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  • Antigua and Barbuda looking at Chinese loan to repay debt for port works

Antigua and Barbuda looking at Chinese loan to repay debt for port works

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Antigua and Barbuda has communicated its interest in accessing a US$25 million loan from China to help repay debt assumed to carry out works to restructure Heritage Quay in St John.

A new pier is being built at Heritage Quay by Meridian Construction to handle giant Royal Caribbean International Oasis-class ships, allowing the port to receive more than 1mn passengers a year.

These works are being financed by a loan from the Export-Import Bank of China, which Antigua & Barbuda plans to repay with the new Chinese loan after the Asian country offered friendly nations in the region up to US$50 million.

Antigua & Barbuda has only requested half of the full US$50 million on offer because of fears of taking on too much debt, since it has a national debt of US$1.4 billion and a debt-to-GDP ratio of 114 per cent.

According to the chief of staff of the prime minister’s office, Lionel ‘Max’ Hurst, it would be “impossible” for the country to pay both a US$50 million loan and the debt for the pier upgrade at the same time.

“The pier and the buildings that are going up down there, we know we have to repay that, that’s almost US$90 million,” he was quoted as saying by local paper The Daily Observer.

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If accepted, the new US$25 million loan would have a two-year moratorium and then be paid back over the following three years.

The Chinese government has yet to reply to the communication from the government regarding the loan.

Although the country’s debt has trended downwards in the past two decades, it rose 34.6% in 2020 compared with 2019, due to the effects of the COVID-19 pandemic and the drop in tourism, on which it is reliant.

In 2019, cruise operator Global Ports Holding (GPH) signed a 30-year concession agreement for the port in St. John, gaining exclusive rights for operation. As part of that agreement, GPH agreed to finance the ongoing construction work at Heritage Quay. In exchange for the concession, GPH agreed to pay back US$8.13 million that the Antigua & Barbuda government had already repaid on the loan.

The original Deep Water Harbour upgrade project started in 2015 with a US$200 million loan from China’s Exim bank and was scheduled to take several years, with each phase of the project estimated to cost US$96 million.

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REQUEST FOR EXPRESSIONS OF INTEREST

(CONSULTING SERVICES – INDIVIDUAL SELECTION)

 

OECS MSME Guarantee Facility Project

Loan No.: IDA-62670, IDA-62660, IDA-62640, IBRD-88830, IDA-62650

Assignment Title: Senior Operating Officer (SOO)

Reference No. KN-ECPCGC-207852-CS-INDV

 

The Governments of Antigua and Barbuda, Commonwealth of Dominica, Grenada, St. Lucia and St. Vincent and the Grenadines have received financing in the amount of US$10 million equivalent from the World Bank towards the cost of establishing a partial credit guarantee scheme, and they intend to apply part of the proceeds to payments for goods, and consulting services to be procured under this project. 

The consultant will serve as the “Senior Operating Officer (SOO)” for the ECPCGC and should possess extensive knowledge of MSME lending with some direct experience lending to Micro, small and medium-sized businesses, knowledge of the internal control processes necessary for a lending operation and the ability to design and implement risk mitigation procedures. The ideal candidate should possess an Undergraduate Degree from a reputable college or university, preferably in Business, Accounting, Banking or related field, with a minimum of 5 years’ experience in lending, inclusive of MSME lending. The initial employment period will be for two years on a contractual basis. Renewal of the contract will be subject to a performance evaluation at the end of the contractual period. The assignment is expected to begin on September 30th, 2021.  The consultant will report directly to the Chief Executive Officer of the ECPCGC.

The detailed Terms of Reference (TOR) for the assignment can be viewed by following the attached link below. 

 

https://bit.ly/3iVannm

 

The Eastern Caribbean Partial Credit Guarantee Corporation (ECPCGC) now invites eligible “Consultants” to indicate their interest in providing the Services. Interested Consultants should provide information demonstrating that they have:

  • An Undergraduate Degree from a reputable college or university, preferably in Business, Finance, Banking or related field; and
  • Minimum of 5 years’ experience in MSME lending. Applicants should also have:
  • The ability to design and implement risk management procedures 
  • Extensive knowledge of MSME lending with some direct experience lending to small and medium-sized businesses
  • Extensive knowledge of MSME banking operations
  • Knowledge of the internal controls necessary for a lending operation and the ability to design and implement risk management procedures
  • Experience developing and presenting information in public, including responding to questions in real-time
  • Experience lending to MSMEs located in the ECCU
  • Knowledge of marketing and communicating with the MSME sector
  • Ability to draft procedures to be used in a lending operation
  • Familiarity with the mechanics of a loan guarantee program
  • Exceptional written, oral, interpersonal, and presentation skills, and
  • Proficiency in the use of Microsoft Office suite.

The attention of interested Individual Consultants is drawn to Section III, Paragraphs 3.14, 3.16, and 3.17 of the World Bank’s Procurement Regulations for IPF Borrowers July 2016, [revised November 2017] (“Procurement Regulations”), setting forth the World Bank’s policy on conflict of interest. A Consultant will be selected in accordance with the Approved Selection Method for Individual Consultants set out in the clause 7.34 of the World Bank Procurement Regulations for IPF Borrowers. 

 

Further information can be obtained at the address below during office hours 0800 to 1700 hours:

Eastern Caribbean Partial Credit Guarantee Corporation

Brid Rock, Basseterre,

St. Kitts.

Expressions of interest must be delivered in a written form by e-mail by August 11th, 2021, to [email protected]

 

For further information, please contact:

Carmen Gomez-Trigg                                                            Bernard Thomas

Chief Executive Officer                                                          Chief Financial Officer

Tel: 868-620-8144                                                                  Tel: 869-765-2385

Email: [email protected]                                          [email protected]