Grenada to Benefit from Caribbean Development Bank Financing Totalling USD24.479 MillionGrenada is to receive a package of financing from the Caribbean Development Bank (CDB) totalling USD24.479 million for a number of projects intended to facilitate the recovery and reConstruction effort and to contribute to improving general economic conditions, reducing economic vulnerabilities and preserving the country's debt sustainability. Approval for the financing was given at a meeting of CDB's Board of Directors at the Bank's Headquarters in Barbados, on Thursday and Friday, December 8 and 9, 2005.Bridge and Road Improvement ProjectAmong the projects is a Bridge and Road Improvement Project which is expected to contribute to the social and economic development of Grenada through improved road transport infrastructure. It is also expected to reduce vehicle operating costs and contribute to improved safety for road users. A loan equivalent to USD11.939 million was approved to assist the Government in financing the reConstruction of approximately 2.1 kilometres of main arterial road in St. George's - including one bridge. The project also includes the replacement of two bridges located on the Western Main Road which have exceeded their design life and have deteriorated substantially and are no longer able to safely support existing and projected traffic loads. In 2001, CDB's Board of Directors approved a loan for a Bridge and Road Improvement Project. That project was significantly advanced at the time Hurricane Ivan struck the island.Hurricane ReConstruction SupportA Hurricane ReConstruction Support loan equivalent to USD5.413 million was approved to assist the Government in meeting its financial obligations in order to sustain an economic recovery programme. Grenada was devastated by Hurricane Ivan on September 7, 2004. The sharp decrease in Government revenues resulting from the economic downturn associated with the hurricane, coupled with the emergency expenditures for relief and rehabilitation placed significant pressure on the Government's budget in 2004. In 2005, the Government stepped up its efforts to raise additional revenue and to regain debt sustainability, however, ten months after Hurricane Ivan, Hurricane Emily caused significant damage, escalating the country's reConstruction needs and adding to fiscal pressure.The CDB loan is intended to assist the Grenada Government in meeting its financial obligations in order to sustain an economic recovery programme. Disaster Mitigation and RestorationFinancing was approved for a project designed to restore essential road infrastructure and to reduce the risk of loss of life and damage to public and private property associated with rock fall and landslip incidents. It is also expected to provide cost avoidance benefits by reducing rehabilitation and road-clearing costs in the aftermath of natural hazards. A loan equivalent to USD5.2 million was approved for this Disaster Mitigation and Restoration Project. Grenada has had a history of landslides, which include rockfalls and landslip incidents characterised by rapid mass movement of solids on steep slopes. The project will be implemented by the Ministry of Communications, Works and Transport. This is the second major disaster mitigation and restoration project in Grenada to be financed by CDB.Sites and Services for Low-Income EarnersMembers of low-income households, including certain households located in hazardous areas, will be the main beneficiaries of a loan to the Government equivalent to USD 1.927 million. The financing was approved for a Sites and Services Project to improve the shelter conditions of low-income households in the aftermath of Hurricane Ivan. The project will provide 116 serviced plots at two sites - Soubise and Mount Gay - which will accommodate members of 186 households with the kind of amenities not previously available to them.Persons living in vulnerable areas along beachfronts, steep hillsides and gullies will be relocated to areas which are less susceptible to storm surges, landslides and flooding. This project is critical to the long-term programme of housing and human settlement recovery and reConstruction in Grenada. The Ministry of Social Development and Housing will be the implementing agency.CDB's Board of Directors also approved the following financing:USD8.2 million Loan for Electricity Generation in BelizeThe Belize Co-generation Energy Limited (Belcogen) is to receive a loan equivalent to USD 8.250 million to be used towards the design, manufacture, supply, Construction, installation and commissioning of a 32.5 megawatt biomass co-generation power plant. The plant is to be located adjacent to the sugar factory of the Belize Sugar Industry Limited (BSI) in the Orange Walk district of Belize. Belcogen and BSI are private limited liability companies.As part of the diversification of the sugar cane industry, the project will reduce BSI's factory operating costs by providing an efficient supply of electricity and steam. Approximately 92% of the energy supplied by the project will be generated from bagasse, and the project is expected to meet approximately 20% of the base load requirements of Belize Electricity Limited. Direct employment benefits will be derived during the Construction phase, and approximately 556 persons are expected to be employed during the operational phase. USD 5 million Line of Credit Approved for AnguillaA CDB line of credit equivalent