Feasibility Study Report of The Establishment of The CIBAO Project PDF

Feasibility Study of the Establishment of the CIBAO Trade
Center in the Dominican Republic
Feasibility Study Report
Ver. 1.0
EC Plaza / MAXTRAT / DATEC Consotium

Table of Contents
Chapter I. Project Overview ...................................................................... 1
1. Background and Objective.............................................................. 1

1.1 Background................................................................................................1
1.2 Objective....................................................................................................3
2. Project Summary............................................................................. 5
2.1 Project Scope .............................................................................................5
2.2 Project Executing Agency ..........................................................................6
2.3 Region to Execute the Project ....................................................................6
2.4 Estimated Budget .......................................................................................7
2.5 Project Period.............................................................................................7
Chapter II. Current Status......................................................................... 9
1. Country Status ................................................................................. 9
2. Politics · Society · Economy Status................................................ 13

2.1 Politics · Society Status ............................................................................13
2.2 Economy · Industry Status........................................................................13
2.2.1 Current Economic Trend............................................................................13
2.2.2 Industry and Export Trend .........................................................................14
2.2.3 Foreign Investment Status..........................................................................16
3. Status of Project Site...................................................................... 18
4. Information Technology Area ....................................................... 22

4.1 National Information Technology Status ..................................................22
4.1.1 ICT Industry Status....................................................................................22
4.1.2 Wireless/Wired Communications Status.....................................................22
4.1.3 Internet Status............................................................................................24
4.1.4 PC Distribution Status ...............................................................................25
4.1.5 S/W Developing Company Status ..............................................................26
4.1.6 Discussion Point ........................................................................................27
4.2 Government Information Status ...............................................................27
5. Import/Export Status and Related Policies .................................. 30
5.1 General Import/Export Status ...................................................................30
5.1.1 Export Status .............................................................................................30
5.1.2 Export Status .............................................................................................30
5.1.3 Import Status .............................................................................................31
5.2 Import/Export Status of Major Goods ......................................................31
5.3 Export Status of Free Trade Zone .............................................................32
5.4 Status of Exporting Companies ................................................................33
5.5 Trading Scope with Korea........................................................................34
Chapter III. Project Executing Agency and System ............................... 36
1. PEA and PMO ............................................................................... 36

1.1 Project Executing Agency (PEA) .............................................................36
1.2 Project Management Office......................................................................37
2. Project Execution and Cooperation System................................. 38
3. Experience in Similar Projects...................................................... 39
Chapter IV. Project Execution Plan......................................................... 41
1. Outline............................................................................................ 41
2. Construction of Trade Center ....................................................... 43

2.1 Status Analysis .........................................................................................43
2.1.1 Research on Land and Infrastructure..........................................................43
2.1.2 Comparison of Construction Features of Similar Local Constructions........49
2.1.3 Status of Major Exhibitions .......................................................................50
2.1.4 Exhibition Center Status ............................................................................51
2.1.5 Requests from Project Executing Agency ..................................................56
2.2 Best Practice ............................................................................................57
2.2.1 Cases of Trade center.................................................................................57
2.2.2 Exhibition Center Cases.............................................................................59
2.2.3 Discussion Points ......................................................................................61
2.3 Design Goal .............................................................................................62
2.3.1 Scope of Trade center and Major Facilities ................................................62
3. Construction of Integrated Trading System (ITS)....................... 68

3.1 Status Analysis .........................................................................................68
3.1.1 Business Status..........................................................................................68
3.1.2 IT Status Analysis ......................................................................................72
3.1.3 Discussion Point ........................................................................................76
3.2 Best Practice ............................................................................................76
3.2.1 Outline ......................................................................................................76
3.2.2 Trend of International Trading ...................................................................76
3.2.3 Status of Korean electronic trading system.................................................80
3.2.4 Discussion .................................................................................................81
3.3 Design Target Model ................................................................................82
3.3.1 Establish System Target Model..................................................................82
3.3.2 Definition of the system-building methods and applied technologies .......102
3.3.3 Definition of Measures to link relevant authorities...................................106
3.3.4 Definition of the plan to revamp laws and policies...................................109
4. Trade Academy .............................................................................111

4.1 Analysis of Current Status...................................................................... 111
4.1.1 Analysis of the current trade education .................................................... 111
4.1.2 Implications.............................................................................................114
4.2 Best Practices.........................................................................................114
4.2.1 Overview.................................................................................................114
4.2.2 The Status of Trade Academy Curriculum (2010) ....................................114
4.2.3 Implications.............................................................................................115
4.3 Designing a Target Model ......................................................................116
4.3.1 Basic Plan for Trade Academy Curriculums.............................................116
5. Project Execution......................................................................... 119

5.1 Establishing the process of project execution .........................................119
5.1.1 Procedure for Project Approval................................................................119
5.1.2 Inter-Agency Cooperation Process...........................................................119
5.2 Preparation for the Project......................................................................120
5.2.1 Preparations for the Project Implementation ............................................120
5.2.2 Preliminary Procedures............................................................................121
6. Consulting Service ....................................................................... 123

6.1 The Need for Consulting Service ...........................................................123
6.2 The Scope of Work.................................................................................123
6.2.1 Basic Design............................................................................................123
6.2.2 Bidding Support ......................................................................................123
6.2.3 Supervision..............................................................................................123
6.3 Considerations .......................................................................................124
6.4 Grounds to calculate the consultant input ...............................................125
6.5 Calculation of Consulting Costs .............................................................125
7. Education ..................................................................................... 126

7.1 The Need for Education .........................................................................126
7.2 Education Program.................................................................................126
7.2.1 Construction of Trade Center...................................................................126
7.2.2 Integrated Trade System (ITS).................................................................127
7.2.3 Trade Academy........................................................................................129
8. Establishing Project Operating Measures.................................. 131

8.1 Trade Center ..........................................................................................131
8.2 Integrated Trade System (ITS) ...............................................................132
8.3 Trade Academy ......................................................................................136
8.3.1 Operational Structure...............................................................................136
8.3.2 Division of Works....................................................................................136
9. Project Period and Schedule ....................................................... 138

9.1 Construction of Trade Center .................................................................138
9.1.1 Construction Period .................................................................................138
9.1.2 Implementation Schedule.........................................................................138
9.2 Integrated Trade System.........................................................................140
9.2.1 Period for Establishment..........................................................................140
9.2.2 Implementation Schedule.........................................................................140
9.3 Trade Academy ......................................................................................141
10. Procurement Plan ........................................................................ 142
Chapter V. Project Budget Estimation .................................................. 143
1. Estimated Costs & Funding Plan................................................ 143

1.1 Estimated Costs......................................................................................143
1.2 Funding Plan..........................................................................................145
2. Specifications of Project Costs .................................................... 146
2.1 Costs for Trade Center Construction.......................................................146
2.1.1 Costs for site acquisition and infrastructure..............................................146
2.1.2 Architectural, mechanical, and electric costs............................................147
2.2 Cost for establishment of Integrated Trade System (ITS) .......................149
2.3 Cost for the Establishment of Trade Academy ........................................151
2.4 Consulting Service .................................................................................152
2. Phase II: Evaluation of......................................................................... 152

2.5 Training .................................................................................................152
2.6 Taxes and Utilities..................................................................................153
2.7 Contingency...........................................................................................153
2.8 Project Management Cost ......................................................................155
2.9 Loan Commission ..................................................................................155
2.10 Applied Exchange Rate..........................................................................155
3. Annual Spending Plans ............................................................... 156
Chapter VI. Feasibility Analysis ............................................................ 158
1. Feasibility in Project Scale and Scope ........................................ 158

1.1 Construction of the Trade Center............................................................158
1.3 Trade Academy ......................................................................................159
2. Feasibility in Project Cost ........................................................... 160

2.1 Construction of the Trade Center............................................................160
2.2 Integrated Trade System(ITS) ................................................................162
2.3 Trade Academy ......................................................................................163
3. Technical Feasibility .................................................................... 164
4. Economic Feasibility.................................................................... 165

4.1 Outline ...................................................................................................165
4.2 Preconditions for Feasibility Analysis ....................................................165
4.2.1 Exchange Rate.........................................................................................165
4.2.2 Discount Rate ..........................................................................................165
4.2.3 Analysis Period .......................................................................................165
4.2.4 Inflation Rate and Wage Increase Rate.....................................................166
4.3 Investment Plan......................................................................................167
4.3.1 Estimated Project Cost.............................................................................167
4.3.2 Investment Plan by Years.........................................................................167
4.4 Maintenance Costs .................................................................................169
4.4.1 Maintenance Costs of the Trade Center....................................................169
4.4.2 Maintenance Costs for the Integrated Trade System.................................172
4.4.3 Other Operation Cost...............................................................................174
4.4.4 Cost Flow ................................................................................................174
4.4.5 Estimated Profit.......................................................................................177
4.4.6 Benefit Flow............................................................................................189
4.4.7 Benefit/Cost Analysis ..............................................................................193
4.4.8 Sensitivity Analysis .................................................................................196
4.4.9 Summary of the Economic Feasibility Analysis result..............................202
5. Financial Feasibility .................................................................... 204

5.1 Review on Financial Feasibility .............................................................204
5.2 Sensitivity Analysis on Financial Feasibility ..........................................206
5.2.1 In case of charging membership fee for the Integrated Trade System .......206
5.2.2 In case of operating the trade center only .................................................206
5.2.3 In case of charging fees on each use of e-document of the trade portal.....206
6. Strategic Feasibility ..................................................................... 210
7. Environmental Impact Assessment............................................. 211
Chapter VII. F/S Items for EDCF Evaluation ...................................... 214
1. Capabilities of Project Executing Agency .................................. 214
2. Approval Process for Loan and important documents.............. 214

2.1 Approval Process for Loan.....................................................................214
2.2 Approval Process for Procurement & Consulting ...................................214
2.3 Approval Process of Construction Permit...............................................216
3. Probability to provide Korean materials & service ................... 217
4. The effect of Foreign Currency Earning .................................... 218
5. Responses against Risk Factors .................................................. 219
6. Expected Effects .......................................................................... 220

6.1 Dominican Republic ..............................................................................220
6.1.1 Laying the foundation for export growth..................................................220
6.1.2 Contribution to acquiring technologies and establishing policies..............220
6.1.3 Interrelation in conducting the project......................................................220
6.2 Korea .....................................................................................................220
6.2.1 Korean companies' advance into the Dominican Republic .......................220
6.2.2 Improvement of Bilateral Cooperation.....................................................221
7. Performance Evaluation Indicators ........................................... 222
8. Similar ODA projects in Dominica ............................................. 224
9. Analysis on the International Competitiveness of Korean

Companies .................................................................................................... 225
9.1 Construction of Trade Center .................................................................225
For reference: Introduction of Korea’s uTradeHub............................... 228
Abbreviation Table ................................................................................... 238
List of Figures
< Figure 2-1 Geographic Regions of the Dominican Republic > ...........................................10
< Figure 2-2 2009 Development Score for Dominican Republic > ........................................12
< Figure 2-3 2007 Industry Ratio in Dominican Republic's Zona Franca > ...........................15
< Figure 2-4 Map of Dominican Republic > .........................................................................18
< Figure 2-5 Santiago City expansion trend (1800~1994) > ..................................................19
< Figure 2-6 Growth trend of major industries (2002~2008) >..............................................20
< Figure 2-7 View of Santiago City > ...................................................................................20
< Figure 2-8 City view and CEI-RD headquarters >..............................................................21
< Figure 2-9 Number of installed wire/wireless lines > .........................................................23
< Figure 2-10 Communication Industry Registered Member Ratio > ....................................23
< Figure 2-11 Number of internet users > .............................................................................25
< Figure 3-1 CEI-RD Organization >....................................................................................36

< Figure 3-3 Project Management Office Organization >......................................................37
< Figure 3-4 Project Cooperation System > ..........................................................................38
< Figure 4-1 Location of CIBAO Trade Center >..................................................................43
< Figure 4-2 Photos of Antiguo Aeropuerto Cibao > .............................................................44
< Figure 4-3 Antiguo Aeropuerto Cibao: Satellite image >....................................................45
< Figure 4-4 Building exterior > ...........................................................................................52
< Figure 4-5 Building interior >............................................................................................52
< Figure 4-6 View of Trading the Center Building > .............................................................62
< Figure 4-7 View of business center >.................................................................................67
< Figure 4-8 Export Management Flow > .............................................................................68
< Figure 4-9 Coffee bean authorization process > .................................................................69
< Figure 4-10 Origin of certification flow >..........................................................................70
< Figure 4-11 SIVUCEX Function map >.............................................................................72
< Figure 4-12 SIVUCEX Work process for related offices >.................................................74
< Figure 4-13 SIGA system conceptual Diagram > ...............................................................75
< Figure 4-14 Trend of Global e-Trade > ..............................................................................77
< Figure 4-15 UN’s Roadmap toward e-Trade Development >..............................................78
< Figure 4-16 e-Trade development status in each country >.................................................79
< Figure 4-17 Comparison of trading dependence and e-Trade development status >............79
< Figure 4-18 Development phases of Korean e-Trade > ......................................................80
< Figure 4-19 uTrade Hub Concept drawing >......................................................................81
< Figure 4-20 Goal of system construction > ........................................................................82
< Figure 4-21 To-be system conceptual diagram > ................................................................83
< Figure 4-22 Hardware and Network Configuration >.........................................................83
< Figure 4-23 Overview of Building e-Marketing Portal >....................................................85
< Figure 4-24 e-Marketing Portal Objectives > .....................................................................86
< Figure 4-25 e-Marketing Portal System Structure > ...........................................................86
< Figure 4-26 e-Marketplace Concept Diagram > .................................................................88
< Figure 4-27 Before and After e-Marketing Portal System Establishment >.........................89
< Figure 4-28 e-Trade Portal Overview > .............................................................................90
< Figure 4-29 e-Trade Portal Objectives > ............................................................................91
< Figure 4-30 e-Trade Portal Function Block Diagram > ......................................................91
< Figure 4-31 Before and After the establishment of the system for the issue of certificate of
origin >.................................................................................................................................94
< Figure 4-32 Overview of e-Trade Document Repository >.................................................95
< Figure 4-33 Structure of e-Trade Document Repository >..................................................96
< Figure 4-34 Overview of e-Document Relay System > ......................................................98
< Figure 4-35 Key Factors of the System >...........................................................................98
< Figure 4-36 Structure of e-Document Relay System > .......................................................99
< Figure 4-37 CEI-RD The size of the existing Server Room >...........................................101
< Figure 4-38 Expanded Size of Server Room > .................................................................101
< Figure 4-39 TBB(Technical Building Block) Hierarchy Diagram > .................................104
< Figure 4-40 Export-related authorities > ..........................................................................106
< Figure 4-41 Work Flow of Export Customs Clearance with Linked Systems >.................108
< Figure 4-42 Implementing Procedures by Relevant Authorities > ....................................108
< Figure 4-43 Conceptual Map of Trade Academy >...........................................................116
< Figure 4-44 Curriculum Examples by Program >.............................................................117
< Figure 4-45 Project Approval Procedure in Dominica >...................................................119
< Figure 4-46 The Process to Implement Public Projects in Dominica > .............................120
< Figure 4-47 Operational and maintenance structure of trade center >...............................131
< Figure 4-48 Example of Maintenance Structure at the Similar Facility in Korea > ...........132
< Figure 4-49 Overview of System Operation >..................................................................133
< Figure 4-50 Strategy of Maintenance >............................................................................134
< Figure 4-51 Example of Trade Academy Organization >..................................................136
< Figure 5-1 Total Costs >..................................................................................................144
< Figure 6-1 Details of the Project Cost >...........................................................................169

< Figure 6-2 Annual Trade Center Maintenance Costs >.....................................................170
< Figure 6-3 Annual Trade Center Maintenance Costs (Present Value) >............................171
< Figure 6-4 Annual Maintenance Cost for the Integrated Trade System >..........................173
< Figure 6-5 Annual Cost Flow > .......................................................................................177
< Figure 6-6 Income Benefit from Lending Office Space/Lecture Room > .........................179
< Figure 6-7 Income Benefit from Lending Exhibition Hall and Meeting Room > ..............182
< Figure 6-8 Annual Benefit on the Use of the System > ....................................................186
< Figure 6-9 Annual Benefit from the Utilization of the Trade Portal > ..............................188
< Figure 6-10 Annual Benefit Flow by Items (Based on Present Value) (Residual Benefit of
Land Excluded) > ...............................................................................................................189
< Figure 6-11 Total Annual Benefit Flow (based on Present Value)(Residual Benefit of Land
Included) > .........................................................................................................................190
< Figure 6-12 Annual Benefit/Cost Flow > .........................................................................195
< Figure 6-13 Changes in NPV in Accordance with the Discount Rate > ............................197
< Figure 6-14 Changes in B/C Ratio in Accordance with the Discount Rate > ....................197
< Figure 6-15 Changes in B/C Ratio in Accordance with Changes in Cost >.......................199
< Figure 6-16 Changes in IRR in Accordance with Changes in Cost >................................199
< Figure 6-17 Changes in NPV in Accordance with Changes in Cost > ..............................199
< Figure 6-18 Changes in B/C Ratio in Accordance with Changes in Benefit > ..................200
< Figure 6-19 Changes in IRR in Accordance with Changes in Benefit >............................200
< Figure 6-20 Changes in NPV in Accordance with Changes in Benefit > ..........................200
< Figure 6-21 Changes in B/C Ratio in Accordance with Changes in Cost/Benefit > ..........201
< Figure 6-22 Changes in IRR in Accordance with Changes in Cost/Benefit > ...................201
< Figure 6-23 Changes in NPV in Accordance with Changes in Cost/Benefit > ..................202
< Figure 7-1 Annual Overseas Construction Orders >.........................................................225
List of Tables
< Table 2-1 Regional divisions and actual provinces of the Dominican Republic > ...............10
< Table 2-2 Global Competitiveness Ranking of Middle and South American Countries >....11
< Table 2-3 Major Economic Indicators of Dominican Republic >........................................14
< Table 2-4 Major Import/Export Goods and Import/Export Countries > ..............................15
< Table 2-5 CEI-RD 2010 Foreign Investment Solicitation Plan > ........................................16
< Table 2-6 Foreign Investments in Dominican Republic >...................................................17
< Table 2-7 Communication line installation status in Dominican Republic > .......................22
< Table 2-8 Comparison of Major Communication Companies >..........................................24
< Table 2-9 Cell phone market share per communication company >....................................24
< Table 2-10 Internet line status and number of internet users >............................................24
< Table 2-11 PC distribution rate in major countries > ..........................................................26
< Table 2-12 Annual PC distribution rate >...........................................................................26
< Table 2-13 Status of major S/W developing companies > ..................................................26
< Table 2-14 2006~2008 Major Electronic Government Project Funded by the Government >
.............................................................................................................................................28
< Table 2-15 Economic Prospect of Dominican Republic > ..................................................30
< Table 2-16 Annual Import/Export Status >.........................................................................30
< Table 2-17 Five Major Export Countries >.........................................................................31
< Table 2-18 Five major import countries > ..........................................................................31
< Table 2-19 Export Status of Major Trading Goods > ..........................................................32
< Table 2-20 Import Status of Major Trading Goods > ..........................................................32
< Table 2-21 Export Statistics per Good in Free Trade Zone (03/1~07/1) >...........................33
< Table 2-22 Number of Exporting Companies Based on Their Scope >...............................34
< Table 2-23 Exporting Amount Per Scope >........................................................................34
< Table 2-24 Export Status to Dominican Republic >............................................................34
< Table 2-25 Major exporting goods to Dominican Republic in 2008 >.................................35
< Table 2-26 Products that showed significant growth in 2008 >...........................................35
< Table 2-27 Products that showed significant downfall in 2008 >........................................35
< Table 2-28 Major import products from Dominican Republic in 2008> .............................35
< Table 3-1 Project Summary for Similar Projects > .............................................................39
< Table 4-1 Comparison of construction features > ...............................................................49

< Table 4-2 Schedules of Dominica’s major exhibitions >.....................................................50
< Table 4-3 Facilities for Major Exhibition Centers > ...........................................................58
< Table 4-4 Calculation of trade center scope – per floor > ...................................................64
< Table 4-5 Calculation of the trade center scope – per usage > ............................................65
< Table 4-6 Major contents of SIVUCEX > ..........................................................................73
< Table 4-7 Major Contents of SIGA > .................................................................................75
< Table 4-8 Work Scope and Details > ..................................................................................87
< Table 4-9 e-Trade Portal work scope >...............................................................................92
< Table 4-10 Relevant Authorities > .....................................................................................92
< Table 4-11 Work Scope and Details > ................................................................................95
< Table 4-12 Work Scope and Details > ................................................................................99
< Table 4-13 Equipment Scale for ITS Operation >.............................................................102
< Table 4-14 TBB(Technical Building Block) Hierarchy Descriptions > .............................104
< Table 4-15 Trade-related educational institutions > .......................................................... 111
< Table 4-16 2010 I*CEi Curriculums > .............................................................................113
< Table 4-17 Trade Academy Curriculums for 2010 >.........................................................114
< Table 4-18 Work scope and duration of Consulting Service > ..........................................124
< Table 4-19 Consultant Structure of Each Phase >.............................................................125
< Table 4-20 Maintenance Details by Category >................................................................134
< Table 4-21 Maintenance Support Activities Guideline > ..................................................135
< Table 6-1 Construction Cost per unit area according to building type as surveyed in the
project site >.......................................................................................................................160
< Table 6-2 Construction cost composition percentage per work types according to building
usage types >......................................................................................................................161
< Table 6-3 Calculation of Function Point >........................................................................162
< Table 6-4 Latest Inflation Rate and Annual Average Wage >...........................................166
< Table 6-5 Estimated Project Cost >..................................................................................167
< Table 6-6 Investment Plan by Years-EDCF > ..................................................................168
< Table 6-7 Investment Plan by Years-DR >.......................................................................168
< Table 6-8 Trade Center Maintenance Costs >...................................................................171
< Table 6-9 Maintenance Cost for Integrated Trade System > .............................................173
< Table 6-10 Annual Cost Flow(Future Value) > .................................................................175
< Table 6-11 Annual Cost Flow (Based on Present Value)> ................................................176
< Table 6-12 Income Benefit from Lending of Office Space/Lecture Room >.....................180
< Table 6-13 Income Benefit Lending Exhibition Hall and Meeting Room > ......................183
< Table 6-14 Benefit on the Use of the Integrated Trade System >......................................185
< Table 6-15 Benefit on Utilization of the Trade Portal >....................................................188
< Table 6-16 Annual Benefit Flow (Based on Future Value) >............................................191
< Table 6-17 Annual Benefit Flow(Based on Present Value) >............................................192
< Table 6-18 Comparison of Benefit/Cost Analysis Methods >...........................................194
< Table 6-19 Benefit/Cost Analysis Results > .....................................................................195
< Table 6-20 Sensitivity Analysis Results According to Discount Rate > ............................196
< Table 6-21 Sensitivity Analysis Results in Accordance with variation in Benefit/Cost >..198
< Table 6-22 Benefit/Cost Analysis Results > .....................................................................203
< Table 6-23 Income and Expenditure(Based on Future Value) > .......................................205
< Table 6-24 Income and Expenditure in Case of Not Charging Membership Fee for the Trade
Information System(Based on Future Value) > ...................................................................207
< Table 6-25 Income and Expenditure in Case of Consideration of the Trade Center
Building(Based on Future Value)> .....................................................................................208
< Table 6-26 Income and Expenditure in Case of Charging each Use of e-document on
Export/Import(Based on Future Value) >............................................................................209
< Table 7-1 Project Budget of Eligible Source Country(EDCF)> ........................................218

< Table 7-2 Risk Factors and Responses > ..........................................................................219
< Table 7-3 Expected Amount of Overseas Construction Orders for 2010 >........................226
< Table 7-4 Trade-related capabilities of domestic companies >..........................................227
< Table 7-5 Summary of Trade-related Laws in Korea>......................................................235
Chapter I. Project Overview

The name of this project is “The Establishment of the CIBAO Trade Center in the
Dominican Republic.”
1. Background and Objective

1.1 Background
 In a bid to achieve a dynamic economy through creating employment, one of
the four core strategies of the “2010~2030 National Development Plan” 1
announced in November 2009, routes to boost exports(plan and system, etc.)
must be strengthened and plans to develop export financing must be made.
The current government of the Dominican Republic with President Leonel Fernandez
re-elected in 2008 has established 4 core strategies, 51 detailed objectives (Objetivos
Especificos), and 274 action lines (Líneas de Acción) through a discussion with relevant
ministries in a bid to present the blueprints on the nation’s future. They announced the
“2010~2030 National Development Strategy (Estrategia Nacional de Desarrollo de la
República Dominica 2010~2030)” in November 2009.
 It was recommended that the Dominican Republic promote exports and

enhance its export capacity through the Knowledge Sharing Program (KSP) of
the Republic of Korea, which started in 2008. Through this opportunity, the
Dominican Republic realized the need to support trade by constructing a trade
center and requested the support of the Korean Economic Development
Cooperation Fund (EDCF).
President Leonel visited Korea in 2006, acknowledged the development experience of
Korea and ordered Executive Director Eddy Martinez of the Export and Investment
Center of the Dominican Republic (CEI-RD) to cooperate with the Korea Development
Institute (KDI). In August 2007, Mr. Martinez visited Korea and asked for policy advice
through Korea’s Knowledge Sharing Program. In March 2008, the Korean Ministry of
Strategy and Finance designated the Dominican Republic as a partner state of KSP in
2008-09 at the official request of Mr. Martinez under the theme of “Promoting exports
and developing the export capacity of the Dominican Republic” and collaborated with
CEI-RD.
By analyzing the economic development process and current state of the country’s
economy through the KSP project, the Dominican Republic’s strategies were reset. By
1
See details of “2010~2030 National Development Strategy” on the “6. Strategic Feasibility” in Chapter VI.
Feasibility Study of the Establishment of the CIBAO Trade Center in the DR 1

analyzing the development state of its human resources and its problems, education and
job training policies that would form the basis for the promotion of exports were
recommended, in addition to Korea’s policy experiences for the development of human
resources handed down. Also, measures to revitalize export finances were suggested in
order to recommend policies that would promote exports and foster the capability to
export. Such economic development strategies are meaningful in that they would provide
the opportunity for the country to raise its economic development a step higher by
revitalizing exports.
National interest in a project for sharing economic development experiences was very
high, making it easier to effectively hand down Korea’s export-oriented economic
development experiences. The Dominican Republic’s view of the project was very
positive, and this was a great opportunity to raise Korea’s national image.
 Need to build the trade center in Santiago, a central city of CIBAO

As the capital of fabric exports, the fabric industry was the main export industry in the
late 90s. However, there is no upcoming industry that can replace the fabric industry in
the export market. Also, the amount of exports that takes up the GDP has decreased to
15% in 2007 from 27% in 2003, and therefore this country is in serious need of policies
supporting exports.
The CIBAO region has established and managed a Free Trade Zone based on its
ample human and physical resources, being the main region that produces export goods
with more trade activities than other regions. But it does not have a permanent exhibition
hall to support exports, and consequently the lobby in the 1st floor of the CEI-RD located
in Santo Domingo 180km southeast of Santiago, has been used instead. Also, EXPO
CIBAO 2 , the largest trading exhibition held every year, is hosted by borrowing a
gymnasium located far away from the suburban area of Santiago.
It is a long-cherished wish of the Santiago Chamber of Commerce to construct a

trade center with an exhibition hall where they can support the export industry,
permanently exhibit regional products, and hold the international trade expo every year.
 Need to build the Integrated Trade System(ITS)

The Dominican Republic enjoyed the most rapid economic growth (average 9.5%)
among countries in Latin America, but the annual export increase rate was below 6%
during 2005-2007, significantly lower than the average annual export increase rate of
DR-CAFTA member countries, 11%. The number of exporters stood at about 3,000 as of
2009, out of which about 98% were SMEs recording annual revenues less than USD1
million. Therefore coming up with supportive measures for such SMEs is essential.
2
See details on the “2.1.3 Status of Major Exhibitions” in Chapter IV.

In order for exports to increase, the President ordered measures to strengthen

marketing capabilities and overseas information collection abilities. A portion of
requirements verification for exports has been done via an on-line system, but the usage
rate is only about 10%, and most of this is being done manually by visiting relevant
organizations. Accordingly, there is a need to build a pan-national electronic trade
infrastructure, innovate the trade process in accordance with changes in the information
environment, and gain a competitive edge to cope with the changing global trade
environment.
Organizations such as the UN, APEC and ASEM recommend the construction of an
“Electronic Trade Single Window” for the promotion of global trade. The Electronic
trade single window is an integrated trade information system that is currently operated
or will be implemented by governments to provide a one-stop service in connection with
services of related organizations such as customs clearance, harbors, quarantine, and
foreign exchange to various trading companies attempting to trade goods with local
companies.
 Need to enhance curriculum and operation method of the trade academy of

CEI-RD in order to foster trade experts in CIBAO.
Even though providing capable human resources was considered a key factor in
Korea’s success in achieving rapid economic growth and building a knowledge-based
economy, the lack of Dominica’s human resources is holding their economy back,
limiting the nation’s strategy to beef up exports and strengthen competitiveness in the
industry.
However, there is only one professional training institution on trade, the Overseas
trade and corporate innovation institute(I*CEi) run by CEI-RD, within the capital, Santo
Domingo. Also, the curriculum of the I*CEi center on seminars and trade-related training
focusing on practical business has not been conducted successfully. Therefore, it is
necessary to build an institution to foster human resources, to develop a training
curriculum and training materials, and to adopt advanced techniques for the operation of
the trade academy.
1.2 Objective
In order to strengthen exports and revolutionize the business environment of Santiago,
the second largest city of Dominican Republic, through corporate innovation and
business continuity;
 Construct the CIBAO Trade Center that can provide a physical space to
display goods, hold trade expos, and support the business of exporters.
 Implement an integrated trade system (hereinafter referred to as “ITS”) to

provide a one-stop trading service

 Improve management and education courses of the trade academy to raise the
quality of future human resources.

2. Project Summary
2.1 Project Scope
This project is divided into a consulting service and a construction project.
 Consulting Service
Scope Contents
 Basic design for construction of trade center and ITS (Integrated Trade System)
 Provide bidding documents including Technical Assistance reports for bidding
EDCF documents
 Evaluate proposal and support contract negotiations
 Supervise the trade center construction and trade system implementation
 Construction Project
Scope Contents
 Design and land work for cconstruction of a 20,000 m2 CIBAO construction

center that can host the ‘EXPO CIBAO’ as well as hold an exhibition and training
center for export purposes. (Construction, electricity, mechanical work)
 Detail design work and implementation for marketing portal, trading business
portal, electronic document storage, and relay system
 Establishment of materials needed for installation and operation of ITS (H/W,
EDCF
N/W, S/W)
 Development of a curriculum and education materials
 Consulting service for the operation of the trade academy
 Education required for operation and maintenance of the trade center and ITS
 Support maintenance efforts of ITS for 2 years

 Obtain and confirm the construction site (obtaining permission for a construction
license and land-use)
 Perform soil tests and underground utility surveys
Dominican
Republic  Construction of the trade center infrastructure (road, electricity, gas, water)
 Deliver furniture and office automation equipment for the trade center
 Construction and expansion of a server room, power supply, and UPS

2.2 Project Executing Agency

The project executing agency is the Export and Investment Center of the Dominican
Republic (Centro de Exportación e Inversión de la República Dominicana – CEI-RD)
under the direct command of DR’s president.
The organization has 242 staff members as of February 2010 under the direction of
Executive Director Eddy Martinez. They are divided into the Dominican Exports
Corporate Services and the Foreign Investment Dominican Republic Headquarters,
located in Santo Domingo with a regional office in Santiago.
2.3 Region to Execute the Project

The Dominican Republic is divided into the southeast area (Sur Occidental Region)
where the nation’s capital Santo Domingo is located, the northwest area (El Cibao
Region) where Santiago, the second largest city and commercial center of the nation is
located, and the southeast area (Sur Oriental Region).
The region where the project is to be executed is Santiago, the central city in the
region of CIBAO and the industrial center of the Dominican Republic.
Santiago City was formed after the discovery by Columbus in 1495. It is the first city
established on the American continent and is located 180 km northwest of the capital city,
Santo Domingo.
The area of CIBAO is 3,112㎢ with about three million inhabitants while the area of
Santiago is 489㎢ with about one million inhabitants as of 2006.
In Santiago, an international airport linking it to major cities abroad has been operated
since 2002 and more than 20 percent of the country’s export products are produced here,
taking up 14 percent of the country’s Gross Domestic Product (GDP). It is in dire need
of the construction of trade center that can support active industries of the Santiago City.
Santo Domingo City, where ITS will be constructed holds 30% of the Dominican
population. It is estimated that 3 million Dominicans reside within the city. It is the
capital of education and economy in the Dominican Republic. ITS will not only support
companies within the CIBAO region but it will continue to support the entire exporting
industry of Dominican Republic. In order to support the entire nation, the ITS system
will be located along the main system of the Ministry of Export Investment.

2.4 Estimated Budget

The total cost of the project is estimated to be US$ 62.44 million with loans of US$ 30
million from EDCF.
Of the direct cost of the project, EDCF will financially support 70.4 percent of the
Trade Center Construction, 20.7 percent of the cost to build the Integrated Trade System,
7.3 percent of the provision of Consulting Services, 1.3 percent Training and 0.3 percent
of the Trade Academy.
(Unit: USD)
EDCF
Gov. of
ForeignCurrency Portion
Item Local Currency Dominican Total
EDCF Total
Korea 3rd Countries Portion Republic
1. Trade Center Construction 8,754,820 1,481,240 8,763,940 19,000,000 25,474,318 44,474,318

1) Land Acquisition & Infrastructure - - - - 25,474,318 25,474,318
2) Architecture 6,164,740 186,200 7,253,060 13,604,000 13,604,000
3) Mechnical 1,222,080 611,040 712,880 2,546,000 - 2,546,000
4) Electric 1,368,000 684,000 798,000 2,850,000 - 2,850,000
2. Integrated Trade Data System 4,431,767 430,636 724,500 5,586,904 - 5,586,904
1) Equipment 304,545 430,636 735,182 - 735,182
2) S/W Development 3,633,890 - 724,500 4,358,390 - 4,358,390
3) Installation & Test 493,332 - 493,332 - 493,332
3. Trade Academy 87,882 - 87,882 - 87,882
4. Consulting Services 1,822,266 - 147,000 1,969,266 - 1,969,266
5. Training 345,506 - - 345,506 - 345,506
1) Local Training 174,616 - - 174,616 174,616
2) Overseas Training 170,890 - - 170,890 170,890
Base Cost 15,442,242 1,911,876 9,635,440 26,989,558 25,474,318 52,463,877
6. Taxes & Duties - - - - 1,349,478 1,349,478
7. Contingencies 1,708,112 207,794 1,064,565 2,980,471 4,570,530 7,551,001
1) Physical Contingency 772,112 95,594 481,772 1,349,478 1,273,716 2,623,194
2) Price Contingency 936,000 112,200 582,793 1,630,993 3,296,814 4,927,807
8. PMO(2%of base cost) - 1,049,278 1,049,278
9. ServiceCharge(0.1%of EDCF) 29,970 29,970 29,970
Total 17,180,324 2,119,670 10,700,005 30,000,000 32,443,604 62,443,604
Percentage(%) of EDCF 57.30% 7.10% 35.70% 100%
Percentage(%) of Total 27.50% 3.40% 17.10% 48.00% 52.00% 100%
2.5 Project Period

The project period is composed of the professional consulting service period and
the main project period established during consulting. In order to execute a
successful consultation outcome, a professional consulting company will be hired.

ITEM 1M 2M 3M 4M 5M 6M 7M 8M 9M 10M 11M 12M 13M 14M 15M 16M 17M 18M 19M 20M 21M 22M 23M 24M 25M 26M 27M 28M 29M
Select Consultant Project Management (Schedule Mgt, Administrative Support, Leading PIU, Mediation & Approval, etc.)
PMO
Organize PIU Secure & Survey Site Elec./Water/Sewage Server room Setup Road Widening
Consulting Proposal
Service Procurement Support Evaluation & Supervision
Contract Sup.
Anal. Pre. Design &
Execution Drawing Build Exec. Drawing
Location Survey & Civil construction Structure Finishing & Building

Trade Construction Work Set-up Environment & Foundation construction Equipment construction
Center
Construct’n Order
Mechanical Work Analysis & Planning Air conditioner & Equipment installatiom Test
material
Order
Electric Work Analysis & Planning material Switchgear equipment & Power plant,,Power trunk Test
Analysis Construction
Test Phase I
& Design & Deploy
ITS
Order Install Analysis Construction Test

& Design & Deploy Phase II
equipment -ation
Trade Consultancy
Aca demy Service
Overseas IT IT TA
Tra ining
* IT : Inform ation T echnology
T A : T rade A cadem y
Loca l C onst.: C onstruction IT Const.
Tra ining
 Period of selecting professional consultant: 3 months

 Bidding process will be led by the project execution agency’s PMO.
 Consulting service period: 26 Months
 Basic design for the first 3 months and bidding support for 2 months are carried out.
 Proposal evaluation and negotiation of a contract supporting work are done for three
months.
 During the 18 months and 12 months allocated for trade center construction and
trading information system implementation respectively, three inspections should be
performed at the inception, interim, and the final stage of each process.
 Construction project period: 18 months
 The trade center construction process will take a total of 18 months. During that time,
design, construction, mechanical work, and electric work will be performed.
 The first phase of the integrated trading data system construction will take 6 months
and the second phase will take 8 months.
 The trade academy consulting and education will be performed during the construction
project.

Chapter II. Current Status

1. Country Status
 The Dominican Republic takes up 2/3 of the Hispañola Island in the Caribbean. A total
of 9.9 million citizens reside within the country with a GDP of 4,930 US dollars per
individual.
 The territory of the Dominican Republic was under the rule of Spain after its discovery
by Christopher Columbus in 1492. The population is composed of 73% mulatto, 16%
white, and 11% black people. Most of the people are catholic and the national
language is Spanish.
The Dominican Republic is divided into the southeast area (Sur Occidental Region)
where the nation’s capital Santo Domingo is located, the northwest area (El Cibao
Region) where Santiago, the second largest city and commercial center of the nation is
located, and the southeast area (Sur Oriental Region).

