Gov’t to take up ‘something like a loan’ for infrastructure works- Premier Wheatley
"We need to make a heavy investment in our infrastructure, in our roads, in our bridges, in our drains, in our culverts, all of these different areas of our infrastructure need investment,” he said during a one-on-one press conference on July 22, 2022.
According to the Premier; however, those infrastructural works can only be done if an injection of funds is made into the infrastructure "through something like a loan, so persons very soon will hear me speaking to them about going to get a sizable loan to be able to invest.”
He said this investment will not only include road infrastructure but the rebuilding of schools as well as continuing recovery efforts.
Dr Wheatley revealed; however, that his government is not considering a large loan like that of the £300M loan guarantee offered by the United Kingdom (UK).
He noted too that most of the $65M loan from the Caribbean Development Bank (CDB) has been expended.
Most of CDB loan expended - Dr Wheatley
“There’s no more money from that to do any new projects [as] most of the projects for that $65M loan are already in train, ongoing, or completed.
“So, we need to get some funding to continue our recovery, so it will be another loan, but it will be another loan that we can service the debt form,” he said.
Hon Wheatley said an announcement will come ahead of any loan as well as a demonstration of how the Government will service the debt and meet all its ongoing obligations.
He added that while the loan won't necessarily be from the UK, the Virgin Islands would still have to have a discussion with the UK on borrowing.
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13 Responses to “Gov’t to take up ‘something like a loan’ for infrastructure works- Premier Wheatley”
Honestly you REALLY prove that not everyone with a Phd got sense at all, just know how to write and successfully defend the dribble paper to get awarded a Phd.
We all know the Special Envoy is the actual Premier of the country but I wonder if even he agrees with some of the nonsensical and downright foolish moves you continue to make....
ELECITON HURRY UP COME!!!!!!
To fund its huge needs, it must engage in longterm borrowing to be repaid mostly from the good faith and credit of the territorial government. I don’t know what the VI’s current debt to gdp ratio is but I will take a WAG that it is well within the prudent recommendations set by the World Bank and IMF for developing countries.
However, before launching into a borrowing spree a number of actions are needed, ie, a)develop a national development plan, b) develop a capital improvement project (CIP) list, c) develop a capital budget/process, d) solicit voter approval on CIP, e) HOA authorize CIP, f)HOA appropriate funding for CIP, g)establish tax policy, ie, maximum revenue generation v. economic growth, h) project design-inspection-construction management execution, etc.
The bottomline is that the VI have to borrow and maximize the efficiency of the borrowed funds to modernize road network, water, wastewater, stormwater, ports, telecommunications, gas, education facilities, health facilities, correction facilities, treatment facilities, recreational facilities, etc. Virgin Islanders must be wiling to pay more taxes and fees to enjoy the benefits of these modernized facilities, soft infrastructure, etc. I have not forgotten the most important resource—PEOPLE. Investing effectively on/in human capital must be a top priority. Numero uno.