to USD 5 million to the Anguilla Development Board (ADB) - under the guarantee of the Government of Anguilla - is to be used for on-lending to the productive sectors, including micro and small enterprises, and for mortgage finance and student loans. The financing is expected to contribute to improving access to housing in Anguilla, especially among the lower middle-income and low-income earners; increasing investments in the productive sector, which have the capacity to create jobs; and improving human resource skills and capabilities in areas where deficiencies have been identified by the Government of Anguilla.The loan will assist ADB in financing its proposed lending programme for the financial years 2005-2009. Continuing Support for Caribbean Regional Technical Assistance Centre (CARTAC)Approval was granted for the use of funds equivalent to USD 375,000 to assist in financing the second phase of the operations of the Caribbean Regional Technical Assistance Centre (CARTAC). CARTAC was established in 2001, initially for a period of three years, with the main focus of improving hands-on management and building capacity in the 20 Caribbean countries participating in the programme. Its objectives are to strengthen fiscal administration, with specific attention to tax administration and budget management; to improve the scope, quality and timeliness of economic and social statistics; and to help bring accounting, regulatory and supervisory regimes in line with international practices.The funds are to be used to finance the assignment of an economist to CARTAC for a period of three years. During the first phase of CARTAC's operation, support from CDB was provided by way of the secondment of a staff economist.Financing for Corporatisation of St. Kitts and Nevis Electricity DepartmentThe Government of St. Kitts and Nevis is to receive a loan of USD600,000 and a grant of USD60,000 from CDB to assist in financing the services of consultants to facilitate the corporatisation of the Electricity Department. This corporatisation is part of a stabilisation programme by the Government aimed at achieving fiscal balance and reducing the level of public debt. The Government intends to incorporate a fully-owned state electric utility, with the potential for liberalisation of the power generation market.Currently, the Electricity and Cold Storage Authority has sole responsibility for the generation of electricity for transmission, distribution, supply and sale in St. Kitts. The Authority carries out its mandate through the Electricity Department, which is under the umbrella of the Ministry of Public Works, Utilities, Transport and Posts. The objectives of the consultancy are to define and recommend the actions to be undertaken by the Government in order to facilitate the smooth transition of the current Electricity Department to an autonomous electric utility, and to assist the Government in operationalising the restructuring plan. President Notifies Board of Directors of Prior Financing ApprovalsCDB's Board of Directors has delegated the authority to the President to approve financing up to a specified limit. As a condition of this authority, the President is required to report such approvals at the first conveniently scheduled meeting of the Board following such approvals. Dr. Bourne asked the Board to note his prior approval of the following financing:The use of funds equivalent to USD30,000 to assist the Government of St. Kitts and Nevis in financing the provision of psychological and financial counselling to employees of the St. Kitts Sugar Manufacturing Corporation following the closure of that company. The use of funds up to the equivalent of USD60,000 to finance the costs of co-hosting a regional workshop with the United Nations Development Programme. The workshop was aimed at creating a sustainable framework for monitoring the achievement of the Millennium Development Goals in the Caribbean. It was held in Barbados from November 17 - 18, 2005.A grant up to the equivalent of USD148,400 to the Government of Dominica, to assist in financing the costs of the Government's Local Government Reform Programme to strengthen the local government system. A grant to the Caribbean Wastewater Association Incorporated equivalent to USD15,000 to assist in financing the costs of a workshop on the water and wastewater sectors for policy and decision makers in CDB's borrowing member countries. That workshop was held in Barbados from October 13-14, 2005. CDB Provides Loan for the Upgrading of Services at the University of Technology in JamaicaThe Caribbean Development Bank (CDB) has approved a loan of an amount not exceeding the equivalent of USD25.868 million to the Government of Jamaica for use in the expansion of facilities and upgrading of services at the University of Technology UTech). Approval was granted at a meeting of CDB's Board of Directors at the Bank's Headquarters in Barbados on December 13, 2007.The project, which will provide for the Construction of labs, classrooms, and lecture theatres, will help to alleviate the current overcrowding at the institution. When completed, it will allow the University to expand and diversify its programme offerings and to accommodate more than 3,800 additional students annually.There are also allocations for staff development which will allow for the upgrading of staff skills, and 90 staff members will be given the opportunity to enter into a Master's or