The Board of Directors of the Caribbean Development Bank (CDB) met on Thursday, October 10, 2002, at the Bank’s Headquarters in Barbados, under the chairmanship of CDB President, Dr. Compton Bourne. This is part two of The Board’s approved financing for the following projects:
The governments of six of CDB’s Borrowing Member Countries (BMCs) are to receive loans from the Bank to assist them with meeting their counterpart financing CDB- financed projects which are being implemented in their countries.
The loans are being funded from a USD 50 million Counterpart Assistance Facility (CAF) which was specially established by CDB’s Board of Directors in December, 2001 to assist CDB’s BMCs, by ensuring that projects are not adversely affected by any fiscal difficulties caused by global economic factors as well as by the events of September 11, 2001, in the United States. Counterpart financing is the portion of the total project costs which beneficiary governments are required pay for projects financed by CDB.
Antigua and Bermuda is to receive a counterpart loan of up to the equivalent of USD 1A million for its Basic Education Project. The original loan – approved in December 1997 – was for the equivalent of up to USD 10.64 million, to improve the learning environment at the secondary level, institutional strengthening of the Ministry of Education to improve its capacity in education planning and management, and for quality improvements in the delivery of education.
Belize is to receive a counterpart loan of up to the equivalent of USD 2.99 equivalent for its Enhancement of Technical and Vocational Education and Training Project, for which a loan up to the equivalent of USD 13.08 million was approved in October 2000.
An additional loan of up to the equivalent of USD 1.99 million has also been approved for the Government of Belize for its Second Road (Orange Walk) Bypass Project. The original loan approved in December 1999 was for up to the equivalent of USD 9.5 million. In addition, Belize is to benefit from an additional loan of up to the equivalent of USD 755,000 for its Disaster Project, for which 8.5 million was approved in October 1999.
Dominica is to benefit from two counterpart loans under the CAF – one for up to the equivalent of USD 1.55 million for its Rehabilitation of Hurricane Damage (third Loan) Project and one for up to the equivalent of USD 0.83 million for a Natural Disaster Management Project dealing with post-Hurricane Lenny Rehabilitation.
The original loan of up to the equivalent of USD 3.55 million for the Hurricane Damage Rehabilitation Project was approved by CDB’s Board of Directors in December 1995, while the Hurricane Lenny Rehabilitation Loan of up to the equivalent of USD 9.49 million was approved in May 2002.
Grenada is to receive a counterpart loan of up to the equivalent of USD 2.6 million for its Bridge and Road Improvement Project. The original loan of up to the equivalent of USD 17.09 million was approved in December 200 1.
St. Lucia will benefit from three counterpart loans. Approval has been given for a loan up to the equivalent of USD 569,000 to the Government of St. Lucia to assist with rehabilitation/relocation works arising from a landslide which occurred at Black Mallet in September/October 1999. A loan of up to the equivalent of USD 4.04 million for the original Natural Disaster Management Project was approved in March 2001.
A loan of up to the equivalent of USD 4.54 million was approved for that country’s Fifth Water Supply Project in May 2001. Now, under the CAF, an additional loan of up to the equivalent of USD 0.73 million has been approved for the project, which has the objective of developing an appropriate institutional and regulatory framework for the water sewerage sector in St. Lucia. as well quality and reliability of service in the short term.
The St. Lucia Government is also to receive a counterpart loan up to the equivalent- of USD 2.84 million for its Roads Development Programme. The original loan of up to US27.5 million was approved in December 1999 for this project, which is designed to improve the serviceability of the island’s road network. The scope of the project has been revised to comprise the reconstruction of 42 kilometres of road, and the strengthening of institutional arrangements for the administration and management of the road sector.
The Board approved a counterpart loan of up to the equivalent of USD 557,000 to the Government of St. Vincent and the Grenadines for a multi-project to improve road networks in four of the Grenadine islands, and to improve jetty facilities in the island of Mayreau. The original loan of up to the equivalent of USD 5.21 million was approved in December 2000. The scope of this project has also been revised and now consists of construction of approximately 13. 1 kilometres of roads in Bequia, Canouan, Union Island and Mayreau, and a 50-metre jetty in Mayreau.
CDB Approves Technical Assistance Grants for Guyana, Jamaica and UWI
CDB’s Board of Directors approved three Technical Assistance grants, which will benefit the Centre for Gender and Development Studies of the University of the West Indies (UWI), the Government of Guyana, and the Government of Jamaica.
