for the granting of a concession will be to favor the party who is in good faith possession of the land.

 

RAAN and RAAS:
This summary of the Law does not address the rights along the Caribbean or Atlantic Coast. The law has specific provisions for the communities and lands in these areas.

 

Conclusion
ANID is pleased that the uncertainties of the last five years, pending the passage of the Coastal Law, are finally over. We are hopeful that with the inclusion of Article 62, the Coastal Law will be enforced for the benefit of the public and the public’s right to use of the beaches of Nicaragua, but with respect for the legally acquired property rights of individual property owners.

 

 

Gran Pacifica Resort

 

 

Zero crime in Dominican resort regions, Tourism Police chief says

 

SANTO DOMINGO.- The crime rate in the in the country's tourism zones has fallen to zero, affirmed Tourism Police (Politur) director Henry Gomez yesterday.

 

The official said the reduction took place since January, when the patrols in those zones increased. He said Politur currently has 1,150 agents, but 300 auxiliary police will be added next week.

 

Gomez spoke during the launch of Politur's Website www.politur.gob.do, in coordination with the Presidency's Office for Information and Communication Technology (Optic).

 

DominicanToday.com, 7 August 2009

 

 

Dear Friend,

 

Our CEO, Mike Cobb, has been working with new ideas to bring our friends, relatives, and other interested persons to affordable ways to enjoy the warm days and nice evenings of Gran Pacifica.This new idea might be right up your alley, and not break the bank.There are only five positions left of sixteen in a fractional ownership condominium in the first building at Las Perlas.

 

Unit #121, with two bedrooms and a fold out (for a third sleeping area), can accommodate six adults.It is already being rented regularly, as it is situated right on the ocean front overlooking the swimming pool, not to mention the world class surf waves just 75 yards away and the golf course opening this December. It is also located near the restaurant, should you choose not to use the full kitchen, and serve your meal on beautiful black granite countertops.Currently, you can own an entire condo up to $599k,but Mike thought it might be advantageous to have a great entry price for 3 weeks usage and ownership for ..$28,323.

 

2nd floor corner unit overlooking ocean, golf course and pool.

 

Enjoy oceanfront sunsets from your living room and verandah.

 

    * Over 1700 sq. ft. of living space, including 400 sq. ft. of terraces.
    * Granite counters, all appliances, appointments down to the silver.
    * Annual expenses, including insurance, HOA, utilities, and maintenance fees are only $787/year.
    * Social membership in the golf club is included.
    * See the floor plan for the Granada two bedroom condo here:
      http://www.granpacifica.com/assets/docs/granada_rivas.pdf
    * Inquire to adminATsunnycomfort.com, and ask about the Fractional Ownership.

 

Mike hopes you'll join him by contacting Kent today.These five positions will not last long, and you can start your plans for your next vacation by enjoying your own condo, or receive your share of applicable rent.

 

Regards,
Sales/Gran Pacifica

 

Ps: Even if you own a lot or home at GP, what a great opportunity for investment as GP grows and adds the golf course, homes, and additional condominium projects.

 

 

Dear All

 

I am pleased to inform you that I went over to Madrid with three investors in Punta Perla and met with the development company again on Tuesday 14th July.  The three who came with me had been selected to meet with various representatives and the president of the development company personally and I feel represent a fair cross section of PP buyers. Each of the investors had prepared a quite an extensive list of questions but the underlying messages were:-

 

•  What's with the delays?
•  When will my property get built?
•  Is this a scam?
•  Evidence of ownership of the land
•  Evidence of build permits and the Confotur
•  Will we get a mortgage when the properties are ready?
•  Why has communication from the developer's office been so poor?   

 

The meeting lasted for over 6 hours but here is my summary:-

 

First of all, allow me to explain the background and reasons for the delays which I hope will illustrate to you all why clients are still waiting for properties. I have to be very careful how I write this so as not to compromise the relationship with the Dominican Government, so I hope you understand if I cannot go into too much detail.

 

I would also like to add that the development company is not just one person and like many companies is made up of an executive board of investors and professionals. Ricardo Miranda just happens to be the President and CEO and like most companies is not the sole decision maker. When significant decisions are made, the board meets, discusses them and then decides which course of action to take just like any other company.

