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by pltm
(PLTM) - As the BVI government awaits more concrete international funding, it plans to use monies from the Reserve Fund to help with immediate recovery efforts. The estimated losses across the Territory following the passage of hurricane Irma is in the area of $3.3B.
Premier Hon. Dr. D. Orlando Smith, who made the disclosure last evening, October 19, said that based on the initial plan from the newly formed Disaster Recovery Coordinating Committee, government is looking at critical areas of the economy and development and identifying the best funding options.
"Central government funds from our disaster, reserve and relief funds will help with immediate relief, road clearings and government operations," he said in a statement.
The Finance Minister also explained that funds from insurance coverage will assist across sectors in the redevelopment of both public and private properties.
"We are seeking to utilise grants and donations that have been pledged and some already received for relief and response efforts, and supporting health initiatives. Grants from international partners will help with the reconstruction of schools, agriculture and fisheries industry, and health services," he stated.
Premier Smith said they will also be seeking financing on concessionary terms to develop the primary infrastructural needs further and providing housing for residents.
In its $323M budget for the 2017 financial year, government had stated that they projected a contribution of $12.5M to the Reserve Fund for this year.
Pre Hurricane Irma, the National Democratic Party (NDP) administration received widespread criticisms over its spending habits, including from the then Queen's Representative, former Governor John Duncan. However, in July, two months before Irma hit the Territory, Premier Smith had denied that the government was spending tax payers' money recklessly.
At that time, he said that the public debt stood at 19% of the Territory's Gross Domestic Product (GDP), adding that in 2015, the BVI achieved a historic milestone, when the Territory’s GDP crossed the threshold to become a $1 billion economy.
The Finance Minister had also boasted about the efforts by his government to build the Reserve Fund.
"This year, the BVI will achieve an important milestone by fulfilling our commitments under the Protocols for Effective (Financial) Management of our finances, which we entered into with the UK in 2012."
He reminded that under that agreement, the Territory committed that its Reserve Fund would be equal to 25% of its recurrent expenditures.
"And this year we will hit that mark with over $60M in our Reserve Fund, there to meet the needs of our people on the proverbial rainy day," Premier Smith said in July.
He added, "We have achieved that goal even in the face of a difficult 2016, when our government revenues took a hit due to the global attack on our financial services industry."
Other Help
Meanwhile, in his statement last evening, Premier Smith spoke about the recently held series of meetings with the World Bank and its partners, during the bank's annual meeting.
Premier Smith was accompanied by Hon. Ronnie Skelton, Minister of Health and Social Development, where they were invited on an invitation facilitated by the United Kingdom’s government.
"I had the opportunity to participate in a high-level roundtable discussion that looked at the financial implications of the recent hurricanes in the region as well as discussions with regional and international funding agencies such as the Caribbean Development Bank, the European Union, and the UK’s Department for International Development," the Finance Minister stated.
He said that he also had a discussion by Prime Minister for Grenada and CARICOM Chairman, Hon. Dr. Keith Mitchell and Sir Richard Branson on the development of a regional plan for recovery and reconstruction.
"Throughout those meetings and discussions, I continued to make the case that despite our middle to high annual GDP, the Virgin Islands needs greater access to funds to help us successfully recover from this disaster."
He emphasized, "As I stated before, my administration sees a responsible mix of grants, and affordable borrowing as the best way forward to fund our reconstruction."
Premier Smith stated that his meetings in Washington, DC were positive and secured confirmations from partners such as the CDB and the EU to support finding responsible ways to fund the BVI's recovery.
