Roadtown, Tortola - The House of Assembly has approved a motion which allows Government to borrow $4,726,000 from the Deutsche Bank for the purpose of financing a greenhouse project.

The motion, which was moved by Premier and Minister of Finance Honourable Ralph T. O’Neal, OBE at the July 24 sitting of the House of Assembly, was approved on the condition that the Government will repay the funds over a period of five years; by 40 quarterly installments and at a London InterBank Offered Rate (LIBOR) plus two point five percent per annum being approximately three point fifty two percent.

The Minister of Finance explained that this money is to finance the greenhouse project which has been negotiated by the Ministry of Natural of Resources and Labour and which will “give a boost to agriculture in the British Virgin Islands (BVI)”. 

The finance minister also said there have been some concerns raised but those have been addressed.  “I have had discussions with the ministry and representatives of the farming community and the concerns have been discussed fully with them,” he said.

According to Hon. O’Neal, one of the concerns was that a firm will be coming to the BVI to do this work and reap the benefit.  “What is going to happen as I understand it from the ministry is that some people will be coming in to teach our people how to use the greenhouses,” the Finance Minister explained.

He added, “The delegation that visited Santo Domingo is fully satisfied that if we are going to move up in agriculture, such things are necessary in order for us to have a renaissance in agriculture.”

The Finance Minister thanked the members for supporting the motion.  “I believe that in time to come many full and part-time farmers will get into greenhouses and do some farming.  Let us hope that we will get to enjoy the benefits of the greenhouses,” he said.

In a statement delivered in the House of Assembly on April 8, Minister for Natural Resources and Labour Honourable Omar Hodge outlined some of the benefits of the greenhouse project.  “One major benefit of the greenhouse is the ability to control the temperature, light and moisture inside the structure which helps to guarantee the desired results.  Another major benefit is the extended growing and sowing season,” he said.

Honourable Hodge explained, “With the introduction of the greenhouse technology which creates a close to ideal environment, we can realise our desire to secure mass food production in this Territory.” 

Section 32 of the Public Management Act, 2004 (No. 2 of 2004) provides that the Government or any person acting on behalf of the Government has no power to borrow money except in accordance with an enactment or on the authority of a resolution of the House of Assembly.

Definition of Libor
LIBOR is the interest rate which banks charge each other for one-month, three-month, six-month and one-year loans. LIBOR is an acronym for London InterBank Offered Rate. This rate is that which is charged by London banks, and is then published and used as the benchmark for banks rates all over the world.  (About.Com:US Economy)