< Figure 2-1 Geographic Regions of the Dominican Republic >
< Table 2-1 Regional divisions and provinces of the Dominican Republic >
Geographic
Regions Sub-regions Provinces Provincial capital
regions
Duarte San Francisco de Macorís
Hermanas Mirabal Salcedo
Cibao María Trinidad
Oriental Nagua
Sánchez
Samaná Samaná
Santiago Santiago de los Caballeros
Cibao
Espaillat Moca
Norcentral
El Cibao Cibao Puerto Plata San Felipe de Puerto Plata
La Vega Concepción de La Vega
Cibao
Sánchez Ramírez Cotuí
Central
Monseñor Nouel Bonao
Valverde Santa Cruz de Mao
Cibao Monte Cristi San Fernando de Monte Cristi
Occidental Santiago Rodríguez San Ignacio de Sabaneta
Dajabón Dajabón

Geographic
Regions Sub-regions Provinces Provincial capital
regions
Azua Azua de Compostela
El Valle San Juan San Juan de la Maguana
Elías Piña Comendador
Sur Occidental Barahona Santa Cruz de Barahona
Baoruco Neiba
Enriquillo
Independencia Jimaní
Pedernales Pedernales
Distrito Nacional Santo Domingo de Guzmán
Metropolitana
Santo Domingo Santo Domingo Este
Sur San Cristóbal San Cristóbal
Monte Plata Monte Plata
Valdesia
Peravia Baní
San José de Ocoa San José de Ocoa
Sur Oriental
La Romana La Romana
San Pedro de
San Pedro de Macorís
Macorís
Yuma
Hato Mayor Hato Mayor del Rey
El Seibo Santa Cruz de El Seibo
La Altagracia Salvaleón de Higüey
 The report presented by the World Economic Forum (WEF) in 2009 showed that out
of the 133 countries surveyed worldwide, the Dominican Republic’s national
competitiveness ranked 95th . As shown in <Table 2-2>, it is in the lower middle level
among Latin American countries.
< Table 2-2 Global Competitiveness Ranking of Middle and South American Countries >
Global Category
Competitiveness Innovation and
Name Basic Efficiency
Ranking Sophistication
(2009~2010) Requirements Enhancers
Factors
Costa Rica 55 62 58 37
Brazil 56 91 42 38
Panama 59 55 70 54
Mexico 60 59 55 67
Columbia 69 83 64 62
El Salvador 77 66 83 87
Peru 78 88 59 85
Argentina 85 84 84 76
Jamaica 91 101 73 83

Dominican Republic 95 98 88 82
Ecuador 105 93 113 123
Venezuela 113 104 108 130
Paraguay 124 122 115 131
※ Reference: WEF(2009-2010 Global Competitiveness Ranking)
<Figure 2-2> below shows the development score of the Dominican Republic in 2009. The
lowest score is 1 and the highest score is 7.
< Figure 2-2 2009 Development Score for Dominican Republic >

2. Politics · Society · Economy Status

2.1 Politics · Society Status
 As a republic, the Dominican government is currently led by Leonel Fernandez of
Partido de la Liberacion Dominicana(PLD) since he was elected in May 2004. The
congress is elected every four years.
 During his first term, President Fernandez contributed significantly in overcoming the
economic crisis in 2004. Thanks to his strong leadership, we won the election again in
2008. Ironically during that time, economic depression, social instability and various
scandals made the voters turn away from him and his party. However, his newly
announced "2010-2030 National Development plan" in 2009 is attracting Dominica
again with new goals and development strategies.
 Shying away from "US oriented" foreign policies, the Dominican Republic started to
host SICA and OAS in 2006. It is focused on strengthening diplomatic relationship
with Arab countries as well. It is rising up as one of the strong diplomatic voices in the
Central and South American countries by participating in the temporary UN Security
Council, and Rio Trilateral Commission in 2008-2009.
2.2 Economy · Industry Status

2.2.1 Current Economic Trend
 Since the launching of new regime in 2004, various economy support plans have been
implemented to deal with the bankruptcy of Baninter Bank, the 2nd largest bank in
Dominica, and IMF funding in 2003. Since then, the macro-economy of Dominican
Republic has been stabilized along with increase in travel industry and internal market
growth. Dominica showed annual growth of 8% during 2005-2007, the fastest
economic growth in the Central and South American countries.
 Economic growth in 2008 decreased 5% due to the global economic depression which
ultimately led to a decrease in foreign investments and profits from the export market.
President Leonel Fernandez is currently focused on "stabilizing the economy and
recovering the growth". His main policies deal with cost stabilization, currency
stabilization, electric supply stabilization and employment stabilization.
 As shown in <Table 2-3>, foreign bonds of the Dominican Republic has been limited
to 30% of the GDP since 2005. The DSR is within 10% and is not a significant burden
on the Dominican economy.
 The Dominican Republic received 1.7 billion USD from IMF and 0.5 billion USD
from IDB in order to fund various economic growth policies. Even though increased
debt may become a serious burden to the country, IMF is optimistic about Dominica's
economic growth in the future. Dominica is expected to reach its rapid economic

growth rate within a couple of years.
< Table 2-3 Major Economic Indicators of Dominican Republic >

Classification 2005 2006 2007 2008
GDP(US$100 Million) 293.3 318.0 412.2 457.1
GDP(US$100 Million) 3,247 3,468 4,404 4,797
Economic Growth(%) 9.3 10.7 8.5 5.0
Inflation (%) 7.4 5.0 8.8 10.6
Unemployment (%) 17.9 16.2 15.5 14.0
Foreign Exchange Holding (US$100 Million) 10 17.9 29.4 28.1
Foreign Bond (US$100 Million) 70 79 89 93
Yearly average currency (Compared to US$) 30.14 33.36 33.26 34.41
D. S. R. 6.1 9.3 9.8 11.3
Balance on current account (US$100 Million) -4.8 -11 -22.3 -26
Export (US$ Million /FOB) 6,145 6,610 6,270 6,949
Import (US$ Million /FOB) 9.614 9,559 13,820 13,569
Reference: 2009 data from Central Bank of Dominican Republic, EIU, IMF, KOTIS
2.2.2 Industry and Export Trend

 As a capital of fabric exports, the fabric industry was the main exporting industry in
the late 90s. However, there is no uprising industry that can replace the fabric industry
in the export market. Also, the amount of exports that take up the GDP has been
decreased to 15% in 2007 from 27% in 2003. Dominica is in serious need for another
strong exporting industry to support the market.
Below, <Figure 2-3> represents ratio of various industries within the Zona Franca, a major
part of Dominica's exporting industry.

< Figure 2-3 2007 Industry Ratio in Dominican Republic's Zona Franca >
Component Ratio by the types of business in
도미니카공화국
Industrial Component산업비중
Ratio in DR 도미니카공화국
Free Trade Zone 자유무역지대 업종 비중
Th e manufacturing
제조업
industry 의류
Clo th es
16% 유통업
Distribution in dustry 6% Footwear
신발
31% 15% 29%
건설업
Construction 전자제품products
Electronic
11% industry
통신업
Teleco mmunication 담배
Tobacco products
11%
industry 18% 6%
7% 농수산업
Ag riculture and 의료제품
Medical products
fish eries industry
12% 13% 관광업
Th e tourist industry 9% 17% Jewelry
보석류
기타
The oth ers 기타o th ers
The
※ Reference: 2007 KOTRA and CNZFE Data
< Table 2-4 Major Import/Export Goods and Import/Export Countries >
Classification Export Import
Ferro nickel 25 Petroleum 9.3
Ratio of 3 major products (%) Steel 8.1 Gasoline 6.3
Rum 4.8 Fuel 4.5
USA 20.9 USA 30.2
Ratio of 3 major import/export
Haiti 12.7 Venezuela 10.4
countries (%)
Spain 8.4 Taiwan 6.7
※ Reference: 2008 Dominican Republic Ministry of Export Promotion Report and Export data from Custom
Service
As shown in <Figure 2-3> and <Table 2-4>, Dominica is focused on promoting various
export industries to avoid relying solely on the fabric industry to maintain the export market.
Based on the most advanced communication infrastructure among Central American countries,
Dominica is focused on promoting various high-value industries such as IT and the travel
industry. A reflection of the president’s willingness to develop the economy and advance
industrial structure, and emphasize development of systems and human resources, the nation
has established and promoted the “Mid- and long-term plan for educational innovation,
technological promotion, and vocational training improvement for 10 years(2008~2018).”
The major details are shown below.
▪ Require everyone 15 years or older to complete elementary school curriculum by 2015 in

line with the UN Millennium Goals(MDGs)
▪ For educational innovation, promote 10 innovation tasks including budget allocation of

16% of public expenses and 4% of the GDP into educational expenses
▪ For vocational training, promote 10 tasks led by INFOTEP including vocational

qualification system, vocational training facilities, industry-academy collaboration,
industrial demand survey, financial aid, labor ethics, etc.
▪ In order to gain a competitive edge, promote the innovation of technology led by

PECYT+I(INFOTEP) and SEESCyT.
While the National Plan 2010~2030 presents the blue-print of the Dominican Republic
society, economy, environment areas, the “Mid-and long-term plan for educational innovation,
technological promotion, and vocational training improvement for 10 years (2008~2018)”
establishes nation-wide HRD goals and presents strategic tasks concretely.
 In order to promote the exporting industry, various tax alleviations and advantages are
given to companies residing within the free trade zone which takes up 70% or more of
exports of Dominican Republic. Also, by signing free trade agreements with
CARICOM and CACM as well as the Contonou agreement with EU, Dominica is
focused on opening up the trading market to the world.
2.2.3 Foreign Investment Status

Since DR-CAFTA in March 2007, FDI influx has increased significantly. In order to
promote direct foreign investments and exporting markets in the free trade zone, CEI-RD has
focused its efforts on implementing various policies to entice foreign investments. CEI-RD
has surveyed FDI scale and tendency, roles of multi-national companies and their influence
over the Dominican Republic, set a direction for boosts in export and export solicitation, and
establish and make PR activities on “National brand” through PR program. For PR activities
of the nation’s brand, the nation has prepared the plan as shown below in <Table 2-5>.
< Table 2-5 CEI-RD 2010 Foreign Investment Solicitation Plan >
Target Details
▪ PR activities regarding nation’s brand image through TV, radio, newspaper,
PR via press
internet, etc.
▪ In order to promote brand PR campaign in the global market, hold international
forums and workshops for study, analysis, and definition of proposed strategies.
External ▪ In collaboration with the overseas offices of CEI-RD, promote PR activities by
supportive visiting Europe(Spain, Germany, France, Swiss), US(Miami, New York, New
activities Jersey), Caribbean countries(Puerto Rico, Jamaica), Latin America(Columbia,
Peru, Argentina, Brazil) and holding international road shows
▪ Visit the Cacao area of the Dominican Republic, hold leaders’ meetings and
presentations

▪ Plans to start a reality show called 'Beisbol Republic' to strengthen the symbol
Others
and value of Dominican Republic baseball
(National
▪ Plans to make documentary named “Caribbean Sun” to introduce mass culture
image
▪ Plans to publish ‘National brand’ covering noble image of Dominican Republic
improvement
▪ Plans to promote PR activities for Dominican Republic fashion through an event
activities)
called ‘Dominicana Moda’
 In order to promote various high-value industries such as IT and high-technology

industries as the main exporting industries of Dominica, an IT industry valley called
"Cyber Park" has been constructed near Santo Domingo
< Table 2-6 Foreign Investments in Dominican Republic >

Classification Foreign Investment Status
Country 2004 2005 2006 2007 2008 %

Scope of USA 176.6 254.6 671.5 796.1 497.4 28.1
Foreign
Spain 126.6 220.6 178.0 258.3 190.0 17.5
Investments
(2004~ Canada 274.2 194.9 90.5 163.3 587.1 15.7
2008) Others 331.6 352.9 243.3 479.9 1,610.2 38.7
Total 909.0 1,023.0 1,183.3 1,698 2,884.7 100.0
Free
Commu Manufa Real
Year Mineral Energy trading Finance Travel Total
Investment in nication cturing
zone
estate
different
‘08 299.6 283.1 51.7 703.6 66.5 237.3 236.9 656.0 2,884
Areas
Ratio 6.5 15.0 10.6 20.2 5.0 5.4 19.0 14.5 100
Reference: 2008 Statistics from Central Bank of Dominican Republic

3. Status of Project Site

 Santiago City
 Name : Santiago
 Location : 180km Northwest from Santo Domingo
< Figure 2-4 Map of Dominican Republic >
 Climate : Tropical climate (Temperature : 20~40 C degrees, Humidity: 50~60%)

 Landscape : Flat land (Cibao region) between central and north mountain range.
 Population: Approximately 1,051,522 (Male: 519,586 Female: 531,936), 2006
 Administrative District : Santiago City is the central city of 7 regional communities in
the Cibao area (Janico, Licey al Medio, Santiago, San José de las Matas, Tamboril,
Villa Bisonó, Villa González).
 Scope : Total area(2,839), Urban Area(612), City Area(75)
 City expansion trend

< Figure 2-5 Santiago City expansion trend (1800~1994) >
※ Reference: Santiago City Development Society (CDES)

< Figure 2-6 Growth trend of major industries (2002~2008) >
※ Reference : Central Bank of the Dominican Republic
 As shown in table above, President Fernandez’s economic promotion policy led to

rapid growth in the real estate and trading industry since his reelection in 2008.
Santiago City, Dominican Republic's No. 1 city in terms of industrial market, is suited
for the implementation of various economic growth polices led by the government. In
order to further promote the economic growth of the Dominican Republic, construction
of a Trade center seems appropriate.
< Figure 2-7 View of Santiago City >

 Santo Domingo City

 Name : Santo Domingo
 City Area : 104.44㎢
 Population: 2,987,013 (2006 standard)
 Climate: The city has a monsoon climate (Koppen classification). Trading winds
function as a decreasing factor for both temperature and humidity, which accounts for
large differences in climate even within the city. The average precipitation is 1,445㎜.
During January to April when there is a dry period, where the monthly average
precipitation is less than 60㎜. December to January is the coldest season with 24℃ of
temperature. The hottest months are July and August with average temperatures of
27℃.
 Administrative district: It is divided into one Guzman National District and three
regional districts. The three regional districts are Santo Domingo Norte, Santo
Domingo Este and Santo Domingo Oeste.
 City status: As the capital of the Dominican Republic, many local and international
company headquarters are located within Santo Domingo City. The Ozama River that
measures 148㎞ runs across the city connects to the Caribbean. The city is equipped
with a high-tech IT communication web and has the potential to become a global city.
< Figure 2-8 City view and CEI-RD headquarters >

4. Information Technology Area

4.1 National Information Technology Status
4.1.1 ICT Industry Status
 Despite the global economic depression, Dominica's ICT industry still showed
economic growth under President Leonel Fernandez's strong policies. Dominica's ICT
industry still has momentum for future growth.
 In order to become the best IT country in the Caribbean, the Dominican Republic
continued to invest in the wireless communication industry and broadband distribution.
By increasing both domestic and foreign investments into the field, the distribution
rate of internet and wireless networks have also increased significantly during the last
few years. The amount of foreign investments in the IT field during 2004-2008 was 1
billion USD and continues to increase very rapidly. According to the statistics
provided by the Central Bank (Banco Central), ICT industry shared 15.1% of
Dominica's GDP and became one of the leading industries in the Dominican economy.
4.1.2 Wireless/Wired Communications Status

 The communications industry has grown very rapidly in the past few years. The
growth was 27% in 2008 and 13.9% in the third quarter of 2009. The total number of
installed lines up to the third quarter of 2009 was 9.33 million lines, exceeding the
total number of installed line in 2008. Out of 9.33 million newly installed lines, 8.37
million lines (90%) are wireless lines.
< Table 2-7 Communication line installation status in Dominican Republic >
(Unit: Lines)
Classification 2004 2005 2006 2007 2008 2009(1~9)
Communication 902,258 896,252 897,026 906,485 985,711 962,432
Wireless
2,534,063 3,623,289 4,605,659 5,512,859 7,210,483 8,374,077
Communication
Total 3,436,321 4,519,541 5,502,685 6,419,344 8,196,194 9,336,509
Reference: OPTIC

< Figure 2-9 Number of installed wire/wireless lines >
※ Reference: OPTIC
 According to data collected up to September 2009, 10% of registered members use

wire-based communications and 90% of registered members use wireless
communications. Cell phones are becoming a significant part of the communication
industry.
< Figure 2-10 Communication Industry Registered Member Ratio >

 Dominica's communication market is shared by Dominica's Tricom, Mexico's Codotel

and France's Orange.
< Table 2-8 Comparison of Major Communication Companies >

Market Number of
Company Number of wireless members Service area
introduction employees
Fixed telephone,
Tricom 1988 n/a n/a wireless telephone,
internet, TV cable
Fixed telephone,
2. million (Wireless Service
Codetel 1987 1500 wireless telephone,
brand name is Claro>
internet
Orange 2000 n/a 2.2 million
Reference: KOTRA
< Table 2-9 Cell phone market share per communication company >
Name Codetel Orange Tricom Viva Others
Market Share 57% 21% 11% 7% 4%
Reference: KOTRA Santo Domingo KBC
4.1.3 Internet Status

 The distribution rate as well as internet users are growing rapidly in Dominican
Republic. Dominica has one of the highest internet distribution rates among Central
South American countries. In September 2009, Dominica had 31.1% (total of 3 million
people) of internet distribution rate, being ranked first in the Caribbean countries in
terms of internet distribution rate. The number of internet users has reached 1 million
in 2005, 2.14 million in 2008 and 2.5 million in September 2009. Now, 25% of the
total population has internet access in the Dominican Republic.
< Table 2-10 Internet line status and number of internet users >
(Unite: Thousand lines, %)
Classification 2004 2005 2006 2007 2008 2009(1-9)
Number of lines 106 134 183 264 340 399
Internet usage rate 9.2 11.9 15.4 17.7 22.6 25.8

< Figure 2-11 Number of internet users >
 Most wired/wireless communications companies are involved in the internet business

as well. Codetel, Tricom and Onemax are the leading competing companies in the
high-speed internet market. In October 2007, Onemax announced the launching of the
WiMAX service in junction with Alcatel-Lucent. Also, after WindTelecom's entrance
in November, wireless internet has become prevalent in Dominican society. Codotel,
sharing 44% of the entire market, has launched a wireless internet program called
"Internet Flash" in order to share the wireless internet market as well.
 High speed internet lines have been installed near the borderlines of Haiti, far away
from urban and city areas. Dominica is focusing their efforts on constructing
communications lines between 508 regions across the nation. However, due to the high
membership costs, high speed internet users only make up 10% of total internet users
across the nation.
4.1.4 PC Distribution Status

 According to the ITU, (International Telecommunication Union) Dominica's ICT
development index in 2009 showed a lower PC distribution rate than other neighboring
Central South American countries. However, increase in the distribution rate is
significantly higher in the Dominican Republic compared to other neighboring
countries. According to PC distribution rates up to September 2009, there are
significant yearly increases.

< Table 2-11 PC distribution rate in major countries >

Growth rate compared to
Country name 2002 2007
2002(%)
Argentina 27.0 36.4 34.8
Brazil 14.2 20.8 46.4
Chile 20.5 36.4 77.5
Dominican Republic 5.5 12.5 127.2
Mexico 15.2 22.1 45.3
Republic of Korea 78.6 80.0 1.7
United States 59.0 70.2 18.9
Reference: ITU
< Table 2-12 Annual PC distribution rate >

(Unit: Number)
Classification 2004 2005 2006 2007 2008 2009(1-9)
Number of PC 159,432 177,147 196,830 218,700 243,000 270,000
Number of homes 2,182,764 2,182,764 2,182,764 2,182,764 2,182,764 2,182,764
PC distribution
7.3 8.1 9.0 10.0 11.1 12.3
rate (%)
Reference: CEI-RD
4.1.5 S/W Developing Company Status

 After interviews with CEI-RD, the main S/W developers are as shown below.
< Table 2-13 Status of major S/W developing companies >

Name CAM Informatica, S.A.
Representative Marcos Mejia Vice-President Ejecutivo
Telephone 809.331.7000 Ext.309
E-mail marcos_mejia@caminf.com
Homepage www.caminf.com
 Software development and BAS solution (accounting ERP)
 Work with CODETEL
- Development/application of CLL
Major business - Development/application of IDW
area - Development/application of STR
- Development/application of SGC
- Development/application of SDP
- Development/application of UNICO

Name SINERgIT
Telephone 809.368.4000
Telephone www.sinergit.com.do
 Software development :
- BPM
Major business
- ERP
area
- CRM
 Distribution of PC and related accessories
Name MERCASEND
Representative Felix Diaz
Telephone 809.531.2676
Homepage www.mercasend.com
Major business  Software called Delphos, Apoyo, Matrix, Funciona, Simes, and ICG have been
area provided to more than 200 companies.
Reference: CEI-RD
4.1.6 Discussion Point

 Central American internet users make up 5% of total Internet users around the world.
In the last two years, the increase of Internet users in the Central American region has
been increased significantly. According to the World Bank and the International
Electronic Communication Association, the distribution rate of cell phones in the
Dominican Republic has already exceeded the distribution rate in Mexico. The rapid
growth can be explained by the increase of foreign investments into the nation after
introducing competition in the communications market.
 Even though high speed internet, wireless internet and internet phones are being
distributed rapidly in the nation, the distribution rate within the Dominican population
is still very low. However, considering the current increasing trend as well as the
investment trend into these markets, the distribution rate is expected to grow rapidly
within the Dominican population.
4.2 Government Information Status

 Every September, electronic government strategy is established by OPTIC and CNSIC
to construct e-Dominicana (updated annually).
 IT electronic government promotion plan, mobile electronic government plan and
other various master plans for the construction of an electronic government are
currently being discussed.
 A significant synergy effect is expected when the master plan business is funded
properly considering the president's focus in the electronic government business.

 Korea's Uni-Pass and NEIS system are being implemented in the Dominican Republic
government.
< Table 2-14 2006~2008 Major Electronic Government Project Funded by the Government >
Project Budget Use Remarks
Government Intranet Feasibility study for the
In progress/G2G
Feasibility Investigation US$ 100,000 construction of
Opened in 2006.10
(Estudio de Factibilidad) government intranet
Information share within
17 public safety offices
Intranet for Public Security
(Ministry of
Offices
N/A Communication, Internal In progress/G2G
(IESP, Interconexion Estatal
Affair, Police, National
por la Seguridad publica)
Security, Construction,
Immigration and others)
Government Intranet Construction of Executed after
US$ 3 million
(Intranet Gubernamental) government intranet G2G feasibility report/G2G
Management System for
System to process social Opened in
Social Assistance
US$ 55,000 fund cooperation and 2006.10
(SIGAS, Sistema de gestion
adjustments G2G/G2C
de Ayuda Social)
Import/Export Portal Portal site for Opened in 2006.10
US$ 30,000
(Portal del Exportador) import/export companies G2B
Virtual Government
Construction of Opened in 2006.9
Directory US$ 31,000
government address book G2G/G2C
(Proyecto Directorio Virtual)
Construction of
Emergency 911 System N/A Planning Stage
emergency 911 system
Single Window for Business
Integration of systemized
Establishment Opened in 2006.11
US$ 570,000 portal for business
(Ventanilla Unica para la G2B
establishment
Creacion de Empresa)
Electronic Complaint
Electronic process of civil
Management Center Opened in 2006.12
N/A complaints toward public
(Centro de Gestion y G2C
services
Atencion al Ciudadno)
Reference: KOTRA
 In order to distribute internet networks on a national level, a total of 1 billion Pesos

have been invested by the Dominican government until November 2008 and 867
'Internet Centers' have been constructed around the nation. The Ministry of
Communication aims to construct 1,400 technology centers equipped with an
electronic library and internet access computers.
 In order to promote the IT industry in the Dominican Republic, large-scaled IT
districts have been constructed to promote investments from foreign companies. Also,

by establishing the ITLA research center, Dominica is aiming to become the mecca of
the Central South American IT industry.
 INDOTEL is planning the following business to promote the ICT industry.
 Digital Cities, Communication Technology Centers
 Supply computers to education centers, construct digital rooms within universities,
construction of electronic library and others
 Provide internet access in public libraries, police stations, and culture centers
 Strengthen civil security with support from police offices
 Telemedicine and others
 Also, by utilizing its central location in Central and South American countries, it can
become a new “e-Trade Hub” of the neighboring region. The DR government is
focusing its efforts on promoting export businesses through the ICT system.

5. Import/Export Status and Related Policies

5.1 General Import/Export Status
5.1.1 Export Status
 The annual export increase rate was below 6% during 2005-2007, significantly lower
than the average annual export increase rates of DR-CAFTA member countries, 11%.
The sudden decrease of the exporting market in the Dominican Republic may be
explained by the downfall of the free trade zone, the delay in selecting prospective
exporting industries and the lack of exporting finance policies.
< Table 2-15 Economic Prospect of Dominican Republic >

2008 2009 2010 2011
Economic Growth (%) 4.5 3.8 4.5 4.5
Inflation (%) 10.5 8.2 6.1 5.4
Export Growth (%) 3.1 1.1 0.2 4.0
Reference: EU
5.1.2 Export Status

 The exporting drive of the Dominican Republic has been weakened significantly in
recent years. Since the 1990s, 35% of Dominica's GDP was supported by goods
exports. However, it has decreased to 27% in 2003 and 15% in 2007.
 The reason behind the sudden decline of the exporting industry in the Dominican
Republic has to do with the downfall of the free trade zone, delay in selection of
prospective exporting industries, and lack of exporting finance policies. Even though
the decline of the free trade zone is persistent, it still shares 65.3% of the Dominican
exporting market.
 The total exports of the Dominican Republic was 5.5 billion USD in 2003, 5.9 billion
USD in 2004, 6.1 billion USD in 2005, 6.6 billion USD in 2006, and 7.2 billion USD
in 2007. However, the increasing trend started to disappear in 2008. It was 6.9 billion
USD in 2008 and 5.8 billion USD in 2009. Thanks to the economic boom in the US,
the exporting market of the Dominican Republic also marked its peak at 7 billion USD
in 2007. However, the importing market has also peaked in the same year (13.6 billion
USD). (The trade balance was minus 6.4 billion USD, the largest loss in the history of
the Dominican Republic.)
< Table 2-16 Annual Import/Export Status >

(Unit: Million USD)
2003 2004 2005 2006 2007 2008 2009
Export 5,470 5,935 6,144 6,610 7,160 6,949 5,765
Import 7,626 7,888 9,869 12,174 13,597 16,080 12,449

Reference: EU
< Table 2-17 Five Major Export Countries >

(Unit: Million USD)
2007 2008
Rank
Country Export scope Share(%) Country Export scope Share(%)
1 USA 597 26.4 USA 388 20.9
2 Netherlands 355 15.7 Haiti 235 12.7
3 China 190 8.4 Spain 156 8.47
4 Haiti 155 6.8 Netherlands 143 7.7
5 Korea 135 5.9 Belgium 118 6.3
Reference: Export statistics from Tax Service
5.1.3 Import Status

 Imports were decreased during 2002-2003 due to the economic depression. Imports
were at 7.9 billion USD in 2004, 9.9 billion USD in 2005, 12 billion USD in 2006,
13.1 billion USD in 2007, and 16 billion USD in 2008. The increasing trend has
stopped in 2008-2009 due to the global economic depression. Imports were at 12
billion USD in 2009.
 The five major importing goods of the Dominican Republic are petroleum and its
derivative products, large consumption food products, automobile and electronic goods,
steel products, and medical and chemical goods. Imports of petroleum and its
derivative products scaled up to 4.22 billion USD, sharing 31.4% of total importing
goods.
< Table 2-18 Five major import countries of the DR >

(Unit: Million US$)
Origin country + FOB standard Shipping country + FOB standard
Rank
Country Exporting scope Share (%) Country Exporting scope Share (%)
1 USA 4,034 30.2 USA 4,423 33.1
2 Venezuela 1,397 10.4 Venezuela 1,397 10.4
3 Taiwan 895 6.7 Mexico 781 5.8
4 Mexico 836 6.2 Columbia 712 5.3
5 Columbia 723 5.4 Taiwan 612 4.6
Reference: Export statistics from Tax Service
5.2 Import/Export Status of Major Goods

 The major exporting goods of the Dominican Republic are sugar, coffee and its
derivatives, cacao and mineral. Major importing goods are consumer goods, raw

materials, and capital goods. Excluding exports from the free trade zone, ferro nickel
showed 60.5% increase in 2007 but showed 56% decrease in 2008. The export
increases of coffee and cacao were 31% and 18% respectively in 2008.
 The exports from the free trade zone shared 65.3% of total exports in 2008. The
exports from the free trade zone showed 2.1% increase in 2003, 6.3% increase in 2004
and 1.4% increase in 2005. However, it showed 1.5% decrease in 2006, 4% decrease
in 2007 and 0.4% increase in 2008. A total of 525 companies resided within 48
districts of the free trade zone until 2008. Out of 525 companies, 44% are from the US,
32.1% are from the Dominican Republic, 3% are from Puerto Rico, and 2.6% are from
Korea.
< Table 2-19 Export Status of Major Trading Goods >

(Unit: Million US$)
Category 2003 2004 2005 2006 2007 2008
Sugar 97.0 93.5 73.1 104.9 98.0 84.8
Coffee 16.5 5.8 4.1 8.79 6.37 8.3
Cigarettes 13.3 37.4 11.5 6.2 14 11.1
Cacao 77.0 59.4 26.8 57.9 81.0 92.6
Ferro Nickel 238.7 390.0 289.1 709.9 1,098 492
Free Trade Zone 4,398 4,416 4,545 4,507 4,525 4,544
Total 4,840.5 5,002.1 4,949.6 5,394.6 5,822.3 5,232.8
Reference: Central Bank of Dominican Republic
< Table 2-20 Import Status of Major Trading Goods >

(Unit: Million US$)
Category 2003 2004 2005 2006 2007 2008
Consumer Goods 2,009 2,750 3,086 4,437 5,915 6,856
Raw material 1,072 1,350 1,560 2,963 3,561 4,570
Capital goods 815 870 1,060 1,345 1,812 2,143
Total 3,896 4,970 5,706 8,745 11,288 13,569
Reference: Central Bank of Dominican Republic
5.3 Export Status of Free Trade Zone

 The number of free trade zones has increased to 59 locations in 2007 from 46 locations
in 2000. The number of employees in the region has been decreased to 120,000
employees in 2007 from 190,000 employees in 2000. The fabric industry, one of the
major industries in the free trade zone, has been declining since 2000. Total exports
have decreased to 1.7 billion USD in 2007 from 2.2 billion USD in 2003.
 The decrease in free trade zone exports has to do with the decline of major industries

in the Dominican Republic as well as increases in labor costs. As the labor costs of the
Dominican Republic increased significantly since the termination of import quarters in
US, many Asian investors turned to Guatemala, Honduras and other neighboring
countries for new investments. Clothing exports have decreased to 1.7 billion USD in
2007 from 2.2 billion USD in 2003. It has decreased by almost 50%. (Weekly pay for
workers within the free trade zone was 718 Pesos in 2000. It has been increased to
1,480 per week in 2007.)
 Also, failure to find an alternative industry other than the fabric industry to support the
export economy was one of the main reasons for the decline of free trade zone trading.
Thirty-two percent of 526 companies residing within the free trade zone deal with
fabric trading. Other companies deal with agricultural devices, service, tobacco, plastic
manufacturing and other goods. In order to promote the exporting market in the
Dominican Republic, there is a crucial need to find an alternative industry to lead the
economy. Various export finance policies and promotion strategies must be
implemented soon.
< Table 2-21 Export Statistics per Good in Free Trade Zone (03/1~07/1) >
(Unit: 1,000 US$)
Good 2003 (Jan) 2004 (Jan) 2005 (Jan) 2006 (Jan) 2007 (Jan)
Fabric 2,196,435.8 2,120,564.7 1,904,637.7 1,596,319.0 173,998.5
Electronics 577,590.4 630,522.6 700,330.0 666,415.5 89,521.6
Jewels 466,820.7 600,949.9 602,893.5 631,498.8 76,113.8
Medical goods 320,725.3 288,338.6 284,107.0 294,127.8 38,857.0
Shoes 202,547.3 234,728.7 315,321.5 287,852.8 36,797.0
Tobacco 287,620.8 308,607.4 334,073.2 364,529.3 51,971.5
Others 355,018.3 501,528.9 608,287.4 665,905.8 98,685.1
Total 4,406,758.4 4,685,240.8 4,749,650.3 4,506,649.0 565,944.5
※ Reference: Central Bank of Dominican Republic
5.4 Status of Exporting Companies

 The number of export companies in the Dominican Republic was 3,000 in 2009.
Seventy percent of these companies have less than 100,000 USD of annual exports.
Even though only 2.9% of these companies have more than 10 million USD annual
exports, they share 80% of the total export market in the Dominican Republic.
Therefore, various policies to support mid-sized companies should be implemented to
promote the export market.

< Table 2-22 Number of Exporting Companies Based on Their Scope >
Number of Companies
Scope
2005 2006 2007 2008 2009
More than 100 million 7 9 7 8 8
More than 10 million 70 72 81 77 78
More than million 255 246 257 293 249
More than ten thousand 542 481 699 666 563
Less than ten thousand 1,994 1,675 2,133 2,041 2,043
Total 2,868 2,483 3,177 3,085 2,941
※ Reference : CEI-RD
< Table 2-23 Exporting Amount Per Scope >

Exporting Amount (Total: FOB US$10,000)
Scope
2005 2006 2007 2008 2009
More than 100 million 1,310.63 1,684.88 2,341.20 1,846.47 1,218.15
More than 10 million 2,185.46 2,397.18 2,259.38 2,624.34 2,442.57
More than million 776.37 765.47 849.46 883.83 799.51
More than ten thousand 188.60 169.13 241.90 225.27 194.98
Less than ten thousand 34.64 30.92 37.00 38.00 41.17
Total 4,495.70 5,047.58 5,728.94 5,617.91 4,696.38
※ Reference : CEI-RD
5.5 Trading Scope with Korea

 Income of the Dominican Republic during the first half of 2009 decreased by 80.1%,
and exports decreased by 43.4%. The export of automobiles, the major export product
to the Dominican Republic, has been decreasing rapidly in past few years but exports
of zinc plate and medical goods are increasing over the years.
< Table 2-24 Export Status to Dominican Republic >

(Unit: 1,000 US$)
First half
Classification 2003 2004 2005 2006 2007 2008
of 2009
Export 81,526 73,867 120,437 108,864 120,362 125,500 37,000
Import 71,844 121,849 68,544 87,216 126,158 90,200 11,000
Trade balance 9,682 -47,982 51,893 21,648 -5,796 35,300 26,000
※ Reference : KOTIS

< Table 2-25 Major exporting goods to Dominican Republic in 2008 >
(Unit: 10,000 US$)
Zinc Automobile Steel
Classification Automobile Truck Tire Fabric
plate parts plate
Scope 2,592 860 656 469 412 355 353
※ Reference : KOTRA
< Table 2-26 Products that showed significant growth in 2008 >
(Unit: 10,000 US$)
Category 2007 2008
Zinc plate (35.9%) 4,826 6,560
Medical goods(33.9%) 2,105 2,820
※ Products that were above 1 million USD IN MT14Unit are included
< Table 2-27 Products that showed significant downfall in 2008 >
(Unit: 10,000 US$)
Category 2007 2008
Automobile(-55.4%) 46,749 25,920
Tire (-13.3%) - -
※ Products that were above 1 million USD IN MT14Unit are included
 The main product imported from Dominica to Korea was steel alloy (ferro nickel).
Imports have increased from 53 million USD (61% of total imports) in 2006 to 114.65
million USD (91%) in 2007. Even though the importation amount has been decreased
to 47.77 million USD (-58.3%) in 2008, it is still being ranked as number one product
that is being imported to Korea (52.9% of total amount). On the other hand, imports of
ferro nickel have decreased in 2008, while imports of used batteries were increasing
rapidly along with copper scrap, steel scrap and sanitized medical goods. However, the
total import amount has decreased by 28.5%.
< Table 2-28 Major import products from Dominican Republic in 2008>
(Unit: Million US$)
Sanitized Aluminum
Used
Classification Steel alloy Steel scrap medical and steel
batteries
goods scrap
Cost 48 17 8 4 2
Increase rate(%) -58.3 2,668.9 4,118.9 24.0 4,895.9
※ Reference : KOTRA

Chapter III. Project Executing Agency and System

1. PEA and PMO
1.1 Project Executing Agency (PEA)
 Name of Project Executing Agency
CEI-RD: Centro de Exportación e Inversión de la República Dominicana
 Outline
CEI-RD is an organization made from combining CDEOPEX and OPI-RD in
2003.06.17. It is focused on promoting the international export industry and foreign
investments in the Dominican Republic.
 Business area
In order to advertise and promote the Dominican Republic’s export industry, various
policies are being implemented to increase nation’s competitiveness in the global market
and to entice company investments into the Dominican Republic.
 Organization (242 employees)

Directly under the president’s command, CEI-RD is composed of the export
promotion department, foreign investment promotion department, and service support
department.
< Figure 3-1 CEI-RD Organization >
※ Reference: CEI-RD

1.2 Project Management Office

 Cooperation between the Korean organization and the Dominican team is crucial for
the successful execution of this project.
 The Project Executing Agency, CEI-RD, is planning to form the Project Management
Office as shown in Picture 3-2 for an effective execution of the project.
< Figure 3-2 Project Management Office Organization >

Director of PEA
(CEI-RD Minister)
PMO Director
Inter-department Unit (PIU) Administration Team
Construction Team Trade System Team Trade Academy Team
 Management of system development  Management of education course

 Management of construction
 Work with related offices for export development
inspection
authorization, transaction and  Operation of academy and
 Support construction certification/
shipment process establishment of strategies
authorization process
 Review legal policies and its  Establishment of training program for
 Work with related offices to construct
implementation required for eTrade teachers
required infrastructure (electricity,
system  Cooperate with other education
water line, gas line and others
offices
 Soil investigation required for design
and construction process
 Before starting this project, bidding documents should be drafted in order to select
professional consultants for this project. Then, the following tasks must be executed
with help from consulting companies.
 Preparation of bidding documents, bidding proposal evaluations, authorization of
design drawings
 Authorization of actual design drawings and specifications
 Project progression management
 Preparation for authorization from the Dominican Republic Government (documents
and reports)

2. Project Execution and Cooperation System

In order to execute this project successfully, PEA and PMO must work together to
form a Project Implementation Unit (PIU) that can intervene in the early stages if there
are any problems. Then, in order to have fluent communication between different
departments, each department should appoint an employee who specializes in this project.
All of the parties should work together closely to execute this project successfully.
< Figure 3-3 Project Cooperation System >

3. Experience in Similar Projects

 JICA Project: Construction of Human Resources Education Center for Promotion of
International Exports
< Table 3-1 Project Summary for Similar Projects >

Classification Contents
Fund JICA Fund

▪Total cost :USD 7,000,000
Cost - Free credit : USD 6,000,000
- Material donation : USD 1,000,000
▪3 Floors
▪Total area: 3,065 ㎡
Project Scope - 1st floor : 1,075 ㎡
- 2nd floor: 978 ㎡
- 3rd floor: 1,012 ㎡
Provide basic business education to foster human resources required
Project goal
to promote international exports.
Construct a center focusing on supporting companies and providing

Project details basic business education to foster human resources required to
promote international exports.
General courses such as ‘Basic international trade’ are opened, and

seminars and workshops covering export business plan, business
Major training
opportunities in the European market, effective promotion of export
program
offer, are to be furnished.
*Refer to the <Table 4-16> for further details.
Project period 2007~2008
Location Next to the CEI-RD Headquarters in Santo Domingo City
Beneficiary Private investments composed of middle sized companies
Expected effect Train professionals in international trading
By providing a wide range of education such as management, freight,

sales, and development of new markets to anyone willing to learn
Result
about international trading, it became one of the major international
trading company centers (I*CEi) in the Dominican Republic.

▪Provide basic human resources education programs to trading

companies each year
▪Provide high quality education programs for trading company CEOs
Current status ▪Promote various culture activities for local and international
participants interested in trading with Dominican companies
▪Cooperation with local and international university research centers
▪Operation of a trade academy program
▪Since the education program is limited to theoretical aspects of
trading, more specialized education that can be used directly in the
Weak point field is needed.
* Refer to 2010 I*CEi basic education program and CEO education
program
Application to this ▪The training program that will be provided in our project will be
project upgraded version from I*CEi education program.

