Hundreds of millions needed for recovery projects in VI- Premier Wheatley
“As it pertains to the direct figure of how much we need, it is literally hundreds of millions of dollars,” Premier Wheatley stated at a press conference alongside Deputy Premier and Minister for Financial Services, Labour and Trade, Hon Lorna G. Smith, OBE today, November 9, 2023.
The Premier said he could not provide exact figures now as the Virgin Islands Recovery and Development Agency (RDA) had some tentative projects but, “it’s literally hundreds of millions of dollars that we will need.”
Dr Wheatley said his government is currently in conversations with the United Kingdom to support the VI “in borrowing and getting money as cheaply as possible.”
‘We will borrow what we can afford to pay back’
Asked again how much money his Government was looking to borrow, Dr Wheatley said, “We going to borrow what we can afford to pay back.”
The Finance Minister added that those figures will be presented in the budget to be presented later this year.
He also reminded the VI has to first get permission from the UK to borrow and is optimistic about the UK’s support.
“Of course, as you know, we have ratios that we have to stay within and the United Kingdom has been very helpful, I would say, in terms of flexibility as it pertains to the ratios but, generally, our debt servicing ratio is at 10%, [and] of course we have a liquidity ratio, in terms of reserves that we have to maintain, which is at 25%, and then we have a debt to recurrent expenditure of about 80%, generally, that we have to stay within.”
Dr Wheatley also said the Government has to balance the need for borrowing with the need to fund the operations of the Government.
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34 Responses to “Hundreds of millions needed for recovery projects in VI- Premier Wheatley”
No amount of foolish talking will help us to repair, and build up the BVI infrastructure, raw cash, good planning, hard work, and honest accountability will greatly help.
True, the BVI is one of the most beautiful place in this world, but beauty can be blurred by lack of love for each other best interest. This is the position we now experiencing. If we continue doing the same thing, the same results we will get. Until we change our mind, our mindset will keep us in chain, while the wise will reign.
People of the BVI, I share in our self-inflict.
Increasingly, there is a trend developing almost everywhere in that citizens are demanding increased delivery of services but they also demonstrate a vociferous disdain to any tax, or fee increases to pay for the delivery of increased services. Dr. Hon Premier Natalio Wheatley, D-7 and MoF, have indicated that the VI needs hundred of millions of dollars to fund its capital Improvement Program (CIP) backlogged projects. Nevertheless, the VI lacks the funds to fund/invest in the backlog of CIP projects. Consequently, it needs to borrow, ie, prudently borrow to fund the CIP. What is prudent borrow? According to OECD ( Organization for Economic Cooperation and Development), prudent borrowing for developing/emerging countries as the VI is 30-50% ratio of overall tax/debt to GDP. I will surmise that VI debt to GDP ratio is relatively low, ie, less than 20%. As such and on the surface, it seems the VI has the capacity to prudently borrow. Nevertheless, borrowed money has to paid back with principal and interest. Consequently, taxes and fees will have to be increased to amortized or pay down/payoff the loan. What will VI and VI people get for and from the borrowing? VI and VI residents should see and enjoy First World infrastructure, Utilities, etc.
Ok. You may not have the list of projects or costs. But how long do think for the projects to be complete and usable, the payback period for the loan, types of taxes and fees.
People strongly believe that government overpay for services and goods, and it is not getting value for money. Further, nepotism, cronyism, etc results in the best qualified people not being put in positions. For example, the practice of putting non-managers in technical management positions, ie, Public Works, Water & Sewage, etc. Why we keep Peter Principled people, ie, promoting otherwise people who met or exceed standards to levels of increasing responsibilities and a level of incompetence, which is neither fair to them nor the territory. So it is not that people have a vociferous disdain for increase taxes and fees, they want to be assured that the revenue collected will be expended effectively for the intended purpose, getting value for money. No one likes paying taxes or fees and will go all out to stay within the letter and spirit of the law to avoid paying taxes or fees. On the other hand, they want First World infrastructure, utilities, social services, etc and understand the need for increase taxes and fees to do so. Tell us the estimated cost of the projects, the payback period, the source(s) for paying back the loan, ie, full faith and credit of government, general obligation bonds, revenue bonds, etc. I/they want fiduciary action. Let’s get the show on the road.
As was done in Africa and other parts of the world, unless there are benefits for the British, they don't extend their generosity. What do we have here for the British, one may ask. The meager sum from the Financial Services is not enough for the British to expend their resources. The cost to deploy a military vessel here for defensive purposes will utilize that money very quickly. Once any country is not of strategic importance to the British, they do not bother with them. If any other nation is trying to take possession of the Territory, then the British will make their presence felt and provide protection.
Singapore, Turkey! England and you can’t hear how these trips benefiting the BVI.