Above: a rendering of the new Parliament building. CJ Photo

Australia said it had already funded around $900,933 USD for the first phase of the project, including the design of the new Parliament House.

It had committed to a total of $4.6 million USD for the project, but it would not be participating in the remainder of the project.

The news was announced in a letter from Australian High Commissioner to Grenada Ross Tysoe to Grenada Foreign Minister Nickolas Steele.

As part of a policy shift by the country’s government, it will be cutting its aid budget in the Caribbean from about AUD $11.2 million to AUD $8 million.

Australia said it was shifting its aid priorities to Asia, the Indian Ocean and the Pacific regions.

“This is extremely difficult news, coming at a time when the project is weeks away from starting; and after our government had done all the due diligence on the matter to ensure that it had gotten to this stage,” Grenada’s government said in a statement.

Grenada’s government said it had already begun exploring options with “other friendly governments” to find the additional funding.

The United Arab Emirates is funding $5 million for the project.

“Government remains completely committed to building a new home for this country’s parliament. It is a commitment that has transcended Grenada’s governments,” it said.