 

There have been a number of false statements and blatant lies written in a number of newspaper articles and published on various blog sites trying to damage the good name of the Development Company and Punta Perla. These people who are actively trying to destroy our fabulous project will be found out and made criminally responsible for their actions. So as not to perpetuate a tit for tat situation with the newspapers, which would benefit nobody, the development company has not insisted on a public retraction of these articles, rather try and forge a healthy relationship which will work for the better of the project as a whole.

 

As for the blog sites, it is possible to trace IP addresses and therefore indicate the likely authors of malicious lies and allegations, so those people should be very aware of the legal recourse which the development company is prepared to and will take.

 

When some of us initially purchased our properties back in 2006 the development company had bought the land outright which comprised of some 81 smaller lots which now form part of the 10 million square metres of Punta Perla. There is not any mortgage, lien or encumbrance of any type on the land which the development company owns outright. We all witnessed the copy of the land title and were duly satisfied as to its authenticity.  We were able to see all the different licensing documents of all the varying government departments, particularly those of land title, building permits, and the Confotur, officially issued by the various departments. The development company welcomes any client or clients´ solicitor to visit or consult with their solicitors offices in the DR to confirm and certify this point. If there remains any doubt (although it is ludicrous to think that the President himself and many other government officials would have been present in the groundbreaking ceremony were all the paperwork not in place) then you are free to fly to the DR and inspect the originals.

 

Delays

Quite clearly there have been significant delays, which have stopped the project from really getting off the ground from a construction point of view. These delays were purely bureaucratic and in no way could have been avoided by the development company. It is impossible to go into much detail regarding the delays as we would not wish to embarrass any parties who could be of significant assistance in driving the project forward in the future. All of us were satisfied that the explanation given for the delays was accurate and true and that in no way could the development company have avoided them without compromising the credibility and good name of this project.  We were all assured that the development company had acted in the best interest of all parties who have invested in PP. Unfortunately because of the sensitive nature of the reasons behind the delays it has been impossible to explain why we had to endure the delays without creating an unnecessary and embarrassing situation.

 

I am aware that we were given several deadlines and were subsequently let down on many occasions. There were numerous occasions when we were told that construction would get underway only to get let down. At the time there were no coherent, plausible reasons that Punta Perla would not get the Confotur or the final building permit. This was not the developer pulling the wool over anybody's eyes so much as him being let down time and time again when submitting the Confotur for its last meeting of approval.  The three of us were able to see the letters which accompanied the project documents for the Confotur each time they were submitted, no less than 15 times over the 30 month period. On not one occasion did the development company get a response from the department to say that Punta Perla would not be approved at the meeting.  The project document had been circulated and approved in the rest of the other government institutions, all passing it straight away, all aware of the significant benefit that PP would bring to their country. Punta Perla was only one of dozens projects which were held up for years in getting the Confotur and were prevented from constructing by the previous Minister of Tourism. Since then the department has restructured and Punta Perla Confotur and permit to build from the restructured Ministry of Tourism was issued straight away. This happened back in late October/early November last year.

 

Because the project was delayed by 2.5 years, clearly in the commercial world there have been many changes in terms of material costs/labour costs, legislation governing building laws, the environment etc, so it was not just a situation of getting the Confotur and instructing the constructors to deploy thousands of men on day one. The whole project had to be re-visited, re-planned, re-costed and re-scheduled which for a development the size of a medium sized UK town does not simply happen overnight.

 

Given that the delays were outside of the control of the development company, they do fall under the banner of "Force Majeur" which in the DR means for credible reasons outside of the control of either party which in this case the delays clearly were. I have requested a formal definition of "Force Majeur" according to DR law which I will be happy to share with those who wish to see it. None of us in the meeting are international property lawyers, experienced in the Dominican Republic, so we cannot say for sure that what we witnessed was 100% bona fide, but one of the development company´s principle legal advisors who sat in the room with us and who is a senior partner in one of Madrid's leading law firms would. The same lawyer also went on to explain that under international property law that land cannot be sold on legally without informing any "interested" parties and that the liability of those "interested" parties would transfer with the land, although absurd to think that in a project of this size, volume and value, the development company would contemplate such an action, resulting in a loss as opposed to a gain for the company.

