The Tribune

By RASHAD ROLLE

Tribune Staff Reporter

rrolle@tribunemedia.net

THE government signed agreements for two investment loans worth $70m with the Inter-American Development Bank yesterday.

The loans will fund an airport infrastructure programme in the Family Islands and a climate resilient coastal infrastructure and management programme, both of which were approved by Parliament earlier this year.

The airport infrastructure programme is designed to enhance airports in North Eleuthera, Exuma, Treasure Cay and Marsh Harbour, Abaco, bringing them in compliance with aviation standards globally.

The climate resilience programme will "use science-based shoreline stabilisation and coastal flooding control measures on the island of Grand Bahama, Long Island and New Providence, as well as restoration of coastal natural habitats, such as mangroves and coral reefs in Andros," according to the IDB.

It was announced yesterday that the government will also receive a $500,000 grant from the IDB for a study about economic diversification in The Bahamas.

The analysis will concentrate on digital technology, "blue economy" products like sustainable fisheries and boutique agribusiness products like bananas, papayas, limes and mangoes.

Deputy Prime Minister and Minister of Finance Peter Turnquest said at yesterday's press conference: "This event confirms the government's commitment to channel investment towards Family Island communities, as over the next five to six years, the country will witness the construction or rehabilitation to several Family Island airports and runways. "These assets are regarded as vital points of connection to the wider Bahamas and the entire world. Hence, planned upgrades are critical to enhancing the economic prospects of the islands. In addition to upgrading airport infrastructure, civil works will also be undertaken on selected islands, to fortify traditional and re-introduce natural sea defence, so as to mitigate the negative impact of natural disasters to coastal areas. This work is important for the environment sustainability of The Bahamas.

"As you may be aware, the IDB is a development institution and as a result, member countries accessing funds from the ordinary capital window of the institution are not subject to commercial financial terms. Hence, the tenor on these loans are 25 years at a variable interest rate, which is inclusive of LIBOR (London Inter-bank Offered Rate) and currently stands at 3.25 percent. While this is the interest rate of choice, the Ministry of Finance, in consideration of future market conditions, has the option of converting to a fixed interest rate, if necessary. Comparatively, these terms are more favourable than accessing funds from the international private sector markets, where the interest rates are recorded at 5.84 percent with a ten-year tenor."