Chapter IV. Project Execution Plan

1. Outline
As shown in the status analysis, Dominican Republic also went through several
economic crises after 1980s. However, its economic development trend is much better
than its neighboring countries.
Even though the fabric industry became the leading industry of the exports market in
1990s, its role in GDP has been decreased to 15% in 2007 from 27% in 2003. Dominica
is in need of a new industry to lead the exports market. Also, there is a need to
implement various cooperation systems to promote exports from companies with less
than 10,000 USD of annual exports since they form 70% of the 3,000 exporting
companies in the Dominican Republic.
Also, even though the CIBAO region established the free trade zone to promote active
trading within the region, there is no exhibition center that can aid trading businesses
around the region. EXPO CIBAO, a trading exhibition that is held every September, is
located far away from the suburban area of Santiago City. Not only that, but it does not
have its own exhibition building and is being hosted in a gymnasium. The lack of an
exhibition center led Dominican to host only 10 major exhibitions each year as shown in
<Table 4-1>. Therefore, there is a need to provide a system that will host and promote
these exhibition centers.
Also, there is a need to reform the trade process in accordance with changes in the
information environment and gain a competitive edge to cope with changes in the global
trade environment. Consultation bodies including the UN, APEC, ASEM has
recommended building a [e-Trade Single Window] to invigorate trade. The e-Trade
Single Window aims to build an integrated trade information foundation that can provide
one-stop service in connection with relevant organizations’ services such as customs
clearance, quarantine, foreign exchange, etc.
In addition, the Trade Academy in CIBAO for vocational training must be built to
boost exports. In Korea, the supply of well-trained human resources contributed to rapid
economic growth and transfer to a knowledge-based economy in Korea, but the
Dominican Republic lacks such development of human resources, the major reason that
limits enhancement in exports and the strengthening of competitiveness in businesses.
Similar to what Korea did to promote their trading businesses, the Dominican
Republic should also execute the following under CEI-RD’s command.
 Construction of a trade center, which is a physical requirement

 Construction of a trade academy for human resources, which is a personnel
requirement

 Construction of an integrated data system for operation purposes, which is an

operational requirement

2. Construction of Trade Center

2.1 Status Analysis
2.1.1 Research on Land and Infrastructure
A. Proposed project site
The proposed project site location of the CIBAO trade center is as shown below. It is
20km from Santiago International Airport, 2km from downtown, and 3km from the free
trade zone. It is easily accessible from any region in Santiago City.
< Figure 4-1 Location of CIBAO Trade Center >
 The trading support business is being led by CEI-RD of Santo Domingo City. The
trade academy is being operated at a small 3 story building constructed during the
JICA project.
 Therefore, Santiago City is the perfect location to construct a trade center that can hold
various exhibitions and provide the proper education required to promote trading
businesses in the city.
B. Opinions after Visiting the Construction Site and Analyzing the Status
After considering neighboring environment, social facilities, accessibility, cost, size,

and future potential, Antiguo Aeropuerto Cibao has been selected as the site for the
construction.
 Name: Antiguo Aeropuerto Cibao

 Location
▪ Averida Bartolome Colon corner Padre Las Casas : Sector Padre Las Casas, Santiago,
Republica Dominican
▪ 180km Northwest from Santo Domingo City (2 hours by car)
 Status
▪ 2km from downtown, 3km from free trade zone and 20km from international airport
▪ It was used as an airport site previously and is located with residential and commercial
areas nearby.
▪ A large area has been obtained to fulfill required functions and future development is
also possible
▪ The construction of a park in the earlier runway area will serve as a green axis that
will provide environment-friendly and buffer zone around the region.
< Figure 4-2 Photos of Antiguo Aeropuerto Cibao >

< Figure 4-3 Antiguo Aeropuerto Cibao: Satellite image >
 Neighboring area
▪ The neighboring area is composed of small residential and commercial regions. The
region may be developed along with the construction of a trade center in this area.
▪To the north is Rio Yaque Del Norte. The site’s boundary is not clear around the
neighboring region.
▪ An airport terminal building is still present and the runway is being used as a car
racing track.
▪ Since it is only 20km away from major regions of Santiago City, it will have
advantages in hosting international visitors.
 Soil quality
▪ Visible land area is composed of sedentary soil. Based on visible land sites, it will have
no problem withstanding the weight of construction center.
 Slope
▪ Inspections showed no slope issues for the construction. It was previously used as an
airport.
▪ Since the land has been previously constructed as an airport, additional cost required to
prepare the land will not be an issue for this project. It will be of great help in
managing the construction cost efficiently.
▪ By considering possibilities of expansion around the area, this site has the most
advantages compared to other candidates.

▪ The executing agency must submit information about the exact boundaries of the site
and land research data before the project is started.
 Earth Strength
▪ Based on inspections, the site seems to be normal ground composed of sedentary soil.
▪ Earthquake frequency 1 /5-10 years. 7 years ago, 4.3 strength earthquakes occurred in
the Santiago City. Based on experiences in Haiti, it is important to perform
investigations about the land before starting the construction.
▪ The executing agency must perform soil investigations and earth strength tests for the
entire land site in order to form basic and design drawings based on accurate data.
 Direction
▪ Since the site has been used as an airport before, it has clear view around the city from
2-3 stories high.
▪ The main road from Santiago City is from the Southeast and other roads are connected
from different directions.
▪ Therefore, the buildings must be allocated so that it faces the main road in the
Southeast region. Future expansions may be constructed in the Northwest region.
(Setting of construction axis and main input road)

 Infrastructure
① Road
▪ The main road in Southeast direction (Round 4 lines) is too small for the promotion of
Trade Center. There should be expansion construction conducted by the Dominican
Republic for a better flow of traffic into the building.
▪ Southeast area: During the construction of trade center, the Southeast road should be
expanded and used as a main input road to the building.
▪ Northwest area: Since the border line is unclear with different residential and
commercial area, the Dominican Republic must clear out the boundaries before
starting construction.
② Electricity
▪ Even though electricity is currently available, a large amount of electricity is required

when the Trade Center is constructed in this site. Therefore, expansion construction is
needed.
▪ Since many of the buildings are equipped with electricity-generation facilities to
compensate with shortages of electricity, the Trade Center must also be equipped with
electricity- generation facilities to host exhibitions and international meetings.
③ Water
▪ Even though there is an existing waterline, the water contains too much calcium that
makes it undrinkable. There is a need to install a purification system during the
construction of trade center.
▪ PVC pipes must be used to protect the pipes from calcification.
▪ Currently, sewage water from Santiago City is being handled in the Santiago City
sewage center using a separate line.
▪ During the basic design phase of the Trade Center, the capacity of sewage center in
Santiago City must be analyzed to determine whether the installation of private
sewage processing center/device is needed during the construction.
④ Air Conditioning/Heating System
▪ Even though hot water is needed, there is no need for a heating system due to the hot
weather.
▪ Considering operation and maintenance of the Trade Center, a central air system
(CAV/VAV method) should be applied.
⑤ Wireless Communication System

▪ Use of wireless communication, LAN and Wi-Fi is common.

 After visiting the site, we determine that the site is optimal for construction of the trade
center due to its large and flat area and its view from every direction of the city.
 However, the infrastructure needed for the construction of the trade center is still not
prepared for construction. There is a need to expand these infrastructures before
construction of the actual building.
 A careful investigation on the land including contour surveys and soil tests should be
done due to earthquake risks of the Dominican Republic. Also, anti-shock
considerations should be made during the design process of the Trade Center.
 Summary of Preceding Tasks prior to Start-up of the Project
Category Tasks Purpose
Figure out boundary of site and

Boundary and topographic survey,
Site facilities underground → Building
and land facilities survey
arrangement data
Geological survey and earth strength Make decision on structure of
Soil
test construction
Road expansion work, arrangement Facilitate transportation system

Road
of back-side area surrounding the site
Electricity Electricity extension work Secure electric capacity
Figure out sewage treatment plant

Water Decide sewage treatment method
capacity

2.1.2 Comparison of Construction Features of Similar Local

Constructions
< Table 4-1 Comparison of construction features >
Classification Case-1 Case-2
Photo
Use Residential building (apartment) Commercial building (shopping center)
Structure RC SRC
Exterior Painting Curtain wall + AL panel + steel
 Commercial buildings use SRC structure
 In order to avoid sunlight, terrace and
to form a long span space within the
sun blind louver figures at the front
building
part of the building are being used
 Since the size of steel structure in the
major functional/design factors
building is not big, the ceiling
 Roof insulation constructions are
construction is very complex
being commonly installed to protect
Features  New construction methods and materials
the building from the solar heat
are being used
 Detailed constructions are being done
 Strong colors and open inner/outer space
 Recently, construction of residential
 Opened elevation
buildings with more than 10 story
high has been increased
 Closed space
 Modern style buildings with opened floor plans and elevations are being constructed
across the nation.
 However, this construction must also consider traditional construction properties (sun
light, terrace, closed elevation) as well as environment-friendly construction during the
planning phase.
 By applying modern and regional construction properties, we are planning to
implement an environmental-friendly construction design to the building.

2.1.3 Status of Major Exhibitions

< Table 4-2 Schedules of Dominica’s major exhibitions >
Name City Period Time in year Location Remarks
Hotel
International Energy Santo Domingo Annually October Renaissance
Jaragua
Santo Domingo Hotel
International Steel Santo Domingo Annually ‘09.03.12~15 Dominican
Exhibition Fiesta
Santo Domingo Hotel
International Furniture Santo Domingo Annually Mid March Dominican
Exhibition Fiesta
Polideportivo
Puerto Plata Integrated
General
Exhibition Puerto Plata Annually Late March
Gregorio
Luperon
Santo Domingo
Teatro
International Book Santo Domingo Annually Late April
Nacional
Exhibition
Hotel
Santo Domingo Every
Santo Domingo ‘09.05.14~17 Dominican
Construction Exhibition other year
Fiesta
Santo Domingo Estadio
Santo Domingo Annually Late July
Automobile Exhibition Quisqueya
Santo Domingo Hotel
Hotel and Restaurant Santo Domingo Annually Late August Dominican
Exhibition Fiesta
Complejo
Cibao Exhibition Santiago Annually ‘09.09.16~20 Deportivo La
Barranquita
Santo Domingo Every Puerto San
Santo Domingo ‘10.10.20~24
IT Exhibition other year Souci
Constatucion Exhibition San Cristobal Annually ‘09.11.04~09
 As shown in the above table, exhibitions during the year have been held in Santo
Domingo, the capital of Dominican Republic, excluding three(3) exhibitions held in
local areas. EXPO CIBAO is the largest and global exhibition, which is held in
Santiago every mid September.

The general exhibition EXPO CIBAO boasting the largest scale in Latin America
faced difficulties in finding a place for exhibition; it was held in the yard of Bukka
minor University, but the place was changed to Santiago Hall, and then it was held in
the Barranquita Sports Complex for the last 9 years.
During five(5) days of EXPO CIBAO last year, about 350,000 people visited 420
booths of 220 participants of the EXPO CIBAO where transactions worth USD 10 mil.
were concluded through about 150 cases of exports consultation.
 In case of Santiago, the biggest agricultural product site and one of the major export
cities of the Dominican Republic where the free trade zone, which was the major
source of US dollar influx for the last 10 years, declined due to financial crisis under
IMF. The city has exerted efforts to boost exports through industry-academy
collaborations. Such efforts started before (e.g., the nation promoted the building of a
convention center at the center of the country about 15 years ago), but it was
suspended due to financial problems among others. The DR began to promote the plan
to build a standing exhibition hall in the free trade zone again.
 Similiar to Korea, economic development based on exports is the Dominican
Republic’s major national policy. While the Dominican Republic – especially Santiago
– is equipped with conditions for active promotion of exports such as solid financing
capability, systematic cooperation system, and new port construction plan in Monte
Cristi, etc., it lacks an exclusive exhibition hall, and therefore there is an urgent need to
build the standing exhibition hall to boost exports.
 When the exhibition hall is constructed by construction of the CIBAO Trade Center,
EXPO CIBAO, which is planned to be reshaped into a specialized exhibition from
general exhibition, can be held in a smoother manner. Also, other exhibitions which
have been held in Santo Domingo can be held in Santiago, thanks to a well-established
road network. Various exhibitions in relation to active industry activities of Santiago
can also be held, which may invigorate the economy of Dominican Republic.
2.1.4 Exhibition Center Status

CEI-RD of the recipient country has 3,100m2 construction on the north side. It has
been constructed in 2008 with JCA (Japan International Cooperation) support. The first
floor is being used as an exhibition and business center. The second floor is used as 4
class rooms including a computer class room. The third floor is used as offices and a
small sized auditorium.
The export product exhibition center installed in the lobby of the 1st floor of this
building is 120m2 of space where there are no separate booths and only some medical
products, agricultural/livestock products, construction raw materials, food/beverages
required for aid to Haiti, therefore there is a need to construct a broader space standing
exhibition center to hold exhibitions and hold PR activities in systematic manner.

< Figure 4-4 Building exterior >
< Figure 4-5 Building interior >

A. Exhibition center
Photo Status
 Exhibition of goods is being done to show

products that may be exported to Haiti.
 The space is too small compared to the number of

provided goods.
 It is a temporary exhibition space and not suitable

for exhibitions of Dominica’s main products.
 There is no exclusive exhibition center for export

goods.
 Current exhibition goods: agricultural goods, dairy

goods, light industry goods

B. Classroom
Photo Status
 Not enough space and lecture rooms to hold various
classes
 Not enough sound/video systems needed for the

classes
 Classroom status:
One 30㎡ room, one 45㎡ and two 85㎡rooms
30 ㎡ size room : 1 EA
C. COMPUTER CLASSROOM
Photo Status
 Not enough room compared to the number of

computers
 No sound/video system is installed the classes
 No computer desks (cables are exposed)
 The access floor is not utilized properly and the cables

are fully exposed
 No installation of individual cooling devices to cool

down heat from computers
 One with 30 space
 24 computers

D. Business center
Photo Status
 Even though it is a clean environment, there is not

enough space for export/import business consultations
to support trade business
 It is practically not functional because there is no

updated information
 No consultation space available

(Area of business center: 90)
E. Auditorium
Photo Status
 Auditorium (step-wise room) has 130 seats, not large

enough to hold various national events and large-sized
seminars. (Auditorium area : 240)
 Not enough stage space limits events
 Since there is not enough sound/video systems as well

as interpretation systems, it is not enough to be
recognized as CEI-RD’s main auditorium
 CEI-RD representatives also understand the need for

modern conference facilities.

2.1.5 Requests from Project Executing Agency

The following are the requests from CEI-RD regarding the construction of the CIBAO
trade center.
A. Function and Design
 Suggest the best construction site from 4 candidates suggested by the executing agency
 Construct an exclusive exhibition center for CIBAO EXPO which is growing rapidly
in size
 Include exclusive conference facilities (including live interpretation systems)
composed of at least 300 seats
 Include an exhibition room that can be used to advertise Dominica’s products
 Include a trade academy (small, medium and large class room, computer class room
and business center) for the education of professionals
 Include the most recent and largest facilities as possible within the budget
 Large exhibition rooms should not look like a factory
 Apply light and modern construction designs so it can be distinguished from other
buildings
 An earthquake-proof design should be applied in consideration of what happened in
Haiti and the risk of earthquakes in the Dominican Republic
B. Opinions about the request from PEA
 A total of 50,000㎡is needed based on the space program given by CEI-RD. By

applying USD800/ of construction, total of 40 million USD of construction budget is

needed.
 Considering Korean cases, the sizes of the exhibition center, convention center, and
grand ballroom should be adjusted.
 By comparing trading scope, population and other various factors of Korea and
Dominican Republic, it would be effective to have a trade center with size of 20,000.
After constructing the center, the government can decide on future expansions based
on Santiago City’s status for an effective execution of the project.
2.2 Best Practice

2.2.1 Cases of Trade center
A. Opinions after Reviewing Korean Cases
 In order to select the role model for CIBAO Trade Center, economic scope, exhibition
frequency/status, operation organization, main use and other various complex factors
must be considered.
 Comparing with COEX (Seoul), BEXCO (Busan), ICC (Jeju), CONVENSIA
(Incheon) and CECO (Changwon, CONVENSIA and CECO shared the most similar
characteristics as the CIBAO Trade Center.
 Considering building coverage ratio of 50 % and its strategic location (within free
trade zone), the most optimal reference project for CIBAO Trade Center construction
should be CONVENSIA.
 CONVENSIA is designed to support the trading business by being the key location in
Incheon Free Trade Zone. Its purpose is to upgrade Songdo City into a center of
Northeast Asia’s trade industry.
 Santiago city has a free trade zone (Zona Franca) 4km away from the downtown. The
construction of a trade center will focus the CIBAO industry onto one location and aid
in upgrading the city into the center of Central and South American trading business.
Its purpose is similar to that of CONVENSIA of Korea.
 The exhibition center project does not end with the construction of the building. In
order to maximize its effect, promotion of exhibitions and active operation of
cooperation system must be implemented around the region to make this project
successful. There are many Korean cases to support how important these activities are
after the construction of the trade center.
B. Korean Case Analysis

< Table 4-3 Facilities for Major Exhibition Centers >

Classification SONGDO CONVENSIA CECO
Location Incheon Songdo Gyungnam Changwon
Area 102,166.20m2 39,817 m2
Exhibition center, international Exhibition center, international

Main purpose
convention convention
Aboveground 37,396.87 m2 46,714 m2
Area Underground 19,770.99 m2 -
Total 57,167.86 m2 46,714 m2
Scope 1 underground, 4 ground floors 6 floors
Steel reinforced concrete, steel Steel reinforced concrete, steel

Structure
structure structure
▪ Area:7,827m2 (144m x 54.4m)
▪ Use: Professional exhibition,
▪ Area:8,416m2 (108m x 90m) fashion show, concert and
(Can be divided into two) various events
▪ Usage: Professional exhibition, ▪ 500 exhibition booth (3mx3m)
Exhibition center
fashion show, concert and ▪ Able to hold 7,000 people
various events (theater type)
▪ 450 exhibition booth(3mx3m) ▪ Headquarters 3 rooms(100m2)
Storage 4rooms (332m2)
Ticket room 2 units (42m2)

▪ Convention hall (3rd floor):

▪ Premier ball room(2nd floor): 1,653m2 (Can be divided into 3),
1,716m2 Able to hold 2,000 people
(Can be divided into two) Class, Award, events
▪ Meeting room(1st floor) : Control room,
Maximum division 16/ Six rooms if interpretation room: 8VIP room
combined 81m2 (2 rooms), ▪ Meeting room (3rd floor) :
72m2 (8 rooms), 144m2 (6 rooms) 480 m2(Can be divided into two)
▪ Meeting room (2nd floor) : 400 seats, 6 languages
Convention Maximum division 3/ Two rooms interpretation system
if combined International meetings and
81m2 (2 rooms), 108m2 (1 rooms) classes Control room,
▪ VIP Meeting room(3rd floor): interpretation room: 6 rooms
108m2 (1 room) ▪ Meeting room (6th floor) :
▪ Meeting room (3rd floor): 651 m2
Maximum division 3 Medium sized meeting room
/ One if combined (80 ~ 123m2)
108m2 (3 rooms) Can be divided into 7 rooms for
meeting, events and symposiums
2.2.2 Exhibition Center Cases

Exhibition centers may be classified into permanent exhibition centers and temporary
event exhibition centers based on their function.
According to recipient country’s request, the exhibition center needed in the

constructed center seems to be a permanent exhibition center that can be constantly used
to exhibit Dominican products to international buyers.

Name COEX Exhibition Center (Trade Market)
Area Approximately 8,900m2
Composition 155 offices with sizes 27~40m2
▪ Professional trading companies exhibit and sell their products

Operation
▪ Synergistic effect from nearby international meeting center
Name Gyungsangnamdo Tourism Goods Exhibition Center
Area 690m2
Exhibition center, high quality good exhibition center, advertisement center,

Composition
experience center, sales center

▪ Located at the first floor of Changwon Convention Center

▪ Sells 1,000 tourism goods
Operation ▪ Exhibit and sells goods crafted by masters
▪ The space is focused to exhibit, sell and experience the goods at the
same time.
2.2.3 Discussion Points

 In the Changwon Convention Center and CONVENSIA project, we propose a plan
where we install exhibition facilities, meeting facilities and trade academy in the same
room for them to interact both functionally and spatially. Also, instead of dividing the
spaces into exhibition center, grand ball room, and conference room, more active
methods could be taken to maximize the utilization of different spaces.
 CONVENSIA uses 35% of the total land area as a parking lot. If CIBAO Trade Center
wishes to construct an underground parking lot, it will take up a large part of the
project construction cost. Considering the space of the construction site, huge open
land area can be used for ground parking lot. This plan should help reduce the
construction cost significantly.
 Korean exhibition centers also have operational issues when it is only used as a
convention center. Therefore, it is important to actively look for future expansion plans
and operation plans during the planning phase of the project. By doing so, overlapping
investments could be minimized and the effects of Trade Center will be maximized in
the future.
 The selection of location that will allow easy access for both international and local
buyers should be done after careful review.
 The center should not just focus on the exhibition and advertisement of exporting
goods. It should also be used as a showroom and as various office spaces so that it can
be utilized at its maximum level by various trading companies.
 Also, the space allocation of the exhibition center, convention center and auditorium
should be done carefully so it can create a synergistic effect both functionally and
spatially.
 Even though EXPO CIBAO is a large-scale exhibition in Central and South America
that holds approximately 470 booths, it does not have an exclusive exhibition center. It
is in need of an exclusive exhibition center that can hold international events.

2.3 Design Goal

2.3.1 Scope of Trade center and Major Facilities
A. Bird’s eye view and 3D view of Trade center
 Design Direction Proposal

The CIBAO Trade Center is an integrated-functional center that requires exhibition
center, convention center and trade academy in the same building. It is a special project
that requires adequate allocation of different spaces and functions. There is also a need to
utilize and block sunlight at different parts of the building to maximize energy savings.
Considering the nation’s love of art and nature, it should be designed with modern styles
and materials. It will become the landmark of Santiago City and aid in becoming the
trading capital of the region.
< Figure 4-6 View of Trading the Center Building >

<Gallery from Exhibition Center to Export Goods Exhibition Center>
<Insides of trade center that is connected to the outside>
<Front view of the trade center with clear glasses>

B. Area Per floor
< Table 4-4 Calculation of trade center scope – per floor >
Classification Function Area(m2) Remarks
480 booths (3mx3m) : Partitions into 4
EXHIBITION 8,600m2
sections
GRAND 54 exhibit booths (3mx2m),
1,050m2
BALLROOM 1,000 people
540 seats , A/V system , auto screen,
AUDITORIUM 1,400m2
translation booths
1st FLOOR
SHOW ROOM 300m2 video conference, stage, auto screen
IDC / OFFICE 900m2 CEI-RD regional office
PUBLIC concourse, stair, escalator, elevator,

3,425m2
(CIRCULATION) restroom, storage etc
SUB TOTAL 15,675m2
CONVENTION
900m2 1,000 people, auto screens, battens
HALL
140 ~ 450 people, A/V system,
CONFERENCE
750m2 translation booths, stage, auto screen,
ROOM
batten
BUSINESS partitions into 5 sections, 15

2nd FLOOR 600m2
CENTER / OFFICE management offices
LECTURE ROOM 450m2 70 seats x 3 rooms, 40 seats x 1 rooms
PUBLIC stair, escalator, elevator, restroom,

750m2
(CIRCULATION) storage etc
SUB TOTAL 3,450m2
70 seats x 4 rooms, 40 seats x 1 rooms,

LECTURE ROOM 700m2
25 ~35 seats x 2 rooms
3rd FLOOR PUBLIC
175m2 stair, elevator, restroom, storage etc
(CIRCULATION)
SUB TOTAL 875m2
TOTAL 20,000m2

C. Area Per Use
< Table 4-5 Calculation of the trade center scope – per usage >
Classification Function Area(m2) Remarks
exhibition space, meetings, events, trade
HALL 8,600m2
shows etc
EXHIBITION
SHOW ROOM 300m2 video conference
SUBTOTAL 8,900m2
CONVENTION seminars, banquets, exhibitions, large

900m2
HALL events, etc
CONFERENCE
750m2 flexible spaces modular divisions
ROOM
AUDITORIUM 1,400m2 Int'l conferences, video conference
CONVENTION
GRAND Int'l meetings, banquets, various events,
1,050m2
BALLROOM etc
Computer server management center,
IDC / OFFICE 900m2
management office
SUBTOTAL 5,000m2
LECTURE computer, documentation center, video

1,150m2
TRAINING ROOM conference, flexible spaces
CENTER BUSINESS
(TRADE CENTER / 600m2 management office
ACADEMY) OFFICE
SUBTOTAL 1,750m2
elevator, escalator, stair, restroom,

PUBLIC SPACE 4,350m2
machine room etc
TOTAL 20,000m2
D. Trade academy and Export Goods Exhibition Center Area Calculation
 As stated before, it would be efficient to allocate the exhibition center, convention

center, export goods exhibition center and trade academy into the same space to reap
synergistic effects from one another. It will also aid in the effective operation of the
Trade Center.

 The export goods exhibition center will be located in the first floor where most of the
visitors enter. Part of second floor and the entire third floor could be used as a trade
academy to gain synergy effects from both the exhibition centers and functional effects.
 Since JICA building’s second floor had rooms with 15 seats, 25 seats and two rooms
with 45 seats were not enough, therefore, one room with 70 seats, 2 with 25-35 seats, 2
with 60 seats and 2 computer classes with 40 seats were requested. These requests will
be applied to the design process considering that adequate training/education programs
will be established to meet the spaces. More spaces for installation of meeting rooms
and other facilities were also considered as well.
 According to PEA, only 200㎡ of export goods exhibition center space was requested
to replace JICA building’s temporary exhibition space. However, 300㎡ space was
designed to serve both exhibition and advertisement functions.
 The space allocation has considered future expansions and its connection with existing
space.
 By allocating first floor as the export goods exhibition center near the convention area,
it can be visited by most people who visit the Trade Center.
 Exhibition goods such as drinks, agricultural goods, leather, accessories, furniture and
tobacco can be allocated categorically along with various advertisement techniques to
maximize its effects.
 By providing cooperation system from the offices, professional manpower that can
provide information about the product should be allocated to maximize the
advertisement effects.
 A 300㎡ space has been allocated which is bigger than requested to maximize
exhibition effects as well as Trade Center’s role in hosting various cultural events.
 Strengthen business center functions
 Provide space and business support: space to meet company representatives
and share information
 Trade- related advisors: Advisors professionalized in accounting and tax affairs
 Provide information: Information about seminars and exhibitions hosted by
CEI-RD

< Figure 4-7 View of business center >
E. Cross Sectional view of the Trade center
 Floor plan : Annex #4~#6

 Ceiling plan: Annex #7
 3D plan: Annex #8

3. Construction of Integrated Trading System (ITS)

3.1 Status Analysis
By analyzing the current trading and IT status of the Dominican Republic and
comparing it to Korean cases, it can be used as a basis for setting goals as well as
creating tasks.
3.1.1 Business Status

This trading business status is drafted based on visiting CEI-RD and local interviews.
< Figure 4-8 Export Management Flow >
As seen in the above flow chart, custom clearance and shipping of general goods are
possible immediately after query into export procedures to CEI-RD, but some goods
such as coffee, animals/plants, medicine, etc. require export permission or approval. In
this case, a few approval authorities can be involved for such permission or approval
processes.
Trade business status based on result of on-site interview and data collected is as
shown below.
 Overseas Marketing
Currently, trade companies of Dominican Republic are relying on individual contacts
from international exhibitions and the Chamber of Commerce. Advertisements are being
done in offline settings. There is a lack of on-line sites for overseas marketing.

 Contract
D/A, T/T shares 80% of the total contract forms. Since there are not enough financial
guarantees from financial organizations, there are a few contracts made with L/C
transaction.
 Authorization/Approval
The export authorization policy was banned in 1992. However, products such as cocoa,
coffee, fabrics and steel craps require special export authorizations. Goods such as
animals and plants also require inspection records. Most of the goods require business
documents, export contracts, shipment notices, and export authorization forms in order to
receive export authorization. Since Dominica’s major export products are composed of
agricultural goods such as cacao and coffee, there are a lot of authorization processes
needed to export these goods. However, since the authorization process is not clearly
organized, many companies require overlapping visits to related offices for the
authorization process.
The following is the authorization process for coffee beans before being shipped out.
It required a total of 5 steps as shown below.
< Figure 4-9 Coffee bean authorization process >

 Certifying Origin of Goods

In order to certify the origin of goods, it requires authorization from DGA and CEI-
RD for trading purposes. Therefore, all export companies are required to go through two
different government offices to receive the certification. The certification processes for
origin of goods in major countries are as shown below.
- Central America : Free trade certification between Dominica and Central America
- Panama : Origin of goods certification between Dominica and Panama
- Caribbean : Origin of goods certification between Dominica and CARICOM)
- USA : GSP Form A Origin of Good certification, CBTPA(Caribbean Basin Trade

Partnership Act) origin of good certification, DR-CAFTA origin of good
certification
- EU : EUR-1 Freight transaction certification, GSP Form A origin of good

certification
- Canada, Japan, Swiss, Norway, East Europe, New Zealand, Australia : GSP Form A
Origin of good certification
- Other countries : Normal origin of good certification
< Figure 4-10 Origin of certification flow >
① Pu rch ase a fo rm b y visitin g D G A

② A p p licatio n fo r issu in g C .O . o f p referen tial
ag reem en t
Trad e ③ Issu in g p ro cess
C o m p any D GA
④ A pplication of sealing & signing
⑧ Exp o rt o f ⑥ Su b m issio n o f C .O .
p ro d u cts
⑦ A p p ro val o f ⑤ Sealin g & Sig n in g
takin g o u t
C EI-R D
 Custom clearance
Exporting companies submit their documents to DGA. Even though alternative parties
may submit these documents for trading companies, most companies are handling these
documents internally. DGA operates a system that will be tested on other offices starting
February 2010. It will be implemented in all export transaction starting July of this year.
The following documents are needed for the export transaction process.
- Invoice

- DUA(Declaracion Unica Aduanera)

- Bill of Landing or Shipment invoice
- Certificate for origin of good
- Export authorization (depending on goods)
- Plant and animal inspection document
 Transportation/Shipment
95% of Dominica’s trade is being done by ship. Airport transportation is used for
goods that need “just in time” shipment, goods with short expiration dates, and goods
that cannot be transported by ship. Land transportation is done only by automobiles
because there is no train transportation system available in Dominica. Container
transportation is done by trailers provided by shipment companies free of charge for five
days.
 Insurance
Even though MIC is dealing with issues that come up during the trading process, most
companies rely on their private lawyers to settle with issues that occur during the trading
business. There is no export insurance led by a government organization like in Korea.
Since most of the trading freight has FOB contracts, the need for insurance coverage is
minimal and there are not many insurance companies that can cover trading goods.
However, in order to promote the trading business, the government is promoting
insurance as an investment opportunity for foreign investors.
 Export promotion policies such as tax returns

In order to promote exports in the Dominican republic, tax returns, tax awards, and
temporary authorization polices are being implemented.
The tax return policy deals with tax returns for export transactions that contains raw
material and wear-off goods. The tax award policy is a policy that returns up to 3% of
export FOB costs as a tax return. The temporary authorization policy is the most
commonly applied policy for most of the companies. It is a policy that does not collect
import taxes when certain freights have been re-imported to Dominica with 18 months of
its export. In order to utilize these policies, companies need bank insurance.
 Other export related business (quality certification)

The office related to quality certification is DIGENOR of MIC. There are some
quality certification offices within the Ministry of Health and Agriculture as well. Even
though the Dominican Republic has its own quality certification standards, there is no
separate certification office that provides a proper authorization process. It recognizes
international standards such as ISO and CE.

3.1.2 IT Status Analysis

Dominica is preparing an on-line trading system to support the trading industry.
However, most works are being processed in an off-line base environment. CEI-RD’s
SIVUCEX system and DGA’s SGA system are the only computerized systems in
Dominica and most trading companies are limited to utilizing their computers to draft
documents and share files through a LAN network.
CEI-RD’s SIVUCEX system is working with DGII, CNZFE, INTABACO and MA in

order to process civil documents more efficiently. It provides similar interfaces such as
Outlook.
 CEI-RD SIVUCEX
▪ As an integrated single window system for international trading, it has been developed
to support global trading businesses. However, its function overlaps with DGA’s
SIGA system and only supports small portions of export works.
▪ As shown in <Figure 4-11>, SIVUCEX system’s functions are ①Submit integrated
export report ②Review and authorize various documents ③Final shipment
authorization from the shipment site.
< Figure 4-11 SIVUCEX Function map >
▪ Major contents of SIVUCEX system are as shown in <Table 4-6>

< Table 4-6 Major contents of SIVUCEX >

Classification Major contents
Developer Innovatica.com.do
Development Tool ASP.NET C#
- Provide documents needed for exporting goods

Provided service
- Export statistics (Provided to companies who signed up>
- Send integrated export document and it will be registered to

DGA server
- Online submission of export document and offline
Major function
authorization
- Various documents are provided in PDF form and it should be
submitted after printing them out
Certification Tool VeriSign (Private certification)
- SIVUCEX has been developed in 2005 for export

authorizations. It is currently I/F with SIGA.
Differences between
- CEI and DGA will share the database for export document
DGA’s SIGA
works.
system
- Less than 10% of the companies are using the SIVUCEX
system. Other companies are using manual off-line method. Off-line
documents are accepted and processed once a month.
- DGA, DGII, CNZFE, INTABACO, MA

- DGA is the only office that has connected system
Connected office - Other offices do not have individualized system. Document
processing functions are being provided with function similar
to outline.
Service cost None
Operation Three Technical Support (H/W-Network, server, PC

organization management), One secretary
▪ The work processing function provided by SIVUCEX to other offices is composed of

simple processes such as search, authorization and reject. It does not have file
attachment function and cooperative communication system function. Therefore, an
off-line communication has to be made in order to make an actual authorization.

< Figure 4-12 SIVUCEX Work process for related offices >
▪ As shown above, SIVUCEX system is limited to supporting only a small portion of the
exporting business. Therefore, many export companies are reluctant to use this system,
and its functions overlaps with the SIGA system of DGA. Also, its connection with
related offices is not practical. There is a need to add other functions in order to make
it efficient for both companies and related offices to utilize them to its full potential.
Also, in case s new system with these functions is established and operated, it may
include all the functions of the SIVUCEX system, so operation of this is deemed
unnecessary.

 DGA SIGA System

The Unipass system operated in the Korea Tax Office has been converted to a
Dominican version (MS .NET base). It was executed as an EDCF project with a 20
million USD (19.98 million USD) budget. It is currently being test operated in one tax
office since Feburary of 2010. It will be expanded into all tax offices starting in June of
this year.
< Table 4-7 Major Contents of SIGA >

Classification Major Contents
Developer Auto Ever Systems- Interdev

.NET
Development Tool * Major system language in Dominica
.NET based C#, Java, Oracle, ASP
- On-line documents of all import/export documents
- 24 hour report, electronic signing
Major function
- 13 other functions including management, law and storage
management functions
Certification Tool VeriSign (Private certification)
Connected office - Connected with SIVUCEX
Service cost None
Operation Organization 60 employees
< Figure 4-13 SIGA system conceptual Diagram >

3.1.3 Discussion Point

 Not enough connection with trading related offices and overlapping functions
 Requires off line paper work and original copy for trading related business
 Overlapping functions with related offices
 Need to visit banks and related offices to pay transaction fees and submit related
documents
 Overlapping work created by off-line visitation confirmation after online submission
of documents
 Difficulties in storing/searching paper documents
 Lack of support system that utilizes three export promotion policies
3.2 Best Practice

3.2.1 Outline
In order to maximize the effectiveness and reduce the margin of error for Dominica’s
ITS, international electronic trading trends as well as Korea’s uTradeHub will be
analyzed for comparison purposes.
3.2.2 Trend of International Trading

A. Outline
Organizations such as the UN, APEC and ASEM are recommending construction of
the e-Trade single Window for the promotion of international trade. The construction of
the e-Trade Single Window is focused on providing a one-stop trade service to both trade
companies and related government offices that facilitate international trade. Many
countries are focused on creating this system based on long-term plans to cope with
global trends, and actively move ahead with preparations for establishment of the e-
Trade Single Window by making survey into best practices, etc.

< Figure 4-14 Trend of Global e-Trade >
B. Construction of step-wise electronic trading system based on national

development status
UN’s roadmap towards eTrade that was launched in 2006 suggests step-wise
development of an electronic trading system. It suggests the initial construction of
electronic transaction system and further expanding it to connect with related offices,
airports, and harbors. After the system has been fully connected nationally, it could be
used to make trading international.

< Figure 4-15 UN’s Roadmap toward e-Trade Development >
C. Development of Electronic Trading in APEC countries
In the APEC e-Commerce Business Alliance meeting held in September 2005, the
research result for development status of an electronic trade system in member countries
was announced. According to the research, Korea, Singapore, Hong Kong, USA,
Australia and Taiwan are equipped with an acceptable level of National Single Window.
However, countries like Philippines, Russia, Peru, Vietnam, Malaysia, Mexico, China,
Thailand and Indonesia are in need of help in the organization their infrastructure/policy
to implement electronic single window.

< Figure 4-16 e-Trade development status in each country >
So uth Ko rea
Sing ap o re
U SA H o ng Ko ng
A ustralia
Jap an
Taiw an
M alaysia C anad a
M exico N ew Zealand
C hina C hile
Philip p ines Thailand
R ussia Ind o nesia Level5
Peru
V ietnam Level 4
Level 3 Starting Po int

(81 ~ 100)
Starting Po int
Level 2 (71 ~ 80)
Level 1 Starting Po int

(61 ~ 70)
Starting Po int
(36 ~ 60)
Starting Po int
(0 ~ 35)
* D ata :A PEC A ssessm ent Report on A PEC paperless Trading D evelopm ent 2005
According to this report, countries like Malaysia, Vietnam, and Philippines rely
mostly on trading to support their economy and yet they do not have a proper electronic
trading system in place. The report suggested that the introduction of electronic trading
in these countries will have the maximum effect.
< Figure 4-17 Comparison of trading dependence and e-Trade development status >

3.2.3 Status of Korean electronic trading system

A. Development phase of Korean Electronic Trading system
The legal background was first established in 1991 with the announcement of an
automatic trading system development. Since then, the EDI-based electronic trading
system project has been started. In 1995, eTrade was implemented in
trading/transaction/freight related work. In 2003, BRP/ISP was used to reorganize the
master plan for electronic trading. In 2008.7, a XML-based system was constructed.
Considering the wide range of electronic trading work, a long-term goal and master
plan must be established during the initial phase of the project in order to apply the
system efficiently throughout the trading system.
< Figure 4-18 Development phases of Korean e-Trade >

1990 1991 1994 1995 1996
A n n o u n cem en t o f Leg al p o licy Start eTrad e Start electro n ic Start electro n ic

in teg rated eTrad e estab lish ed to service tran sactio n service freig h t service
m an ag em en t task p ro m o te
fo rce d evelo p m en t o f
eTrad e system
2003 2004 2005 2006 2007 2008 2009
st
1 co n stru ctio n 2 nd co n stru ctio n ISP u n d er
B PR /ISP fo r 3 rd co n stru ctio n
p ro ject fo r eTrad ep ro ject fo r eTrad e p ro g ress fo r
co n stru ctio n o f p ro ject fo r
service fu tu re electro n ic
sin g le w in d o w service eTrad e service
trad in g
Current State
B. Korea Electronic Trading status
The uTrade Hub as an electronic trading single window will be utilized as an

electronic trading hub for global eTrade business. Starting from internet market research,
the system could be utilized for transactions and account processing purposes and
provides a one-stop single window platform for both trading companies and trading
related government offices. It also provides the infrastructure for collaboration
commerce to trading related parties.

< Figure 4-19 uTrade Hub Concept drawing >
3.2.4 Discussion
 Promotion of e-Trade is needed all over the world.
 Considering Korean and international development status, it is ideal to construct e-
Trade system in a step-wise manner.
 A stable project execution organization and policies that can support the development
of system should be established before the construction of the system. Also, a long-
term master plan must be established before starting system construction.

3.3 Design Target Model

3.3.1 Establish System Target Model
A. Overview of Target System
A) Goal of Target System
The user service will be integrated, and the electronic trading business process will be
implemented throughout the nation by proposing a goal system and future
model/direction of Dominica’s national Integrated Trade System (ITS). The construction
electronic trading process will require implementation of technology and legal changes
in the nation.
< Figure 4-20 Goal of system construction >
B) Target System Concept Diagram
ITS(Integrated Trade System) is composed of an electronic document storage system

for storage of electronic documents, electronic trading relay system that utilizes cutting
edge technology, an e-Marketing portal that can aid companies in finding international
business partners, and an e-Trade portal that provides currency, transaction and freight-
related services to its users.