Doctoral programme. An improvement in operational efficiency is also expected from the enhancement of the administration facilities and systems.Jamaica gets Loan from CDB for Hurricane Rehabilitation WorksCDB has also approved a loan of an amount not exceeding the equivalent of USD20.5 million to the Government of Jamaica to assist in financing rehabilitation works in areas of the transport sector affected by hurricane Dean and the subsequent heavy rainfall which affected the country between August and November, 2007.The funds will be used for the Construction of sea defences and associated dune re-nourishment works along a section of the Norman Manley Highway on the Palisadoes peninsula; rehabilitation and drainage works to main roads including Port Royal Street, Michael Manley Boulevard, and May Pen to Sour Sop Turn, and drainage works on the upper reaches of the Rio Minho.The project is designed to assist in the speedy rehabilitation of the country's road infrastructure and the restoration of its productive capacity. CDB Loan to the Eastern Caribbean Home Mortgage Bank CDB's Board of Directors has approved a loan in an amount not exceeding the equivalent of USD10 million to the Eastern Caribbean Home Mortgage Bank (ECHMB) to assist with the expansion of its activities in the secondary mortgage market in member countries of the Eastern Caribbean Currency Union (ECCU). The ECHMB, which was established in 1996, has been consistently profitable and successful in driving capital market activity - a critical factor for the growth and development of the financial and real sectors in the ECCU. The loan from CDB will assist the ECHMB in diversifying its funding sources, expanding its portfolio and also in reducing the mismatch between its assets and liabilities. This will not only allow the ECHMB to further promote and develop the money and capital markets as well as the secondary mortgage market in the ECCU member countries, but will also contribute to the expansion of home ownership in the these countries. Carib Territory Community Capacity Building ProjectCDB will provide loan and grant funding to the government of the Commonwealth of Dominica to finance a project aimed at enhancing the institutional and productive capacity of the Carib Community and contributing to a reduction in poverty.The package, approved by the Board of Directors of CDB, include a loan of an amount not exceeding the equivalent of USD2.486 million, and a grant not exceeding the equivalent of USD259,000. The loan will assist the Dominica government in constructing two roads and the resurfacing of another, the Construction and equipping of community resource centres, training in house retrofit techniques, and the establishment of an Enterprise and Cultural Development Facility in the territory.The grant will assist in the financing of the institutional strengthening component of the project which will contribute to good governance and improved management systems for the Carib Council and the Carib Model Village. Financing for Feasibility Study in BelizeThe Board of Directors of CDB has approved a Technical Assistance loan to the government of Belize of an amount not exceeding the equivalent of USD250, 000 to assist in financing a study on the feasibility of expanding the water and sewerage systems on Ambergris Caye. Ambergris Caye, which is located approximately 15km northeast of the old capital, Belize City, has experienced rapidly increasing growth in the Construction of Tourism-related resorts and accommodation. Most of this growth has taken place in the northeastern part of the island which is not serviced by the Belize Water Services Limited. CDB previously funded a feasibility study, preliminary and detailed designs, and the Construction of a water and sewerage system for San Pedro - the town with the largest settlement on the island. This project was completed in 1996. Antigua and Barbuda gets Grant to Assist Statistics DivisionCDB will provide a grant to the government of Antigua and Barbuda in an amount not exceeding the equivalent of USD263, 000 to assist it in carrying out an institutional strengthening programme for the Statistics Division of the Ministry of Finance and the Economy.The funding will help the government in its efforts to reorganize the Division, putting in place mechanisms that will enable it to produce and disseminate timely and accurate statistics for the monitoring and management of economic and social activities. The President notified the Board of Directors of the following initiative undertaken by the Bank since the last meeting of the Board in October: Gender Policy for CDBThe President approved the use of funds in an amount not exceeding the equivalent of USD146, 476 to finance a consultancy which has as its output a Gender Policy and Gender Mainstreaming Strategy and Implementation Framework for CDB.The Bank has noted the gender dimensions of poverty and the consequent vulnerability of households and population groups, and it specifically notes that female-headed households constitute a large percentage of the most vulnerable and deprived households.Given that CDB's mission focuses on poverty reduction in its Borrowing Member Countries (BMCs); the Bank has committed itself to gender mainstreaming internally and within its BMCs. The Bank is aiming to complete comprehensive gender assessments in some of the BMCs as well as to integrate gender into its social and operational guidelines.