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MUST READ: CAL must prepare for turbulence

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With the global aviation industry traumatised by the chilling impact of the COVID-19 pandemic, the Government’s guarantee of a $445 million loan for Caribbean Airlines (CAL) is a lifeline that gives the airline some breathing space as it faces an uncertain future.

For at least the next three months while borders remain closed, CAL has the challenge of meeting recurrent expenses with minimal income. Beyond that looms the great unknown.

Last month the International Air Transport Association projected a 55 per cent decline in airline passenger revenues for 2020 over last year. The Caribbean cannot expect to be spared the coming shake-out in the global airline industry.

On Monday, Prime Minister of Antigua and Barbuda, Gaston Browne, described the sub-regional carrier LIAT as being in a “very precarious state” and in need of a bail-out.

Already forced to suspend its passenger service because of COVID-19, LIAT was hit with a double whammy when the Eastern Caribbean Civil Aviation Authority was downgraded to Category 2 by the US Federal Aviation Administration.

LIAT is one of the many variables that could determine how CAL emerges from the pandemic abyss. With rationalisation of the regional airline sector now seemingly unavoidable, there is no better time for CAL to push its case for acceptance as the regional carrier of the Caribbean.

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The point was made in Jamaica a few days ago by CAL director Zachary Harding who urged regional collaboration in response to COVID-19.

Arguing that the pandemic presents opportunities for collaboration, consolidation and mergers and acquisitions, Harding said, “On the business and operational side, I’m saying here’s a situation which has made all the airlines sweat because not everybody will be able to withstand and hold out for six months to a year. Therefore, now is the time for regional airlines to be sitting down and discussing merging, acquiring and collaborations for the sake of increasing efficiencies.”

Noting LIAT’s financial crisis, Harding argued that “it’s about time Caribbean Airlines and LIAT have a serious conversation about coming together”.

Whatever progress is possible on this front should be tackled with urgency with the 11 governments that own a stake in LIAT.

If the national investment in CAL is to be protected, the airline has to move swiftly to put itself on a firm footing in order to strategise its way out of the current industry turbulence and into the clear skies of a future that is likely to be very different from air travel as we know it.

The industry as a whole faces the prospect of re-configuring air travel away from the low cost/high payload model to a different post-COVID model based on social distancing with more space between passengers and fewer seats. With airports and airlines identified as breeding grounds for coronavirus, it will have to embrace innovation in sanitisation.

Moving towards higher cost travel during an expected global recession will bring its own challenges for airline survival. Above all, however, the industry will have to earn all over again the public’s trust in the safety—health-wise—of air travel.

As it positions itself for the journey ahead, CAL will have to draw on every ounce of available support. (TRINIDAD EXPRESS Editorial)

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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]