< Figure 4-21 To-be system conceptual diagram >
C) Composition of Target System
< Figure 4-22 Hardware and Network Configuration >

D) Definition of the Target System Process
 Overview
By analyzing the process of trade businesses and job connection between those
interested identified in surveys and interviews to build the ITS, the system is to produce
measures to improve online management of trade businesses and employ the measures to
re-engineer the business process.
 Scope of Analysis & Preconditions

▪ For an electronic trade that fits the current situation in the Dominican Republic, the
analysis focuses on making the existing offline businesses online, instead of
consolidating and modifying the business process.
▪ Re-engineering the post-contract process, centering on maritime transportation and T/T
settlement, the major methods for transportation and settlement of exporting and
importing items.
▪ Storage of documents in the electronic repository after considering their significance
and necessity of distribution, and exemption from the submission of attached
documents or post submission
▪ Documents stored in the electronic repository can be printed out in hard copy only by
the original owner or assignee. When printed out in hard copy, the ownership for the
document would terminate.
▪ The original contract from trade related-institutions (such as banks and logistics
companies), except government agencies, would not be subject to submission in order
to protect confidential corporate information.
 Improvement Measures
▪ Realizing a one-stop online process for trade business
▪ Simplifying trade appendixes by distributing electronic documents
▪ Establishing the system to share the information between relevant agencies
▪ Improving lead time of business process
 Expected Effects
▪ Fundamental improvement in the process linking all companies and agencies including
trade companies, the customs, authorizing agencies, banks, and transporters.
▪ Improving trade-related practices, institutions, and laws & implementing structural
reforms in relevant agencies and companies during the process
▪ Significantly reducing trade-related costs for businesses and improving international
competitiveness by innovating the trade process
▪ Attracting overseas investments by providing a trade environment with better

competitiveness
B. Implementation Plan of Unit System
A) e-Marketing Portal
 Overview
The scope of work will cover building an e-trade marketing portal and a
comprehensive marketing data search system, integrating contents and establishing
management functions. In other words, the purpose is to establish a system where trading
companies can search essential marketing data before trade contract and to provide the
service through the marketing portal. Links to broker sites and trustworthy information
on overseas markets will also be provided for effective businesses of trading companies.
< Figure 4-23 Overview of Building e-Marketing Portal >
As the e-marketing portal will be offered as a sub-portal of ITS (Integrated Trade

System), systematic application is required by linking e-Trade Portal with contract-
related data. The lead agency should also have active consultations with relevant
agencies on the contents link and issues from the collective use before application.
 Objectives
The e-marketing portal is designed to provide a consolidated search service for

marketing data, encourage overseas buyers' visit through unified window, and contribute
to the provision of seamless e-trade services.
< Figure 4-24 e-Marketing Portal Objectives >
 System Structure
< Figure 4-25 e-Marketing Portal System Structure >
The e-Marketing Portal will consolidate and categorize marketing data by theme,
provider, and marketing information so that users can conveniently search data. The
portal will also serve as a channel to search for data on overseas markets, trade statistics,
and other general trade-related information in one place without having to visit different

websites.
< Table 4-8 Work Scope and Details >

Trade  Trade statistics, trend, practical data, trade support, logistical data
Information
e-Marketplace  Offer data, company info, buyer info, exhibition info, credit info
e-
Basic Functions  Realizing basic functions for notification, bulletin board, Help,
Marketing
Q/A, FAQ, Help
Portal
 Realizing portal management functions to take care of the usage
and linked contents status
 Management of log-in and membership data, provision of
personalization service and English webpage.
Integrated Search System  Search by key word or directory is available
 Category map by theme and directory service are available
 Most searched words and statistics per period are provided
Link, collect, and manage  Management of linked sites and spec
contents  Functions to collect contents and metadata and categorize the
contents are available
 Dead Link, prevention of data redundancy
Establish a comprehensive  Provide directory categories by data provider
search category
In particular, e-Marketplace will enable trading companies to publicize products, find

buyers, and exhibit products online, making it easier for many buyers and sellers to
promote themselves and their products and seek new business partners. That would
reduce the time and costs required for a trade contract. The portal will support e-
transactions between nations and provide exporters and importers with functions to save,
read, and search the information.

< Figure 4-26 e-Marketplace Concept Diagram >
 Establishment measures
▪ Convenient access
∙ Establish a SSO infrastructure that allows users to have access to all information
systems with only one verification
∙ Users can see information with one click on the personalized screen
∙ Accessible anytime and anywhere
∙ Consolidated verification and authorization that fits the service type of users
▪ Sharing data and exchanging opinions with ease

∙ Personalized services that allow users to get desired data
∙ Effective sharing of information and exchange of opinions through communities and
bulletin board
∙ Interactive operation and consolidation
▪ Collecting data and providing services with speed

∙ Analysis of usage by monitoring the system and data

∙ Easily and swiftly gathers a variety of information

∙ Immediate application of changes, such as system priorities
▪ Standard interface
∙ Establish a standardized interface for future expansion of the system
∙ Organized the platform-independent system with openness and scalability
 Expected effects
If the e-marketing portal is established, trading companies will be able to use the
system to collect marketing data (trade info, market info, exhibition info, product PR,
buyer search), gathered through phone-calls, faxes, and direct visits. That would reduce
time and costs, enabling buyers and sellers to directly publicize their products and
implement transactions on the system
< Figure 4-27 Before and After e-Marketing Portal System Establishment >
Before building System After building System
 Collection of marketing information individually by telephone,  Saving time and cost by collecting marketing information via
fax, visit on-line
 Performing local marketing directly each time for promoting  Many purchasers and sellers promote products and find
products, finding buyers buyers via e-Marketplace A package
(overall)
Promoting p roducts, finding collection o f
Buyers via Tel. Fax. marketing
info rmation such
Buyer ITS as o ffer info., Buyer
In vestigation A package (e-Marketing seller in fo.
in dividual fo r Trade (overall) Portal)
Request o f fin ding buyers,
help like Company collection o f
exhibition marketing Registration of
market Trade in formation,
survey info rmation such all kin ds of
Company tradin g as finding buyers, marketin g info.
in formation o ffer info., an d exp ort
exhibition info., supp ort
trad ing info.
B) e-Trade Portal
 Overview
The development scope for the e-Trade Portal will be the creation of an export
business process from contract management to payment, by considering discontinuous
and redundant service, and the various reasons why e-documents cannot be recognized
as originals. That is, the portal will realize functions to handle L/C/non L/C, produce
export license, issuance of other permits, Invoice/Packing management, C/O, shipping,
customs clearance, receipt of charges, and payments. The portal will also be
systematically linked to relevant authorities, ultimately strengthening the continuity of
work and the one-stop service foundation. Particularly in customs clearance, the link to
the DGA SIGA system will simplify work, consolidate processes, and increase cost

effectiveness for the convenience of trading companies.
In addition, for relevant agencies with no independent system at the time of

establishment, work management functions will be equipped within the system. In the
systematic link with DGA, standardization will be conducted to prevent redundancy in
the future work of the system link.
< Figure 4-28 e-Trade Portal Overview >
Implementation of One-Stop Service Base

of Trade Business
To provide Business Infra through

Implementation of Trade Portal Service
Contract Export License Shipping Doc. Clearance Negotiation
• Sales Order • To issue • Delivery Order • Request for • Bill of Exchange

• Master L/C Certificate of • Commercial Customs • Negotiation
• T/T Contract Origin Invoice • Clearance • Export Expense
• D/A Contract • To issue • Packing List License
Agricultural • Insurance Policy
Product License • Shipping Request
• etc • Bill of Lading
To overcome limit of pending problems on e-Trade: Discreteness, Duplication, Originality
To implement core e-Trade infrastructure on trade area
To provide User-oriented simplified Workplace
 Objectives
The e-Trade Portal aims to enhance effectiveness, promote trade, provide a unified
workplace, establish a visual process basis, strengthen cooperation with relevant
agencies, offer quality services, prevent redundant submission of documents, simplify
the distribution of documents, and secure open and operative international e-transactions.

< Figure 4-29 e-Trade Portal Objectives >

To increase business
 To contribute to trade activation through provision of inform ation for the trade companies and
efficiency and trade
convenient business environments
activation
 To implem ent user-oriented workplace rather than service-oriented to identify work progress in
Simplified workplace
real time
To realize visualized  To improve business processing speed and capability, allowing real time monitoring of civil
process base appeals and process identification/analysis of problems
To reinforce collaboration
between organizations,  To secure flexibility between partners utilizing XML Document
To provide good quality  To increase business quality of trade companies by providing them with good quality services
services
To prevent duplicated  To increase trade competence by reducing business cost (trade, system investm ent of trade
document submission companies
/To simplify distribution  To reduce offline businesses for trade partners such as financial institute
Openness/operability of  To increase interoperability of e-Document through unified development and preparation of XML
international e-Trade Document with standardization
 System structure
The e-Trade Portal provides e-trade services including foreign currency, trading,
customs clearance, transportation, and settlement through basic functions, e-document
management, and business processing management (BPM). The resulting business
processes and meta data are also managed by the Portal.
< Figure 4-30 e-Trade Portal Function Block Diagram >

< Table 4-9 e-Trade Portal work scope >

Trade Portal  Progress management on e-documents
 Manage transmission and reception of documents & log
 BPM on the progress of e-trade
 Management of e-trade services
 Manage basic functions of the portal, including SSO, security, and users
Business  Manage the definition and changes of trade service processes
Process  Monitoring and reporting
 Process repository management
e-Trade  Sales Order management (L/C/non-L/C data)
Services  Receiving export L/C at banks
 L/C data management through standardized export-import L/C
 Issue of licenses for farm produce export
 Issue of general export licenses
 Cooperation in the issue of general and preferential certificates of origin (DGA)
 Provide the credibility of companies linked to marketing portal
 Booking management on cargo
 Transportation order
 Management of attached documents including Invoice, P/L, and B/L
 Management of freight settlement
 Information link between B/L and AWB
 Management of export declarations and business link (DGA)
 Verify errors on drafted e-documents
 Payment control for collection, transmission and L/C types
System Link  Management of export declaration through link to DGA SIGA
 Standardization of links
The following <Table 4-10> shows relevant authorities of e-trade service.
< Table 4-10 Relevant Authorities >

Category Businesses From To Remark
Signed contracts would be
Trade
Sales Order linked to e-Marketing
Company
Portal
Contract Trade
Receipt of export L/C Bank
Company
D/A, T/T
Request for export Trade Relevant
Approval
approval Company agencies Relevant agencies : MA,
Relevant Trade CODOCAFE, CNZFE
Approval of export
agencies Company

Request for certificate of Trade DGA,

origin Company CEI-RD
System I/F for DGA
Issue of certificate of DGA, Trade
origin CEI-RD Company
Create Invoice, P/L
Create Delivery Order

Shipping
Trade
Transportation order company,
Company
Shipping Forwarder
Shipping
B/L or AWB Trade
company,
management Company
Forwarder
Management of freight
settlement
Customs Request for export Trade
DGA
Clearanc declaration Company
System I/F for DGA
e Approval of export Trade
DGA
declaration Company
Management of payment
for collection,
transmission, and L/C
Payment types
Banking fees, approval
and customs charges, and
Settlement of other costs
transportation expenses are
included
 Expected effects
As the e-Trade Portal supports all sectors of export businesses including non-
electronic documents (Sales Order, Invoice), the portal can provide trading companies
with a single window for trade businesses and one-stop services through a connection
with related agencies. Through the system, companies can simplify business processing,
while maximizing effectiveness. Relevant agencies can also simplify work processes and
manage statistics and businesses in real time by converting existing off-line processes
into on-line ones.
For example, the following <Figure 4-28> compares the situations before and after the
establishment of the system for the issue of certificate of origin.

< Figure 4-31 Before and After the establishment of the system for the issue of certificate of origin >
Before building system After building system
 Overlapping visit to related organizations many times  Simplification of work process by applying and issuing
and delay of processing time for issuing C.O. via System and reduction of time and cost by its result
① Purchasing a form by DGA ①Application

of C.O.
ITS
② Application for issuing (e-Trade
Trade preferential agreement C.O. Portal) ②Receiving and
Trade DGA
Company ③ Issuing process DGA Company ⑤Issuing C.O. processing SIGA
④ Application for signing and sealing ③Request

⑧ Export of
for signing
products ⑥Export of ④
⑥ Subm ission of C.O. & sealing
products Processin
⑦ Approval of taking out g of
⑤ Signing and CEI-RD signing &
sealing sealing CEI-
RD
C) e-Trade Document Repository
 Overview
Rapid changes in the IT environment require innovations throughout the business
process. Companies and agencies are competing to promote paperless transactions.
Against this backdrop, we need to actively respond to these changes. The system of e-
trade document repository employs state-of-the-art technology in its design to ensure
safety. The system is also designed to store documents safely, manage certificates with
credibility, and ensure interactive operation of document standardization and data link.
In order for the repository to be effective, legal and institutional mechanisms should
be established. Among all the trade documents, the repository will keep the e-Trade
documents in need of distribution. Laws and regulations should be improved to
recognize such documents as originals.

< Figure 4-32 Overview of e-Trade Document Repository >
The e-trade document repository will be structured to prevent redundant submissions
of documents, simplify distribution for greater effectiveness, give credibility to stored
and distributed documents, and expand the service of connections to relevant
agencies/companies, thereby resolving disconnection of process.

● Registration of e-trade documents
Document control
● Setting the authority for registered documents
Delivery of document ● Registered documents are available by users at other services
Management of ● Establishing the system that complies with DVCS
e-certificate ● Issue, disposal, and transfer of e-certificates
User management & ● Acquisition of consolidated user data
manager functions ● Manager functions on history and statistics
● Safe storage of the original and converted copies
Security functions
● DVCS-based system for the issue of certificates

< Figure 4-33 Structure of e-Trade Document Repository >
 Establishment measures
▪ Management of e-documents
This refers to the life-cycle management from the registration of e-documents to the
search, reading, disposal, and transfer of documents. Additional functions include
management of document information inputted at the registration, print-out of e-
documents, and management of storage history.
▪ Delivery of e-documents
The functions include e-document relay system for storage and verification,
transmission and receipt of documents, transfer of issued certificates, and history
management.
▪ Verification of e-documents
Verification of e-Trade documents is the key function of the repository, confirming the
authenticity of distributed e-documents and time of delivery. Additional functions
include authentication of the verified documents, management of certificates and
certification history.
▪ Management of Users

The functions include registration and identification of users and management of the
records of system usage.
▪ Manager functions
Managers control the methods to convert documents, versions and forms of
conversion. They also manage policies of history; history to be saved, periods for
keeping and storage.
▪ Security functions
Encryption is applied to key information in communication with users
▪ Common functions of the system

The common functions are error processing, format conversion, and log management
for system operation. As for security functions, communication security is provided for
confidentiality of messages transferred and electronic signatures are available to prevent
denials.
D) e-Document Relay System
 Overview
The e-document relay system allows users to transfer and receive standardized e-
documents with stability and credibility, while providing seamless links to relevant
agencies to promote administrative convenience and efficiency. In addition, manager
functions for effective operation are offered with stability secured through duplex
system.
To distribute e-documents (transaction documents between trading companies and

relevant agencies), standardized e-documents should be designed to secure interactivity.
When connected to the existing legacy system, standardized methods for connections
should be presented and applied. The current global trend of distributing e-documents is
XML-based e-documents, so we present ebXML-based standardization to Dominica. As
for data conversion, the conversion of XML⟷XML, XML⟷EDI, and XML⟷Flat File
will be materialized in the Adaptor way, in order to enhance the scalability of data.
The scope of the relay system considers various corporate environments in Dominica
to relay e-documents and convert messages, building the foundation for relays to internal
portals and relevant agencies.

< Figure 4-34 Overview of e-Document Relay System >
e-Document Relay System
To implement streamlined business process environments

through interconnection with external partners
e-Document To implement
Relay & Conversion connection
base in the future
 To imp lement infra  To imp lement infra

fo r activation of e- Partners To pursue to p lay a ro le of
Do cumen t Interconnection User convenience co re trade n ode in
 To eliminate the Latin America
existing offline Reg ion
Do cumen t Tx/Rx  To imp lement  To implement  To imp lement
 To p rovide relay in frastructure intern et based saleable system
an d co nversion available for real time Document Tx/Rx fo r so as to allo w
services th rough message Tx/Rx user familiarity in terconnection
ap plication o f th ro ugh  To pursue user with systems in the
stand ard in terconnection with co nvenience th rough future
techn ologies d isconnected fault to leran t system
p artn ers with redundancy
 To sug gest
in terconnection
metho d to fully utilize
th e existing in fra
< Figure 4-35 Key Factors of the System >
 To play a role of relay to allow various corporate users to

e-Document send/receive e-Documents to/f rom desired Partners
Relay  To support various communication protocols and document
formats to accommodate various users and partners
 To convert standard/non-standard documents such as XML,

Message
EDI, Flat File, etc.
Conversion  To support creation of conversion rule through Mapping Tool
 To realize seamless business process through interconnection

Internal with e-Trade Portal and e-Trade Document Repository.
Connection  To provide single view f or the entire e-Trade services through
interconnection
 To implement integrated platform through interconnection with

Connection customs, authorities, bank, shippers, logistics companies, etc.
with of Dominican Republic
Partners  To implement One-Stop service environments to allow
corporate users to process business with one time access

Two-way conversion into various types of message formats will be supported for
relays. The system also supports various telecommunication protocols and mail boxes for
user to ensure the stability and credibility of e-document relays.
< Figure 4-36 Structure of e-Document Relay System >

System ● TP Management: Trade Partner ID, password, codes to identify sender and
Management receiver
● BP Management: Business Process control of e-documents
● Scheduler: automatic transmission and receipt of documents through demon-
based scheduler
● Document control: the status of e-documents, re-transmission, re-receipt
● Backup: Monthly and daily backup and recovery of data
● Management of transmission and receipt logs: error verification & control of
transmission and receipt logs
● Check the system status / Queue monitoring
● DB setting / communication setting / code management
● Upload/Download of documents
● Transmission/receipt/re-transmission of documents
● Change of the document status
● Auto-recovery in case of the system-off

XML ● XML data management

Messaging ● XML Parsing & Generation
Processing ● Security control of e-documents
XML ● Free conversion of formats among XML, EDI, Flat File
Conversion ● Flat File is defined in any types
● Provision of Rule based conversion engine
● Auto-calling of conversion through TP setting information
● Calling of functions in conversion
● Checking the document structure in parsing or conversion
● Processing all documents in XML formats
● Parsing non-standardized documents such as EDI, Flat File
XML ● Provision of TCP/IP FTP, X.25 communication protocol
communicatio ● Support of document transfer standards including UN/EDIFACT, ebMS
n ● Auto-routing through TP setting
● Broadcasting function
● Separation of communication servers / support of communication module for
Client
C. The Operating Environment Target
The target areas of ITS will not be limited to the CIBAO region, but will be designed
and operated to support all export related companies throughout the DR. A number of
relevant agencies are expected to use the system both directly and indirectly, and most
decision-making IT bodies for consultation are located in the capital, Santo Domingo.
The IT division of CEI-RD, the future operator of the system is located in the
headquarters of the CEI-RD, in Santo Domingo. Therefore, it seems appropriate for ITS
to be operated at the headquarters of CEI-RD. In fact, the existing IT division of CEI-RD
is now running the current system of SIVUCEX and basic works within ICE*i.
However, the existing server room at the CEI-RD headquarter is small in size, as
shown in <Figure 4-37>, and operating conditions are poor.
< Figure 4-37 CEI-RD The size of the existing Server Room >
In the above image, the left one is the server room of the headquarters and the right is
I*CEi server room. As the I*CEi Server is currently located within the I*CEi building
and being used independently for I*CEi businesses, the server does not have to be
integrated with this project. However, it might be necessary to consider the integration of
the server into the server room of the headquarters in the long run.
Given the demands from the project executing agency, the efficiency of employees
management, and the fact that it is easy to secure the space of the expanded Server Room
in the CEI-RD headquarters, we suggest that the CEI-RD head office becomes the place
of operations for ITS.
The server room should be expanded to the following size of <Figure 4-38> so that the
current system can be managed together.
< Figure 4-38 Expanded Size of Server Room >
To supply power to the newly-introduced equipment (refer to <Table 4-13>), an

additional 6KW is required. We also need batteries that last at least 30 minutes with the
UPS capacity of 10KVA. (*UPS capacity of 10KVA is calculated under the formula of
Total load (6,000W) / Power factor of load (0.8) * Reserve rate (1.3))
For smooth operation of the system in the future, the following equipment should also
be added.
 Temperature and humidity controllers

 Fire-proof equipment and counter measures against fire
< Table 4-13 Equipment Scale for ITS Operation >

Name Model Qty Unit capacity Total capacity
Main Server R710 3 870W 2,610W
Backup Server R710 1 870W 870W
Main SAN PS6000E 1 550W 550W
Backup SAN PS6000E 1 1,650W 1,650W
SAN/L2 2960 4 30W 120W
Router 3845 1 100W 100W
42U Rack - 1 100W 100W
Total 6,000W
3.3.2 Definition of the system-building methods and applied

technologies
A. Principles to Design the Target System
 Application Service
▪ Form a N-Tier architecture
▪ Design and develop a concept model to establish a system for component-based

application service
 Database
▪ Database should be integrated
▪ If necessary, a separate database can be set up on a limited basis.
▪ Integrated database (Enterprise level) should be separated to another server.
▪ As for data provided to the outside, direct access to its database should be limited.
 Platform Service
▪ Server Consolidation is required
▪ Separate the storage from server and consolidate
▪ In cases where plenty of impacts and interventions take place between system units,
platforms can be separated
▪ As for different service characteristics and purposes, platforms can be separated
▪ Create a server environment that separates development and operation
 Communication Service
▪ Establish a structural network
▪ Establish functions separated by service features
▪ Back-up and recovery equipment should be established separately not to affect

normal traffic.
 Security Service
▪ Strengthen security
▪ Strengthen back-up and recovery system
B. Applied Technologies
 Hierarchy Diagram of Information Technology

IT-based structures are classified into 9 areas. For each area, define a technical
structure required to establish ITS through the TBB diagram (Technical Building Block,
a diagram that logically groups H/W, S/W, and N/W supporting the operation of
application and data based on mutual relevance)
< Figure 4-39 TBB(Technical Building Block) Hierarchy Diagram >
 Information on Applied Technologies
< Table 4-14 TBB(Technical Building Block) Hierarchy Descriptions >

TBB Structure Substances
CUI/GUI As user convenience is important for applications, WEB
standard UI technology is used, while CUI (Character based
User Interface) and GUI (Graphical User Interface) are
User applied for the system S/W, because performance is
Interface important.
Personalization The technology provides a service of displaying a user-
customized screen and is applied to offer proper screen menu
for each trading company.
Development .NET It is an internationally-used web-development environment,
Environment especially for recipient countries.
CBD CBD (Component based Development) is a comprehensive
concept of SW engineering process, methodology, and
technology that supports development, assembly, and
maintenance of component unit.
UML UML(Unified Modeling Language) is designed to help

communication among developers during the system
development process including request analysis, system
design, and system materialization.
Information It is the most common methodology of development
engineering environment
methodology
EP EP(Enterprise Portal) is an information system that allows
managers, employees, suppliers, partners, and customers to
have SSO-based access to the internal data, process and
Application applications within the value chain to handle businesses
appropriately
SSO SSO (Single Sign On) is an integrated certification system in
which users need only one log-in to use different systems
Application WAS A service to effectively manage web applications
Support ebXML a XML-based international standard for document exchange
Service
RDBMS Compared to the existing RDBMS, higher availability and
Data Service
expandability are applied.
External XML Extensible Markup Language, the internet language of the
Interface next generation with remarkably improved HTML
Open It refers to a system whose internal structure is open and
System developed according to the standards. Linux is a typical
example.
64Bit It is CPU technology where 64 bits comprise a word, a data
Computing processing unit in the server. 64Bit Universal CPU is applied
as it has high data processing capacity, compared to its price.
HA HA System (High Availability System) is a technology for
System business continuity and high availability and used to duplex
System
linked servers.
Platform
ECC ECC (Error Checking and Correction) can detect and correct
errors by adding certain redundancy to the inputted data.
RAID RAID(Redundant Array of Independent Disk) allows users to
a group of several drives as one storage and prevents data
damage in error. It is applied for OS Mirroring of servers.
CAS CAS(Content Addressed Storage) is greater than ATA(IDE) in
terms of stability and data transfer speed and its price is much
lower than SCSI.
Gigabit Giga networks consists of the internal LAN environment. It
Network
Network is applied to reduce the internal data traffic.
Security & IPS IPS(Intrusion Prevention System) is a security solution that
can find attached signature in the network and take

automatic actions to stop abnormal traffic.
Firewall Hardware and software that can set up measures against
unexpected external intrusion.
PKI As a verification technology in the Internet-based transactions,
System Encryption it is used for user verification and data encryption.
Management Secure The technology prevents illegal attacks to servers and is used
OS for this project in which security is important.
NMS NMS(Network Management System) is a system to effectively
manage a large amount of servers and network equipment
Backup Backup & BRS(Business Recovery System) is a system to
& BRS protect the data in the case of system failure.
3.3.3 Definition of Measures to link relevant authorities

The Dominican authorities related to ITS (Integrated Trade System) are as follows:.
< Figure 4-40 Export-related authorities >
Trade Company
BANK MSPAS
Contract, settlem ent Export approval

of incidental expenses,
Forwarder paym ents INTABACO
Approval for
Shipping, transport tobacco products export
ITS
Inspection of Approval for
DGM minerals
(Integrated CODOCAFE
coffee products export
Trade System)
Duty Certificate of inspection
for animals and plants
DGII MA
Clearance for
export Certification of
legal effect
DGA CNZFE
CEI-RD
Among these, DGA has the system to support exporting companies, while DGII,
CNZFE, and INTABACO support export through CEI-RD-run SIVUCEX system. Other
agencies handle their jobs offline.
Therefore, the following measures and procedures should be implemented in order to

connect relevant agencies for smooth operation of ITS.
 Forming a consultative body among relevant authorities

▪ Form a consultative body, as inter-agency consultations are important.
▪ The body should be created before the consulting phase to establish a main project so
that concrete measures can be provided during the consulting project.
 Establishing a standard linking system

▪ A standard linking system should be set up, centering on the consultative body
▪ If there is an existing linking system, it would be appropriate to accept the existing

one.
▪ The main substances in creating a standard linking system
∙ Establishing a linking service model: Define linking process, method, and procedure
∙ Establishing a measure to design a standard electronic document: Identify documents

to be standardized, analyze technological trends and international technological
standards, design and create electronic documents based on standard technologies
∙ Establishing a measure to create a standard linking system: Build a standard linking

system
 Conducting a pilot project

▪ The consultative body leads the selection of institutions for the pilot project
∙ It is appropriate to select DGA and banks, as they have the available system.
< Figure 4-41 Work Flow of Export Customs Clearance with Linked Systems >
T rad e C o m p an y IT S S IG A
D raw in g u p a System I/F

d eclaratio n Exp o rt Exp o rt
d eclaratio n d eclaratio n
V erifyin g erro r o f
d eclaratio n
D esig n atin g
m eth o d o f
evalu atio n
D esig n atio n o f
a review er
No O bject of
inspection?
Yes
A ssig n in g an
in sp ecto r
R eceivin g p ro cess
o f d eclaratio n
C o n firm in g a System I/F

d eclaratio n /Prin t Details of Details of
it o u t export export
declaration declaration
▪ The agencies without the system would handle their works through ITS
 Phase-in Expansion
▪ After the pilot project, the consultative body needs to make a plan to link relevant
authorities step by step.
< Figure 4-42 Implementing Procedures by Relevant Authorities >

[Step1] [Step2] [Step3] [Step4]
M aking BPR/ISP Building its own system
U se of ITS system ITS and system I/F
for related organizations of related organizations
3.3.4 Definition of the plan to revamp laws and policies

A. Definition and Necessity of the Revamp
 This plan aims to devise measures to upgrade existing laws in order to establish legal
grounds for the promotion of electronic trade.
 Dominica has revamped e-trade related laws before, but some insufficient or
declarative rules should be overhauled or new regulations be created for promotion of
e-trade. By doing so, e-trade infrastructure and operating system and support bases for
active e-trade should be established.
 At the same time, the basic direction of relevant laws should be set to innovate the
trade process through e-trade. The relevant regulations should be harmonized and
thoroughly analyzed to prevent existing procedures and rules from being an obstacle.
B. Revamping trade-related laws and setting the direction
 Expanding the definition of trade to include electronic trade

▪ The scope of trade stated in the foreign trade act should be expanded to electronic
trade, making legal recognition of electronic trade. By doing so, subordinate legal
institutions required for the implementation can be created and updated on the legal
grounds.
 Expanding legal effects of electronic trade

▪ Relevance should be given trade-related laws and the electronic document control act
∙ A clear definition of electronic document should be stated in the E-Commerce Law

Article. The Article should also prescribe requirements in cases where paper
documents such as a contracts are transferred into the electronic ones, which can be
processed at the information system. The legal effects of such electronic documents
should be recognized.
∙ E-Commerce Law Article 4 prescribes that electronic documents have the same
effect as the paper, but trade-related laws such as foreign trade and customs acts have
no provisions concerning electronic documents.
∙ For efficiency, electronic documents should be recognized as originals, paper

documents as a copy.
∙ It is necessary to add regulation that if electronic and paper documents have different
substances, the electronic one should be regarded as the original.
 Establishing legal grounds for government support, cooperation among relevant
agencies, and information sharing

▪ The need for information sharing
∙ No legal institutions have been enacted on information sharing
∙ Information sharing is required to promote informatization and lay the foundation for
further advancement of ICT industry.
▪ The scope of information sharing
∙ The heads of public agencies should implement information sharing of the public
sector, including administrative work and the trade environment. They also need to
support the corporate sector to build and use networks for industrial information
sharing.
 Establishing legal grounds to introduce the accredited certificate system

▪ E-Commerce Law Title Ⅳ states electronic signature and certification, but there is
no specific law on accredited certificate
▪ The substance on accredited certificate should be added to the E-Commerce Law or a

new act should be created.
4. Trade Academy
4.1 Analysis of Current Status
4.1.1 Analysis of the current trade education
The Dominican Republic is providing various levels of trade-related education within the
programs of official and unofficial educational institutions.
The official institutions include universities and other higher educational institutions. They
have undergraduate and graduate degree programs for conventional sectors. There is no single
course for overseas trade, but a few relevant subjects (including overseas marketing,
international finance, and international negotiation) are being offered.
On the other hand, other official institutions are providing bachelor’s and master's degrees
that are directly related to overseas trade, like special courses at the life-time education
program.
< Table 4-15 Trade-related educational institutions >

Name Introduction Name of the related courses
UASD The first university to be
Master: International Business
(Universidad established in the modern history,
Management and Economic
Autónoma de with the largest numbers of
Relations
Santo Domingo) curriculums and students
Master: Business Management,
PUCMM Private School Marketing, and Economy
(Pontificia The main campus is located in Doctor: Business Economy
Universidad Santiago de los Caballeros with Master: Logistics Management
Católica another campus in Santo Domingo Master: Marketing
Madrey Maestra) (Distrito Nacional). Diploma: Creation and
Management of SMEs
Master: International Trade
Private School
UNAPEC Master: E-Commerce
It has 4-year regular undergraduate
(Universidad Professional Course: CEO
courses as well as 2-year technical
APEC) Professional Course: International
training course.
trade laws and etc.
Private School
International Master: Business
UNIBE provides courses,
Administration (MBA)
UNIBE workshops, seminars and
Diploma: E-commerce and Digital
(Universidad certificates through the graduate
Enterprises
Iberoamericana) school's lifetime education
Workshop: Management Planning
department to educate
and Export Strategy
professionals, and corporate
executives.
Private School
Master: Overseas Trade and Global
INTEC is offering various
Economy
educational programs on business
Master: Marketing
administration including not only
Master: Overseas Trade and
INTEC bachelor's and master's degree
International Finance
(Instituto courses, but also Diploma and
<Short-term Courses of Business
Tecnológico de short-term courses through lifetime
Administration and Trade>
Santo education department
- Statistical Methods for market
Domingo) INTEC has opened the
survey
international trade diploma course
- Market strategies
three times in cooperation with
- Project Management Software
CEI-RD and produced 70
- Sales Prospects
graduates.
Diverse educational programs are
It is a national center run by provided to improve business
CAMPE-
INTEC to support small and administration capabilities for
INTEC
medium sized enterprises. increased productivity and
competitiveness
As a recently-established
Master: Business Administration
BARNA institution, it developed its own
(MBA)
Business education program called
Management Development
School Management Development for
Program (PDE)
CEOs.
I*CEi is an institute run by CEI-RD to nurture talent for overseas trade and innovate
businesses. The local institution has focused on support for businesses and development of
human resources with great results. In accordance with annual report(2004) of CEI-RD,
information and technical support were given to 1,200 persons regarding 2004 trade
agreement and standard program and to 2,955 persons regarding regulations and export affairs.
This indicates that average 17.3 persons were provided with such service a week, implying
that there were high demands for technical support and information sharing.
The future plans of I*CEi include a wide range of educational courses on management,
logistics, sales, new markets development, and innovation. In particular, the plan is to provide
tools for not only professionals at companies, but also for everyone with innovative ideas to
make right decisions. However, its curriculum for 2010 mainly consist of seminars, so it
seems that professional curriculums are insufficient.
< Table 4-16 2010 I*CEi Curriculums >

Course Name Location
Santo Domingo, Santiago,
Lecture "Basics of Overseas Trade"
La Vega
Seminar "Business Plan for Export" Santo Domingo, Santiago
Seminar Workshop "DUA" Santiago
Seminar "Exports to EU" Santo Domingo, Santiago
Seminar "Safeguard" Santo Domingo, Santiago
Seminar Workshop "TBIS Compensation" Santiago
Santiago,
Puerto Plata,
Introduction of the Article 84-99 "Export Procedure"
San Pedro Macoris,
San Francisco Macoris
Seminar "Establishment of Export Ministry" Santo Domingo, Santiago
Seminar "Beauty-labeled products of US and the Caribbean
Santo Domingo, Santiago
countries"
Seminar "Labeling Regulations in EU Market" Santo Domingo, Santiago
Seminar "Export to the Caribbean Countries" Santo Domingo, Santiago
Seminar “Business Opportunities in EU Food Market" Santo Domingo
Seminar "Business Opportunities in EU Aliment Market" Santiago
Seminar "Establishing trade relationship with Haiti" Santo Domingo, Santiago
Seminar "Package in EU Market & International Logistics" Santo Domingo, Santiago
Seminar "Sales Contracts and Payment Vehicles" Santo Domingo, Santiago
Seminar "Euro Gap" Santo Domingo, Santiago
Seminar "Customs Management and Production Activities" Santo Domingo, Santiago
Seminar "Regulations for the application of best practices in
Santo Domingo, Santiago
agriculture and manufacturing"
Seminar "Effective Proceeding of Export Offers" Santo Domingo, Santiago
Seminar "Quality and Flawlessness of Exporting Plants" Santo Domingo, Santiago
Seminar "Export PR and Advertising" Santo Domingo, Santiago
4.1.2 Implications
 Lack of systematic and continuous education programs specialized in trade
 Lack of an appropriate education environment such as locations, facilities, curriculum,
etc. in comparison with demands for specialized education on trade.
 Lack of mid-and long term plans and strategies on nurturing talent
4.2 Best Practices

4.2.1 Overview
Regarding the establishment of Trade Academy in the trade center of Santiago, this report
analyzed the current curriculum at the trade center of Korea Investors and Traders Association
(KITA) in order to minimize trials and errors and maximize results.
4.2.2 The Status of Trade Academy Curriculum (2010)

KITA, established in 1965, is the specialized education academy for trade which has trained
200,000 students or more per year. This academy has developed and operated various
education curriculum such as off-line/on-line curriculum, short-term/long-term curriculum,
corporate training, industry-academy collaboration courses, etc. In addition, through various
benefits such as return of tuition based on collaboration with the Ministry of Labor, it has
exerted efforts to provide education on trade for many people.
< Table 4-17 Trade Academy Curriculums for 2010 >

Curriculum Name of Course Note
Education Specialist Export, import, transportation and customs clearance
for Programs specialist program
trading by sector Trade contract specialist program
companie Trade payment specialist program
s
Letter of Credit Specialist Program
Merchandising/Processing trade on consignment
specialist program
Credit/Contract risk management strategies
Foreign Exchange risk management strategies
Customs clearance/tariff risk management strategies
Trade payment risk management strategies
Transportation insurance risk management strategies
Export and import expenses innovation strategies

E-trade practices
E-trade marketing
FTA Comprehensive Practice Management
International Business Negotiation Specialist Program
Trade Marketing Strategies
Exhibition and Convention Specialist Program
Business Negotiation
Business English Conversation
Business Writing
Business Presentation
Business English Essence
Customized Trade practices, International Marketing, Foreign
Corporate languages for business, Foreign Exchange and Finance,
Training ITㆍOA
CEO Global Leadership Program
Program Global Logistics Management Program(GLMP)
4.2.3 Implications
 Operate systematic and continuous trade-exclusive curriculum
 Adopt various training methods actively embracing demands of trainees
 Benefit more trainees by providing various benefits
4.3 Designing a Target Model

4.3.1 Basic Plan for Trade Academy Curriculums
A. Overview
The plan is to establish a trade academy at the CIBAO trade center, the heart of the
Dominican trade, with aim to give practical training for users and managers on e-trade,
support SMEs' export, nurture trade experts, and solidify the foundation for e-trade.
B. Concept Diagram
The trade Academy will nurture e-trade experts by providing users and managers with
training ranging from overall IT education to advanced utilization of e-trade. The academy
also plans to have e-trade experts use e-Marketing Portal to support SMEs' export, thereby
enhancing competitiveness of trading companies.
< Figure 4-43 Conceptual Diagram of Trade Academy >
Educate e-Trade professionals

• Develop e-Trade
Establish Develop prof essional education
Education Education curriculum
System course • Analyze education
curriculum and education
Operate
Commence course matrix
Education
Practice
Practicing • Commence electronic trade
education
organization education by stage
• Assign e-Trade prof essional
education exclusive agency
Produce e-Trade • Educate electronic trade
professionals prof essionals
C. Measures to Nurture Talents
 Developing curriculum to educate e-trade experts

▪ Instead of making a new curriculum, the existing curriculum and international
marketing education at I*CEi will be strengthened and improved.
▪ Education required for IT factors will be additionally developed and applied.
▪ Subjects will include electronic trade, market survey/marketing, negotiation, trade

contract, document forms for trade, foreign exchange/finance, settlement/letter of
credit, logistics/transportation, customs clearance/tariff refund claim/arbitration,
credit investigation, trade cases, and trade English, so that participants can develop
necessary skills in doing trade.
 Developing educational programs

▪ Various programs will be developed for each task.
▪ The programs will include export & import logistics specialist, comprehensive trade
practice, export & import payment practice, nurturing international business
negotiation/contract specialists, trade marketing strategies, international market
business practice, IT business specialist, and e-trade master.
< Figure 4-44 Curriculum Examples by Program >

re N e O
E se e c x P tr
a D C in m re e
le rk M g o T fo T n c F c a n is u su F e C C x T E T ta th
tr c e a a o n ra ra a h o re y s tr st re d la se a ra n ra x e
a tr tin rc rk tia tr rm n a re m p ib ra ia re m g e r
d o a d d c n ig d o
rt u o ig im a d p d lis d tc (l
e n g h e tio c e a e ia g it e a tio m n h tio rc it le e e a
ic /m t t t l e n n ti s c t / h h ) w
n /f t/ o
n
n
/ e n s
a i /
Ex/import distribution   
professional
G eneral trade practice          
Ex/import fee payment   

business
Educate international
business    
negotiation/contract
professional
T rade marketing       
strategy
International market   
business
IT business  
professional
Electronic trade master               
 e- trade education steps

▪ To systematically foster trade experts, education will be divided into two parts;
training to nurture practitioners and e-trade specialists.
▪ Would-be practitioners refer to those who have over 3-years experience in overseas
sales/trade with the knowledge of practical trade. They are also capable of doing
general tasks of export and import.
▪ By limiting the target of e-trade specialist education to those who can practice trade,
the quality of education can be improved.
 Cooperation with overseas education institutions

▪ Through cooperation with similar trade education institutions (such as Korea’s Trade
Academy), higher quality curriculum can be developed.
▪ By sharing information on global e-trade trends, a practical curriculum can be

developed, improving the quality of education.
D. Measures to nurture operating staff and instructors
 Upon the establishment of the trade academy, we will invite operating staff to share
Korea’s experiences in trade policies, education strategies, and development and help
them cultivate capabilities to establish policies and strategies fitting Dominican
circumstances.
 Upon the establishment of the trade academy, we will invite key instructors to Korea
to provide training on the development of curriculum, teaching-learning methods,
strategies to develop materials, and IT utilization methods so that they can
immediately use these skills when returning to the DR.
5. Project Execution
5.1 Establishing the process of project execution
5.1.1 Procedure for Project Approval
< Figure 4-45 Project Approval Procedure in Dominica >
P ro ject Executing A g ency
(C EI-R D )
① R eq u est o f p ro m o tin g lo an acq u irin g p ro ced u res ①R eq u est o f p ro m o tin g lo an acq u irin g p ro ced u res
M EPyD M OF
② A n alysis o n
D G IP
th e p ro ject ③ D raftin g a rep o rt
an d tech n ical o n lo an
review co n d itio n s an d
C on su ltation w ith M O F n ecessity review
and relevan t m inistries
R egistratio n in the P N PIP

List
④ R eq u est o f ap p ro val to M O F
M OF
⑤ R eq u est o f lo an
G overn m ent of th e len der

co untry
⑥ Presen tatio n o f A /R , L/A (D raft)
In ter-cou ntry neg otiation
⑦ R eq u est o f ap p ro val fo r L/A (D raft)
N ationalA ssem b ly of
D om inican R epu blic
⑧ A p p ro val b y th e N atio n al A ssem b ly
En terin g in to L/A
5.1.2 Inter-Agency Cooperation Process