A CDB grant of up to the equivalent of USD 212,000 will assist in financing a UWI-sponsored research project to examine the issue of gender disparities in performance in the education systems of its Borrowing Member Countries. The Centre for Gender and Development Studies will be the executing agency for the project.
The project will identify gender differentials in enrollment and performance of male and female students at the secondary and tertiary levels; identify socio-political, economic, demographic, cultural and other factors which determine or contribute to these gender differentials; test popular perception] theories advanced as explanation of the phenomenon; and recommend relevant policy reforms and interventions.
Earlier, in 1999, CDB had approved a Technical Assistance grant of USD 23JM to UWI towards the cost of a consultancy services to review the relevant literature, develop a conceptual framework, methodology, and to design and cost a proposal for substantive research. The consultant’s report was completed in 2000, and the design proposed for the research accepted by CDB and UWL The UWI and the Canadian International Development Agency will also be providing funding for the research project.
The grant of up to the equivalent of USD 300,000 to the Guyana Government is to assist in strengthening the capacity of the Guyana Revenue Authority through the development of the requisite skills, and training of staff in both custom and trade administration as well as in internal tax revenue collection and compliance.
The Jamaica Government is seeking to improve the efficiency of delivery of electricity services across the country. The CDB grant of up to the equivalent of USD 239,800 Is to assist in financing the cost of revising legislation for the electricity sub-sector and the preparation of a Generation Market Study. The executing agency will be the Office of Utility Regulation.
President Notaries Board of Directors of Prior Financing Approvals
CDB’s Board of Directors has delegated to the President the authority to approve financing up to a specified limit. As a condition of this authority, the President is “so report such approvals at the first conveniently scheduled meeting of the Board following such approvals.
President, Dr. Compton Bourne, asked the Board to note his prior approval of the following financing:
*An immediate response loan of up to the equivalent of USD 500,000 to the Government of Jamaica to assist in financing the clearing and cleaning of affected areas and the emergency restoration of essential services in the wake of extensive flooding. The use of funds up to the equivalent of USD 20,000 to assist in financing consultancy services to provide independent inspection and certification of works in connection with the natural disaster management project was also reported.
* A grant up to the equivalent of USD 100,000 to the Government of Jamaica to assist in financing disaster relief, and consultancy services for the purpose of carrying out damage assessments associated with sever floods and landslides which occurred during the period of May to June 2002.
* The use of funds up to the equivalent of USD 147,000 to assist in financing a project for pension fund reform in the English-speaking Caribbean. This project involved a needs assessment, a regional symposium, a policy training seminar for managers and regulators, and an actuarial valuation of the performance of national pensions schemes in the selected countries.
*A grant of up to the equivalent of USD 148,000 to the Government of Jamaica to facilitate the completion of data collection for a study of the informal sector in Jamaica. The grant was intended specifically to assist In financing consultancy services to undertake training of field workers/intervi ewers, field operations, editing, coding and data processing.
*A grant up to the equivalent of USD 97,000 to the University of the West Indies to assist academic staff engaged in research activities to continue their research and publish their findings.
* A grant of up to the equivalent of USD 150,000 to the Government of St. Vincent and the Grenadines to assist in financing consultancy services to strengthen the regulatory and administrative framework of the Ministry of Finance and Planning. The objective of the project is to provide the Ministry with the expertise to develop such a framework for strengthening financial institutions and public enterprises, including credit unions, development banks and insurance companies.
Another Reduction in CDB’s Interest Rate
The Board has accepted a recommendation that for the six-month period beginning January 1, 2003, the interest rate on loans made from CDB’s Ordinary Capital Resources (OCR) be reduced from 5.75% to 5.5% for all loans approved after April 1, 1984, to the public sector And private sector financial intermediaries, and After April 1, 1984 – but before March 15, 1091 – directly to the private sector. The rate for all loans approved directly to the private sector after March 15, 199 1, will be reduced from 7.75 % to 7.5 %.
CDB’s OCR interest rate is reviewed on a semi-annual basis to take effect from January I and July I each year. There was a reduction in the rate for the January to June 2002 period that reduced rate remained in effect for the July to December 2002 period.
CDB took these decisions in response to the downturn in the economies of its Borrowing Member Countries resulting from global economic factors as well as from the effects of the September I I crisis, so as to provide urgent temporary relief to its Borrowing Member Countries to assist in their economic recovery.
