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Cruise ship pier project is not a loan – Vanterpool

MC&W Minister defends project, Rymer says it is a loan
Minister for Communications Hon. Mark Vanterpool (left) has defended the cruise ship pier project as being an investment rather than a loan while Lorie Rymer (right) said the project is a loan since it is money that is put in that has to be repaid. Photo: VINO/File
The concept of what the cruise pier park will look like in Road Town after developments take place. The project is being injected with a $75 million funding of foreign investment with the government leasing the land to them for 48 years with buy out option of the project at 15 and 30 year intervals. Photo:UIG
The concept of what the cruise pier park will look like in Road Town after developments take place. The project is being injected with a $75 million funding of foreign investment with the government leasing the land to them for 48 years with buy out option of the project at 15 and 30 year intervals. Photo:UIG
ROAD TOWN, Tortola, VI – Since the public announcement on June 27, 2012 of the $75 million project to develop the Road Town cruise ship pier and its surroundings, there have been numerous concerns raised by residents regarding the foreign investment in the project and the likelihood of it being a burden on the Virgin Islands.

One very vocal resident and former political candidate for the 9th district, Lorie Rymer, went as far as to describe the $75 million as a loan which the Minister responsible for the project has vehemently defended.

On the television talk show BVI Forum aired on CBN Channel 51 on Saturday evening July 14, 2012, Rymer along with Minister for Communications and Works Hon. Mark Vanterpool were guests of host Edmund Maduro where the topic of the development took centre stage.

Rymer said while some are saying it is not a loan, in his view, it is a loan. “A loan means the money is not given to you and it has to be paid back with interest, that makes it a loan, and there are different types of loans.”

But according to Hon. Vanterpool, the $75 million is not a loan but an investment with the investors taking on “certain risks and expecting certain returns”.

“An investment is not a loan…the investors have invested their money at risk over the 15 years with us not guaranteeing anything, if anything goes wrong … let us make an assumption, let’s say Cuba becomes a hot spot and cruise ships are allowed to go to Cuba as they wish then it might threaten what they invested here in the cruise ship business and the money they invested here may become a risk, I don’t know what I hope not … that’s their risk,” Hon. Vanterpool explained.

Regarding concerns about the length of time for the lease of 48 years, he said to him it was also too long thus he negotiated to have buy out options at intervals.

Both Maduro and Rymer had contend that the VI should have a 51 percent or majority share in the project. To this Hon. Vanterpool said he supports that locals should have as much ownership as possible but said he wasn’t sure that he can make that mandatory. He also made it clear that while it’s a 50/50 public/private partnership, the BVI Ports Authority has a dominant say in the project.

In response to a caller who was seeking clarity on the 50/50 deal between the investors and Government, Vanterpool explained that, “the leases that will be on the Port side, the money will be going to the other partners for the first 15 years and other than that it will be split 50/50...The idea here is the investors wish to recoup their money in the 15 years and then after that it will be split 50/50."

Sovereignty to outside influence?

Another point raised by Rymer is the question of sovereignty and whether or not the VI is going to turn over the great measure of sovereignty to outside influences.

Rymer said there are pansy schemes and went on to state that the VI must be very careful.

“We must be very careful, we have pansy schemes. We know what happen to Antigua, a king owned and ruled most of Antigua but we now know what has happen to him and he has been in prison for 108 years and asset he created in Antigua will be tied up for the next 15 to 20 years,” Rymer stated, speaking of billionaire Alan Stanford and his investment in that island.

Tortola Ports Partners Ltd, United Infrastructure Group, Cashmen are the partners that will be working along with the Virgin Islands Government, to realise the $75 million cruise pier project where $25M will be earmarked for pier and excursion dock; $25M is allocated for land side development and $25M for community investment. Included in the development will be the Tortola Pier Park which will include boutiques, arts and crafts, and water front entertainment.

The expansion of the pier is expected to be completed by December 2012 while further development of the land side and improvements to Road Town will be pursued over the next three years.