The Dominican Republic has decided to actively operate SNIP (National Public Investment
System) within the government budget through MOF and MEPyD from 2009. In line with
this, the Republic has enacted Rules and Procedures of the National Public Investment System
for the National Public Investment Plan 2009.
The established process to implement public projects is as follows.
< Figure 4-46 The Process to Implement Public Projects in Dominica >
5.2 Preparation for the Project

5.2.1 Preparations for the Project Implementation
After consultation among MEPyD(Ministerio de Economía, Planificación y Desarrollo),
relevant authorities, and MOF(Ministry of Finance), the project was registered on
PNPIP(National Plan of Public Investment) in 2010. Therefore, the project has obtained
priority in budget allocation. Currently, the report on the conditions and validity of the loan is
under way to get approval from MOF.
Led by Mr. Eddy Martinez, head of the executing agency, the Export and Investment
Promotion Agency has already secured the site for the CIBAO trade center. TFT for the
project is now working on the organization of the PMO(Project Management Office).
In addition, members of the chamber of commerce and industry expressed their

commitment to the project during the visit to Santiago, the site for the trade center. This
indicates that the project is expected to greatly contribute to the export increase of Dominica.
5.2.2 Preliminary Procedures

A. Procedure for the introduction of loan
The Dominican government is being given a stand-by loan from IMF, so it is necessary to
discuss the size of foreign debt with IMF. However, the project is included in IMF-
recommended projects, along with immigration and logistical system improvement. Therefore,
there will be no problem with the introduction of this loan.
B. The Government's Strong Support
For a swift approval of the project by the borrower country, close inter-agency cooperation
and understanding are required. Especially in Dominica, consent from Congress should be
granted before signing a loan agreement, as shown in <Figure 4-31>. Accordingly, Congress's
swift approval should be made in the second half of 2010 in order to start the project in 2011.
Furthermore, as the construction of trade center is the major part of the whole project, and
the trade system and applications should be installed and supplied in time, the Dominican
government needs to actively cooperate for equipment shipping and customs clearance.
C. Link to Other Projects
To ensure the project's compatibility with the system of the customs office after its
completion, the DGA Computerization project should be finished by June when the system is
scheduled to be fully opened.
In addition, the laws related to the system should be revised and executed before the
completion of this project. The relevant laws will be presented in the e-Document system
project of OPTIC (Information and Telecommunication Committee of Dominica), which is
now waiting for the results of a feasibility study. Legal review is required to make sure that
there will be no problem with system operation.
D. Forming a consultative body with relevant authorities
For smooth implementation of the project, we need to form a consultative body with
relevant authorities and agencies for prior coordination. Through consultations with persons
in charge, concrete plans including systematic links with the project and construction
approvals should be established.
6. Consulting Service
6.1 The Need for Consulting Service
 Construction management and supervision over the whole site are required to make
sure that the construction meets the orders in terms of quality and risk management.
The consultant should proceed with the construction of CIBAO trade center, develop
the trade system, and make sure that the equipment is installed in cooperation with
suppliers. Given this nature of the project, a consultant should be employed for
supervision and management of the project under the EDCF process.
 In addition, since the Dominican Republic has insufficient experience in building a
trade center and developing and operating trade system applications, professional
consulting service is needed for effective construction, development, and operation.
6.2 The Scope of Work

The duration of the project will be a total of 29 months; 3 months to select a contractor, 5
months to support drafting basic design and bidding requests, 3 months to evaluate proposals
for selection and conclude an agreement, and 18 months to supervise the progress after
employing a consultant.
6.2.1 Basic Design

During the period of basic design, the consultant selected by the Dominican government
should prepare for bidding to select suppliers in cooperation with the Export-Import Bank of
Korea after signing the Loan Agreement between the DR and Korea.
6.2.2 Bidding Support

During the period, the consultant would evaluate RFPs and support negotiations between
the short-listed bidders and project executing agency.
6.2.3 Supervision
The supervising consultant will monitor the status of the project on behalf of the executing
agency during the 18 months of implementing period. The consultant would report the
progress and risk factors of the project and present alternatives to the executing agency.
< Table 4-18 Work scope and duration of Consulting Service >
Phase Activities Period
● Analysis of the Feasibility Study report
● Basic design of the trade center and trade information system
● Support for writing a bidding document under the「Guidelines
Basic Design 5 months
for Procurement under the EDCF Loan」
● Cooperation in the procedure for approval of the bidding
document
● Support for the invitation for bid and bid conference
● Support for Q & A
Bidding ● Evaluation of proposals to select suppliers
3months
Support ● Support for the selection of the short list
● Support for contract negotiation between purchaser and short-
listed supplier
● Feasibility review on the supplier's plan to manage the project

● Examine the detailed schedule and management plan of each - Construction:
supplier, and the properness of the personnel input 18 months
Supervision
● Mid-term and final check-up for each factor - System:
● Presenting measures to respond to a risk 12 months
● Submission of reports
6.3 Considerations
 The consultant should start procurement work within 2 weeks after selection and
present proper procedures to the executing agency so that all procurement procedures
meet the Guidelines for Procurement under the EDCR, while coordinating difference
between the Export-Import Bank of Korea and project executing agency.
 Supervising consultants should start at the same time as the supplier starts the project.
The consultant would monitor the progress of the project and report to the executing
agency for coordination.
 During the 18 months for construction and 12 months for the trade information system,
PM will serve as a resident consultant, while other supervising consultants will be non-
resident. Local supervising consultants will be employed for each sector.
6.4 Grounds to calculate the consultant input

< Table 4-19 Consultant Structure of Each Phase >
Phase Category Level of staff # of Staff
Over principal
Project Manager (PM)
engineer
Over senior engineer
Architecture Consultant ▪ Foreign 14,
including architect
50M/M
Basic Design Business Process Re-engineering(BPR)
Over principal engineer ▪ Local 3,
Consultant
15M/M
ITS engineering consultant Over senior engineer
ITS Application Development
consultant
Over principal
engineer
Architecture Consultant Architect
Business Process Re-engineering(BPR) ▪ Foreign 5,
Bidding Support Over principal engineer
Consultant 13M/M
ITS engineering consultant Over senior engineer
ITS Application Development
consultant
Over principal
engineer ▪ Foreign 7,
Architecture Consultant Architect 31M/M
Supervision
▪ Local 7,
IT engineering consultant Over principal engineer 38M/M
Application Development consultant Over senior engineer
6.5 Calculation of Consulting Costs

Consulting costs for each phase were calculated based on「Appendix 2. Specifications of
Project Cost Estimates」.
7. Education
7.1 The Need for Education
To effectively build and operate an advanced trade center and system, education by experts
is required.
In addition, as it is important for the ICT sector to obtain information on up-to-date IT

trends and the utilization of electronic trade in advanced countries, overseas trainings for
relevant officials are also needed. As for the trade academy, overseas training for managers
and instructors is needed in order to swiftly stabilize and activate the system after
establishment.
7.2 Education Program

7.2.1 Construction of Trade Center
The trade center will be used for multiple purposes including international conferences,
domestic and international exhibitions, and the trade academy during normal hours. In order
to effectively operate the center with proper security and emergency responses, plans should
be made in terms of the target trainees, methods, and contents of education. Customized
education for each sector is also necessary for practical and effective management of the
center
As for the construction of trade center, only on-site education will be implemented on
manuals and equipment operation for 6 areas including mechanical, electric, communication,
fire-proof, stage and acoustics for one month before completion.
 Training Methods
▪ Establishing education plans for each sector
▪ Providing machinery and electric equipment, acoustic system manual and user
manual
▪ Technical education by suppliers
▪ Education on work procedures regarding maintenance
 Check-list
▪ Educational environment check
▪ The project schedule and status to plan a detailed education schedule
▪ Thorough preparation for manuals and textbooks
▪ Submission of the education plan after consultation with working levels on the
details
To help actual users and operators of trade center learn and develop related technologies,
diverse programs including on-site education and workshop will be provided. The basic
principles will be situation-based education, participation by persons in charge, and free
materials.
 Curriculums by education sector/target

▪ Customized education for managers and maintenance controllers
 Flexible education
▪ Providing additional technical support and education by team or technical part, if
necessary
▪ Practical education depending on different situations by season, exhibition type,

nature of conference
 Effective on-site education

▪ Maximizing benefits through practice-based education
▪ Implementing practice-based education that has immediate results
7.2.2 Integrated Trade System (ITS)

To ensure stable operation, security and emergency recovery of ITS and improve users'
capability to utilize the system, plans should be established for the methods, target, substances,
jobs and structure of education. By doing this, we can conduct systematic education
differentiation by level. This high-quality education would enable users to have better
understanding of the project and carry out jobs efficiently. Training will be divided into local
education at the recipient country and foreign education where trainees are sent abroad.
A. Local Education
▪ Establishing a plan based on collective education
▪ Supporting distance education on the product information
▪ Providing H/W manual, system S/W manual and user manual
▪ Technical education by suppliers on system S/W, H/W and other equipment
▪ Education on work procedures regarding maintenance
 Check-list
▪ Providing preliminary education environment (consultation on training room)
▪ Confirming the education schedule including consigned education
▪ The overall project schedule and progress to set up a detailed education schedule
▪ Thorough preparation for manuals and textbooks
▪ Submission of the education plan after consulting working levels on the details
In order to help users, operators, and managers of the trade information system to learn new
technology, education will focus mainly on practices. Participation will be encouraged by
persons in charge, and learning materials will be provided free of charge. In addition, diverse
programs will be offered including off-line education, workshops, and overseas training.
 Curriculums by target/role
▪ Customized education for managers, system operators, actual users, and maintenance
controllers
 Flexible education
▪ Providing additional technical support and education by team or technical part, if
necessary
 Education by highly-qualified instructors

▪ System developers, project engineers, or professional instructors
▪ Systematic education through sufficient experiences
 Lively education focusing on practices

▪ Maximizing learning effects by focusing on practices
▪ Using a lecture room where everyone can secure a PC
 Providing the best learning environment

▪ Assistants for instructors will be employed for the greatest education outcome.
▪ Focusing on new technologies
▪ Providing education guides by manager, operator, and user
 Offering overseas training
▪ Access to the newest IT trend
▪ The introduction of Korea’s e-trade
▪ Sharing the information on e-trade policies
B. Foreign Education
▪ Training by visiting Korea
▪ Education will be provided at the start of the first and second phases with 5 trainees
each for 2 weeks
 Details of Education
▪ The up-to-date IT trend
▪ The status of Korea’s e-trade
▪ Sharing the information on e-trade policies
7.2.3 Trade Academy

In order to swiftly establish and stabilize the trade academy, education differentiated by
class will be implemented. Top quality training will be provided to help trainees have better
understanding of the project and carry out their tasks more efficiently.
 Local education through dispatch of experts

▪ Dispatched Korean experts will provide advice on trade education policies and
implementation measures and educated ICT-based teaching methods for sustainable
education.
 Foreign education by inviting related staff

▪ We will invite operating staff to share Korea’s experiences in trade policies,
education strategies, and development and help them cultivate capabilities to
establish policies and strategies fitting the Dominican circumstances.
 Foreign education by inviting key instructors
▪ We will invite key instructors to Korea to provide trainings on the development of

curriculums, teaching-learning methods, strategies to develop materials, and IT
utilization methods so that they can immediately use the skills when returning to
Dominica.
▪ To help the instructors deliver the training program to Dominica, training support
materials will be provided.
8. Establishing Project Operating Measures

8.1 Trade Center
The primary goal is to ensure stable and efficient operation of facilities after
undergoing test runs, and transfer of all equipment at the completion of trade center
construction. Through screens optimized for each type of work, users can monitor the
operational status and dysfunctions in real time and immediately take actions for
recovery when errors and dysfunctions occur.
< Figure 4-47 Operational and maintenance structure of trade center >
A rch itectu ralm ain ten ance/stru cture,in terio r,
A rch itectu ralU n it exterio r fin ish es
M ech an icalU n it M ech an icalm aintenance/stab le eq u ip m ent

op eratio n
Facility M ain ten ance
T eam
ElectricalU n it Electricalm ain ten an ce/effective o p eratio n o f
electricaleq u ip m ent
D isaster P reven tio n Disaster prevention, elevator maintenance

U nit /equipment maintenance
 The scope of the operation covers maintenance of the building, mechanical and electric
equipment, and recovery of errors. In the operation of equipment and facilities,
stability and economic efficiency should be taken into consideration.
 Maintenance activities
For stable operation of the building after completion of construction, proper
maintenance standards should be set and obeyed. Maintenance activities should be
continued until the operation is on track.
< Figure 4-48 Example of Maintenance Structure at the Similar Facility in Korea >
Tech nicalSup po rt
Team H ead (1)
D irecto r of Techn ical
Sup port Team and
C onstruction U nit H ead
(C oncurrent position)
C o n stru ctio n M g m t
C o n stru ctio n U n it(5 ) M ach in ery U n it(3 ) Electricity U n it(3 ) Fire-p ro o f U n it(3 )
U n it (5 )
In-charg e/A d m inistratio n: 1 U n it H ead : 1 U n it H ead : 1
U n it H ead : 1 In-charg e/A d m inistratio n: 1 U n it H ead : 1
D esig n : 1 In-charg e/A d m inistratio n: 1
Lift/A d m in istratio n : 1
C onstructio n M gm t : 3
A d m in istrative Fire-
C o n stru ctio n : 1 C o n stru ctio n : 1 R eceip t/G u id e : 1
Su p p o rt : 1 p ro o f/C o n stru ctio n : 1
 M aintenance of  M aintenance o f
m achinery  M aintenance o f electricity
construction  M aintenance o f fire-proof  O rd er-p lacing ,
 M achinery w o rk o rd er  Electric w o rk o rd er
 C onstructio n w ork w o rks co nstructio n m anagem ent
p lacem ent p lacem ent
order placem ent  Fire-p ro of/lift w o rks o rd er  C o nstructio n
 M anag em ent o f facility-  U PS o utso urcing
 Trade C en ter space p lacem ent receip t/A p p ro val
related o utsourcing m anag em ent
 Lift o utso urcing  C o nstructio n w rap -up
m anagem ent co m p any  W ater sp arkling facility
m anag em ent m anag em ent
 Blueprin t(C A D )  Purifying tank o utso urcing o utso urcing m anagem ent
 M anag em ent o f reso urces  Land scap e co nstructio n
m anagem ent m anag em ent  Electric b reaker
o f the Trad e C enter m anag em ent
 Statutory inspection  Po w er facility o utso urcing m anag em ent
 A utho rities-related  C ivil p etitio n m anag em ent
m anag em ent  A utho rities-related
m anagem ent b usiness(Fire Station)  C o nstructio n d raw ing
 A utho rities-related b usiness(K ESC O )
 Perm ission/approval  Statuto ry insp ectio n review
b usiness(K O G A S)  Statuto ry insp ectio n
m anagem ent m anag em ent  FM S inp ut m anag em ent
 Statuto ry insp ectio n m anag em ent
 N ew construction plan m anag em ent
establishm ent
8.2 Integrated Trade System (ITS)

Consolidated management environment will be created in the main servers of ITS to ensure
effective and stable operation of the system. Through screens optimized for each type of work,
users can monitor the performances and dysfunctions of resources in real time and take
immediate actions in case of overload or dysfunction.
< Figure 4-49 Overview of System Operation >
Optimal System Operation

 Constant System Monitoring
 Centralized Management & User-oriented
Operation
 Remote Tx/Rx Management
 Standardization of Operation Procedures
Operation Support from Developer
Operation Plan
To comply with
To minimize
To develop and apply operation
downtime To maintain emergency
business processing procedures by the
contact system System operators
guideline and operation
manual
The scope of ITS operation covers performance, operation of application, dysfunctions,

backup and recovery management. In the operation of each area, stability and economic
efficiency should be taken into consideration.
After establishment, stable operation of the system will be promoted through efficient
management of resources and continuous update. We will also present a maintenance system
that can respond to rapidly changing IT and any type of errors with flexibility.
< Figure 4-50 Strategy of Maintenance >
< Table 4-20 Maintenance Details by Category >

Category Scope of Details
Support
H/W, Warranty against ● Basic checking service, environmental checking service
N/W defects before installation
equipment to Repair support - location of installation / space / power / humidity /
be introduced temperature
- Methods of access to LAN and cable
- Required conditions for connection between different
models
● Warranty service
- Repair & free replacement of defect parts
- Periodic repair service
System S/W to Support for the ● Evaluate operational status & resolve operational problems
be introduced operational or present improvement measures
status ● Support necessary technologies and education to solve and
improve problems
● Patch during the maintenance period
● If there is any upgrade in the same product, examine the
performance and conduct upgrade
S/W to be Correction of ● Errors in design and program

developed and defective parts ● Change in hardware platform with the same number of
applied users
 Maintenance Support Activities

The system developer will carry out activities to support maintenance for the stable
operation the system for 24 months after completion.
< Table 4-21 Maintenance Support Activities Guideline >

Category Details
Organization System developer
Period Two years upon the completion of final review (24 months)
The number of staff 2 Person
1st year : 2 experts will reside in Dominica

Setting
2nd year : 1 will reside in Dominica, 1 for remote support
- Hardware, system S/W, application S/W
- OS upgrade
Scope * Additional demands that are not included in the detailed design do not
belong to maintenance support activities. (Separate consultation is
required)
 Maintenance Activities
After the maintenance support, the IT division of CEI-RD, the project executing
agency, should take over the maintenance activities. There will be no changes in
activities, but the staff should fit the following requirements, as they are not system
developer.
- Those who understand the objectives and concept of ITS

- Those who understand specifications of various designs in ITS
- Those who participated in ITS development
- Those who have experience in maintenance of H/W, N/W, S/W and other equipment
8.3 Trade Academy

8.3.1 Operational Structure
The current I*CEi will lead the establishment of trade academy in Dominica, but the
operational structure should satisfy the following requirements, given that the academy will
be operated at the CIBAO area.
 Centering on local experts with the local culture of the CIBAO region in mind
 Staff at the initial stage should be formed mostly by trade experts
< Figure 4-51 Example of Trade Academy Organization >
Trade Academy
Instructor Pool Consultation Committee
Strategy Planning Trade Training Team Business

Team Cooperation Team
 Establishment of business  Development of  Support of corporate

strategies education course training
 Management of Academy  Operation of  Industry-academic
 Hire of instructors education course cooperation
 Development of textbooks  Management of trainee Project
and management  Operation of On-line  Overseas internship project
 Development of certificate education
and operation
8.3.2 Division of Works

 Strategy Planning Team
▪ Set short, mid, and long term business strategies of trade academy
▪ Recruit new instructors and manage instructors' pool
▪ Develop, operate and manage teaching materials according to the curriculums
▪ Develop and operate trade-related certificates in the future
 Trade Training Team

▪ Develop and operate professional trade education programs
▪ Manage trainees (Recruitment of trainees, and attendance management)
▪ Operate on-line curriculums in the future
 Business Cooperation Team

▪ Support corporate training and customized training
▪ Promote industry-university cooperation.
▪ Develop and manage overseas internship programs
 Advisory Committee
▪ Formed with university professors and manager-level officers of relevant agencies,
the committee will provide advices on the overall operation of trade academy,
including development and operation of programs.
9. Project Period and Schedule

9.1 Construction of Trade Center
9.1.1 Construction Period
Plan M M M M M M M M M
M 1 M 2 M 3 M 4 M 5 M 6 M 7 M 8 M 9 1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8
Item
Basic d esig n analysis and d etaild esign

D esig n
M easuring / p rep aratio n for start-up

C ivil en g in eerin g / b asic co n stru ctio
Fram
n ew o rks(Steel-fram ed co ncrete/steel-fam e) Fin ish in g an d su p p lem entary w o rks
B uild in g
n
io
t
c
ru
ts Status analysis/co nstruction p lan establishm ent A ir-co nd itioning p ip ing w o rks,air-co nditio ning d uct w o rks,air-cond itioning Test run
O rd er fo r m aterials
n M ach in ery installation,eq uip m ent installatio n
o eq uip m ent
C
Status analysis/co nstruction p lan establishm ent Sw itchb o ard ,p ow er g eneratio n eq uipm ent,electro nic Test run
Electric O rd er fo r m aterials
co m m o n line installation
eq uip m ent
O n -site train in g 6p erso ns/4w eeks/

o ne tim e
9.1.2 Implementation Schedule

The trade center will be built under the following procedure; construction documents,
construction, and test. The construction part will be executed in four major sectors including
construction works, structural works, mechanical works, and electric works. The details of
works are as follows.
 Analysis of the basic design & construction documents (4 months)

∙ Through surveys and measurements on the site (ground conditions, existence of
obstructers)
∙ Analysis of design development drawings and documents prepared in the consulting

phase after consultation with the project executing agency
∙ Prepare construction documents that reflect particular circumstances on site
∙ Re-check demands from the executing agency and collect additional changes
∙ Check the administrative procedures before commencement
 Construction (13 months)

∙ Civil works, foundation work, structural work (reinforced concrete and steel frame),
and interior and exterior finish work
∙ Mechanical work, electric work, fire-proof work
∙ Other work including landscaping
∙ Site preparation work, completion cleaning
 Test & Transfer (1 month)

∙ Test runs of equipment
∙ Educate staff on mechanical and electric facilities manuals and operation
∙ Educate staff on the manual of sound and video equipment
∙ Transfer of facilities
The construction period is scheduled to be a total of 18 months. If any extraordinary

circumstances such as delay of construction occur, the supervisors should take measures to
meet the scheduled time.
If a delay is caused by the client, separate consultation is required.
During the last test run period, experts from all sectors including architecture, structural
design, mechanical and electrical equipment will be dispatched to the site for one-month
education.
9.2 Integrated Trade System

9.2.1 Period for Establishment
일정 M 1 M 2 M 3 M 4 M 5 M 6 M 7 M 8 M 9 M 10 M 11 M 12
구분
Test &
e-M arketin g A nalysis an d D esig n D evelo p m en t Im p lem entatio n
Po rtal
Step ed ucatio n
1
e-Trade Analysis and Design
Test &
D evelop m ent Implementation
D o cu m ent
R epo sito ry education
Test &
Analysis and Design Development Implementation
e-Trad e Po rtal
Step education
2
Test &
e-Trad e R elay Analysis and Design Development Implementation
System educa
tion
ICT H /W , N /W , S/W In stallatio n

5p erso n s/2w eeks 5persons/2weeks/
O verseas Train in g
/on e tim e one time
9.2.2 Implementation Schedule

A total of 4 systems will be established in two phases. Each system will go through
analysis, design, development, test, and application for completion. The details of each
process are as follow.
 Analysis & Design

∙ Current process & analysis (Define As-Is Process & System )
∙ Define requirements (functions and technologies, other system interfaces)
∙ Process modeling (Define To-Be Process, functional charts)
∙ Data modeling (ERD)
∙ Define the optimal architecture
∙ Design screen standards (page layout & display)
∙ Design system structure and database
∙ Test Scenario
 Development
∙ Program coding
∙ Unit test
 Test & Application

∙ Integrated test
∙ Educate how to use the system
∙ Quality test
∙ Data convergence (if necessary)
Basically, H/W, N/W, and S/W required to develop and operate the system will be installed
when project development starts.
Overseas training will be provided for CEI-RD personnel(mainly computing dept.), who
will take charge of system operations. The two-week training session will begin at the onsets
of the first-phase and the second phase with 5 workers for each session.
9.3 Trade Academy

The plan for the development of curriculum and training materials and operation
consulting will require two months. Overall operating plans and the curriculum will be
developed for this period. (Size and other construction-related information are stated in
the trade center construction part.)
 Set up a general plan for operation

∙ Prepare individual plans (finance, human resources, and facility operation)
∙ Measures to provide instructors for short and long term and to form an operating
organization
∙ Prepare education and IT equipment plans that fit the size of facility
 Develop educational programs

∙ Short/long term curriculums, industry-academic cooperation program, corporate
training program,
∙ New curriculum for the establishment of ITS
∙ Prepare basic measures to develop education materials
 Overseas training
∙ Implement for two weeks, targeting key staff and instructors
∙ Sharing experiences in trade policies, education strategies, and development
∙ Cultivating capabilities to develop policies and strategies for trade academy
∙ Cultivating capabilities to develop trade education curriculums, teaching-learning

methods, and strategies to develop education materials
10. Procurement Plan

The Dominican Republic government should take responsibility for procurement for
detailed designing, supervising, constructing, and system-building and implement
procurement procedures under the EDCF procurement guidelines. CEI-RD recognizes this
from consultations during the feasibility study.
Chapter V. Project Budget Estimation

1. Estimated Costs & Funding Plan
1.1 Estimated Costs
Total costs are divided into direct and indirect costs. Direct costs would be spent on trade
center construction (direct construction costs), trade system establishment (equipment and
materials, development, installation, and operation costs), consulting on the establishment of
the trade academy, consulting services, and training. Indirect costs would include taxes &
utility charges, contingency, management, and loan commission.
< Figure 5-1 Total Costs >

(Unit: USD)
EDCF
Gov. of
Foreign Currency Portion
Item Local Currency Dominican Total
EDCFTotal
Korea 3rd Countries Portion Republic
1. Trade Center Construction 8,754,820 1,481,240 8,763,940 19,000,000 25,474,318 44,474,318

1) Land Acquisition & Infrastructure - - - - 25,474,318 25,474,318
2) Architecture 6,164,740 186,200 7,253,060 13,604,000 13,604,000
3) Mechnical 1,222,080 611,040 712,880 2,546,000 - 2,546,000
4) Electric 1,368,000 684,000 798,000 2,850,000 - 2,850,000
2. Integrated Trade Data System 4,431,767 430,636 724,500 5,586,904 - 5,586,904
1) Equipment 304,545 430,636 735,182 - 735,182
2) S/WDevelopment 3,633,890 - 724,500 4,358,390 - 4,358,390
3) Installation &Test 493,332 - 493,332 - 493,332
3. Trade Academy 87,882 - 87,882 - 87,882
4. Consulting Services 1,822,266 - 147,000 1,969,266 - 1,969,266
5. Training 345,506 - - 345,506 - 345,506
1) Local Training 174,616 - - 174,616 174,616
2) Overseas Training 170,890 - - 170,890 170,890
Base Cost 15,442,242 1,911,876 9,635,440 26,989,558 25,474,318 52,463,877
6. Taxes &Duties - - - - 1,349,478 1,349,478
7. Contingencies 1,708,112 207,794 1,064,565 2,980,471 4,570,530 7,551,001
1) Physical Contingency 772,112 95,594 481,772 1,349,478 1,273,716 2,623,194
2) Price Contingency 936,000 112,200 582,793 1,630,993 3,296,814 4,927,807
8. PMO(2%of base cost) - 1,049,278 1,049,278
9. Service Charge(0.1%of EDCF) 29,970 29,970 29,970
Total 17,180,324 2,119,670 10,700,005 30,000,000 32,443,604 62,443,604
Percentage(%) of EDCF 57.30% 7.10% 35.70% 100%
Percentage(%) of Total 27.50% 3.40% 17.10% 48.00% 52.00% 100%
1.2 Funding Plan

The total estimated cost is US$62,443,604 and the EDCF loan will fund US $30 million,
which account for 48.0 % of the total. The Dominican government will pay US$ 32,443,604.
Compared to the total cost, foreign currency earning rate is 31%. <Table 5-1> shows the
funding plan.
< Table 5-1 Funding Plan >

(Unit: US$)
Foreign Currency
Category Local Total
Korea 3rd country
EDCF 17,180,324 2,119,670 10,700,005 30,000,000
Recipient - - 32,443,604 32,443,604
Total 17,180,324 2,119,670 43,143,609 62,443,604
Out of EDCF (%) 57.3% 7.1% 35.7% 100%
Out of Total (%) 27.5% 3.4% 69.1% 100%
2. Specifications of Project Costs

2.1 Costs for Trade Center Construction
2.1.1 Costs for site acquisition and infrastructure
 In trade center construction, the Dominican Republic should pay a total of
US$25,474,318 for site acquisition and infrastructure. Specifically, US$ 18,750,000
was allocated for site acquisition, US$5,727,273 for building infrastructure, and
US$997,045 for furnishings and fixtures in the center. These estimates are based on
the following:
Item Amount(USD) Description/Precondition

The building-to-land ratio - 40%, floorage - 15,000 square meters, price of
Land Acquisition US$18,750,000
land per square meters - 500 USD
* Based on Approx. 7,500KVA Transformer Installation for Capacity of
22.9KV/380-220V (Korean Standard)
High Voltage * Construction Range : Assuming 600m (perimeter of property line abuts
Cable US$545,455 onto roads)
Construction * Material Cost : 360,000,000 (US$ 327,000)
Labor Cost : 120,000,000 (US$ 109,000)
Overhead Cost : 120,000,000 (US$ 109,000)
* Based on Unit cost for Korean Road Widening Construction US$
Road
Infrastruc Widening 8,180/meter (Based on 2008 Korean Procurement Service Data)
US$4,909,091
ture * Widening Construction Range : assuming 600m (perimeter of property
Construction
line abuts onto roads)
Water and * Expansion Construction Range : assuming 600m
Sewage US$218,182 * not including additional Sewage Treatment Plant construction cost due
Construction to insufficient capacity of existing plan
Soil/Undergro
* Soil Test: 10 Boring Hole per each Building
und Utility US$54,545
* Proposed Building Location Underground Utility
Survey
US$5,727,273
* Grand Balloom: Banquet Table 36 EA
Banquet Chair 360 EA
* Convention Hall: Conference Table 4 SET
Office Conference Chair 320 EA
Furniture & US$818,182 * Conference Room: Conference Table 117 SET
Equipment Conference Chair 351 EA
Furniture * Office Desk & Chair: 108 EA
& OA * Computer Classroom Desk & Chair: 72EA
* Miscellaneous
* Office Computer : 109 EA
OA
US$178,864 * Office Combination (printer, scanner & fax Machine): 35 EA
Equipment
* Computer for computer Classroom :36EA
US$997,045
Total US$25,474,318
2.1.2 Architectural, mechanical, and electric costs

 Conditions for estimates
▪ Floor area of the trade center: 20,000㎡
▪ Construction costs per unit area: US$ 950/㎡
▪ Ratio of material cost to the total construction cost: 70%
▪ Ratio of local labor cost to the total labor cost: 80%
▪ The amount of steel rebars used per unit area: 75㎏/㎡
▪ The price of steel rebars per ton: 700,000 won
▪ The amount of remicon used per unit area: 0.8㎥/㎡
▪ The price of remicon per unit volume: 53,000 won/㎥
 Construction Conditions
▪ Site location: Located in the downtown of Santiago, the second largest city in
Dominica. As remicon and steel bar plants are situated in the vicinity, it seems that
there would be no problem with the supply of main materials. Therefore, additional
burden for logistics would not occur.
▪ Site conditions: It has long been used as an airport, so the site is plane with no steep
slopes. The ground also seems to be suitable for construction, and the lack of need
for underground excavation is another advantage.
▪ Material Supply: Recently, there was a change in finishing the exterior wall. Most
interior and exterior finish materials will be imported. Other basic materials
including steel rebars, cement, remicon, and blocks will be smoothly supplied.
 Cost estimate for construction: Construction would consist of architectural, mechanical,

electric, and fire-proofing work. Resources for major equipment are as follows.
 Architectural work: Given the nature of construction, many kinds of materials and
equipment are required. Based on the two rounds of on-site surveys, we induced the
active use of materials easily obtained on site, materials used in locally specialized
work, such as reinforced concrete, masonry, and plaster, and local basic equipment. In
particular, civil and landscaping work are supplied mostly by local materials for
greater effectiveness.
On the other hand, stone and finishing materials for the interior and exterior finish
were made in Korea, as they are greater in terms of cost and quality than the ones from
the third country.
As for other work, there is no preferred local equipment or material, so the

construction costs were allocated to made-in-Korea materials and local materials in a
ratio of 6 to 4.
※ Especially for the scope of the interior finishing, the costs can vary greatly,
depending on the finish type. Therefore, the following will be the standards as the
most commonly used materials.
Category Floor Wall Ceiling Note

Concrete floor/
Exhibition hall Vinyl paint Exposed steel structure
epoxy coating
Convention
Vinyl tile Vinyl paint sound absorption tex
related
Partial painting Patterned wood on gypsum
Auditorium Wooden flooring
/ partial wood board / sound absorption tex
Offices/Lec
Vinyl tile Vinyl paint sound absorption tex
ture rooms
 Mechanical and electric works: In the first and second field surveys, we failed to
obtain detailed information on mechanical and electric equipment, compared to the
unit price of construction. We just confirmed that the centralized air-conditioning
system is common and that electricity is more preferred than gas as a heat source.
However, considering that no remarkable system exists for cooling and heating, we
decided to adopt a common system here. As the equipment is mostly produced and
sold by multinational companies, items made in Korea and the third country would be
mixed and the maximum ratio of local workers for installation is 70%.
<Major materials(mechanical) specification>
Item Specification & Usage
20RT(air conditioning)
Rooftop Units 30RT(air conditioning)
50RT(air conditioning)
Water tank For freezer
Water pump For circulating cold water
Ventilator For circulating cooling water
PACair conditioner Room air conditioning
Fire pump For water supply
Pipes and ducts
Others
<Main materials(electric) specification >

Item Specification
High pressure
Low pressure
Switchgear
transformer(1000KVA):lighting/heating
transformer(2000KVA):power/for events use
Power generator 1000KVA
UPS equipment 160KVA parallel (including battery)
Power distribution unit exhibition power/lighting/heating
Feeder
lights
Power equipment MCC sub-equipment
Video/sound equipment
pipes/wires
3.3m² x 1.5 million won
and tools
others
 The total costs of architecture, mechanical, and electric works are as follows.
(Unit: US$)
Item Amount Materials Labor
Architecture 13,604,000 7,926,800 5,677,200
Mechanical 2,546,000 1,527,600 1,018,400
Electric 2,850,000 1,710,000 1,140,000
Total Cost 19,000,000 11,164,400 7,835,600
2.2 Cost for establishment of Integrated Trade System (ITS)

 Estimate of Equipment and Material Costs: Equipment and materials required to build
the system are divided into H/W, N/W, and S/W, and the specifications are as follows.
Given the features of ICT equipment, most equipment was made in the third country,
while some special equipment is made in Korea.
1. Hardware
Item Specification/Usage Qty
Main Server 2way 4core, 32GB, 146GB*2 3
Backup Server 2way 4core, 8GB, 146GB*2 1
Main SAN Storage 500GB*16 units (8TB) 1
Backup SAN Storage 500GB*48units (24TB) 1
Total 6
2. Network
SAN/L2 Switch 24Port 4
Router 2Port 10/100/1000, 4Port Serial, Over 4Slot, 1
Redundant power supply
Total 5
3. Software
Vmware VMware vSphere 4 Enterprise Plus 1
for 1 processor
Firewall / VPN 2Gb firewall, 1Gb 3DES VPN 1
Web Server Web to B 3
Web Appl. Server JEUS 3
Database SQL Enterprise 2
EDMS EDM Engine 2
Other Utilities Backup, SMS/NMS, etc. 1
Total 13
 Estimate of Development Costs: We estimated the number of workers required for 4

works and calculated the costs based on the unit labor costs by level.
As for Korean technicians, [Labor costs for software technicians (2010)] provide by
'Korea Software Industry Association] was applied, while the information obtained in
the field surveys was adopted to calculate local labor costs.
Direct costs would be incurred from the office operation for 14 months; 6 months for
the first phase and 8 months for the second phase. The costs were calculated for air
fare, housing, communication, rent, and interpretation costs.
[Phase 1]
Category Period Amount(US$)
e-Marketing Portal 6M $462,834
Electronic Document Repository 5M $322,158
Direct Costs $459,000
Total $1,243,992
[Phase 2]
3. Trade Portal Establishment
e-Trade Portal 8M $1,593,393
Electronic Document Relay System 6M $909,205
Total $3,114,398
 Estimate of Operating Costs: Two developers are supposed to stay in Dominica for a
year to support the system maintenance and one will provide remote support for a
subsequent year. Accordingly, operation costs cover maintenance labor and direct
costs.
Maintenance Outsourcing Cost 24M $385,532
Total $493,332
2.3 Cost for the Establishment of Trade Academy

 The costs cover labor costs required for consulting services and direct costs. (The
equipment cost is included in the construction cost of the trade center)
[Calculation of labor costs to dispatch experts to trade academy]

Labor costs for expert dispatch 2M US$58,282
Direct costs US$29,600
Total US$87,882
2.4 Consulting Service

The project will be conducted for a total of 26 months; 8 months for procurement in which
a contractor is selected to sign an agreement, and 18 months for implementation. The
consulting service will be divided into "procurement support" and "project supervision". The
"procurement support" will then be separated into basic design and evaluation of
proposals/contract support.
The resulting consultant costs were calculated for Korean and local staff at each phase.
Category Amount(US$) Note
1. Phase I: basic design, drafting Foreign: 14, total 50MM

US$951,227
RFP Local: 3, total 15MM
2. Phase II: Evaluation of

US$242,275 Foreign: 5, total, 13MM
proposal/Contract support
Foreign: 7, total 31MM
3. Phase III: Supervision US$775,764
Local: 7, total 38MM
Total US$1,969,266
2.5 Training
According to consultations with CEI-RD, the training costs cover on-site education
(dispatch of experts) and overseas training (invitation to Korea for training).
 On-site education will be provided by architecture and IT experts. One architect and
two IT experts (1 for hardware and 1 for software) are contracted to conduct education
for 6 months and 1.5 months, respectively.
Cost for architectural expert dispatch 6M US$67,320
Cost for IT expert dispatch 3M US$30,596
Direct costs US$76,700
Total US$174,616
 Overseas training will be implemented in Korea for two weeks, targeting 20

trainees(10 for trade academy, 10 for IT).
Category Amount(US$) Note

The number of trainees 20
Period 13 days
housing US$50 Per day
food US$20 Per day
Daily cost US$20 Per day
Basic Costs
insurance US$40 Per business trip
Air fare US$2,500 Per business trip
Sub total US$74,200
Professional Allowance US$7,800 30$ per day

Education costs Material costs US$2,400
Orientation, etc US$4,800
Others
Teaching Korean US$1,290
Education costs
Completion Ceremony US$2,400
Sub total US$92,890
Program management cost US$78,000
Total US$170,890
2.6 Taxes and Utilities

Out of the total costs, 5% is allotted for taxes and utilities. This cost will be paid by the
Dominican GOD fund.
2.7 Contingency
Contingency is a reserve set to prepare for a cost increase between estimates and actual cost.
The reserve comprises quantity and price contingency and was categorized by EDCF (Korea,
the third country, local) and the DR.
 Quantity Contingency
The project requires a detailed design for construction and there can be a discrepancy
in quantity between the detailed design and F/S phases. In addition, changes in the
field conditions and methods may lead to quantity change. In this regard, we
earmarked 5.0% of the direct costs for quantity contingency through consultations
with the executing agency in Dominica.
 Price Contingency
Price contingency is a reserve set to prepare for cost increases from price appreciations
and changes in foreign exchange rates. In general, the cost is calculated by applying
the project period to the 3-year average of Consumer Price Index (CPI) and the total of
direct costs and quantity contingency. The reserve fund was calculated at US$8.4 mil.,
but it was regarded that this might lead to the overestimates of the price reserve fund,
so it was adjusted to 89.23%.
2007 2008 2009 CPI (2007~2009)

Dominica 6.14 10.64 1.44 6.01
Korea 2.53 4.67 2.60 3.26
World 4.00 5.98 2.54 4.17
※ source: IMF
2011 2012 2013 CPI for the project period

Dominica 5.903 12.140 18.760 12.268
Korea 3.269 6.700 10.230 6.733
World 4.179 8.570 13.130 8.626
※ Compound interest is applied to CPI for the project period: (1+r)n
 Contingency
The following is quantity and price contingency calculated based on the above.
(Unit: US$)
EDCF
Item Foreign GOD Total
3rd Local Sub total
Korea
country
1. Direct costs 15,442,242 1,911,876 9,635,440 26,989,558 25,474,318 52,463,877
2. Qty
772,112 95,594 481,772 1,349,478 1,273,716 2,623194
contingency
Total(1+2) 16,214,354 2,007,470 10,117,212 28,339,036 26,748,034 55,087,070
Price
936,000 112,200 582,793 1,630,993 3,296,814 4,927,807
contingency
2.8 Project Management Cost

Management costs is the expense required for the DR to smoothly conduct the project and
accounts for 2.0% of the direct costs.
2.9 Loan Commission

As for loan commission, 0.1 % of direct costs and contingency was allocated in EDCF
foreign currency.
2.10 Applied Exchange Rate

As of February 26, 2010, DOP 36.1 was applied for 1 USD. As for materials and labor
from Korea, 1 USD was calculated at 1,100 won, based on SERI Economic Focus No. 277
issue, "Background and Prospect of the Recent Instability in Exchange Rate"
3. Annual Spending Plans

The execution plan was established by reflecting general work processes. The resulting
spending plans by year, except taxes and utilities are displayed in the following <Table 5-2>
and <Table 5-3>. The whole project is scheduled to last for 3 years, but the period of
maintenance is 24 months and spending for this period occurs in the fourth year. Therefore,
the plan for the fourth year is also included.
< Table 5-2 Annual Spending Plan-EDCF >

(Unit: US$)
Category Y1 Y2 Y3 Y4 Total Note
Consulting 1,181,560 393,853 393,853 - 1,969,266

Architecture 2,040,600 9,522,800 2,040,600 - 13,604,000
Construction Mechanical 381,900 1,782,200 381,900 - 2,546,000
Electric 427,500 1,995,000 427,500 - 2,850,000
Introduction of
735,182 - - - 735,182
equipment
The first phase
624,403 416,269 - - 1,040,672
development
System
The second
phase - 3,317,718 - - 3,317,718
Development
Maintenance - 123,333 246,666 123,333 493,332
Consulting - 87,882 - - 87,882
Trade
Academy Overseas
- 85,445 - - 85,445
training
Expert dispatch - 54,496 120,120 - 174,616
Education Overseas
42,723 42,722 - - 85,445
training
Contingency - - 2,980,471 - 2,980,471
Loan commission 6,034 19,700 4,009 137 29,970
Total 5,439,902 17,841,508 6,595,120 123,470 30,000,000
< Table 5-3 Annual Spending Plan-DR >

(Unit: US$)
Category Y1 Y2 Y3 Total Note
Site acquisition 18,750,000 - - 18,750,000
Infra building 5,727,273 5,727,273
Trade center furniture

997,045 997,045
works
Taxes and utilities 1,349,478 1,349,478
Contingency 4,391,643 178,887 4,570,530
Project management 1,049,278 1,049,278
Total 28,868,916 1,175,932 2,398,756 32,443,604
Chapter VI. Feasibility Analysis

1. Feasibility in Project Scale and Scope
1.1 Construction of the Trade Center
 The CIBAO area (including Santiago) where the trade center will be built an area that
develops more active trade activities than other areas (e.g., the Free Trade Zone is
established based on abundant personnel and physical resources). By building the trade
center in this area, we can establish a stronghold to invigorate exports of not only the
CIBAO area but also over the entire Dominican Republic.
 Especially, those engaged in the commerce and industry of Santiago have had strong
needs for construction of the trade center that can support a permanent exhibition hall
for export products and assist trade businesses within the Free Trade Zone to the extent
that they have reviewed construction projects similar to this several years ago. It was
also found out that they have desired to build a trade center which can function as
shown above.
 In addition, the biggest EXPO CIBAO has been held in the outskirts of the city with an
inconvenient transportation system and in a gymnasium which is not generally used for
exhibitions. In a bid to iron out these inconveniences, building an exhibition hall in the
trade center will help exhibition events become invigorated and have a positive
influence on relevant businesses. This will lead to flourishing exports and boosted
morale. Also, by installing the convention facilities and trade academy facilities in the
same space, it will contribute for the trade center to perform its role as an industrial
hub, not only for the Dominican Republic but also for the Caribbean area.
 During the first business trip of the F/S Project Team, the Dominican Republic
requested a space about 50,000㎡ to be used as a convention hall, exhibition hall, and
trade academy, but in consideration of similar examples in Korea, trade volume
between two countries, and GDP, etc., an area that is about 20,000㎡ has been deemed
to be more appropriate. Whether or not this building will be expanded or not will be
considered separately based on the needs of the project executing agency.

