Dominica seeks revenue from its natural resources

ELLSWORTH CARTER Comments 0
Published: November 3, 2009

ROSEAU, Dominica (AP) — Dominica plans to export bottled water to Asia and sell electricity to its neighbors to boost the island's economy by investing in its natural resources, the prime minister said Tuesday.

A group of businessmen from Hong Kong will arrive next year to pursue the water-bottling project after a two-year study found that Dominica has underground sources that produce more than 20 million gallons (76 million liters) of water a day, Premier Roosevelt Skerrit said.

He also said the island's geothermal resources will allow construction of up to four power plants that can produce 30 megawatts of energy each. Dominica would then sell power to the nearby French Caribbean islands of Guadeloupe and Martinique via submarine cables, Skerrit said.

The government will provide land and tax breaks to potential investors so that the first plant can become operational by 2013, he said.

Skerrit did not provide further details on the projects, nor how much they would cost. The government had previously estimated the power-plant project at $147 million.

During an Independence Day address on Tuesday, Skerrit also announced that Venezuela would build a coffee-processing plant as the island replants 200 acres (81 hectares) of fields in the northern region.

He also said the government hopes to use a $60 million loan from China to build a resort and marina near Portsmouth, along with a shopping center. The original plan was to build a 200-room hotel.

Dominica is a member of Venezuela's Petrocaribe program and has diplomatic ties with China.

The island has promoted itself as an eco-tourist destination in recent years, although its economy is mainly dependent on agriculture, especially bananas.