Hon Fraser says Govt still hiding info on Ports project
He made this comment when contacted today March 11, 2015 on the written answers that the Premier’s Office had provided to his questions.
“In the Government’s efforts to maintain secrecy on the cruise pier project they had misunderstood the sincerity of the Opposition in trying to get information out to the public. In my view the answers to questions asked of the Premier were not forthcoming. But the Opposition will continue to pursue [such information] in the interest of the public on this very important matter,” he said.
“I sincerely believe that there are serious issues surrounding that project and the investors and potential investors need to get involved in the investment itself,” said Honourable Fraser.
In addressing the questions, Premier Smith said that there are no private lenders to the cruise pier project but investors and that there are no resolutions that went to the House of Assembly since the Special Purpose Vehicle (SPV) for the project has not borrowed any money to date.
These statements were in response to questions posed to the Honourable Premier by Honourable Fraser during the Third Session of the Fourth Sitting of the Second House of Assembly on February 12, 2015.
No private lenders
“Madam Speaker, could the Honourable Premier and Minister of Finance please tell this Honourable House what happens to the private lenders who invest in the Special Purpose Company established under the BVI Ports Authority to develop the landside of the Cruise Pier if it defaults?” asked Honourable Fraser.
In response, the Honourable Premier said, “Madam Speaker let me first clarify that there are no ‘private lenders’ to the Special Purpose Company, rather individuals and companies have ‘invested’ in the Special Purpose Company established under the BVI Ports Authority to develop the landside of the Cruise Pier. With that investment, the investors are paid a percentage return on their investment annually and the original investment amount is returned to them at the end of the investment period. Madam Speaker we expect that the SPV will honour its obligations.”
Hon Fraser also wanted copies of the resolution passed in the House of Assembly “authorising the borrowing of money by the Special Purpose Company established under the BVI Ports Authority to develop the landside of the Cruise Pier; guaranteeing money borrowing by the Special Purpose Company established under the BVI Ports Authority to develop the landside of the Cruise Pier; and the correspondence from the FCO guaranteeing money borrowing by the Special Purpose Company established under the BVI Ports Authority to develop the landside of the Cruise Pier.
In response, Premier Smith said, “Madam Speaker… the Special Purpose Vehicle established by the BVI Ports Authority has not borrowed any money to date, and as a result those resolutions and correspondences to which the member refers do not exist.”
Landside development to cost $21million
“Madam Speaker, could the Honourable Premier and Minister of Finance please provide this Honourable House with: the estimated project cost for works to be carried out on the landside of the Cruise Pier Development by the Special Purpose Company established under the BVI Ports Authority? The details of the project funding for works to be carried out on the landside of the Cruise Pier Development by the Special Purpose Company established under the BVI Ports Authority? The details of the sale of shares/debentures to date, how much was sold etc. for works to be carried out on the landside of the Cruise Pier Development by the Special Purpose Company established under the BVI Ports Authority? And the status in terms of Belongership and eligibility to own property, of the people who already bought shares/debentures to date for works to be carried out on the landside of the Cruise Pier Development by the Special Purpose Company established under the BVI Ports Authority (BVIPA)?"
In response the Premier said, “Madam Speaker to be clear, no works will be carried out by the SPV but in the interest of cooperation I can say that the estimated project cost of the landside development of the Cruise Pier Development Project is $21,500,000.00.
Further, he said that $5 million in loan funding secured by the BVIPA via First Caribbean Bank is put towards the Landside development along with the $16.5 million to be raised via the Public Offering. He said that as of January 31, 2015 the Public Offering has raised $6,101,000.00.
“Madam Speaker, all persons subscribed in Series I & II of the public offering are required to be belongers. However, Series III, which is ongoing, is now open to persons lawfully residing in the Virgin Islands, whether or not subject to immigration control,” he said.
17 Responses to “Hon Fraser says Govt still hiding info on Ports project”
like he doesn't understand English.
1) 'In response, the Honourable Premier said, “Madam Speaker let me first clarify that there are no ‘private lenders’ to the Special Purpose Company, rather individuals and companies have ‘invested’ in the Special Purpose Company established under the BVI Ports Authority to develop the landside of the Cruise Pier.'
and also;
2) The Premier is further quoted as stating; '...that $5 million in loan funding secured by the BVIPA via First Caribbean Bank is put towards the Landside development'.
So is it not true then that the SPV established under BVIPA is borrowing from a PRIVATE LENDER i.e. First Caribbean Bank? Also whom is liable for default(s) on the loan repayments - BVIPA of the SPV? I was not aware that FCIB was state owned/operated! Furthermore, if the FCO have approved the debt funding by BVIPA (US$5 mil) is it them (FCO) whom are liable for default/late payments?
BVIPA taking a loan is not the same as the SPV taking a loan. Ports Authority took the loan and are the ones developing the pier. The SPV was set up as a legal vehicle through which investments could be made.
Dem fat rats $h1tting them self