15 Responses to “Cruise ship pier project is not a loan – Vanterpool”

  • john public (16/07/2012, 09:19) Like (0) Dislike (0) Reply
    who must we believe?
  • Eagle and Buffalo (16/07/2012, 09:35) Like (0) Dislike (0) Reply
    Business has both great rewards and high risks. And an investor must weigh the potential risks and rewards before launching a business. Some businesses fail and others succeed. If the proposed developer of port see great opportunity in this scarce, prime piece of real estate, why does he/she need BVIslander guarantee? Seems as if the developer wants to assume little or no risk; they do want to no skin in the game. They want the BVI to collaterized their investment. Lets see what the BVI is injecting in this deal. It is leasing 4 acres of scarce, prime waterfront property free of charged for 48 YEARS. Additionally, the developer will get $8 dollars for every passenger transiting thru the port. Further, if the project heads south, the taxpayers can buyout the developer's interest in the project. What other sweetener is in the lease? Look as if a sucker is born every second. This project is not free to Virgin Islanders. There are huge opportunity cost. We can spin the semantics if it is a loan or not. But if walks like duck or quacks like duck or looks like duck it is probably a duck. Lets act like a gaggle of eagles, not like heard of buffaloes. Buffaloes tend to follow the lead buffalo off the cliff; whereas, eagles are constantly changing leadership positions. Perhaps we need to climb up to the crows nest and take bird's view of the landscape ahead for squalls or shoals. The Caribbean landscape is littered with the bones of promising, too good to be true development projects. Lets be aware
  • Flanks (16/07/2012, 09:42) Like (0) Dislike (0) Reply
    Mark you confusing people now. First we hearing the head tax will be split 50/50 now we hearing the private company will collect for 15yrs then we will split it after that 15yrs? NOOOO WAYY, are you kidding? Please clarify this because for instance if by 15yrs they've doubled their investment, they have no real reason to stick around after that to ensure that we make ours. We better be careful, very careful with this! I support developing the port 100% because it's long overdue, but we got to careful what we giving and getting.
    • ann (16/07/2012, 11:07) Like (0) Dislike (0) Reply
      the more Mr. Mark speak anout this the worst it gets...sheeeeeeeeeeeeee
  • bam see (16/07/2012, 09:54) Like (0) Dislike (0) Reply
    everything this guy touch always ends up a failure...k mark's and lambert beach resort... to name a few...doc better give him check out
  • under the rock (16/07/2012, 11:28) Like (0) Dislike (0) Reply
    Interesting article for sure vino..I support the project but we have to many questions...
  • Flanks (16/07/2012, 11:31) Like (0) Dislike (0) Reply
    Lorie negotiated and brought Biwater here. What was worst than that? he had nothing against that, but he's here kicking up a storm with his nonsense against this development. He had no problem with Government giving Biwater lease to our land, buying them a generator, paying their electricity and most of all, putting a local business out of business. But he's here acting like BVI saviour. schuups. Somebody tell this noel lloyd wanna be that his 15 minutes has long been up!
    • Bull (16/07/2012, 16:18) Like (0) Dislike (0) Reply
      Flanks: Biwater is a deal, this thing is a sellout. Lorry is right. May be your ma ma was buying an engine for Biwater, but the government was purchasing an engine for the BVI Electricity Corporation. And may be she was also paying electricity for Biwater, but the government was paying the same electricity thet are paying for the production of water to Ocean Conversion, and Aqua Design. So see, your attempt to mislead is the 15 minutes that is up. And oh! this local company you claim went out of business, could you tell us who they are. We know that this Ports Project can be done by locals, its just a few 2 story buildings. Our people built the whole of Whiickams Cay, and they are multi storys. Then again they are leasing out our Wickams Cay for 48 years. Noel LLoyd fought for it from another white man, now Mark is giving it to another white man 45 years later. Talk about a slave mentality, this is what I am seein here. Biwater does not get a dime from government except for water bought at half the price they are paying the local company you claim they put out of business. On the other hand, this company Mark is giving Wickhams Cay to is getting $8 from government for every passenger (240,000 passenger a year), for what? Please tell us. Lorry is right.
  • ccc (16/07/2012, 15:23) Like (0) Dislike (0) Reply
    man let's get the project going dey people dem need work!!!
  • DUMBASS (16/07/2012, 18:15) Like (0) Dislike (0) Reply
    BVI people fraid INVESTMENTS...... Life must go on
  • weed (16/07/2012, 21:59) Like (0) Dislike (0) Reply
    why you all wasting time on tis can't you not see its another done deal???
  • taxpayer (17/07/2012, 10:17) Like (0) Dislike (0) Reply
    And this to will pass away. K MARK needs to spend more time in his office rather than up and down styling and pro filing with this dead project. Enough is enough!!


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