 As seen in the status analysis, the Dominican Republic has enjoyed the fastest
economic growth (Avg. 9.5%) out of countries in Latin America during the period
between 2005 and 2007, and the DR has kept promoting expansion of overseas trade
through the efforts such as concluding FTA with Latin American countries, the US,
and EU, etc., and operated the Free Trade Zone which entitles various benefits in taxes
and tariffs, among others. In case of the infocom industry, President Leonel Fernandez
has presented his vision to make the country become the IT Mecca of Latin America,
and consequently this area became the only area exhibiting growth notwithstanding the
recent great depression that the country faced.
 However, annual export increase ratio of the Dominican Republic during the period
between 2005 and 2007 failed to reach 6%, showing a big gap compared with the
annual average export increase ratio of member countries of DR-CAFTA, 11%. And,
the number of export companies of this country is about 3,000 as of 2009, out of which
98% are SMEs recording annual revenues less than USD1 mil. Hence, it is necessary
to come up with various supporting measures to boost exports of SMEs.
 Accordingly, the project to build the integrated trade system, which will provide the
integrated trade data for acquisition of corporate information, information on
products/markets/buyers for negotiation cost saving, and support the entire process of
the export business by connecting trade information which has not been exchanged
among approval authorities such as CEI-RD, DGA, etc., is expected to result in cost
savings for trading companies, higher business efficiency, and a competitive edge, and
thereby this project is considered worthwhile.
1.3 Trade Academy

 As shown in the status analysis, Santiago is the central commercial city of the CIBAO
area. However, there is only one professional training institution on trade named the
Overseas trade and corporate innovation institute(I*CEi) run by CEI-RD, and this is
available within Santo Domingo where the head office of CEI-RD is located. Also, the
curriculum of the I*CEi centers on seminars, and thereby trade-related training
focusing on practical business, which trading companies require, has not been
conducted successfully.
 Therefore, the project to establish the trade academy, which will strengthen and
improve the existing curriculum and overseas marketing training of I*CEi, and foster
workforce specialized in e-Trade through practical training for users and managers, at
CIBAO Trade Center is deemed appropriate.
2. Feasibility in Project Cost

2.1 Construction of the Trade Center
 The F/S Project Team finalized the scale of the trade center as 20,000㎡ based on
negotiations with the project executing agency, and in this case about half of the entire
space will be constructed as a steel structure, which requires column-free long span
space. This space will be used as an exhibition hall while the remaining half will be
constructed as a reinforced concrete structure.
 In the first field survey, it was determined through interviews with a representative of a
local construction company that construction of the convention hall building will not
be ordinary, and the data we collected shows that construction costs of no less than
US$1,000/㎡ per unit area is expected to be spent.
< Table 6-1 Construction Cost per unit area according to building type as surveyed in the project site >
Commercial
Type Residence Factory Bldg.(Including Remarks
Convention)
PEA - - 900~1,000
Construction Enterprise
Constructora
700~900 - 1,100 in
Teddy, S.A
Santiago
Mera,Munoz
500~600 180 900~1,200 in
Fondeur, S.A
Santiago
Grupo P 800~1,000 250~300 1,000~1,200
in Santo Domingo
Average 750 230 1,050
 In case of the exhibition building, the construction cost range deviation is much bigger
than other types of building. Furthermore, it is difficult to figure out the standard
construction cost in a feasibility study phase due to not having detailed design
documents and barometers.
 We consider that a steel structure is more efficient and can save at least 20~30% of
construction costs than a reinforced concrete structure. At the same time, if we
construct 43% of CIBAO Trade Center with steel structure, we assume that the saving
would be 28% for steel structure applied area's total construction cost and it would
come up with a unit construction cost of US$950/m2 which is 88% of US$1,083/m2.
 When we compare to the recent construction costs of Changwon Convention Center in
Korea, the 1st phase opened in 2005 is a total area of 41,233m2 with total construction
costs of US$53,156,278 (Unit construction cost of US$1,200/m2). And the 2nd phase
convention hall extension in 2008 is total extension area of 5,481㎡ with
US$8,915,367 (Unit construction cost of US$1,514/m2). Since the extension for
convention hall was built on the existing roof used as outdoor parking lot with
structural investigation and reinforcing work, it required extra costs than general
construction. Therefore, we need to manage every level of work in terms of budget and
work schedule control other than comparing other sample projects.
 In another Korean case, the unit construction cost for the cultural center construction
finished on 2009 with a total area of 18,065m2 with 2 and a half years construction
period was US$ 2,360/m2. This case requires at least double the construction costs due
to expensive acoustic equipment, audio/visual equipment, and solar energy generating
hardware. Considering all the cases mentioned above, we need to concentrate on
finding efficient advantages at the project site and other construction cost saving
factors with sufficient preparation and evaluation before starting construction.
< Table 6-2 Construction cost composition percentage per work types according to building usage types >
Mechanical Electric Communication
Work Type Construction Total
Work Work Work
Gov. Office
63.71 21.16 9.95 5.08 100
Building
Sports Complex 75.50 10.67 10.49 3.34 100
Exhibition Hall 66.96 14.43 14.67 3.94 100
Average 67.24 17.90 10.59 4.28 100
Compared to other types of facilities, exhibition facilities requires higher electric

construction costs due to various special lighting fixtures and acoustic equipment.
Besides electric work, the cost of average construction cost for exhibition facility is
medium. By natural lighting system through sky light and applying efficient acoustic
system, CIBAO Trade Center could achieve cost saving target in electric construction.
 In a local supermarket, La Sirena, with a total area of 8,000m2, 2 story high

construction case, the unit construction cost is US$600/m2 with a light steel structure.
And another case of Terminal de Cruceros de Sans Soucithe in Rio Ozama, downtown
Santo Domingo's unit construction cost was US$1,200/m2 with multiple use function
of passenger terminal and convention center. Since the CIBAO Trade Center is a
single function building, we expect at least 15% saving in construction.
 In general, the major two components of construction cost are labor and materials. The
material cost between Korea and DR is about to same but the local labor cost is only
11% of Korean labor cost. As such, the low labor cost in the local labor market would
be a big advantage for this project.
 In conclusion, it is not easy to confirm the accurate construction costs for CIBAO
Trade Center with data we have so far. Therefore, we could achieve a successful result
when we prepare optimal design and documentation for efficient construction with
systematic support from the DR Government and Department of Export Investment.
2.2 Integrated Trade System(ITS)

 When calculating the FP (Function Point; Method to measure the scale of software
based on the number of functions of a software) in accordance with the presented
project scale, FP 4,562 is calculated as shown below.
< Table 6-3 Calculation of Function Point >

Data Function Transaction Function
Internal External Function
System Name External Input External External Point
Logical Interface
File File Addition Modification Deletion Output Inquiry
ITS
(Integrated Trade 159 7 147 146 146 108 260 4,562
System)
 When assuming the required man-hour per 1FP as 11.0MH/FP, the estimated man-
hours are calculated as 475M/M, and thereby it was determined that the appropriate
amount of manpower is to be inputted for 12 months of the construction period, and
such costs are also deemed appropriate. (Refer to the 「Attachment 2. Detailed
Evidence for Estimated Cost」 for further details.)
 As it has been more than twenty years since set-up of the e-Trade System of Korea
after launching of the Trade Automation Business Promotion Committee in 1990,
comparison of the project scale and cost with ITS is deemed inappropriate, and thereby
it seems useful for judgment of feasibility in the project cost to compare ITS with that
of other countries under construction or to be constructed by benchmarking the latest
e-Trade system model of Korea.
 In case of Libya where the e-Trade system is being built, the project scope includes
export, import, and other businesses; Looking into project costs for building the export
cooperation system that is similar to ITS, the system construction period is 12 months,
manpower is 337M/M, and construction cost is about USD4,000,000. Also, in case of
Romania set-up of the export system similar to the ITS, this requires 24 months with
manpower of 675M/M and R&D costs amounting to USD6,400,000. Although
inputted manpower and project cost differ by countries due to their own characteristics,
ITS project cost is deemed appropriate in view of the comparison of ITS with the
afore-mentioned cases of other countries.
2.3 Trade Academy

 In case of the trade academy, its construction is included in the construction of the
trade center, and therefore we would like to judge propriety in consulting the
workforce in accordance with establishment of the operation plan. It is determined that
about two(2) months are required for professional consultants to come up with an
operation plan and develop curriculum and training materials after establishment of the
academy.
3. Technical Feasibility
Technical feasibility refers to whether or not applicable conditions including technical
presence and technical risks have been established.
 Santiago, the second biggest industrial city of the Dominican Republic, has
accumulated a systematic industrial system and capital power through the textile
industry and other industries, and has reviewed plans similar to this such as the
construction of the standing exhibition hall and trade support center in the Free Trade
Zone(Zona Franca), with the goal of invigorating new industries.
 During the first business trip of the F/S Project Team, a large-scaled shopping center in
steel structure has been used already, and work using concrete for existing buildings
are known to be very difficult.
 The exhibition function of the trade center will be in the column-free steel structure,
often used in the Dominical Republic, providing a long space for exhibitions, and the
convention and trade academy are mainly built by steel structures and the walls by
masonry; Therefore, measures to utilize merits and demerits of construction
technologies of the Dominican Republic in an efficient manner are needed.
 Hence, if comparatively-inexpensive steel structure and proficient concrete work is
used for construction space, the design of such construction is concrete, and the
construction process is efficient, we will be able to achieve our goals.
 As of 2010, major countries worldwide have promoted e-trade. In case of EU, the
country has pushed ahead with alignment of laws and systems and international
cooperation by utilizing e-trade, and countries of East Asia have established
government-led e-trade service and are trying to connect this service globally.
Therefore, it seems reasonable for Dominican Republic to promote e-trade through this
project, as it is to be in line with global trend, and thereby it is deemed appropriate to
utilize the .NET, the global IT technical standards.
4. Economic Feasibility
4.1 Outline
In this chapter, we conducted economical feasibility analysis concerning EDCF investment
project for construction of the CIBAO Trade Center in Dominican Republic by using the
Cost-Benefit Model. In other words, by analyzing the social benefits and costs, we determined
the economic efficiency of such a project through B/C Ratio, Net Present Value(NPV), and
Internal Rate of Return(IRR), and etc. Also, we performed a Sensitivity Analysis on the
influence of major variables such as discount rates, costs, benefits, and etc., on economic
efficiency.
4.2 Preconditions for Feasibility Analysis

4.2.1 Exchange Rate
In the economic efficiency analysis, DOP36.1 per 1 USD will be applied, and KRW1,100
per 1 USD will be used for calculation of materials from Korea, etc.
4.2.2 Discount Rate

As to discount rate used for economic efficiency analysis, the 「General Guidelines for
Pre-feasibility Study(2004, Revised Edition)」 stipulates that real discount rate, 7.5%, is
generally used for public investment project, but in case of Dominican Republic, a developing
country, discount rate by 12% is used based on the 「EDCF Project Feasibility Study
Guidelines」.
4.2.3 Analysis Period

When this project is promoted, about 26 months will be required for construction of the
trade center and set-up of the Integrated Trade System, and etc. Base year for the economic
efficiency analysis is 2011. Beginning of the project is assumed as January, 2011, and
completion is projected as February, 2013. It is also projected that pre-consulting of this
project will be conducted from January to end-August, 2011(For 8 months), and this project
will be promoted from September, 2011 to February, 2013(For 18 months).
It is determined that construction of the CIBAO Trade Center will require 18 months(From
September, 2011 to February, 2013), and set-up of the Integrated Trade System 12
months(From September, 2100 to end-August, 2012).
In relation to the cost-benefit analysis, the benefits from utilization of the CIBAO Trade
Center is assumed to be 40 years3 according to an opinion of a staff member in charge of

COEX facilities and the service life of a building made up of steel framed reinforced concrete.
Utilization of the Integrated Trade System is assumed to be until 20194 for 7 years after
termination of such project, and this utilization is likely from September, 2012, i.e., benefit
period for utilization of the Integrated Trade System is assumed to be 7 years and 4 months in
reality. Hence, the overall benefit is considered to be 40 years after termination of the
project(By 2052, accurate period: 39 years and 10 months). Maintenance costs for the
Integrated Trade System are assumed to be incurring until 2019, when the utilization will end,
and it is determined that operation/maintenance cost will be incurred for 40 years for the
building mentioned above.
4.2.4 Inflation Rate and Wage Increase Rate

The inflation rate of the Dominican Republic is determined as 6.01%, the average of the
last three years, and the wage increase rate in the trade industry as 5.90% based on the wage
increase rate of the last three years. Average estimated values of the increase rate and the
wage increase rate in the trade industry of the Dominican Republic are as shown in the <Table
6-4>.
< Table 6-4 Latest Inflation Rate and Annual Average Wage >
(Unit: %)
Type 2007 2008 2009 Average
Inflation Rate 6.14 10.64 1.44 6.01
Wage Increase Rate5 11.3 3.8 2.8 5.90
3)
In reference to opinions of COEX facilities manager and service life of steel-framed reinforced structure
pursuant to Tax Act.
4
) According to the ‘Standard Guidelines for Pre-Feasibility Analysis of IT (KDI, YR2004), life cycle of the
information system is recommended to be 5~10 years in the economic feasibility analysis. In reflection of the
opinions of expert in developing trade information system, the life is assumed to be 7 years. After 7 years, it will
be assumed as reconstruction, not a simple system upgrade.
5
) In case of wage increase rate, the data of those engaged in tourism industry and increase rate in the remittance
amount of those residing overseas are used only, and wage increase rate of those engaged in tourism industry is
used as an estimated value of those engaged in trade industry.
4.3 Investment Plan

4.3.1 Estimated Project Cost
Estimated project cost of entire project is US$62,443,604 including EDCF borrowings
amounting to US$30,000,000(48.06% of entire cost) and expenditure of Dominican Republic
US$32,443,604(52.0% of entire cost).
Details on the estimated project cost are as shown below in the <Table 6-3>.
< Table 6-5 Estimated Project Cost >

(Unit: US$ K)
Korea EDCF Dominican Republic
○ Construction of the trade US$19,000K ○ Land acquisition and US$25,474K
center infrastructure
- Securing land, approval,
construction works, ○ Taxes and duties US$1,349K
machinery works, and
electrical works
○ Integrated Trade System US$5,587K ○ Contingency US$4,570K
- Equipment, R&D cost,
installation, test-run
○ Trade academy US$88K
○ Consulting service US$1,969K
○ Training US$346K
- Local training, overseas ○ Project management
cost US$1.049K
training
○ Contingency US$2,980K
○ Loan Commission US$30K
Total US$30,000K Total US$32,443K
4.3.2 Investment Plan by Years

Total project duration is planned to be 26 months, and investment plan by years thereof is
as shown below in <Table 6-6> and <Table 6-7>.
Investment plan by years is drafted based on the development plan by years.
< Table 6-6 Investment Plan by Years-EDCF >

Category Y1 Y2 Y3 Y4 Total Remarks
Consulting 1,181,560 393,853 393,853 - 1,969,266
Construction 2,040,600 9,522,800 2,040,600 - 13,604,000
Construction Machinery 381,900 1,782,200 381,900 - 2,546,000
Electricity 427,500 1,995,000 427,500 - 2,850,000
Equipment 735,182 - - - 735,182
st
1 stage
624,403 416,269 - - 1,040,672
development
System 2nd stage
- 3,317,718 - - 3,317,718
development
Maintenance
- 123,333 246,666 123,333 493,332
& repair
Consulting - 87,882 - - 87,882
Trade
Academy Overseas
- 85,445 - - 85,445
training
Dispatch of an
- 54,496 120,120 - 174,616
expert
Training
Overseas
42,723 42,722 - - 85,445
training
Contingency - - 2,980,471 - 2,980,471
Loan Commission 6,034 19,790 4,009 137 29,970
Grand Total 5,439,902 17,841,508 6,595,120 123,470 30,000,000
< Table 6-7 Investment Plan by Years-DR >

Category Y1 Y2 Y3 Total Remarks
Land Acquisition 18,750,000 - - 18,750,000
Infrastructure Cost 5,727,273 5,727,273
Cost for furniture of the
997,045 997,045
trade center
Taxes and duties 1,349,478 1,349,478
Contingency 4,391,643 178,887 4,570,530
Project management cost 1,049,278 1,049,278
Grand Total 28,868,916 1,175,932 2,398,756 32,443,604
< Figure 6-1 Details of the Project Cost >
프로젝트 비용
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4.4 Maintenance Costs

4.4.1 Maintenance Costs of the Trade Center
Maintenance costs for the trade center are assumed to be incurred from termination of this
project for 40 years, the usable period of this building; This is assumed to be incurred from
the completion year of this project 2013 to 2052(40 years).
In COEX of Korea, costs for operation of the trade center are classified into utility cost,
maintenance & repair costs, outsourcing costs, sanitation costs, operation management costs,
depreciation costs, marketing costs, management service fees, interest costs, and others.
However, this classification is available upon completion of the basic design of the trade
center, and thereby we estimated maintenance cost of the trade center of Dominican Republic
based on the maintenance costs spent for COEX of Korea. The formula for the maintenance
costs of the trade center is as follows.
 n = 2, ......, 41 (Operation costs will be incurred for the usable period of building (For
40 years),
 Space of the trade center of Dominican Republic is assumed to be 20,000m2,
 Operation cost per unit space of COEX is calculated as 194.81USD/㎡(As of YR2010)
by dividing the total operation budget for one(1) year by space and considering
exchange rate, 6
 Cost conversion rate is estimated as 74.27% in consideration of the shopping arcade
lending expense of Dominican Republic to COEX lending expense,
 In case of YR2013, the project will be terminated at the end of February, expenses for
10 months only are reflected,
 Annual trade center maintenance costs reflect inflation rate (6.01%).
Details on the annual trade center maintenance cost is as shown in <Figure 6-2>, <Figure
6-3>, and <Table 6-8>.
< Figure 6-2 Annual Trade Center Maintenance Costs >
Maintenance Cost for Trade Center

Annual Cost (unit: $)
Present Value
Year Future Value
6
) Detailed operation cost of COEX is the internal data, and is not subject to disclosure.
< Figure 6-3 Annual Trade Center Maintenance Costs (Present Value) >
Maintenance Cost for Trade Center (PV)

Year Present Value
< Table 6-8 Trade Center Maintenance Costs >

(Unit : US$)
Year 2013 2014 2015 2016 2017

Future
2,872,513 3,654,069 3,873,560 4,106,235 4,352,886
Value
Present
2,289,950 2,600,894 2,461,717 2,329,988 2,205,307
Value
Year 2018 2019 2020 2021 2022
Future
4,614,352 4,891,525 5,185,346 5,496,817 5,826,996
Value
Present
2,087,299 1,975,605 1,869,888 1,769,828 1,675,122
Value
Year 2023 2024 2025 2026 2027
Future
6,177,009 6,548,046 6,941,371 7,358,321 7,800,317
Value
Present
1,585,484 1,500,643 1,420,342 1,344,338 1,272,401
Value
Year 2028 2029 2030 2031 2032
Future
8,268,862 8,765,551 9,292,075 9,850,227 10,441,905
Value
Present
1,204,313 1,139,869 1,078,873 1,021,141 966,499
Value
Year 2033 2034 2035 2036 2037
Future
11,069,123 11,734,017 12,438,849 13,186,019 13,978,070
Value
Present
914,780 865,829 819,498 775,645 734,140
Value
Year 2038 2039 2040 2041 2042
Future
14,817,697 15,707,758 16,651,283 17,651,483 18,711,762
Value
Present
694,855 657,672 622,479 589,170 557,643
Value
Year 2043 2044 2045 2046 2047
Future
19,835,730 21,027,211 22,290,262 23,629,181 25,048,526
Value
Present
527,803 499,559 472,827 447,526 423,578
Value
Year 2048 2049 2050 2051 2052
Future
26,553,127 28,148,105 29,838,890 31,631,236 33,531,243
Value
Present
400,912 379,459 359,153 339,935 321,744
Value
Future Value 533,797,554
Total
Present Value 45,203,706
※ Discount rate=12%, inflation rate=6.01%
4.4.2 Maintenance Costs for the Integrated Trade System

Maintenance cost for the Integrated Trade System has an assumption that the system will be
completed in August 2012 and can be used during the period between September 2012 and
the end of 2019 (For seven years and four months). Maintenance cost of the Integrated Trade
System is valued at 15% of the system development cost7, and costs for 4 months are reflected
for the 2012. The formula used to estimate the Integrated Trade System maintenance cost is as
shown below.
 n = 1, ......, 8 (Maintenance cost will be incurring for five(5) years after the termination
7
) In case of the general information system, maintenance cost is estimated for HW as 10% and for SW as
15%~20%, but in this project the weight of HW is less than 1/5, and thereby it is estimated to be 15%.
of this project),
 Cost for set-up of the Integrated Trade System is estimated as 5,586,710US$(As of
YR2010),
 Annual maintenance cost of the Integrated Trade System in reflection of inflation rate
(6.01%) is as shown below.
< Table 6-9 Maintenance Cost for Integrated Trade System >
(Unit : US$)
Year 2012 2013 2014 2015
Future
313,912 998,304 1,058,270 1,121,837
Value
Present
280,279 795,842 753,256 712,948
Value
Year 2016 2017 2018 2019
Future
1,189,223 1,260,657 1,336,381 1,416,654
Value
Present
674,797 638,688 604,511 572,163
Value
Total
※ Discount rate=12%, inflation rate=6.01%
< Figure 6-4 Annual Maintenance Cost for the Integrated Trade System >
Maintenance Cost for Integrated Trade System

Present Value
Year Future Value
4.4.3 Other Operation Cost

The work related to the trade academy in this project is to come up with the basic plan on
training curriculum of the trade academy. In accordance with such a plan, the trade academy
may have a different costs and benefits structure, and thereby this economic feasibility
analysis includes the project cost related to the establishment of the plan on trade academy,
but excludes operation costs and benefits in relation to operation of the trade academy.
4.4.4 Cost Flow

Cost flow of this project, including overall cost and operation/maintenance cost, is as
shown in <Table 6-10> and <Table 6-11>.
< Table 6-10 Annual Cost Flow (Future Value) >

(Unit : US$)
Annual Cost
Category
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021~2052 Total
Trade Center
27,327,273 14,297,045 2,850,000 0 0 0 0 0 0 0 0 44,474,318
Construction
System
1,359,585 3,857,320 246,666 123,333 0 0 0 0 0 0 0 5,586,904
Development
Trade Academy 0 173,327 0 0 0 0 0 0 0 0 0 173,327
Consulting
1,181,560 393,853 393,853 0 0 0 0 0 0 0 0 1,969,266
Service
Training 42,723 97,218 120,120 0 0 0 0 0 0 0 0 260,061
Taxes and
0 0 1,349,478 0 0 0 0 0 0 0 0 1,349,478
Duties
Contingency 4,391,643 178,887 2,980,471 0 0 0 0 0 0 0 0 7,551,001
Project
Management 0 0 1,049,278 0 0 0 0 0 0 0 0 1,049,278
Cost
Loan
6,034 19,790 4,009 137 0 0 0 0 0 0 0 29,970
Commission
Trade Center
Maintenance 0 0 2,872,513 3,654,069 3,873,560 4,106,235 4,352,886 4,614,352 4,891,525 5,185,346 500,247,068 533,797,554
Expense
System
Maintenance 0 313,912 998,304 1,058,270 1,121,837 1,189,223 1,260,657 1,336,381 1,416,654 0 0 8,695,240
Expense
Total 34,308,818 19,331,352 12,864,693 4,835,809 4,995,397 5,295,458 5,613,543 5,950,734 6,308,179 5,185,346 500,247,068 604,936,398
※ Inflation rate=6.01%
< Table 6-11 Annual Cost Flow (Based on Present Value)>

(Unit : US$)
Annual Cost
Category
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021~2052 Total
Trade Center
27,327,273 12,756,219 2,272,003 0 0 0 0 0 0 0 0 42,364,494
Construction
System
1,359,585 3,444,036 196,641 87,876 0 0 0 0 0 0 0 5,088,047
Development
Trade
0 154,756 0 0 0 0 0 0 0 0 0 154,756
Academy
Consulting
1,181,560 351,655 313,977 0 0 0 0 0 0 0 0 1,847,284
Service
Training 42,723 86,802 95,759 0 0 0 0 0 0 0 0 225,284
Taxes and
0 0 1,075,796 0 0 0 0 0 0 0 0 1,075,796
Duties
Contingency 4,391,643 159,721 2,376,013 0 0 0 0 0 0 0 0 6,927,377
Project
Management 0 0 836,478 0 0 0 0 0 0 0 0 836,478
Cost
Loan
6,034 17,669 3,196 98 0 0 0 0 0 0 0 26,997
Commission
Trade Center
Maintenance 0 0 2,289,950 2,600,894 2,461,717 2,329,988 2,205,307 2,087,299 1,975,605 1,869,888 27,383,058 45,203,706
Expense
System
Maintenance 0 280,279 795,842 753,256 712,948 674,797 638,688 604,511 572,163 0 0 5,032,484
Expense
Total 34,308,818 17,260,136 10,255,655 3,442,033 3,174,665 3,004,785 2,843,995 2,691,810 2,547,768 1,869,888 27,383,058 108,782,610
※ Discount rate=12
Cost flow during the period between 2011 and 2052 is as shown in <Figure 6-5>.
< Figure 6-5 Annual Cost Flow >
Cost비용 흐름(현재가치)
Flow (Present Value)
40,000,000
35,000,000
Cost (Unit:$)
30,000,000
연간비용(단위:$)
25,000,000
20,000,000
15,000,000 Present
현재가치
Annual
10,000,000
Value
5,000,000
0
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
Year
연도
4.4.5 Estimated Profit

Construction of the exhibition convention hall, such as the trade center, is known to have
various effects on total output inducement (e.g., value-added inducement, employment
inducement, and net indirect taxes inducement, etc.). For example, a survey conducted in
2009 showed that the total output inducement effect of exhibitions in COEX of Korea reached
KRW562.9 billion per annum including value-added inducement worth KRW311.4 billion,
employment inducement for 7,058 persons, and net indirect taxes inducement worth
KRW29.2 billion, and etc. In addition, holding exhibitions relating to the export/import
business through the trade center brings benefits such as a boost in exports/imports and
invigoration of the industry, among others.
Development of the Integrated Trade system is estimated to have significant cost-saving

effects on trade business. For example, in Korea, results of the “Joint Project on e-Trade ISP
of Ministry of Knowledge Economy, Ministry of Land, Transport and Maritime Affairs, and
Customs Service” show that the e-Trade system has economic effects amounting to about
KRW2 trillion and KRW980.4 billion per annum, including improvements in productivity,
savings of additional costs, and savings of duplicate IT investment costs, and etc. In this
economic feasibility analysis, benefits will be estimated centering on direct benefits,
excluding indirect effect such as effects on output inducement and effects on increases in
exports, among others.
A. Benefit Items
Five benefit items considered in the economic feasibility analysis are as shown below.
 Income benefit from lending office space/lecture room

In the trade center that will be constructed, there will be a space for offices and IDC,
and etc.; therefore we can earn benefits from this space by renting it out or using it.
 Income benefit from lending exhibition hall and meeting room

In the trade center that will be constructed, there will be facilities such as the
exhibition hall, halls, convention facilities, and meeting room, etc., and therefore we can
earn benefits by renting out these facilities.
 Income benefit from administrative fees for exhibition hall and meeting room.
When renting out the exhibition hall and meeting room, we can earn administrative
fees accrued from use of electricity, water, etc. as well as rent from users of such
facilities.
 Benefit from the use of the Integrated Trade System

By using the Integrated Trade System, trading companies can easily access
information required for trading business via Internet.
 Benefit from utilization of the trade portal

By utilizing the trade portal system, we can save processing time and documentation
expenses during promotional businesses, such as contract, export/import permission,
shipping document submission, custom clearance, collection of money, and etc.
B. Benefit Analysis
 Income benefit from lending office space/lecture room

Out of the total space of the trade center, 20,000㎡, we can secure the space for offices
totaling 2,650㎡ including 600㎡ for business center, 900㎡ for IDC and office space
in the convention hall, and 1,150㎡ for lecture room. Such benefit from lending this
space for office is estimated based on the rent of offices in the Santiago(USD12.6 per
month/㎡, as of 2008). The formula for calculation of benefit from rent of space for
offices by years is as shown below.
▪ It is assumed that n=2,......,41, indicating that building can be used from n=2(2013)
up to n=41(2052).
▪ Space for lending is 2,650㎡ in total including 1,150㎡ for lecture room, 1,500㎡
for IDC and office space in the convention hall.
▪ Rent of offices per annum of each space is based on the monthly rent of
Santiago(USD12.6 per month/㎡, as of 2008), and it is converted into the figure as
of 2010, and USD182.95 is used consequently.
▪ In case of 2013, the benefit from lending will be generated from March, the benefit
for ten months is reflected.
▪ Increase rate of rent by 10% is reflected into benefit on lending.
Benefit on lending the office space is as shown in the <Table 6-12>.
< Figure 6-6 Income Benefit from Lending Office Space/Lecture Room >
Office Space / Lecture Room (Present Value)

Year
Present Value
< Table 6-12 Income Benefit from Lending of Office Space/Lecture Room >
(Unit : US$)
Year 2013 2014 2015 2016 2017
Future Value 537,749 709,829 780,812 858,893 944,782
Present Value 428,690 505,242 496,220 487,359 478,656
Year 2018 2019 2020 2021 2022
Future Value 1,039,261 1,143,187 1,257,505 1,383,256 1,521,582
Present Value 470,109 461,714 453,469 445,371 437,418
Year 2023 2024 2025 2026 2027
Future Value 1,673,740 1,841,114 2,025,225 2,227,748 2,450,522
Present Value 429,607 421,936 414,401 407,001 399,733
Year 2028 2029 2030 2031 2032
Future Value 2,695,575 2,965,132 3,261,645 3,587,810 3,946,591
Present Value 392,595 385,585 378,699 371,937 365,295
Year 2033 2034 2035 2036 2037
Future Value 4,341,250 4,775,375 5,252,912 5,778,204 6,356,024
Present Value 358,772 352,365 346,073 339,893 333,824
Year 2038 2039 2040 2041 2042
Future Value 6,991,627 7,690,789 8,459,868 9,305,855 10,236,440
Present Value 327,862 322,008 316,258 310,610 305,064
Year 2043 2044 2045 2046 2047
Future Value 11,260,084 12,386,093 13,624,702 14,987,172 16,485,890
Present Value 299,616 294,266 289,011 283,850 278,781
Year 2048 2049 2050 2051 2052
Future Value 18,134,479 19,947,926 21,942,719 24,136,991 26,550,690
Present Value 273,803 268,914 264,112 259,395 254,763
Total
※ Discount rate=12%, increase rate in rent=10%
 Income Benefit from Renting Out Exhibition Hall and Meeting Room
In the trade center that will be constructed, there will be an exhibition hall, a
convention hall, an auditorium, and a meeting room; We can obtain income by renting
out these facilities to events or meetings, etc. In a bid to calculate income from rent,
we utilize the exhibition lending rate of COEX of Korea, estimate the exhibition
lending rate of this trade center, and calculate benefits based on this data. Detailed
assumptions used are as shown below.
▪ It is assumed that benefits from renting out facilities such as the exhibition hall and
meeting room will be incurring for forty (40) years.
▪ In the first floor, a space of 11,350㎡ including 8,600㎡ for exhibition hall and
1,050㎡ for the grand ballroom can be used for lending, and for the second floor the
space about 1,650㎡ including 900㎡ for convention hall can be rented as a venue
for events or meetings. Therefore, we assume that the space totaling 13,000㎡ can be
rented for exhibitions, events, meetings, and so on.
▪ Rent per unit space is based on the exhibition lending rate of COEX (KRW1,750, per
day per㎡). We estimate the rent as 74.27% in consideration of the rent of COEX,
and rent of commercial area of Santiago (That is, this rate indicates that when the
same space is rented in Santiago, it requires 74.27% of rent of COEX).
▪ In case of exhibition facilities, the operation rate is maximum 70% due to hours
required for preparations of exhibition events. In case of local exhibition facilities of
Korea, such rates reach 30%~40%. Accordingly, we assume the operation rate of the
trade center as 30% in the first year(2013) and suppose that it increases by 2% every
year, reaching 40% after five years(2018), and this rate is kept afterwards.
The formula used to calculate benefit on income from lending exhibition hall and meeting
room is as shown below.
▪ It is assumed that n=2,......,41, indicating that building can be used from n=2(2013)
up to n=41(2052).
▪ Space for lending is assumed as 13,000㎡.
▪ Rent per unit space is calculated by multiplying rent of COEX (USD 1.5909 per day)
with comparative rate of rent 0.7427.
▪ Operation rate is assumed as the following: 2013(n=2) 30%, 2014(n=3) 32%,

2015(n=4) 34%, 2016(n=5) 36%, 2017(n=6) 38%, 2018 and after(n=7~41) 40%.
▪ In case of 2013, the benefits of lending will be generated from March, the benefit for
ten months is reflected.
▪ Increase rate of rent by 10% is reflected on the benefit from lending.
Benefit from lending exhibition hall and meeting room is as shown in <Table 6-11>.
< Figure 6-7 Income Benefit from Lending Exhibition Hall and Meeting Room >
Exhibition hall / Conference Room (Present Value)

Year Present Value
< Table 6-13 Income Benefit Lending Exhibition Hall and Meeting Room >
(Unit : US$)
Year 2013 2014 2015 2016 2017
Future Value 1,865,572 2,626,725 3,069,984 3,575,629 4,151,703
Present Value 1,487,222 1,869,651 1,951,031 2,028,908 2,103,382
Year 2018 2019 2020 2021 2022
Future Value 4,807,234 5,287,958 5,816,754 6,398,429 7,038,272
Present Value 2,174,549 2,135,718 2,097,580 2,060,123 2,023,335
Year 2023 2024 2025 2026 2027
Future Value 7,742,099 8,516,309 9,367,940 10,304,734 11,335,207
Present Value 1,987,204 1,951,718 1,916,866 1,882,636 1,849,018
Year 2028 2029 2030 2031 2032
Future Value 12,468,728 13,715,601 15,087,161 16,595,877 18,255,465
Present Value 1,816,000 1,783,571 1,751,722 1,720,441 1,689,719
Year 2033 2034 2035 2036 2037
Future Value 20,081,011 22,089,113 24,298,024 26,727,826 29,400,609
Present Value 1,659,545 1,629,910 1,600,805 1,572,219 1,544,144
Year 2038 2039 2040 2041 2042
Future Value 32,340,670 35,574,737 39,132,210 43,045,432 47,349,975
Present Value 1,516,570 1,489,488 1,462,890 1,436,767 1,411,111
Year 2043 2044 2045 2046 2047
Future Value 52,084,972 57,293,469 63,022,816 69,325,098 76,257,608
Present Value 1,385,912 1,361,164 1,336,857 1,312,985 1,289,539
Year 2048 2049 2050 2051 2052
Future Value 83,883,368 92,271,705 101,498,876 111,648,763 122,813,640
Present Value 1,266,511 1,243,895 1,221,682 1,199,867 1,178,441
Future Value 1,318,167,305
Total
※ Discount rate=12%, increase rate in rent=10%
 Benefit from Income Generated from Administrative Fees for Exhibition Hall and
Meeting Room
When lending the exhibition hall and meeting room, the lessee should pay
administrative expenses for use of electricity, heating/cooling, and water, and etc. In
case of COEX, it takes about 20% of the entire rent. Accordingly, about 20% of
income from lending the exhibition and meeting room is added to the aforementioned
benefit. The formula used to calculate benefit on income from administrative expenses
for exhibition hall and meeting room is as shown below.
Benefit from management of exhibition hall and meeting room Base year + n
= Income from lending of exhibition hall and meeting room Base year + n x 0.2
▪ n = 2, ......, 41(For 40 years)
 Benefit from the Use of the Integrated Trade System

In the Integrated Trade System that will be built through this project, an integrated
search system for marketing information will be built. Those engaged in export/import
businesses can have access to various information needed for trade such as
information on enterprises, products, catalogues, export/import, purchasers,
exhibitions, and conferences. This integrated search system helps exporter/importers
to reduce efforts to collect information. In Korea, a similar service is being provided
as a part of e-Trade service. We assume benefit from the use such Integrated Trade
System as shown below.
▪ It is assumed that the benefit will be generated for seven (7) years (2012~2019) from
the set-up of the system. Provided, however, the system will be completed at the
end of August, 2012, and thereby the data for four (4) months from September will
be used for 2012.
▪ In Korea, a similar service has been provided with the annual fee valued at
KRW360,000 as of 2000. In consideration of the comparative rent rate (74.27%)
mentioned above, exchange rate, and inflation rate of Korea (10-year average
4.65%), we estimate potential value of the similar service in Dominican Republic as
USD383.07. However, the service will be provided for four months only in 2012,
1/3 of the membership fee is considered.
▪ As to the number of members, we assume that about 20% of the entire export/import
companies (11,726 companies: 2,688 exporters and 9,038 importers) of the
Dominican Republic will become members at the earlier stage, and the number of
such members will increase by 5.9% per annum(Refer to the increase rate of Korea).
Formula used to calculate benefit on the use of the Integrated Trade System by years is as
shown below.
▪ n = 1, ......, 8(For 8 years),
▪ Membership fee is calculated as USD383.07 in view of membership fee of

