Members of the Opposition on Tuesday June 11th, at a sitting at the House of Assembly, passionately debated the Prime Minister’s motion to borrow EC$202,500,000.00 from Bank of Saint Lucia (BOSL), by the St Lucia Air and Sea Port Authority (SLASPA), for the financing of the Hewanorra International Airport Redevelopment Project. According to former Leader of the Opposition Dr. Kenny D Anthony, this was the first time in history that the Government of Saint Lucia was guaranteeing a loan of that magnitude for a single infrastructure project.
Dr. Kenny Anthony raised concerns about the health of BOSL as it was the first time according to Anthony, that the bank was granting such a massive loan to the Government of Saint Lucia. He spoke about the recent financial difficulties and possible collapse of the BOSL, which was remedied by interventions from the World Bank and IMF. “It was a huge challenge to deal with the capital asset ratio of the bank and to ease the bank out of the perilous situation that it found itself in,” Anthony stated. Anthony further stated that shareholders of BOSL are uncomfortable for not receiving their dividends. In light of this, and in consideration of the size of the loan being granted to the Government by BOSL, Anthony proceeded to pronounce, “I believe that the Bank of St Lucia owes it to the shareholders to issue a statement from the Board of Directors, that they have assessed this loan; that they have assessed the fundamentals of this loan, and they are satisfied beyond all reasonable doubt that it was a right and proper loan to grant.”
Dr. Kenny Anthony reiterated that SLASPA, in addition to this present loan, is borrowing EC$472,000,000.00. Anthony claimed that despite the amount being borrowed; that “SLASPA will have no capacity at all to generate any loans to finance any development of any port in this country after that.” Anthony further announced that the Opposition plans to formulate a team to monitor the loan from the start to the finish, and commended the Leader of the Opposition for this initiative. The former Prime Minister of Saint Lucia concluded with the remark, “Let us hope that this project is not a noose around the necks of St Lucians.”
Constituency representative for Laborie, Alva Baptiste, also expressed his disapproval of the loan for the redevelopment of HIA. The content of his speech revealed that he would have preferred if the Government of Saint Lucia had borrowed funds to “explore practical realizations in critical projects that would uplift the various constituencies in Saint Lucia.” These projects, according to Baptiste include, early childhood development programmes, investments for the reduction of disparities in access to education, development of support programmes to farmers, improvement in access to healthcare, and for the enhancement in the capacity of intelligence structures of the RSLPF. Baptiste proclaimed, “The Government has been borrowing to invest in projects that are not even of marginal relevance to the development of Saint Lucia.” Baptiste stated that the completion of the St Jude’s Hospital was a greater priority to the People of Saint Lucia than the redevelopment project of HIA.
Prime Minister Allen Chastanet is convinced however, that the HIA Redevelopment Project is a worthy venture. He remarked, “The shortcomings of the facility have compromised the ability of HIA to facilitate increased traffic and include the quality of guest experience.” The Prime Minister stated that HIA, in its present state, also contravenes certain security protocols. He added, “The redevelopment of HIA will alleviate the many challenges which plague the airport and will ensure the facility can cater for the anticipated growth of the tourism industry by accommodating more airlines.” He went further to add, “I want to deal with what I consider to be the very dangerous statements made by the Member for Vieux Fort South. I have to say to you that I was really taken aback that he would have gone to the extent that he has, to try to derail this project; and in doing so, trying to undermine the credibility of the Bank of Saint Lucia.”
As the Prime Minister made reference to particulars regarding the economics of BOSL, Dr. Kenny Anthony voiced a remark which alluded that the Prime Minister was plundering BOSL. The Prime Minister’s response to this remark was as follows: “I really resent that statement because it is so erroneous… that’s a very derogatory statement, to even make the suggestion that a Prime Minister, the Minister for Finance, has the ability to plunder the Bank of Saint Lucia.” The Prime Minister further added in regards to Dr. Kenny Anthony, “His genuine lack of trust of the People of this country comes out through his bitterness, and [he] cannot stand to sit there and see that somebody else is going to be successful, can’t see to the fact that the country is turning around, that the economy is growing, and the fact that the bank can afford to be able to give a loan at five percent.”
