The Tribune

By SANCHESKA BROWN Tribune Staff Reporter sbrown@tribunemedia.net THE $129 million the Inter American Development Bank provided for the New Providence Road Improvement Project will be depleted by the end of the month, according to a report released by the lending institution. The report, posted on the bank's website, said a "cash flow shortfall" will essentially bring the road works to a halt "leaving the country's roads and transportation worse than before." To prevent the stoppage, the report said the IDB will provide $13 million in retroactive financing to keep the project going. "Retroactive financing is contemplated up to $13 million to facilitate continued seamless implementation with this proposed project. Retroactive financing is justified so as to avert a shortfall in cash flow, leaving the country's roads and transportation worse than before." Despite the cash flow shortfall, State Minister for Finance Zhivargo Laing said the roadworks will not stop. He said the government has requested the retroactive loan from the IDB to cover expenses that will occur between the time the current funding depletes and the new loan is approved. "We expect that there will be billables associated with the project between February and the time we expect to get the loan, which is in May. We just want to be able to pay those bills. This is not new money, this is all a part of the $65 million the government expects to borrow for overages," he said. "We pay our bills retroactively, which means today we are making payments for November and we will not have to make payments for March before we expect the loan to be approved. Clearly the money is running out, that is why we have to borrow additional money. We have exhausted the money we already borrowed but we have no doubt that the loan for the additional money will not be approved. There is nothing to worry about, the road works will not stop. In any event, we are the government, if we are required to fund a payment until we get the loan we will do it from our cash reserve." Mr Laing said the government has not yet submitted the documents for the $65 million loan but the request has already been made. The IDB report also revealed that as of November 2011, 75 per cent of the NPRIP was completed and 95 per cent of the time had elapsed. Last week, Prime Minister Hubert Ingraham announced the government will borrow an additional $65 million from the IDB to complete the already over-budget road works project. Addressing the House of Assembly, Mr Ingraham said the projected total cost of the IDB funded portion of the project is now estimated at $206 million. He said: "To date the IDB has provided some $129 million in two loans leaving a funding gap of $77 million, $30 million in respect to fuel escalation, $19 million in contingencies, $14 million of variations and modifications, $9 million due to delay in project completion and $5 million in professional and engineering fees. The Government is now seeking a further loan from the IDB in the amount of $65 million to meet a funding gap." The NPIIP was expected to be completed by the end of January 2012, however due to challenges and complexities of the project, the Prime Minster said the government is currently negotiating a revised completion date.