Korea(KRW360,000) and comparative difference between Korea and Dominican
Republic(0.7427), etc. In case of n=1(2012), the service will be provided for four
months only, and thereby 1/3 of such amount is considered.
▪ As to the number of members, we assume that about 20% of the entire export/import
companies(11,726 companies) of the Dominican Republic will become members at
an earlier stage, and the number of such members will increase by 5.9% per annum.
▪ In terms of annual benefit increase rate, average wage increase rate of the last three
years in the Dominican Republic is considered.
Formula used to calculate benefit on the use of the Integrated Trade System by years is as
shown below.
< Table 6-14 Benefit on the Use of the Integrated Trade System >
(Unit : US$)
Year 2012 2014 2016 2017
Future Value 335,836 1,381,699 1,463,217 1,549,544

Present Value 299,854 1,101,482 1,041,489 984,763
Year 2016 2017 2018 2019
Future Value 1,640,965 1,737,778 1,840,304 1,948,879

Present Value 931,127 880,413 832,460 787,119
Total
※ Discount rate=12%, increase rate in rent=5.90%
< Figure 6-8 Annual Benefit on the Use of the System >
Benefit on the Use of ITS

Present Value
Future Value
Year
 Benefit from the Use of the Trade Portal
By utilizing the trade portal system that will be built, export/import companies
can have benefits such as improvement of productivity, savings of additional
costs, and savings of duplicate IT costs, and etc. Calculation of estimated
benefits from utilization of the trade portal is based on the “Joint Project on e-
Trade ISP of Ministry of Knowledge Economy, Ministry of Land, Transport
and Maritime Affairs, and Customs Service” drafted in 2009 by the e-Trade
Promotion Center. Related assumptions are as shown below.
▪ In the reference material, economic effects of the e-Trade service are classified into
(1) Improvement of productivity, (2) Saving of additional cost, (3) Saving of
duplicate IT cost. And such effect is estimated to some KRW2 trillion and
KRW980.4 billion(USD2,709,454,545) per annum in total. Improvement of
productivity includes KRW263.3 billion for savings of personnel costs, KRW19.1
billion for savings of document print-out expenses, and KRW271.9 billion for
document circulation and storage expenses; Savings of additional costs include
KRW1,353.5 billion for saving of freight storage expenses and KRW754.3 billion for
saving of inventory management expense; Savings of duplicate IT costs are estimated
as KRW318.3 billion per annum 17).
▪ Based on the above estimate, we estimate the benefits from the introduction of the
trade portal in the Dominican Republic. First of all, as the average wage per capita
of Dominican Republic is USD8022.1 per annum (As of 2008), and that of Korea is
KRW3.12 million per month (As of 2008), we assume the comparative wage rate of
Dominican Republic as 23.57%. In Dominican Republic, there are 2,688 exporters
and 9,083 importers, and in Korea, there are 80,831 exporters and 136,597
importers, and therefore we assume comparative numbers of exporters/importers of
the Dominican Republic as 5.39%. The usage rate in the earlier stage (2012) is
assumed to be 20%, and it is expected to increase by 5.9% every year. By
multiplying domestic estimates with comparative wage rates, comparative number
of exporters/importers, and usage rates, we assume the benefits of utilization of the
trade portal of the Dominican Republic.
▪ The portal can be utilized from September in 2012, 1/3 of annual benefit is
considered as to 2012.
Formula used to calculate the benefit on utilization of the trade portal by years is as shown
below.
▪ n = 1, ......, 8(For 8 years),
▪ Base value of utilization of Korean trade portal, comparative wage rate, comparative
number of exporters/importers is estimated as mentioned above.
▪ The usage rate is assumed to be 20% in the earlier stage(n=1, 2012), and it is
projected to increase by 5.9% every year.
▪ In terms of annual benefit increase rate, average wage increase rate is considered.
17)
‘Joint project on e-Trade ISP of Ministry of Knowledge Economy, Ministry of Land, Transport and Maritime
Affairs, and Customs Service’, e-Trade Promotion Center, September, YR2009
Benefit calculated from the formula used to calculate the benefit from the utilization of the
trade portal is as shown below.
< Table 6-15 Benefit on Utilization of the Trade Portal >

(Unit : USD)
Year 2012 2014 2016 2017
Future Value 2,574,900 10,593,674 13,774,288 17,293,329

Present Value 2,299,018 8,445,212 9,804,266 10,990,223
Year 2016 2017 2018 2019
Future Value 21,179,659 25,464,367 30,180,933 35,365,400

Present Value 12,017,907 12,901,041 13,652,321 14,283,492
Total
※ Discount rate=12%, wage increase rate=5.90%
< Figure 6-9 Annual Benefit from the Utilization of the Trade Portal >
Benefit from the Utilization of Trade Portal

Annual benefits (unit:$)
Present Value
Future Value
Year
 Other Benefits
Residual value of the trade center building as of termination of benefit analysis (at the
end of 2052) is assumed to be 0, but the land will remain. Therefore, present value of
land standing at USD18,750,000 is included in the total benefit estimate (based on
present value) as of the end of 2052.18)
4.4.6 Benefit Flow

Benefit flow for the five benefits estimated above is indicated in <Table 6-16> and <Table
6-17>. Figure showing benefit flow by items during the period between 2012 and 2052 is as
shown below in <Figure 6-10>.
< Figure 6-10 Annual Benefit Flow by Items (Based on Present Value) (Residual Benefit of
Land Excluded) >
Annual Benefit Flow (Present Value)
Rental I ncome by Offic e S pace

Income from lending Exhibition
Hall & Conference Room
Income generated f rom an administr ative
fee for Exhibition H.& Confer ence R.
Benefit on the Use of ITS
Be nefit from the Utiliza tion of
Tra de Portal
Year
Figure exhibiting total annual benefit flow during the period between 2012 and 2052 is as
the <Figure 6-11>. The reason why benefit from 2013 to 2019 is high is because the benefit
from the utilization of the trade portal and trade information system is reflected until 2019.
Also, the reason why benefit in 2052 is at a high level is because that land inputted in the
earlier stage is reflected on the benefit calculation.
18)
For accurate calculation, future value should be calculated in reflection of annual land price increase rate, and
this should be converted into present value by using discount rate. However, valuation of future value on land is
not that meaningful in this project, and thereby land price increase rate is not considered separately.
< Figure 6-11 Total Annual Benefit Flow (based on Present Value)(Residual Benefit of
Land Included) >
Total Annual Benefit Flow (Present Value)
Total Annual
benefi ts
Year
< Table 6-16 Annual Benefit Flow (Based on Future Value) >
(Unit : US$)
Annual Benefit
Category
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022~2052 Total
Income from
Lending of 0 537,749 709,829 780,812 858,893 944,782 1,039,261 1,143,187 1,257,505 1,383,256 276,841,774 285,497,049
Office Space
Income from
Lending of
Exhibition Hall 0 1,865,572 2,626,725 3,069,984 3,575,629 4,151,703 4,807,234 5,287,958 5,816,754 6,398,429 1,280,567,318 1,318,167,305
and Meeting
Room
Income from
Administrative
Fee on
0 310,929 525,345 613,997 715,126 830,341 961,447 1,057,592 1,163,351 1,279,686 256,113,464 263,571,275
Exhibition Hall
and Meeting
Room
Benefit from
the Use of the 335,836 1,381,699 1,463,217 1,549,544 1,640,965 1,737,778 1,840,304 1,948,879 0 0 0 11,898,223
System
Benefit from
the Utilization
2,574,900 10,593,674 13,774,288 17,293,329 21,179,659 25,464,367 30,180,933 35,365,400 0 0 0 156,426,550
of the Trade
Portal
Total 2,910,736 14,689,623 19,099,404 23,307,667 27,970,271 33,128,971 38,829,179 44,803,015 8,237,610 9,061,371 4,002,081,380 4,224,119,227
※Inflation rate=6.01%, wage increase rate=5.90%, rent increase rate=10.0%, In total and grand total during the period between YR2022 and YR2251, future residual value of
land worth USD2,188,558,825 is included.
< Table 6-17 Annual Benefit Flow(Based on Present Value) >
(Unit : US$)
Annual Benefit
Category
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022~2052 Total
Income from
Lending of 0 428,690 505,242 496,220 487,359 478,656 470,109 461,714 453,469 445,371 10,483,446 14,710,277
Office Space
Income from
Lending of
Exhibition Hall 0 1,487,222 1,869,651 1,951,031 2,028,908 2,103,382 2,174,549 2,135,718 2,097,580 2,060,123 48,492,532 66,400,694
and Meeting
Room
Income from
Administrative
Fee on
0 247,870 373,930 390,206 405,782 420,676 434,910 427,144 419,516 412,025 9,698,506 13,230,565
Exhibition Hall
and Meeting
Room
Benefit on the
Use of the 299,854 1,101,482 1,041,489 984,763 931,127 880,413 832,460 787,119 0 0 0 6,858,708
System
Benefit on the
Utilization of 2,299,018 8,445,212 9,804,266 10,990,223 12,017,907 12,901,041 13,652,321 14,283,492 0 0 0 84,393,481
the Trade Portal
Total 2,598,871 11,710,477 13,594,579 14,812,444 15,871,083 16,784,168 17,564,349 18,095,186 2,970,565 2,917,519 89,674,484 206,593,725
※ Discount rate = 12%, In total during the period between YR2022 and YR2251, present residual value of land worth USD18,750,000 is included.
4.4.7 Benefit/Cost Analysis

A. Benefit/Cost Analysis Method
In benefit/cost analysis, methods such as Net Present Value (NPV), Internal Rate of Return
(IRR), Benefit/Cost Ratio, and Payback Period (PBP) are mainly used. In this feasibility
analysis, we evaluated economic feasibility by using various indicators, each of which has its
own merits and demerits. The summary of each method is as follows.
 Net Present Value (NPV)

Net Present Value (NPV) is the most widely used method, which is calculated by
subtracting PV of cash inflows by PV of cash outflows. If current year is “0” and the
last year is “n”, the formula used to calculate the NPV is as shown below.
Net Present Value(NPV)=
Here, BT = Present value of the benefit
CT = Present value of cost
r = Discount rate(Interest rate)
n = Project’s sustained year(Analysis period)
Decision-making on NPV is: the bigger the NPV, the more desirable the investment is.
However, NPV should be greater than 0, in cases when NPV is less than 0; this
indicates that the investment lacks absolute economic feasibility.
 Benefit/Cost Ratio
Benefit/Cost Ratio(B/C Ratio) is an indicator to summarize the overall value for
investment of a project. That is, bigger NPV doesn’t always mean that the investment
is worthwhile. If two investment schemes having different sizes of investment suggest
the same NPV, the scheme whose investment size is smaller would be better, but its
hard to tell with NPV only. Meanwhile, B/C ratio, which is calculated as shown below,
shows efficiency in the investment.
Benefit/Cost Ratio(B/C Ratio)=
If the B/C Ratio is greater than “1”, the NPV is positive, meaning that the investment
is worthwhile; and less than “1”, the NPV is negative, meaning that the investment is
not worthwhile. The bigger the B/C Ratio, the better the investment scheme is.
 Internal Rate of Return

Internal Rate of Return(IRR) or Economic Internal Rate of Return(EIRR) is the
supplementary method used when deciding the discount rate for NPV is difficult. That
is, IRR means the discount rate that makes the present value of all cash inflows equal
to the present value of all cash outflows, i.e., IRR plays a role as a return on
investment. For example, when the IRR is 20%, it indicates that a return of about 20%
will be incurred. Formula for IRR is as follows.
Economic Internal Rate of Return(EIRR)=”R” satisfying the condition
of
A project with a higher IRR would provide a better chance for strong growth; it is
interpreted that when IRR is greater than the social discount ratio, it would be
absolutely economical.
Looking into Benefit/Cost analysis methods, they are as shown below.
< Table 6-18 Comparison of Benefit/Cost Analysis Methods >

Category Judgment Merits Demerits
∙Hard to clearly divide benefit from
∙Easy to understand, consideration
Benefit cost
of project scale is available
/Cost Ratio B/C≥1 ∙Error can occur by selecting
∙Consider hours of benefit/cost
(B/C) mutually-exclusive alternatives
incurrence
∙Figure out social discount rate
∙Able to estimate profitability of a
Economic
project ∙Not consider absolute scale of a
Internal
∙Easy to compare with other project
Rate of EIRR≥r
alternatives ∙Several EIRRs can be drawn at the
Return
∙Easy to understand evaluation same time
(EIRR)
process and results
∙Able to present clear standards for

selecting alternatives ∙Find out discount rate clearly
Net Present
∙Able to show present value of ∙Difficult to understand
Value NPV≥0
benefit to be incurred in the future ∙Error can be incurring when
(NPV)
∙Consider the marginal NPV deciding priorities in alternatives
∙Able to be used for other analysis
B. Benefit/Cost Analysis Results
NPV, B/C ratio, and IRR are calculated based on the benefit and cost estimate above, as
shown below.
< Table 6-19 Benefit/Cost Analysis Results >

NPV B/C Ratio IRR
97,811(USD K) 1.90 25.53%
※ Discount rate = 12%, inflation rate = 6.01%, wage increase rate = 5.90%, rent increase rate = 10.0%
NPV > 0, B/C ratio > 1.0, IRR > Social discount ratio(12.0%). Therefore, this project is
deemed economically feasible. Yearly benefits and costs during the period between 2011 and
2052 based on the present value are as shown below.
< Figure 6-12 Annual Benefit/Cost Flow >
Annual연도별 편익과 비용
Benefit and Cost
40,000,000
35,000,000
30,000,000
(Unit:$)
25,000,000
금액(단위:$)
Benefit
Amount
20,000,000
편익(현가)
(Present V.)
15,000,000 비용(현가)
Cost
(Present V.)
10,000,000
5,000,000
Year
연도
4.4.8 Sensitivity Analysis

A. Sensitivity Analysis in Accordance with Discount Rate
Changes in present value of benefit, present value of cost, NPV, B/C ratio in accordance
with discount rate are as follows:
< Table 6-20 Sensitivity Analysis Results According to Discount Rate >
(Unit : US$)
Discount Rate PV of Benefit PV of Cost NPV B/C Ratio
9.0% 293,794,374 135,605,498 158,184,876 2.17
10.0% 257,861,822 124,710,803 133,151,019 2.07
11.0% 229,416,529 115,935,180 113,481,349 1.98
12.0% 206,593,725 108,782,610 97,811,114 1.90
13.0% 188,036,161 102,883,004 85,153,157 1.83
14.0% 172,748,256 97,960,197 74,788,060 1.76
15.0% 159,993,853 93,806,400 66,187,452 1.71
Even in cases where the discount rate changes from 9% to 15%, NPV > 0, B/C Ratio > 1 is
maintained, and thereby we can verify that this project is economically worthwhile when the
discount rate changes within this scope. Also, we can notice that the bigger the discount rate,
the smaller the NPV and B/C Ratio are. Figures showing changes in NPV and B/C ratio in
accordance with the discount rate are shown below.
< Figure 6-13 Changes in NPV in Accordance with the Discount Rate >
Changes in NPV according with

Discount Rate
NPV (Unit: USD)
D isco unt R ate(% )
< Figure 6-14 Changes in B/C Ratio in Accordance with the Discount Rate >
Changes in B/C Ratio according with

Discount Rate
B/C Ratio
B/C Ratio
D isco unt R ate(% )
B. Sensitivity Analysis in Accordance with variation in Benefit/Cost
Sensitivity analysis results in accordance with increase/decrease in benefit and cost are as
follows:
< Table 6-21 Sensitivity Analysis Results in Accordance with variation in Benefit/Cost >
(Discount Rate = 12%)
Sensitivity Analysis Items B/C Ratio IRR(%) NPV
Unchanged cost, unchanged benefit 1.90 25.53% 97,811,114
Increased cost(10%), unchanged benefit 1.73 22.73% 87,932,853

Increased cost(20%), unchanged benefit 1.58 20.42% 76,054,592
Decreased cost(10%), unchanged benefit 2.11 25.53% 97,811,114
Decreased cost(20%), unchanged benefit 2.38 32.94% 119,567,636
Unchanged cost, increased benefit (10%) 2.09 28.56% 118,470,487
Unchanged cost, increased benefit (20%) 2.28 31.50% 139,193,397
Unchanged cost, decreased benefit (10%) 1.71 22.46% 77,151,742
Unchanged cost, decreased benefit (20%) 1.52 19.41% 56,492,369
Increased cost (10%), decreased benefit (10%) 1.55 19.96% 66,273,481
Increased cost (20%), decreased benefit (20%) 1.27 15.60% 34,735,847
Decreased cost (10%), increased benefit (10%) 2.32 32.14% 129,348,748
Decreased cost (20%), increased benefit (20%) 2.85 39.79% 160,886,381
As indicated in <Table 6-21>, when benefit remains unchanged and cost increases, it
results in decreases in B/C ratio, NPV, and IRR. Also, when cost remains unchanged, but
benefit increases, it causes increases in B/C ratio, NPV, and IRR. In the worst scenario of the
sensitivity analysis where cost increases by 20%, but benefit decreases by 20%, B/C ratio is
calculated as 1.27, IRR = 15.60%, NPV = 34,736 (USD K), which means that it shows
comparatively less economic feasibility compared to others, but is still economically feasible
in terms of absolute standards (B/C Ratio > 1, IRR> social discount rate, NPV>0). When
benefit remains unchanged, changes in B/C ratio, IRR, and NPV in accordance with
increase/decrease in cost are as shown below.
< Figure 6-15 Changes in B/C Ratio in Accordance with Changes in Cost >
Changes in B/C Ratio in accordance with Changes in Cost

B/C Ratio
B/C Ratio
Change in Cost (%)
< Figure 6-16 Changes in IRR in Accordance with Changes in Cost >
Changes in IRR in accordance with Changes in Cost
Change in Cost (%)
< Figure 6-17 Changes in NPV in Accordance with Changes in Cost >
Changes in NPV in according with Changes in Cost

NPV (Unit:$)
C hange in C ost
When cost remains unchanged, changes in B/C ratio, IRR, and NPV in accordance with
increase/decrease in benefit are as shown below.
< Figure 6-18 Changes in B/C Ratio in Accordance with Changes in Benefit >
Changes in B/C Ratio in accordance with Changes in Benefit

B/C Ratio
B/C
Ratio
Change in Benefit (%)
< Figure 6-19 Changes in IRR in Accordance with Changes in Benefit >
Changes in IRR in accordance with Changes in Benefit
< Figure 6-20 Changes in NPV in Accordance with Changes in Benefit >
Changes in NPV in accordance with Changes in Benefit

NPV (unit: $)
When both cost and benefit increases/decreases simultaneously, changes in B/C ratio, IRR,
and NPV are as shown below.
< Figure 6-21 Changes in B/C Ratio in Accordance with Changes in Cost/Benefit >
Changes in B/C Ratio in accordance with Changes in (Cost :Benefit)

B/C Ratio
B/C
Ratio
Changes in (Cost : Benefit)

(unit : %)
< Figure 6-22 Changes in IRR in Accordance with Changes in Cost/Benefit >
Changes in IRR in accordance with Changes in (Cost :Benefit)

(unit : %)
< Figure 6-23 Changes in NPV in Accordance with Changes in Cost/Benefit >
Changes in NPV in accordance with Changes in (Cost :Benefit)

NPV (unit: $)

(unit : %)
4.4.9 Summary of the Economic Feasibility Analysis result

We performed the economic feasibility analysis on the EDCF investment project on
construction of the trade center in Dominican Republic by using the Cost-Benefit Model,
which is most widely used out of the Economic Value Models. In other words, centering on
social benefit and social cost, we analyzed economic feasibility and performed sensitivity
analysis by figuring out Benefit/Cost Ratio(B/C Ratio), Net Present Value(NPV), and Internal
Rate of Return(IRR).
The project cost stands at US$62,443,604 including loans from EDCF totaling
US$30,000,000(48.06% of the entire project cost) and expenditures of the Dominican
Republic totaling US$32,443,604(52.0% of the entire project cost).
As for costs, EDCF borrowings, expenditure of the Dominican Republic, and operation and
maintenance costs of the Dominican Republic after completion of the project are considered.
Maintenance costs are estimated based on division of costs into (1) Maintenance costs for the
trade center, (2) Maintenance costs for the Integrated Trade System.
Benefit is calculated based on division of benefits into (1)Benefits on income from lending
office space, (2)Benefits on income from lending exhibition hall and meeting room,
(3)Benefits on administrative fees for exhibition hall and meeting room, (4)Benefits on the
use of the Integrated Trade System, and (5)Benefits on the use of the trade portal.
NPV, B/C ratio, and IRR calculated through cost/benefit analysis are as shown below.
< Table 6-22 Benefit/Cost Analysis Results >

NPV B/C Ratio IRR
97,811(USD K) 1.90 25.53%
※ Discount rate = 12%, inflation rate = 6.01%, wage increase rate = 5.90%, rent increase rate = 10.0%
In consideration of the facts that NPV is 97,875(USD K), which is greater than 0, that B/C
ratio is 1.90, which is greater than 1.0, and that IRR is 25.57%, which is greater than the
social discount rate(12%), it is verified that we can be benefit economically from this project.
In relation to changes in discount rate(9~15%), operation costs(-20%~+20%), and

benefits(-20%~+20%), we performed the sensitivity analysis. As a result, it was determined
that when the discount rate moves from 9% to 15%, NPV > 0, B/C ratio > 1.0, IRR > social
discount rate(12%) is maintained, and thereby it is economically efficient. In cases when cost
changes by -20% ~ +20%, and benefit changes by -20% ~ +20%, NPV, B/C ratio, and IRR
satisfy the afore-mentioned standards, and thereby it is confirmed that the project is
economically feasible. Finally, even in case when cost increases by 20%, but benefit
decreases by 20% simultaneously, NPV, B/C ratio, and IRR satisfy the above standards, and
consequently we can verify that the project has absolute economic feasibility.
5. Financial Feasibility
5.1 Review on Financial Feasibility
Operation of the CIBAO trade center of Dominican Republic will be performed by the
Centro De Exportacion e Inversion de la Republica Dominicana(CEI-RD). In this financial
feasibility analysis, we reviewed cash flow centering on income and expenditures relating to
operation of the trade center and Integrated Trade System from the standpoint of the CEI-RD.
In expenditure items, maintenance costs for the trade center and the Integrated Trade
System, which has been used in the economic feasibility analysis, are included. Income is
divided into (1)Income from lending the exhibition hall and meeting room, (2)Income from
administrative fee for exhibition hall and meeting room. It is assumed that offices, lecture
room, and IDC will be utilized internally, and therefore there will be no income accrued. We
also assume that we will internally use the exhibition hall and meeting room or use them for
the purpose of public interest by about 10%, and therefore there will be no income accrued.
The analysis period for the financial feasibility analysis is for 10 years during the period
between 2012 when maintenance costs occur and 2021 when income and expenditures can
become stabilized. In relation to the maintenance costs for the Integrated Trade System, it is
assumed in the economic feasibility analysis that the life cycle of the system is to end in 2019,
but in this report it is assumed that the system will be renewed in 2019, and therefore
maintenance costs will be incurred continuously. Cash flow based on these assumptions is as
indicated in the <Table 6-21>. During the period of financial feasibility analysis(2012 ~ 2021),
deficits totaling US$ 313 K ~US$1,912 K is estimated to be incurred.
< Table 6-23 Income and Expenditure(Based on Future Value) >

(Unit : US$)
Annual Cash Flow
Category
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total
Income from
Lending of
0 1,679,014 2,364,052 2,762,986 3,218,066 3,736,532 4,326,511 4,759,162 5,235,078 5,758,586 33,839,989
Exhibition Hall and
Meeting Room
Income from
Income Administrative Fee
0 279,836 472,810 552,597 643,613 747,306 865,302 951,832 1,047,016 1,151,717 6,712,031
on Exhibition Hall
and Meeting Room
Total Income 0 1,958,850 2,836,863 3,315,583 3,861,679 4,483,839 5,191,813 5,710,995 6,282,094 6,910,303 40,552,019
Maintenance Cost
for the Trade 0 2,872,513 3,654,069 3,873,560 4,106,235 4,352,886 4,614,352 4,891,525 5,185,346 5,496,817 39,047,303
Center
Expenditure Maintenance Cost
for the Integrated 313,912 998,304 1,058,270 1,121,837 1,189,223 1,260,657 1,336,381 1,416,654 1,501,749 1,591,956 11,788,945
Trade System
Total Expenditure 313,912 3,870,818 4,712,339 4,995,397 5,295,458 5,613,543 5,950,734 6,308,179 6,687,095 7,088,772 50,836,248
Total (313,912) (1,911,967) (1,875,477) (1,679,814) (1,433,779) (1,129,704) (758,921) (597,185) (405,001) (178,469) (10,284,229)
※ Evidence for calculation of individual items of income and expenditure is same as that of economic feasibility analysis.
5.2 Sensitivity Analysis on Financial Feasibility

We reviewed financial feasibility concerning scenarios as shown below.
5.2.1 In case of charging membership fee for the Integrated Trade

System
When charging a membership fee(USD383.07/Year) for the Integrated Trade System as
shown in the economic feasibility analysis, cash flow is as specified in the <Table 6-22>,
where deficits will be incurred by 2015.
5.2.2 In case of operating the trade center only

Cash flow in the case of operating the trade center building aside from operation of the
Integrated Trade System is as indicated in the <Table 6-23>; the deficit will be incurred by
2016.
5.2.3 In case of charging fees on each use of e-document of the trade

portal
We can also consider the plan to charge fees on each use of the e-document in the
Integrated Trade System, without charging membership fees. Currently, a basic fee totaling
KRW350 is charged in Korea, and KRW200 is additionally charged per use of e-document on
export/import (KB). It is based on annual use of e-document on export/import, 59,173, by
referring to the estimated domestic use of e-documents on export/import per annum totaling
1,097,200, and in consideration of the number of exporters/importers of the Dominican
Republic (5.39% of Korea). It is estimated that 20% of the above mentioned use (2012) will
be handled through the trade portal, and it is projected to increase by 5.9% every year. Fees
per case are assumed to be USD0.18 in view of domestic fees and exchange rates. Cash flow
in this case is as shown in the <Table 6-24>. We can notice that a deficit is incurred during the
period of financial feasibility analysis (2012 ~2021). Accordingly, such deficit can be made
up for by government aid or through charging a higher basic fee for the use of the system.
Feasibility Study of the Establishment of the CIBAO Trade Center in the 206
DR
< Table 6-24 Income and Expenditure in Case of Not Charging Membership Fee for the Trade Information System(Based on Future Value) >
(Unit: US$)
Annual Cash Flow
Category
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total
Income from
Lending of
0 1,679,014 2,364,052 2,762,986 3,218,066 3,736,532 4,326,511 4,759,162 5,235,078 5,758,586 33,839,989
Exhibition Hall and
Meeting Room
Income from
Administrative Fee
Income 0 279,836 472,810 552,597 643,613 747,306 865,302 951,832 1,047,016 1,151,717 6,712,031
on Exhibition Hall
and Meeting Room
Membership Fee for
the Integrated Trade 335,836 1,381,699 1,463,217 1,549,544 1,640,965 1,737,778 1,840,304 1,948,879 2,063,863 2,185,631 16,147,716
System
Total Income 335,836 3,340,549 4,300,080 4,865,128 5,502,644 6,221,617 7,032,117 7,659,873 8,345,957 9,095,934 56,699,735
Maintenance Cost for

0 2,872,513 3,654,069 3,873,560 4,106,235 4,352,886 4,614,352 4,891,525 5,185,346 5,496,817 39,047,303
the Trade Center
Expenditure Membership Fee for

the Integrated Trade 313,912 998,304 1,058,270 1,121,837 1,189,223 1,260,657 1,336,381 1,416,654 1,501,749 1,591,956 11,788,945
System
Total 21,924 (530,268) (412,259) (130,270) 207,186 608,074 1,081,384 1,351,694 1,658,861 2,007,162 5,863,488
< Table 6-25 Income and Expenditure in Case of Consideration of the Trade Center Building(Based on Future Value)>
(Unit: US$)
Annual Cash Flow

Category
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total
Income from
Lending of
0 1,679,014 2,364,052 2,762,986 3,218,066 3,736,532 4,326,511 4,759,162 5,235,078 5,758,586 33,839,989
Exhibition Hall and
Meeting Room
Income from
Income
Administrative Fee
0 279,836 472,810 552,597 643,613 747,306 865,302 951,832 1,047,016 1,151,717 6,712,031
on Exhibition Hall
and Meeting Room
Total Income 0 1,958,850 2,836,863 3,315,583 3,861,679 4,483,839 5,191,813 5,710,995 6,282,094 6,910,303 40,552,019
Maintenance Cost for

0 2,872,513 3,654,069 3,873,560 4,106,235 4,352,886 4,614,352 4,891,525 5,185,346 5,496,817 39,047,303
the Trade Center
Expenditure
Total Expenditure 0 2,872,513 3,654,069 3,873,560 4,106,235 4,352,886 4,614,352 4,891,525 5,185,346 5,496,817 39,047,303
Total 0 (913,663) (817,207) (557,977) (244,555) 130,953 577,461 819,470 1,096,748 1,413,487 1,504,717
< Table 6-26 Income and Expenditure in Case of Charging each Use of e-document on Export/Import(Based on Future Value) >
(Unit: US$)
Annual Cash Flow
Category
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total
Income from
Lending of
0 1,679,014 2,364,052 2,762,986 3,218,066 3,736,532 4,326,511 4,759,162 5,235,078 5,758,586 33,839,989
Exhibition Hall and
Meeting Room
Income from
Income Administrative Fee
0 279,836 472,810 552,597 643,613 747,306 865,302 951,832 1,047,016 1,151,717 6,712,031
on Exhibition Hall
and Meeting Room
Fee for use of the
2,152 3,319 4,320 5,430 6,656 8,011 9,505 11,149 0 0 50,542
Trade Portal
Total Income 2,152 1,962,169 2,841,183 3,321,013 3,868,336 4,491,850 5,201,318 5,722,143 6,282,094 6,910,303 40,602,561
Maintenance Cost
0 2,872,513 3,654,069 3,873,560 4,106,235 4,352,886 4,614,352 4,891,525 5,185,346 5,496,817 39,047,303
for the Trade Center
Integrated Trade
Expenditure
system 313,912 998,304 1,058,270 1,121,837 1,189,223 1,260,657 1,336,381 1,416,654 1,501,749 1,591,956 11,788,945
Membership Fee
Total (311,760) (1,908,648) (1,871,156) (1,674,385) (1,427,122) (1,121,693) (749,416) (586,036) (405,001) (178,469) (10,233,687)
6. Strategic Feasibility
The incumbent government of the Dominican Republic with President Leonel Fernandez’s
reelection in 2008 has established 4 core strategies, 51 detailed objectives (Objetivos
Especificos), and 274 action lines (Líneas de Acción) through discussions among relevant
ministries in a bid to present blueprints on the nation’s future, and announced the “2010~2030
Dominican Republic Development Strategy (Estrategia Nacional de Desarrollo de la
República Dominica 2010~2030)” in November 2009.
Major goals of the development strategy are as shown below.
Core Strategies Details
1. Government Serving the Securing the people’s safety by the government through
People providing responsible services for the people
Building society with equal opportunities, low poverty rates, and

2. Social Pact
an inequality index.
3. Building Dynamic Boosting participation in global growth by providing high quality

Economy through jobs and a production structure with the potential for sustainable
Employment Creation growth
4. Environment Preservation
Implementing continuous environment policies and taking
and Climate Change
countermeasures against the impact of climate changes
Countermeasures
In order to achieve the 3rd development goal - continuous high growth of the Dominican
Republic- the infrastructure must be strengthened to boost exports (Plans and systems) and
come up with a plan for the development of export financing.
In this aspect, this project is deemed appropriate for the nation’s development strategy; as
such a project can serve as momentum to support the government’s goal of gaining a global
competitive edge.
7. Environmental Impact Assessment

 As a result of the first and second surveys, it was found out that there are no separate
laws on environment and sanitation stipulated by the Dominican Republic and relevant
authorities, and therefore it is not required to conduct preliminary reviews including
environment impact assessments for promoting permission and approval for the
construction in the project. However, in the process of acquiring construction
permission and approval, an application for construction permission should be filed,
and the applicant should file relevant documents to the Ministry of Environment to
attain permission. And, the permission should be delivered to the Bureau of Road of
Dominican Republic (MOPC) to wrap up relevant permission procedures.
 It is determined that the Ministry of Environment focuses its preliminary review of
construction permission on damage of trees only, and the quantity of trees in the land
for this project is small, and therefore there is no need for transplantations. Therefore,
there is no issue of concern to obtain construction permission, and it is determined that
this project has little impact on the surrounding environment.
 Therefore, this project strives to determine negative impacts on the environment and
build an environment-friendly image, is categorized as the C group (Category C) based
on the environment impact assessment analysis on the EDCF project; The CIBAO
trade center construction project is expected to have little or no negative impact on
environment, causing no harm to the environment.
Grade Details of Groups
Group A Projects that could have significant adverse environmental impacts on

(Category A) broad area
Projects that could have some adverse environmental impacts, but of a

Group B
lesser degree or significance than those for category A projects, and
(Category B)
measures to mitigate or recover the impacts would be easier.
Group C
Projects that are unlikely to have adverse environmental impacts.
(Category C)
 Analysis on Land and Surrounding Environment

▪ The land for this project is 2km away from the downtown of Santiago, where a four-
lane road in the direction of east-north will be used as an access road to the land, and
the remaining three directions are adjacent to residential areas.
▪ This land was used as an airport in the past, so there are paved runways and some
green zones, in addition to small waterways and residential sites in the west-north,
but they are far from the site where the building will be constructed. Therefore any
concerns for the construction of the trade center has not been detected.
▪ Rather, in the wake of the construction of the trade center, it can be a good
opportunity to improve the poor environment, and this project is in line with
Santiago’s plan to build a park, which was established a few years ago. Therefore,
this project can generate efficiency in development by avoiding duplicate
investments.
▪ According to the field survey, sewage flowing into the land and neighboring places is
treated at the sewage treatment plant of a designated area. After construction of the
trade center, a decision to expand the treatment plant due to additionally-generated
sewage and broaden the access road are issues requiring thorough review. We have
emphasized the necessity for these in local institutions.
 Review of the Impact on Surrounding Environment of Construction/Operation of the

Trade Center
▪ Stage of Construction
As mentioned above, the land was used as an airport, and it is located far from other
buildings. Also, building density is not high, and therefore normal concerns such as
dust and noise are not deemed significant. However, a host of construction materials
would be delivered to the site, which may cause traffic congestion, and therefore it is
required to take follow-up actions to prevent safety accidents and the possibility of
environmental pollution by installing temporary fences and managing the construction
site on a daily basis, among others.
▪ Stage of Operation
It is determined that the impact of the CIBAO trade center on the environment would
be at a far lower level compared to that of sales organizations such as a department
store. However, when many exhibitions and expositions are held in this building, there
would be many people and vehicles, causing a chronic traffic jam. In order to iron out
this issue, if improvement measures are taken such as expansion of existing roads and
improvement of the transportation system, and etc., we can minimize damage to the
environment caused by traffic jams.
 Minimization of Environmental Impact and Management Plan

▪ As mentioned above, this land is important in terms of the environment, as evidenced
by the fact that Santiago city established a plan to construct a park in this location
several times, and therefore a detailed review of direction in line with the existing
plan should be made prior to coming up with a more detailed plan on construction of
the trade center.
▪ From the design stage, environment-friendly designs and materials should be used,
and measures to save maintenance costs should also be fully considered.
▪ When operating various facilities, operation methods and precautions should be

taught through preliminary training. Continuing education is required so that a high
level of operation techniques can be maintained.
▪ There is a need to come up with a detailed plan considering not only construction of
the trade center but also extensions of the building; it is necessary to draft a checklist
on environment impact and accumulate a database of various information through
regular inspection, which will be helpful in maintaining a desirable level of operation
technique.
Conditions for Project Performance, Analysis of Risk Factors and Countermeasures
 Surrounding conditions for the construction of the trade center are seen as
comparatively positive, thanks to combined efforts (e.g., the CEI-RD, the authorities
promoting the project, shows strong will toward this project, those engaged in
commerce industry of Santiago show strong entrepreneurship, and relevant institutions
exert efforts to create new vision for the nation through boosting exports, etc.). In
addition to this, when detailed guidelines corresponding to the construction plan are
established and supplementary preparations of each area of this project are reflected,
we can fully achieve our own goal.
 It is very important to figure out the shape and status of land where the building will be
located. Especially, results of the geotechnical survey including stratigraphic
distribution, physical characteristics of ground, distribution of ground water, etc., may
cause significant hindrance on the large-scaled construction such as the trade center.
Therefore, geotechnical survey should be conducted on the land before the project
start-up, and report on the result, which will become important data for design of the
construction and progress of such construction, should be provided.
 If the ICT equipment required to build the system is not prepared, development is not
possible, and thereby it should be purchased immediately after the project start-up.
Installation of entire equipment should be finished by completion of analysis/design
and beginning of development at the latest. Hence, it is deemed essential to compute
detailed list of equipment required based on accurate analysis in the consulting stage.
 By the construction of the trade center, administrative procedures such as obtaining
construction permission and physical period requiring more than 26 months are
required, so organic cooperation among relevant divisions should be established in
advance, to iron out many trials and errors that can occur in the midst of the
construction process. As to the Integrated Trade System, which is designed to handle
export businesses of relevant organizations in one system, each organization’s business
process update and cooperation are essentially required. Hence, it is deemed necessary
to form a consultative body in a bid to promote this project in a smooth manner.
Chapter VII. F/S Items for EDCF Evaluation

1. Capabilities of Project Executing Agency
 CEI-RD, the project executing agency, was founded by the acquisition of CEDOPEX
and OPI-RD in June of 2003 to facilitate overseas trade and FDI. By combining the
accumulated know-how of the two groups, the agency has established a solid
foundation for effective project performance in both sectors.
 The agency will be able to achieve successful performance with its systemic
organization management under the consultant's support. The agency consists of the
department of administration, strategic advisory, legal counseling, and professional
consultants, who are involved in the project in the detailed phase, focusing on
CEDOPEX and OPI-RD.
 Furthermore, the agency can maximize support by consultants and its experience of
training professional trade people, which the agency has built, while its education and
development team (I* CEi) was funded by JICA in 2008, and now manages the
education program for overseas trade talent.
2. Approval Process for Loan and important documents

2.1 Approval Process for Loan
 Details of loans from overseas by the Dominican Republic are stipulated in Ley de
Relativo al Registro, Control y Gestion de la Deuda Publica, Decree No. 1523-04 as
well as Executive Decree 1092-04. In general, the Ministry of Finance becomes a
borrower and it has the authority to sign contracts in overseas loan.
 To approve loans for its government, MEPyD has already registered this project in a
top priority list for 2010 PNPIP, and now is preparing for MOF approval process.
2.2 Approval Process for Procurement & Consulting

 In the Procurement process of the Dominican Republic, we have to obey Decree No.
262-98 for bidding, as stipulated in Reglamento de Compras y Contrataciones de
Bienes y Servicios de la Administracion Publica. When it comes to consultant
recruitment, the bidding should be classified in three ways; Public Bidding, Invitation
Bidding, and Direct Contracting. In addition, all public projects with a funding scale of
more than 3 million pesos(US$ 100,000) should be purchased by Public Bidding.
 Regarding this project, Comite de Licitacion, consisting of National Customs Office,
Ministry of Legislation, etc, must be established to pursue transparency in Public
Bidding according to the legislation of Public Procurement. The Comite de Licitacion
will be in charge of approval bidding standards, result evaluation methods, provider

selections, among others.
 Moreover, the agency should submit the report on the bidding process and its
evaluation prior to the final bidder selection to the Direccion General de
Aprovisionamiento and Contraloria General de la Republica.
 Bidding Process of the Dominican Republic
P h ase 1 P h ase 2 Phase 3
D rafting standards for bidding
Subm itting the draft to BA I H olding A ssessm ent C om m ittee
Receiving opinions of BA I A nalyzing bidding results
Finalizing standards for bidding Enacting price and technical

assessm ent standards
A ttaining signature by the governor M aking announcem ent (G overnor of
of the C ustom s Service A nalyzing legal issues The C ustom s Service)
Prelim inary approval Publishing in the governm ent