 

Whilst all of the delays were happening the architects and planners were busy re-designing the new Marina which now promises to be the best Marina in the Caribbean and one of the best in the world. The sheer scale, grandeur of the design itself and extensive facilities of the new marina will positively impact the prices of all of our properties.  Although re-designed, the Confotur and all building permits cover the new Marina, so we will have no more delays because of this.

 

During the course of the meeting, the development company confirmed that construction has now been underway on the Beach Club & Spa & Boutique hotel for nearly two months now and expects it to be completed and ready for occupation towards the end of the year. The Boutique hotel will be made up of 16 villas, which will be designed, constructed and finished in the same manner that we can all expect of our own properties. We were informed that construction on the Marina, Golf Course I and all of the properties in the first phase will commence at the end of the summer, completing in a maximum of 24 months.

 

Security

Two main questions prevailed regarding the security of the money we have all invested via deposits and the legitimacy of the rental guarantees. The money we have all invested thus far has been put to good use and not sat idle. First of all, some of it was used to purchase the land as well as design, plan and schedule the project. Some will be used to build out the project. Bearing in mind that the land purchase alone was over $400 million, the development company and other investors and board members injected over $300 million of their own cash. With all permits and Confotur in place, the land with all the permits and full project designed was valued about 12 months ago at somewhere between $3 billion and $3.5 billion. If at worst case because of the current economic climate it halved, its new value would still be over $1.5 billion. That is a huge unencumbered asset, making allegations of our money being frittered away absolutely absurd.

 

The rental guarantee is backed by GEXTUMARSA, which is a wholly owned subsidiary of the development company and is tasked to head up and bring in world class tour operators and agencies to market Punta Perla. Any liabilities held by Gextumarsa are equally held by the development company (so in other words it is not simply a "shell" company who could pack up and run away tomorrow).

 

I really think that it is very important that as fellow investors we dispel any rumours of PP being any kind of scam, it is not and has been delayed for reasons completely beyond our control. There are a number of investors who understandably are very frustrated and there are a very few who are so miffed that they are considering taking a class action against the developer. Now then I am not a lawyer or legal eagle and know even less about DR Law but I really struggle to see where the development company is actually in breach of his contract with us (fellow investor). The reason that I am saying this is to hopefully prevent anybody engaging into a legal battle which to me looks like throwing good money away. If they were to try and pursue the development company it would have to be in a Dominican court and would be likely to take 4-5 years during which time our properties would be built and rented out. Damaging the project at this stage would do no good other than line the pockets of solicitors who have very little else to do right now. My words are just my observation of the current situation and you really don't have to listen to me if you do not want to. Just do not let your anger for the delays and lack of information cloud your judgement on the reality of the situation now.

 

I hope this letter gives you a satisfactory snap shot of where we have come from, where we are now and the way forward.

 

Kind regards

Mark Andrew
Emerging Earth Ltd

 

 

My wife and I had arranged to see the Punta Perla construction site less than three weeks before going to Punta Cana. Eva Sotres from Punta Perla Investor Relations reminded us that visits should really be arranged with at least three weeks' notice, but still she was kind enough to book this extraordinary tour for July 22, 2009.

 

Inside Punta Perla the main road is still not laid. Prior to arriving at the fenced construction site, we checked the workers quarters, which are being built right now.

 

 

Workers Quarters 

 

 Gate

 

 Office

 

Inside of the gate we found the portable office and several (I think seven) two and three bedroom villas in different phases of construction.

 

 

 

 

 Samples

 

Villas will be serving as a show homes for the project, so if you are arranging a visit at the end of this year, you will be able to stay in one of the villas.

 

 

 

 First Row Villas

 

On the construction site we met the Supervising Engineer from Punta Perla. His name is Ramon Cos. He was supervising workers from the Dominican construction company Osoria - a large infrastructure contractor builder with a lot of experience and equipment. They have built many bridges, asphalt roads and general infrastructure.

 

According to Ramon the first villa will be COMPLETELY finished within three weeks.

 

 

 

 

 

 

 First Row Villas

 

 

 

 Second Row Villas

 

Construction of the Beach Club will start very soon, but will take longer than initially predicted because of the scale of the new project.

