Make the base: Peel the shrimp removing the heads and shell. Set aside the shrimp and save it for later use.Boil the shells and heads in 8 cups of water over low heat until the liquid is reduced by half. Strain and discard the solids. Set aside the broth, we will use it later.
Sautéing vegetables: In a thick-bottomed pot, heat the oil over low heat. Add peppers and garlic and cook for one minute (be careful not to burn it).Add the tomato sauce and olives. Mix well. Add the broth you made above and season with salt.
Add the rice: When it starts boiling, add parsley and the rice and cook over medium heat. Stir regularly to avoid sticking.When the liquid has evaporated, add the shrimp and mix well. Cover with an airtight lid and reduce the heat to very low.
Stir the rice: Cook for 15 minutes. Uncover, stir by moving the rice from the bottom to the top.Cover again and cook for another 5 minutes.
Taste: Uncover and taste the rice. It should be cooked but firm.If necessary, cover and cook for another five minutes at very low heat.
Serving: Serve with salad and avocado.
This method of making locrio is not the most common one in the DR, it is, however, the one that I found produces the most delicious locrio. Worth a try.