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Dutch loan US$3M to struggling Winair

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The Dutch government is providing a US $3 million mortgage loan with a market-based interest rate to Windward Islands Airways (Winair) to safeguard the connectivity between the Caribbean parts of the Kingdom.

Dutch Minister of Infrastructure and Water Management Cora van Nieuwenhuizen announced the loan on Thursday, December 31, in a letter to the Second Chamber of the Dutch Parliament. She also did so on behalf of State Secretary of Home Affairs and Kingdom Relations Raymond Knops who will be visiting St. Maarten next week.

Minister Van Nieuwenhuizen, State Secretary Knops and State Secretary of Economic Affairs and Climate Policy Mona Keizer decided positively on the request of St. Maarten Prime Minister Silveria Jacobs to secure a US $3 million (2.7 million euro) mortgage loan for Winair. The Dutch government has a minority share in the airline of 7.95 per cent. The other 92.05 per cent is owned by the Country St. Maarten.

The Winair building at the airport will serve as collateral for the loan, which is partly financed by the Ministry of Home Affairs and Kingdom Relations BZK (1 million euro) and the Ministry of Infrastructure and Water Management IenW (1.7 million euro). Prior to approving the loan, the Ministry of Economic Affairs and Climate Policy EZK carried out an assessment.

“The issuing of this loan is based on the necessity of maintaining the air connectivity with the Caribbean Netherlands islands. The support is provided in the form of a mortgage loan with a repayment term of 18 months, which can be extended to a maximum of 6 years with mutual approval,” Van Nieuwenhuizen stated in her letter.

Risk mitigating measures are not necessary because it concerns a mortgage loan with collateral. The loan can be repaid at any time and contains a number of “hard conditions” where it concerns connectivity between the islands and the payment of bonuses and dividend, stated the minister.

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“The most important condition is that Winair during the duration of the loan must maintain the air connectivity between St. Maarten, St. Eustatius and Saba with at least two flights per day, as soon as the COVID-19 travel restrictions have been lifted,” stated Van Nieuwenhuizen.

Winair may also not pay bonuses to its management and board, and not distribute dividend to its shareholders as long as the loan has not been repaid. The mortgage loan, which involves a market-based interest rate of 4.41 per cent per year, places all immovables belonging to Winair under the so-called first mortgage right.

According to Minister Van Nieuwenhuizen, the financial aid for Winair is essential. The COVID-19 pandemic is deeply affecting Winair’s operations as a result of sharply diminished flight frequency between the three Windward Islands and also between St. Maarten and Aruba, Bonaire and Curaçao.

The air connections between the islands are in jeopardy, the minister noted. “Winair, the only airline that maintains connections with all six Caribbean parts of the Kingdom, and the only airline that keeps a regular frequency with St. Eustatius and Saba, has run into financial problems because there are barely any revenues while the expenditures continue.”

A situation has evolved whereby the insular connectivity of St. Eustatius and Saba with St. Maarten and Bonaire is in direct jeopardy, stated Van Nieuwenhuizen. For this reason Prime Minister Jacobs had asked financial support from State Secretary Knops in order to maintain a regular air connection between the three Windward Islands.

“The vital importance of connectivity in St. Maarten, St. Eustatius and Saba is a given. Residents of the Caribbean parts of the Kingdom must be able to travel to and from their island. And, even though the current pandemic asks people to limit their travels, there are many reasons why travelling is necessary,” stated Van Nieuwenhuizen, who mentioned medical travel, transport of students or other essential travel.

Maintaining the air connections is also important in light of the transport of goods, mail and the COVID-19 vaccines. After the coronavirus pandemic, the inter-island air connections will be important as well for the unrestricted transport of residents and tourists. Islands that are easily reached by air contribute to a speedy revival of tourism, and as such to the local economy.

The issuing of this mortgage loan to Winair shows that the connectivity between the islands remains fragile, the minister pointed out. The development for the middle-long term strongly depends on the progress of combating the COVID-19 pandemic. This matter is being discussed between the Dutch government, the St. Maarten government and Winair.

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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]