BASSETERRE, St. Kitts, Feb.26.2018 – ALL the major players involved in the loan agreement for the construction of the second cruise pier at Port Zante have formally signed on - thus paving the way for the project to commence.
At a ceremony on Port Zante last evening, representatives from TDC, National Bank, Social Security Board and the Sugar Industry Diversification Foundation each penned their signatures to formally agree to the project.
The pier, which has been in the discussion phase for a number of years, will be constructed on the western section of Port Zante and will be built to the tune of US$48 million.
According to Minister of Public Infrastructure, Hon. Ian Liburd, the project will be carried out over 18 months, and will see National Bank injecting $34 million, Social Security - $7 million, SIDF - $5 million and TDC Insurance and Financial Service $1 million each.
The loan will be for 15 years at a repayment rate of 4.5 percent, Liburd told the gathering of diplomats, government officials and citizens.
“Where can you get a rate like that any other place? This rate I am advised may be reviewed after seven and a half years of the loan,” the Minister disclosed.
He explained that the risk associated with natural disasters is mitigated by the insurance coverage from two overseas companies.
The two companies he noted are listed as Category A entities and “not in any way shape or form related to the providers of the financing”.
With the Federation seeing increasing calls from cruise vessels, both the former administration and the Team Unity Government have acknowledged the need for a second pier.
Though the former government were in discussions to have the facility constructed, they had hit several hurdles to get the project off the ground.
However, Minister Liburd has pushed to have the docking facility come to fruition.
The Minister stated that the St. Christopher Air and Seaports Authority (SCASPA) explored all options that were available to finance the project.
Liburd disclosed that consideration was given to a number of regional financial institutions to fund the project.
Based on the expertise of Ernst and young, they explored options from eight institutions locally and regionally.
But the best options were from the local partnering agencies.
