The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

A memorandum of understanding was signed on Thursday establishing a “strategic partnership” between the Ministry of Finance, the Inter-American Investment Corporation and the Grand Bahama Port Authority that will make Inter-American Development Bank resources available for private sector development in Freeport.

State Minister for Finance Michael Halkitis, Minister for Grand Bahama Dr Michael Darville, Inter-American Development Bank (IDB) Executive Director for Caribbean Constituency Jerry Butler; Inter-American Investment Corporation (IIC) General Manager James Scriven; Henry St George and Sarah St George, vice-chairman of the Grand Bahamas Port Authority (GBPA), attended the signing at the Ministry for Grand Bahama.

Mr St George said the GBPA is excited about the agreement and hopes “the MOU can become a foundation for future sustainable economic growth in Freeport”.

“The overarching principle of this MOU is that where opportunities for major economic development exist in Freeport – a new innovative foundation for financing has now been put in place. The IIC resources are now potentially available to the private sector in the form of financing either as a loan, an equity investment, or guarantees,” he said.

Mr St George noted that the IIC team had visited Freeport and was given a tour of the industrial sector and other investments in Grand Bahama.

Following the tour, he said the team was impressed and its enthusiasm for Freeport grew.

“What differentiates the IIC from a typical financial institution, and why the GBPA wanted to partner with them, is that while their core business is to provide financing, all of their projects must also help spur economic growth and promote sustainability,” he said.

Mr St George said that recipients of ICC capital will also have access to IIC’s expertise.

Mr Halkitis said that while the IIC has provided financial assistance to several private sector entities in The Bahamas, today’s MOU signing is historic because of the potential of the initiative expanding to other family islands.

“The city of Freeport is known for its industries and proximity to international destinations. Moreover, ongoing and prospective economic activities are factors that will contribute to achieving the objectives of the MOU,” he said.

He praised the IIC - the private sector arm of the IDB - for its approach in recognising that there is a niche in The Bahamas for which the institution can provide much assistance in advancing a potential investment from an idea to a reality.

“While this tripartite arrangement is merely an explorative initiative, I am confident that the minister for Grand Bahama and senior staff from the Grand Bahama Port Authority will provide excellent assistance to ensure that there is positive outcomes from the MOU,” Mr Halkitis said. “Further, I note that the Ministry of Finance, in its capacity, as the Bahamas liaison to the IIC, is committed to the advancement of any initiative to enhance the socio-economic and environmental development of the country.”

Dr Darville said the signing will establish a strategic partnership with the GBPA to provide private financing for infrastructural works and other specified projects in Freeport.

“This is exciting news for us on Grand Bahama because it would pave the way for major upgrades in the city, the much needed capital injection into the local economy and construction jobs,” he said.