Rowley: Government must step in and help Grenada

PORT-OF-SPAIN, March 5, 2012 (T’dad Express) - Trinidad and Tobago cannot turn a blind eye and allow the economy of Grenada to collapse, Opposition Leader Dr Keith Rowley stated yesterday. “We are hurting ourselves by our inaction,” he said.

An ongoing loan dispute between Taiwan and Grenada over monies owed by Grenada could result in the closure of the Maurice Bishop International Airport. Airlines and cruise ships servicing Grenada are paying money into an escrow account, as a result of an order from an American court. Taiwan had filed an injunction with the cruise ships and airlines servicing Grenada, demanding that money due to Grenada should be paid to it.

Speaking at a news conference yesterday, Rowley said the Opposition was asking the Government to get involved in this dispute and to assist the Grenadian Government in getting out of this situation so as to allow the Grenadian airport to continue to be a vital contributor to Grenada’s economy so that it can continue to buy Trinidad and Tobago products.

Noting that the economy of Grenada was being threatened, Rowley said: “We have an interest in ensuring the Grenadian economy is not derailed by that disrepute. If Grenada is unable to extricate itself from that, the result being that Grenadians can’t use their airport to keep the tourist trade alive so that their economy can continue to buy Trinidad and Tobago products, it can have serious consequences on Trinidad and Tobago’s ability to keep supplying Grenada from our factories here.

“So we have an interest and we are saying that we are not only being neighbourly but we have a self-interest there.”

Rowley said Trinidad and Tobago’s involvement may not mean giving financial assistance, but through the use of its diplomatic strength. “But we cannot behave as though that problem is not our problem,” he said.

He said if the economy of Grenada or any Caribbean country was being hurt, it was as good as hurting the economy in Tobago or Trinidad, because “that is our market.”

Adjustment in the Price of Petroleum Products January 2012

ST. GEORGE’S GRENADA, Tuesday, January 17, 2012: The General public is hereby informed that, effective, Wednesday 18^th, January 2012, the retail prices of petroleum products (Gasoline, Diesel, Kerosene and LPG {Cooking Gas}) in the State of Grenada will be as follows:

GRENADA

Products                                 Old Price                                             New Price

Gasoline                                  $14.99/IG                                             $15.12/IG

Diesel                                      $15.26/IG                                             $15.01/IG

Kerosene                                 $11.82/IG                                              $12.09/IG    

L.P.G (Cooking Gas):        Old Price                                               New Price

20 lbs Cylinder                       $45.00                                                   $45.00

100 lbs Cylinder                     $269.01                                                 $264.97

Bulk                                       $2.75/lb                                                $2.71/lb                    

CARRIACOU

Products                                 Old Price                                            New Price

Gasoline                                  $15.15/IG                                             $15.28/IG

Diesel                                      $15.42/IG                                             $15.17/IG

Kerosene                                 $12.51/IG                                             $12.25/IG

CARRIACOU & PETIT MARTINIQUE

L.P.G (Cooking Gas)            Old Price                                             New Price

20 lbs Cylinder                        $54.00                                                 $54.00

100 lbs Cylinder                      $292.01                                               $287.97          

Bulk                                         $2.75/lb                                              $2.71/lb

PETIT MARTINIQUE:

Products                                 Old Price                                            New Price

Gasoline                                  $12.15/IG                                           $12.28/IG

Diesel                                      $12.42/IG                                           $12.17/IG

Kerosene                                 $12.51/IG                                           $12.25/IG

The new Retail Prices are computed based on the average FOB costs: that is; (Ex-refinery prices), for the period, 13^th December, 2011 to the 12^th January, 2012

It important for the public to understand that notwithstanding efforts by Government, petroleum prices are likely to remain high and continue to rise in the next few months. It should be noted that Grenada imports nearly all of its fuel.  

Consumers are urged to act wisely by conserving and using energy efficiently.  

Furthermore, consumers are encouraged to immediately notify the Price Control/Consumer Affairs Unit in the Ministry of Finance of any instance of overpricing at telephone number 440-1369.

Energy Division

Caribbean countries could benefit from proposed NYC Pension Fund

PM Thomas & NYC Comptroller Liu

NEW YORK, January 11, 2012 - A major investment initiative designed to spur economic and social development in the Caribbean and boost New Yorkers’ public pensions is being considered by the office of New York City comptroller.