 

Especially difficult and expensive will be delivery of special roof, developed and produced in France. The Beach Club will also house a big restaurant for 200- 300 people. Also according to the new plan Punta Perla offices will be moved from the Club building and located separately.

 

Excavation of the new Marina is about to start with the coral aggregate excavated from it used to provide cladding for the buildings as well as other building materials.

 

The first phase of the Marina will consist of the original apartments and star Island and will represent about 1/4 of the total of the whole marina. This is expected to take about 24 months.

 

The only part of Punta perla which will be open to the general public will be the commercial and retail areas. It's quite different from Cap Cana marina, I think.

 

All of the living areas and Star Island will be accessible to Punta Perla owners only.

 

We have seen only about 20 - 30 workers busy with construction, including several people in the office, not hundreds or thousands, but apparently the real construction started just one week before our visit and supposed to pick up.

 

Supervising Engineer Ramon Cos in his Office

 

 In the office

 

We stayed in the Tropical Princess hotel and I don't think we will stay in this place the next time. If you stay in Catalonia Bavaro Hotel, you can still go to the construction site by foot and see that is going with construction and take your pictures from behind of wire fence. But it's much better to arrange an official tour with Eva Sotres, as we did.

  

Alex Bezborodko

SunnyComfort.com

 

 

Dear All

 

I am pleased to confirm that I met up with the developer last weekend in Spain and was both reassured and comforted by what he had to say about the current position of Punta Perla and the reasoning behind the delays.

 

Right now I am in the middle of an office move and up until yesterday have been rendered internetless (if there is such a word)for the last few days, so apologies if you have been unable to get hold of me.

 

Please be aware that I am both sympathetic and understanding to all of you for the delays which we have all had to endure with this project, but from what I have been told it will all have been worthwhile. The developer does recognise that the levels of communication to clients has been far from satisfactory and intends to put this right in the very near future. The delays were caused because of a corrupt government minister in the DR not only preventing us, but another 140 projects in the DR from getting the Confotur, but also in allowing us to go ahead with construction. This minister is no longer in office nor in any position of political strength. Upon getting into office, the new Minister for Tourism arranged immediately for the Confotur to be granted to Punta Perla and to allow construction to get underway.

 

Construction IS now underway and completion of the first phase which includes the Marina, Star Island and the first Golf course are expected within 24 months. There is enough money in place now to build out the whole of the first phase which includes all of our properties and the supporting facilities.

 

When construction did originally commence back in January 2007, the previous minister instructed the developer to cease straight away or risk imprisonment of anyone on the site as well as the developer himself. The same minister was also threatening that if construction did commence that the project would never go ahead. The developer of our project has done what no other developers would probably do which is stick by the project 100% within the boundaries of the law to protect our investments and for the good of the project. I have been assured by the developer that the developer owns 100% of the land and that we have all of the permits to build as well as the Confotur. The developer has suggested that all of the documents which prove: Title to Land, Permits etc will be available for solicitors and a limited number of "independent parties" to inspect on the basis of the technicality of these documents. These parties will no doubt report their findings upon some of the forums discussing Punta Perla or even communicate with you directly via email.

 

I am conscious that there are a number of justified criticisms on forums such as the Singing Pig and they have been noted, however please be aware that there are a number of scaremongers with nothing better to do than try and stir things up who have nothing better to do than put the heebie jeebies up the Punta Perla investors. The developer is now also focused on pursuing anyone who has tried to damage the project through lies and scare tactics with criminal prosecution to make sure that these people get what they deserve.

 

I am now waiting on a formal reply to the list of questions which were forwarded to the developer of which there were about 95 in total.

 

I am pleased to inform you that the Dominican Minister for Investment who is the Presidents number two and right hand man is flying out to Madrid today to meet with the developer and accompany him to China tomorrow on a Punta Perla-specific trade mission to meet with would-be investors.

I would like to take this opportunity to thank all concerned for their patience and look forward to communicating some very good news to you all regarding Punta Perla in the very near future.

 

Kindest regards

 

Mark Andrew
Emerging Earth Ltd

 

July 3, 2009