Publishing in the governm ent gazette
and m ajor daily m agazines (1st) gazette
Selecting the successful bidder by the
Bidding C om m ittee (Tentative)
Selling bidding docum ents
Subm itting the bidding assessm ent and

C ollecting objections and questions Results to BA I and Procurem ent Service
from bidders
D eciding the successful bidder (Final)
Publishing in the governm ent gazette
and m ajor daily m agazines
(2nd)
2.3 Approval Process of Construction Permit

Sub m it docum ents relating
land + schem atic d raw in g
Dept. of Urban planning, city of

Santiago (Takes 15 days)
Land use p erm it

(S ite visit & check)
Subm it to D ept. of A rchitecture,

city of Santiago
MDMAyRN
(Takes 15 days)
M O PC
(Takes 15 days)
A rchitecturalperm it
Starting o f co nstruction
M O PC ? Periodical Supervision
C o m p letio n o f co n stru ctio n

~ M o ve-in to th e b u ild in g
 The entire construction permit process should be done within three months at most,
and the local registered architect’s stamp is mandatory to apply for a construction
permit.
 There is no obligation to begin construction within a year after getting the construction
permit, and there is no limitation on time after construction starts.
 Pre-evaluation requirements such as evaluation of influence on the environment before
applying for the construction permit do not exist, but MDMAyRN will review
damages to existing trees from the construction.
3. Probability to provide Korean materials & service

 According to a CEO interview of a local construction company during the first on-site
research by the F/S project team, construction companies in the Dominican Republic
import most construction finishing materials due to the lack of self-sufficiency.
Recently, they tend to use Korean ceiling materials. In terms of construction materials
ranging from interior/exterior finishing materials, electronic equipment, to certain
audio equipment, Korean products enjoy a competitive edge against neighboring
countries in spite of the freight and logistics costs. Therefore, more than 60% of
materials, which are put in most construction processes, except for blocks used for
specialized masonry and plastering work on the site, can be provided by Korean
construction materials.
 Regarding IT system, most Hardware, Network, and Software equipment is made in
third party countries, considering its nature, however, certain Web Server, Web
Application Server, EDMS Engine, Backup, SMS/NMS can be used by Korean
products. Therefore, it would be desirable to purchase the equipment made in third
party countries, except for those that can be used by Korean equipment for this
project.
 Furthermore, given the nature of construction in need of a great number of workers
during the whole construction period, we will be able to promote economic efficiency
by hiring 80% of labor workers, which makes up most of the labor force compared to
the minimal skilled workers, and recruiting 70% of machinery/electric equipment
workers from local labor forces.
 Experts to provide on-site Trade Academy advice will be dispatched from Korea. In
addition, regarding input labor forces for system development, the participation of
local workers was quite high. For example, the proportion of Koreans to Dominicans
will be 43% to 57% in work forces, as well as 72% to 28% in input costs in order to
smoothly manage the system, and to contribute to the e-Trade expansion throughout
the Dominican Republic.
 Consulting services, including preparing necessary bidding application form, placing
orders, evaluating bidding proposals, supporting contracts, and supervising the
construction will be performed by Korean companies according to the “EDCF
Consultant Recruitment Guidelines”.
4. The effect of Foreign Currency Earning

 EDCF is a "Tied Aid" that restricts procurement eligibility to Korea. Suppliers of
goods and services required in the project should also be selected from Korean
companies.
 Therefore, equipment and materials for construction, air conditioners, sound
equipment, web-server, EDMS as well as consulting services will be provided from
Korean suppliers. Network and hardware equipment that are not produced in Korea
and cost-effective construction equipment will be procured from third party countries.
 In addition, it would be appropriate to spend local currency on construction materials
easily supplied from locals and also on construction manpower that costs less, but
provides competent designing and operating skills.
 If the above procurement and service plans are employed, the effect would be as
shown in <Table 7-1>. Out of the total EDCF of $30 million, Korean, third party
countries, and local currencies will take up 57.4%, 7.0%, and 35.6%, respectively.
That indicates foreign currency earning effects from exports of Korean equipment.
< Table 7-1 Project Budget of Eligible Source Country(EDCF)>

(Unit:US$)
EDCF
Category Foreign Currency
Local Currency Sub-total
Korea 3rd Country
1. Trade Center 8,754,820 1,481,240 8,763,940 19,000,000
2. Integrated
4,431,767 430,636 724,500 5,586,710
Trade System
3. Trade
87,882 - - 87,882
Academy
4. Consulting
1,822,266 - 147,000 1,969,266
Service
5. Training 345,506 - - 345,506
Direct Costs 15,442,242 1,911,876 9,635,440 26,989,558
6. Contingency 1,708,112 207,794 1,064,565 2,980,471

7. Loan
29,970 - - 29,970
Commission
Total Costs 17,180,324 2,119,670 10,700,005 30,000,000
Percentage to
57.3% 7.1% 35.7% 100%
EDCF (%)
5. Responses against Risk Factors

<Table 7-2> shows situational, technical, social, economic, and environmental risk factors
expected in conducting the project and their countermeasures.
< Table 7-2 Risk Factors and Responses >

Category Risk Factors Responses
● For more effective training, select skilled

Technological ● Quality concerns caused by workers in advance.
aspect unskilled local manpower ● Implementing a thorough preliminary
education & establishing a review system
● Limited effects of the project ● The government-led PR is required to

in case when training is maintain the effect of the project through
Social aspect
delivered to some targets due the establishment of trade center and
to lack of publicity system
● Concerns over low

participation rate in case where ● The government's financial
Economic aspect trainees pay relatively high support/benefiting participants in their
costs for trade academy after individual work evaluation
completion
● Seeking appropriate measures to handle
● Environmental contamination
Environmental industrial wastes by establishing a close
from poorly-recycled old
aspect cooperative system with relevant
computers
authorities
6. Expected Effects
6.1 Dominican Republic
6.1.1 Laying the foundation for export growth
It is expected that the successful completion of the project will improve the trade system in
the DR and create an advanced export environment, thereby achieving an effective export
system for export growth. The increase in exports would in turn reduce the unemployment
rate, playing a major role in the economic growth of the country.
6.1.2 Contribution to acquiring technologies and establishing policies

By dispatching experts to the field and inviting Dominican operators to Korea for training,
the country will be given an opportunity to nurture trade experts who will contribute to the
government-led projects or policies in the future.
6.1.3 Interrelation in conducting the project

Following DGA Computerization Project, which was completed in 2009 under the EDCF
of the Export-Import Bank of Korea, the project will be linked to customs clearance, a major
pillar of electronic trade, while adding an e-marketing portal and e-trade portal to create the
Integrated Trade System(ITS). This interrelation with the existing project will maximize the
effects of export increases.
6.2 Korea
6.2.1 Korean companies' advance into the Dominican Republic
By supplying equipment to establish the trade center and system as well as related training
programs, the project can provide opportunities for Korean companies to increase their
exports, spread their advanced trade system technology and transfer the Korean trade system
model to the Dominican Republic. Domestic H/W and S/W providers will also see export
growth. In addition, Korean companies may have a competitive edge in receiving orders for
future projects in Dominica, such as the establishment of an e-government.
6.2.2 Improvement of Bilateral Cooperation

The Dominican Republic is recently recording high economic growth rates in Latin
America and showing the potential to grow as a stronghold in the region. Therefore,
continued economic cooperation in various sectors would contribute not only to bilateral
diplomatic relations, but also cooperation with other Latin American countries.
7. Performance Evaluation Indicators

Opportunity/Risk
Performance Project Targets/Indicators Source
Factors
● Opportunities
- 2010~2030 National
● Improving national competitiveness
1. Mid & long WEF Development Strategies
- Now: rank 96th out of 133 countries
(World Economy - The Dominican
term - Target: 60th
Forum), government's commitment to
perfomance20) ● Increase in exports
Central Bank of the project
(Impact) - Now: $ 6,949 million (2008)
Dominica ● Risks
- Target: 200% increase
- Effective operation &
management
● The number of companies using

● Opportunities
trade center
- Advanced ICT
- Now: 0, Target: 5,804
2. Short-term infrastructure among Latin
● The number of export declaration
CEI-RD Data & countries
performance21) using trade system
Site Survey ● Risks
(Outcome) - Now: 0, Target: 59,173
- Poor exports and low
● Reducing the time to handle export
economic growth rate at the
declarations (per item)
time of project completion
- Now: 2~3 days, Target: 2~3 hours
● Opportunities
● Building CIBAO trade center - Continuous PR targeting the
- Comprising exhibition hall, banquet government agencies and
hall, convention hall, and trade trade companies
academy with the floor area of ● Risks
20,000 ㎡ - Possible delays in the
Project Completion
3. Outcome22) ● Establishing ITS government budget allocation
Report
(Outcome) - Marketing Portal system and L/A approval at the
- Trade Portal system Congress
- Electronic document repository - Delays in local construction
- Trade Relay system and supply of equipment
● Trade Academy - Increase in the equipment
- Operation plan & curriculums and material prices resulting
from price hike
20)
Targets expected to be met 3 to 5 years after completion
21)
Physical outcome or services resulting from the implementation of the project
22)
Targets expected to be met at the time of completion
4. Activities with Milestones

1) Employment of consultant (3 months after signing L/A)
2) Drafting the design and bidding documents (5 months)
3) Evaluation of bidding proposals and selection of procurement contractor (3 months after
completing bidding documents)
4) Construction of the trade center building (18 months after commencement)
5) Establishment of the trade system (12 months after commencement)
6) Training officials from the executing agency and government in Korea
7) Training practitioners involving trade center and system in Dominica
5. Inputs
- EDCF: $ 30 million (48.0% of the total cost)
- The Dominican government: $ 32,444,000 (52.0% of the total)
8. Similar ODA projects in Dominica

World Bank and Inter-American Development Bank (IDB) have funded most ODA
projects in Dominica for the past 3 years. However, the money goes mainly to power,
waterworks, and other SOCs with almost no investment into ICT. Therefore, most ODA
projects are financed by Korea.
Project
Total Cost
Project Name Funded by Year Contents Nature
(USD)
Making customs
The Export- clearance on-line,
(DGA) establishing an The first EDCF-funded
Import Bank 2007~
Computerization of Korea 20 million electronic customs and IT project in
2009 system for 24-hour Dominica
Project
EDCF export declaration &
electronic settlement
Korea e-Biz for e-Learning

International Invitation of trainees for
Providing 2006~ SMEs
Cooperation Grant free, dispatch of aid
advices on IT
Agency 2007 IT policy advice groups, experts and
policies
patent administration other human resources
(KOICA)
Project to Japan Establishing a center to

establish a International provide education on The official agency to
talent-nurturing 2007~ overseas trade and basic innovate overseas
Cooperation 7 million
agency for the Agency 2008 business to individuals trading companies
development of and companies in (ICEi)
overseas trade (JICA) Dominica
Apart from the above, "Feasibility Study for the Project to Establish the Dominican e-
Document System" is currently underway with the EDCF fund of the Export-Import Bank of
Korea.
9. Analysis on the International Competitiveness of

Korean Companies
9.1 Construction of Trade Center
 Since the Asian financial crisis in 1997, overseas construction had remained stagnant.
However, the sector has been setting new records for four consecutive years since
2005. This achievement is especially remarkable, given the global economic crisis of
last year, with market instability from Dubai, the last place where global construction
had retained business.
In particular, last year's outstanding record is all the more meaningful, considering the
fact that the global economic crisis is still going on.
That means global clients are recognizing our technological capabilities and
competitiveness, which have been accumulated from increased participation in the
plant market of the Middle East since the mid-2000s.
< Figure 7-1 Annual Overseas Construction Orders >
(Unit:$1,000,000/Number of cases)
※ Source: Data from Overseas Construction Association (2009)
 In general, the upward trend resumed in the second half of 2009 is expected to
continue in 2010. The Korean overseas construction, which focused mostly on Middle
East and Asia, is entering more various markets. Among them, Latin American and
African markets are increasingly attracting interest as an alternative emerging market
with abundant resources and great demand for infrastructure.
 Especially in Latin America, many bidding schedules for large-scale projects were
delayed or cancelled due to the global financial crisis in 2008. However, there have
been increases in refinery and petrochemical project orders from Venezuela, Mexico,
Ecuador, Columbia, and in power plant orders from Chile, Peru, and Brazil. Although
most projects in the region still center on civil works such as construction of roads and
bridges or power plants; countries are expanding their investments in infrastructure for
economic stimulus. Therefore, if their investment is extended to housing or public
projects, Korea would have a competitive edge as a construction powerhouse with
long-time experience in the global market. This project holds great significance in this
regard.
< Table 7-3 Expected Amount of Overseas Construction Orders for 2010 >
(Unit: $ million)
Expected Expected
Region Type
Amount Ratio (%) Amount Ratio (%)
Total 74,000 100.0 Total 74,000 100.0
Middle East 48,000 64.9 Plant 42,000 56.7
Asia 12,000 16.2 Civil 13,000 17.6
Latin America 3,000 4.1 Architecture 17,000 23.0
Africa 10,000 13.5 Others 2,000 2.7
Others 1,000 1.3 - - -

※ Source: Data from Overseas Construction Association (2009)

 Since 1990s, Korea has made “u-Trade Hub” as a national strategic challenge, and
succeeded in automating import/export processes with EDI and the Internet. Moreover,
Korea has connected all the trade-related institutions in network, and has come up with
a trade-automation net to open an era of E-trade.
 Since the 2000s, Korea has been the leader in this field, spreading advanced trade
system technology as well as related trade solutions.
< Table 7-4 Trade-related capabilities of domestic companies >

Period Participant Project Contents
2001.02 Korea & Japan u-Trade Hub Building Project between Korea & Japan
2003.03 USA AMS Service for US Customs CSI Support
2003.03 EU e-Trade Network Building Project between Korea & EU
2005.10 Kazakhstan First Phase BPR/ISP Project for Advanced Customs
Administration
2006.07 Mongolia, Consulting Project for Advanced Customs Administration for
Azerbaijan Mongolia & Azerbaijan
2008.03 Kyrgyzstan Consulting Project for Advanced Customs Administration
 As confirmed in <Table 7-4>, Korean companies have accumulated experience with

similar overseas projects, and performed the DGA Computerization Project for the
Dominican Republic in 2007-2009. We believe Korea can have comparative
competitiveness if we can make the most out of our local project expertise.
For reference: Introduction of Korea’s uTradeHub

A. Background
 Increased necessity to strengthen export competitiveness

Trade has driven Korea's economic growth for the last 40 years, and the economy's
dependence on trade has continued to increase (the ratio of trade amount to GDP in
2000: 65%). Against this backdrop, Korea was in dire need to improve its export
competitiveness. What's more, with increasing global competition, Korea's exports
were facing weakened price competitiveness due to high labor, land, and logistical
costs (the ratio of trade-related costs to GDP in 2000 was 12.8% for Korea, compared
to 9.6% of Japan).
 Increased interest and demand for electronic trade

In the 2000’s, the cargo strike in Korea led to greater demand for overall
improvements of the existing trade process. As for international trade, there was an
increased need for non face-to-face trade because of the 9/11 terrorist attack and
SARS outbreak in East Asia. In addition, dramatic changes in the IT environment
required an overhaul of trade processes. There was a need to advance the existing
VAN/EDI-based trade automation network into an internet and electronic document
repository based trade platform. Introduction of a new e-trade system and enormous
improvements of the process were required through systematic links to already
established trade networks.
 Global competition in promoting paperless trade

The US formed ITDS, a dedicated agency for Internet-based e-trade and pushed ahead
with the establishment of ACE, a single window system. Australia and Singapore were
leading pilot projects including e-quarantine documents and e-certificates of origin at
APEC. In particular, Singapore, Hong Kong, and Taiwan, which were the competitors
of Korea, were competing to take the lead as an e-trade hub. Even China, Indonesia,
and Malaysia with less sophisticated IT levels were actively promoting e-trade policies.
B. Objectives and Targets
 E-trade service project was a roadmap task of e-government to complete the future
model of the national e-trade. With the vision of "Realizing u-Trade KOREA, a trade
powerhouse in the 21st century", the project aimed to establish a single window-based
e-trade platform, innovative e-trade process, and complete the national e-trade hub for
global e-trade links. By doing so, the project was expected to provide a single window
platform where trade companies can do one-stop trade business from market surveys to
customs clearance and settlement through the Internet anytime and anywhere. In
addition, the system was to offer an infrastructure that allows trade-related players to
do collaboration commerce.
C. Implementation Progress
 Formed a public-private joint committee on e-trade, as a nationwide consultative body

for effective promotion of national e-trade (Chairman: prime minister) (‘03.7)
 Presidential Committee on Government Innovation and Decentralization selected 'e-
trade service' as an e-government’s roadmap task (‘03.8)
 Established and confirmed '3-year Plan for e-Trade Promotion' as a comprehensive
plan to implement national e-trade (‘03.12, the first National Committee on e-Trade)
 Mapped out concrete implementing measures on the future e-trade model and
improvement challenges through BPR/ISP projects (‘03.12- ‘04.6)
 The second round of the National Committee on e-Trade (Chairman: prime minister)
set four innovations to innovate the trade process
 Confirmed "The e-Trade Innovation Plan", focusing on the strategic 33 tasks (‘04. 9.
8)
D. Major Projects
 Project Name: Trade Business Process BPR/ISP (’03.11~ ‘04.6, 7 months)

▪ Conduct trade business BPR
∙ Executed research and analysis on the existing trade business process and analyzed
the detailed work flow and relevance between trade companies and related agencies
to come up with improvement measures
∙ Designed a one-stop trade process by employing analysis and improvement measures

and set the direction for support
∙ Conducted research and analysis on laws and regulation and established a plan to
implement the BPR results.
▪ Established an information strategic plan to build an integrated e-trade platform `

(ISP)
∙ Set up measures to create institutions and standards to realize the integrated e-trade
platform
∙ Set up measures to create and link various new systems such as trade and financial
networks in order to materialize the trade business process
∙ Set up budgets and implementing plans to establish the e-trade platform step-by-step
 Project Name: e-Trade Service, the 1st phase (‘04.12~ ‘05.6, 6 months)
Projects Main substances

● Develop the service for users and operators of e-trade document
Pilot creation of e-trade repository
document repository ● Link with the message relay system & e-L/C distribution
management system
● Electronic collection and distribution of L/C
The first-phase ● Notification of L/C for banks, inquiry/renewal and other history
establishment of e-L/C management, request for purchase, storage and certification of the
distribution management original copies, management of e-L/C limits, such as the remaining
system limit
● Link with the e-L/C limit management system
● Enhanced e-trade document repository
● Expand the repository's functions into delivery and disposal of
Improving key documents, issue of electronic certificates, and distribution of trade
infrastructure for e-trade documents
● Draw concrete measures for operation, including e-trade operating
organization, costs, and charges
 Project Name: e-Trade Service, the second phase (‘05.12~ ‘06.9, 10 months)
<Main contents of the second projects of e-Trade Service>

● Building an e-trade portal for trading companies (Web service-based)
Building a single window
● Link with the message relay system & e-L/C distribution
for e-trade users
management system
The first-phase ● Expand work scope into notification of defects, development of
establishment of e-L/C special L/C, and notification of fees
distribution management ● Establish foundations to distribute documents that should be
system mandatorily stored in e-trade document repository
● Enhanced e-trade document repository
Improving key
● Expand the repository's functions into delivery and disposal of
infrastructure for e-trade
documents, issue of electronic certificates, and distribution of trade
documents
● Draw concrete measures for operation, including e-trade operating
organization, costs, and charges
 Project Name: e-Trade Service, the third phase (‘07.7~ ‘08.2, 10 months)
<Main contents of the third projects of e-Trade Service>

● Through the gateway of the integrated portal, access to sub-portals
Building the integrated can be provided by users (trading companies, logistics companies,
portal of uTradeHub banks, marketers)
● Unify the user access window
● Loading list service
Establishing a logistical ● e-D/O
portal service ● Management of bonded warehouses
● Management of cargo data
Enhanced e-L/C service ● ASP service of distribution of e-L/C for foreign banks
● Making prior and post process of B/L issue electronic
● Create Title Registry
Pilot establishment of e- ● Store the nego-related e-documents in the e-trade document
Nego system repository
● Select a few target agencies (shipping company, forwarder, bank) for
pilot system
● Develop e-trade standard solution for trading companies
Developing a user
● Link uTradeHub to the user system of trading companies
solution for trading
● Develop a user solution for the integration of e-trade infrastructure
companies
(e-trade document repository, uTradeHub portal, certification center)
● Simplify the procedure to check requirements and collective
Building an integrated
management of related information
information system for
● Easy transfer of data to post-management system & provision of
requirement check
inquired data
Link to the Chamber of ● Store the certificates of origin in the e-trade document repository
Commerce through link to the Chamber of Commerce
● Gather the specialized marketing meta data for search
● Provision of trade data that integrates the public and private sectors
Marketing Data
● Information sharing with companies with expertise in marketing data
● Provide the related data for each data type
E. Implementing Organization
In light of mid- and long-term needs for the national e-trade business and expertise, the
Ministry of Knowledge and Economy and Customs Office took charge of the project under
the Presidential Committee on Government Innovation and Decentralization. The public-
private 'e-Trade Promotion Center' was a dedicated agency for support and project
management. (In accordance with e-Trade Promotion Act).
<e-Trade Promotion Center Diagram>
The Presidential Committee on

Government Innovation and
Decentralization
(Special Committee of e-Government)
Dedicated Institute
National Information
Society Agency
Council of Related Managing Institute
Institutes (e-Trade Service Business Group)
Ministry of Knowledge & Economy /

Customs office
Dedicated Support/Management
Institute
e-Trade Promotion Cetner
Contractor
System construction and technical

support
The e-Trade Promotion Center was installed and operated at the Korea Investors and
Traders Association by the staff from the Ministry of Knowledge and Economy, Customs
Office, KITA, KOTRA, KTNET, DACOM, Korea Financial Telecommunications & Clearings
Institute, and Korea Federation of Banks. In order to discuss measures to link the project to
the national logistical data service and G4B project, a working-level consultative body was
formed and operated.
<Organization of e-Trade Promotion & Roles>
Category Main Roles Organization

Presidential
-Coordinate direction and policies
Special
-Check the progress
Committee of
-Coordinate with other e-government tasks
e-Government
-Select the contractor and sign the contract
Dedicated National Computerization
-Manage project implementation and evaluate
Agency Agency
the results
-Major decision-making for implementation -Ministry of Commerce,
-Coordinate roles between major interested Industry, and Energy
parties Trade and Distribution
Lead Agency -Coordinate basic implementing direction and Deliberation Bureau
(e-Trade issues (Trade Policy Dept.)
Service Project -Set up the project plan and select contractors -Customs Office,
Group) -Sign the contract (Jointly with the dedicated Information Cooperation
agency) Division
-Manage progress and review the results (Information Management
-Manage inspection, review, and take-over Dept.)
The head of Trade and
Consultative Distribution Deliberation Bureau
-A consultative body between relevant
body of at the Ministry of Knowledge
authorities for e-trade promotion and
relevant and Economy (Chair)
coordination
authorities Comprising the director-generals
at related agencies.
-Government side: deputy
-Implement e-trade promotion tasks and
director level at the e-trade
manage overall project (PMO)
Dedicated service leading agencies
-Create conditions to use e-trade
support and (Ministry of Knowledge and
-PR and expansion of e-trade to relevant
managing Economy, Customs Office)
agencies and users
agency -Private side: KITA, KOT-
-Support for establishing project plans and
(e-Trade RA, KTNET, DACOM,
drafting RFP
Promotion Korea Financial
-Support for contractor selection
Center) Telecommunications &
-Working-level implementation of
Clearings Institute, and
system-building
Korea Federation of Banks
-Build the e-trade platform
Contractors -Educate users and managers -SI & IT consultants
-Technical support and maintenance
F. Revision of Laws for Promotion of e-Trade
 Foreign Trade Act

▪ The concept of e-trade in the Foreign Trade Act was defined in December, 29, 2000,
when Act No. 6316 (the main substances of the 14th revision) was announced.
▪ Foreign Trade Act was enacted to prescribe requirements for e-trade, thereby
responding to rapid changes in the trade environment at home and abroad, and
improving efficiency in trade transactions.
▪ As the development of IT has led to a surge in exports and imports from online
transactions through IT network, online transactions were added to the scope of trade
in the 14th amendment. The revised act also designated e-trade intermediaries to
support and nurture e-trade.
▪ In the 17th amendment, the exclusive trade automation network was made public as
well as an internet-based e-trade infrastructure to solve the repeated submission of
trade documents and reduce time and costs for business processes.
 Enforcement Decree of Foreign Trade Act

▪ In the Enforcement Decree, the concept of e-trade was revised through Presidential
Decree No. 17186 (the 23rd revision) in March, 31, 2001.
▪ Enforcement Decree of Foreign Trade Act is the Presidential Decree No. 19118 (the
30th revision) and was partially revised according to the revision of Enforcement
Decree of Electronic Transaction Law in December, 18, 2002. The Decree was then
revised into the Presidential Decree No. 19619 (the 34th revision) according to the
amendment of the Act on Promotion of Electronic Trade in July, 21, 2006.
▪ The 23rd amendment set the standards to designate e-trade intermediaries prescribed
in Foreign Trade Act, and stated a request for designations and their procedures. Also,
the act prescribed the organization of the e-trade intermediary committee and the
grounds for the meetings of the committee.
▪ The 34th amendment aimed to determine requirements for the organization and
operation of national e-trade committee, the standards and procedures to designate
contractors for e-trade infrastructure, and registration requirements for e-trade service
providers.
 Act on Promotion of Electronic Trade

▪ The Act on the Promotion of Office Automation for Trade was enacted in 1991 to
effectively promote automation of trade businesses and improve international
competitiveness, thereby contributing to the development of the national economy.
The name of the Act was changed into Act No. 7551 (the 6th revision) on the
Promotion of Electronic Trade in December, 23, 2005, in order to address some
operational flaws.
 Act on the Establishment of Foundations for Trade Transactions

▪ The Act on the Establishment of Foundations for Trade Transactions was enacted in
January, 28, 2000, as Act No. 6227, for the purpose of establishing transaction
foundations efficiently and systematically, expanding balanced trade transactions,
and contributing to the development of the national economy.
▪ To effectively create foundations such as the trade convention center, e-trade and
trade experts, the Minister of Knowledge and Economy should establish a plan. To
implement such plans, the Act encourages nurturing of the trade exhibition industry,
enhancing foundations for e-trade transactions, promoting the distribution of trade
data, and educating trade experts.
 Major Electronic Trade-Related Laws in Korea
< Summary of Trade-related Laws in Korea>

Relevant
Name of Law Main contents
Agency
● the basic concept of electronic trade
Foreign Trade Act ● e-trade intermediaries
● intangible items in an electronic form
● Set the scope of automation
● Prescribe the effects of electronic document
forms, electronic signature, the timing of
delivery of e-documents, and the substance of
e-documents
Act on the Promotion of
● Standards and procedures to designate
Office Automation for Trade
providers of e-trade infrastructure
(Act on the Promotion of
● Standards and procedures for registration of
Electronic Trade)
e-trade service providers
Ministry of ● Procedures to issue certificates of e-trade
Knowledge and documents
Economy ● Requirements and procedures for the
disclosure of e-trade documents/trade data
Act on the Establishment of
● Expansion of and support for e-trade
Foundations for Trade
transactions for SMEs
Transactions
● Serving as a ground to regulate rights and
Act on Electronic
duties among the parties of electronic
Transactions
messages
Act on the Promotion of
● Data fabrication & Private information
Information and
protection
Communication Utilization
● Security of trade information
& Information Protection
Ministry of
● Serving as a ground to regulate rights and
Public
Act on Electronic Signature duties among the parties of electronic
Administration
messages
& Security
G. Implications
 For Project Implementation

Korea's strategies for e-trade have the following features in terms of project
implementation:
First, the project was led by the government in order to establish a comprehensive plan
throughout e-trade businesses.
Second, an e-trade promotion center involving all relevant government agencies was
organized for consistent implementation after considering mid- and long-term needs to
implement the project and expertise.
Third, we simultaneously established systematic and institutional foundations to

realize Internet-based trade.
Fourth, we established a systematic cooperation scheme by encouraging active

participation of public and private institutions.
Fifth, a separate plan was created for public infrastructure, other than system building.
Sixth, priority was given to establishing environmental foundations, such as improving

laws to simplify trade businesses.
 For User Interface

The analysis of Korea's e-trade system in terms of user interface can be summarized as
follows.
First, we were committed to simplifying trade businesses by exempting attached

documents from submission and improving efficiency through standardization and
unification of trade documents.
Second, Korea's e-trade system is designed as a one-stop service system from

marketing to settlement.
Third, the Internet-based system carries out businesses 24/7.
Fourth, an integrated e-trade platform is based on Single Window and SSO (Single
Sign On) to support a convenient user interface.
Fifth, seamless process is available through electronic trade document repository.
Sixth, the design of services was user-oriented and priority was given to the most
effective services for trading companies.
Seventh, we developed and supplied e-trade S/W for users to support close links
between corporate e-business and the national e-trade infrastructure.
 For the establishment of the System

In terms of system building, the features of Korea's e-trade system are as follows.
First, it is an internationally recognized ebXML-based system.
Second, the system supports a web-based structure with openness and scalability.
Third, the system is aimed at systematic links with relevant agencies with various
standards, and integration between functions.
Fourth, we continuously promoted interlinks with e-trade networks and related

agencies including the national logistics information sharing project and the portal of
the Customs Office.
Fifth, we established a flexible and compatible system with future scalability in mind.
Sixth, we introduced large-scale servers, instead of servers with limited capacity, for
consolidated management of the system, thereby minimizing the cost of TCO (Total
Cost of Ownership).
Seventh, we used VAN/EDI and other existing equipment to minimize investments,

while building a system that can adopt the newest IT.
Abbreviation Table
Abbreviation Description
ACE Automated Commercial Environment
AMS Automated Manifest System
APEC Asia-Pacific Economic Cooperation
ATA AT attachment
AWB Air Waybill
B/C Ratio Benefit-Cost Ratio
B/L Bill of Lading
BEXCO Busan Exhibition & Convention Center
BP Business Process
BPM Business Process Management
BPR Business Process Reengineering
BRS Business Recovery System
C/O Certificate of Origin
CACM Central America Common Market
CARICOM Caribbean Community and Common Market
CAS Content Addressed Storage
CAV Constant Air Volume System
CBD Component Based Development
CBTPA Caribbean Basin Trade Partnership Act
Consejo para el Desarrollo Estratégico de la Ciudad y el Municipio de

CDES
Santiago
CE Conformity European
CECO Changwon Exhibition Convention Center
Centro Dominicano de Promoción de Exportaciones /

CEDOPEX
Dominican Export Promotion Centre
Centro de Exportación e Inversión de la República Dominicana / Dominican

CEI-RD
Republic Export and Investment Center
CIO Chief Information Officer
Convention on International Trade in Endangered Species of Wild Fauna and

CITES
Flora
CNSIC Comisión Nacional para la Sociedad de la Información y Conocimiento
CNZFE Consejo Nacional de Zonas Francas de Exportación
CODOCAFE Consejo Dominicano Del Café
COEX Convention & Exhibition
CPI Consumer Price Index
CPU Central Processing Unit
CSI Container Security Initiative
CTC Cyber Trade Campus
CUI Character-Based User Interface
D/A Documents Against Acceptance
DB Database
DGA Dirección General de Aduanas
DGII Dirección General de Impuestos Internos
DGIP General Directorate of Public Investment
DGM Dirección General de Minería
DIGENOR Dirección General de Normas y Sistemas de Calidad
DNCD Dirección Nacional de Control de Drogas
DR-CAFTA Dominican Republic – Central America Free Trade Agreement
D.S.R Debt Service (to income) Ratio
DUA Declaración Única Aduanera
DVCS Data Validation and Certification Server
e‐D/O e-Delivery Order
e‐L/C e-Letter of Credit
EA Electronic Arts
ebMS ebXML Messaging Service
ebXML e-business Extensible Markup Language
ECC Error Checking and Correction
EDCF Economic Development Cooperation Fund
EDI Electronic Data Interchange
EDMS Electronic Document Management System
EIU Economist Intelligent Unit
EP Enterprise Portal
ERD Entity-Relationship Diagram
ERP Enterprise Resource Planning
EU European Union
F/S Feasibility Study
FAQ Frequently Asked Questions
FDI Foreign Direct Investment.
FOB Free On Board
FP Function Point
FTA Free Trade Agreement
FTP File Transfer Protocol
FTZs Foreign Trade Zones
GDP Gross Domestic Product
GLMP Global Logistics Management Program
GLP Global Leadership Program
GNP Gross National Product
GOD Government of Dominican Republic
GUI Graphical User Interface
H/W Hardware
HSM Hardware Security Module
HTML Hyper Text Markup Language
ICC International Convention Center
ICEi Instituto Capacitación e Innovación
ICO International Coffee Organization
ICT Information & Communication Technology
IDB Inter-American Development Bank
IDC Internet Data Center
IDE Intelligent Drive Electronics
IDI ICT Development Index
IESP Interconexión Estatal por la Seguridad Pública
IMF International Monetary Fund

INAZUCAR Instituto Azucarero Dominicano
INTEC Instituto Tecnológico de Santo Domingo
IP Internet Protocol
IPS Intrusion Prevention System
IRR
Internal Rate of Return (Economic Internal Rate of Return)
(EIRR)
ISO International Organization for Standardization
ISP Information Strategy Planning
IT Information Technology
ITDS International Trade Data System
ITLA Las Americas Institute of Technology
ITS Integrated Trade System
JICA Japan International Cooperation Agency
ITU International Telecommunication Union
KBC Korea Business Center
KDI Korea Development Institute
KOICA Korea International Cooperation Agency
KOTIS Korea Trade Information Services
KOTRA Korea Trade-Investment Promotion Agency
KSP Knowledge Sharing Program
KTNET Korea Trade Network
L/A Letter of Authority
L/A Loan Agreement
L/C Letter of Credit
LAN Local Area Network
LAVECEN Laboratorio Veterinario Central
MA Maintenance
MA Ministerio de Agricultura
MBA Master of Business Administration
MCC Multiplex Catalyst Converter
MMARENA Ministerio de Medio Ambiente y Recursos Naturales
MSPAS Ministerio de Salud Pública y Asistencia Social
MEPyD Ministerio de Economia, Planificación y Desarrollo
MFN Most-Favored Nation
MOF Ministry of Finance
MOPC Ministerio de Obras Públicas y Comunicaciones
N/W Network
NEIS National Education Information System
NMS Network Management System
NPV Net Present Value
INTABACO Instituto del Tabaco de la República Dominicana
OA Office Automation
OAS Organization of American States
ODA Official Development Assistance
OP (System) Operation
OPI-RD Office for the Promotion of Investments of the Dominican Republic
Presidential Office of Information and Communications Technologies

OPTIC
(Dominican Republic)
OS Operating System
P/L Packing List
PDF Portable Document Format
PEA Project Executing Agency
PIU Project Implementation Unit
Partido de la Liberación Dominicana /

PLD
Liberal Party of the Dominican Republic
PM Project Management
PMO Project Management Office
PNPIP National Plan of Public Investment
PUCMM Pontificia Universidad Católica Madre y Maestra
PV Present Value
PVC Polyvinyl chloride
Q/A Questions and Answers
RAID Redundant Array of Independent Disks
RC Reinforced Concrete
RDBMS Relational DataBase Management System
RFP Request for proposal
S/W Software
SAN Storage Area Network
SARS Severe Acute Respiratory Syndrome
SCSI Small Computer System Interface
SD System Development
SERI Samsung Economic Research Institute
SI System Integration
Sistema de la Integración Centroamericana /

SICA
Central American Integration System
SIGA Sistema Integrado de Gestión Aduanera
SIGAS Sistema de Gestión de Ayuda Social
SIVUCEX Sistema Integrado de Ventanilla Unica de Comercio Exterior
SMS System Management System
SNIP National Public Investment System
SRC Steel Framed Reinforced Concrete Structure
SSO Single Sign On
T/T Telegraphic Transfer
TBB Technical Building Block
TBIS Tourism and Business Information Systems
TCO Total Cost of Ownership
TCP Transmission Control Protocol
TP Trade Partner
UASD Universidad Autónoma de Santo Domingo
UML Unified Modeling Language
UNAPEC Universidad APEC
UNIBE Universidad Iberoamericana
UIT Union Internationale de Telecomunicaciones
USB Universal Serial Bus
VAN Value Added Network
VAV Variable Air Volume
VE Value Engineering
VIP Very Important Person

VoIP Voice Over Internet Protocol
VPN Virtual Private Network
WAS Web Application Server
WB World Bank
WEF World Economy Forum
WiMAX World Interoperability for Microwave Access
WTO World Trade Organization
XML Extensible Markup Language
ZF Free Zone / Zona Franca

Feasibility Study Report of The Establishment of The CIBAO Project PDF

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Feasibility Study of the Establishment of the CIBAO Trade

Center in the Dominican Republic

Feasibility Study Report

EC Plaza / MAXTRAT / DATEC Consotium

1. Background and Objective.............................................................. 1

Chapter II. Current Status......................................................................... 9

1. Country Status ................................................................................. 9

2. Politics · Society · Economy Status................................................ 13

3. Status of Project Site...................................................................... 18

4. Information Technology Area ....................................................... 22

Chapter III. Project Executing Agency and System ............................... 36

1. PEA and PMO ............................................................................... 36

2. Project Execution and Cooperation System................................. 38

3. Experience in Similar Projects...................................................... 39

Chapter IV. Project Execution Plan......................................................... 41

2. Construction of Trade Center ....................................................... 43

3. Construction of Integrated Trading System (ITS)....................... 68

4. Trade Academy .............................................................................111

5. Project Execution......................................................................... 119

6. Consulting Service ....................................................................... 123

7. Education ..................................................................................... 126

8. Establishing Project Operating Measures.................................. 131

9. Project Period and Schedule ....................................................... 138

10. Procurement Plan ........................................................................ 142

Chapter V. Project Budget Estimation .................................................. 143

1. Estimated Costs & Funding Plan................................................ 143

2. Phase II: Evaluation of......................................................................... 152

3. Annual Spending Plans ............................................................... 156

Chapter VI. Feasibility Analysis ............................................................ 158

1. Feasibility in Project Scale and Scope ........................................ 158

2. Feasibility in Project Cost ........................................................... 160

3. Technical Feasibility .................................................................... 164

4. Economic Feasibility.................................................................... 165

5. Financial Feasibility .................................................................... 204

6. Strategic Feasibility ..................................................................... 210

7. Environmental Impact Assessment............................................. 211

Chapter VII. F/S Items for EDCF Evaluation ...................................... 214

1. Capabilities of Project Executing Agency .................................. 214

2. Approval Process for Loan and important documents.............. 214

3. Probability to provide Korean materials & service ................... 217

4. The effect of Foreign Currency Earning .................................... 218

5. Responses against Risk Factors .................................................. 219

6. Expected Effects .......................................................................... 220

7. Performance Evaluation Indicators ........................................... 222

8. Similar ODA projects in Dominica ............................................. 224

9. Analysis on the International Competitiveness of Korean

For reference: Introduction of Korea’s uTradeHub............................... 228

Abbreviation Table ................................................................................... 238

< Figure 3-1 CEI-RD Organization >....................................................................................36

< Figure 5-1 Total Costs >..................................................................................................144

< Figure 6-1 Details of the Project Cost >...........................................................................169

< Figure 7-1 Annual Overseas Construction Orders >.........................................................225

< Table 4-1 Comparison of construction features > ...............................................................49

< Table 7-1 Project Budget of Eligible Source Country(EDCF)> ........................................218

Chapter I. Project Overview

1. Background and Objective

 It was recommended that the Dominican Republic promote exports and

Feasibility Study of the Establishment of the CIBAO Trade Center in the DR 1

 Need to build the trade center in Santiago, a central city of CIBAO

It is a long-cherished wish of the Santiago Chamber of Commerce to construct a

 Need to build the Integrated Trade System(ITS)

Feasibility Study of the Establishment of the CIBAO Trade Center in the DR 2

In order for exports to increase, the President ordered measures to strengthen