And it is being done at the urging of the Caribbean American Chamber of Commerce and Industry, CACCI and with the active interest of Caricom.

A statement from the CACCI said the proposed scheme “is an initiative which, if successfully launched, would involve the use of pension funds in profitable and employment generating ventures in the Caribbean, and bring healthy returns to the City.”

The proposal was made when Grenada’s Prime Minister, Tillman Thomas, then chairman of Caricom, visited New York to address a high-level United Nations meeting on HIV/AIDS, and participate in the Caribbean Tourism Organisation’s week of marketing activities that promoted the region’s lucrative tourism industry, and to be honoured by the chamber.

During his visit, he met with New York City Comptroller, John Liu, and discussed the potential financial benefits to the City and the prospects of development in the Caribbean through the investment of pension funds. “The New York City comptroller has fiduciary responsibility for the efficient management of billions of dollars in New York City pension funds and therefore must ensure that due diligence is done before any steps are taken,” said Dr Roy Hastick, the chamber’s founder, president and a driving force behind the initiative.

“The proposal to invest some of the funds was first articulated by William Bill Thompson and it is being considered by Mr. Liu, his successor. When the Grenada leader and Caricom chairman came to the City, we were able to schedule a meeting with him and the comptroller, during which we explored the feasibility of providing interest-bearing loans to the Caribbean nations, in much the same way that pension funds are being used for investment purposes in Europe and elsewhere.

“We at the chamber had previously discussed the proposal with both Mr Thompson and Mr Liu, and we are convinced that if implemented, it can be mutually beneficial to the City and to the Caribbean,” Hastick added. During the meeting which was also attended by New York City Council member Jumaane Williams, a Democrat of Brooklyn, the prime minister spoke about the economic benefits the low-interest loans would create in the region.

“It was a productive session and the chamber is happy with the results,” said the CACCI president. It was agreed that follow-up sessions would be held with stakeholders to develop a sustainable and practical plan of action. “It was recognised that the highest possible financial management standards must be adhered to at every step.”

With more than a million people from across the Caribbean now living and working as taxpayers in the New York metropolitan area, many of them contributing to the pension funds, the Caribbean nations and territories should be considered as an area of investment by pension fund managers, added Dr Hastick.

”The chamber and the broader Caribbean immigrant community in and out of New York City believe it represents a realistic and viable proposal which should be pursued,” he said. “Our organisation considers an honor to have been able to facilitate the meeting with the assistance of council member Jumaane Williams, and to have both the Caricom chairman and the comptroller explore the chances of taking such investment possibilities to the Caribbean.

The prime minister was certainly satisfied with the outcome. “We believe the Caribbean Development Bank could be used as a channel for the investment. The Caribbean Development Bank (CDB) has an investment grade rating from Wall Street.”

Grenada's Finance Minister speaks on Taiwan's loan debacle

NEW YORK, November 1, 2011 - Grenada's Finance Minister Nazim Burke speaking with Rennie Bishop about the Export-Import Bank of Taiwan v. Grenada on Caribbean Corner on WWRL 1600 in New York on Saturday October 29, 2011.

Mr Burke, in answering questions, said that it's not the wish of the government to reduce this to a blame game between the government and the opposition.

"Our objective is to say to the nation this is where we are and these are the circumstances,” he said.
Caribbean Corner with Rennie Bishop is heard on Saturdays between 5-7 p.m. on WWRL 1600.

Grenada's Finance Minister - Nazim Burke, Oct 29 201 (RB) by mikebas

Foreign Ministry responds to Grenada debt questions

File Photo: Finance Minister, Nazim Burke

by Shih Hsiu-chuan  /  Staff Reporter

TAIPEI, October 27, 2011 - The government did not get involved in a recent request from Grenada to defer debt repayment because the matter was handled by the Export-Import Bank of the Republic of China, the state-owned bank charged with implementing state policy in trade, the Ministry of Foreign Affairs said yesterday.

Director-General of the Department of Central and South American Affairs Wu Chin-mu (吳進木) said the ministry was “in no position to intervene in the matter” because the loan in question was “commercial.”

Asked why the government renegotiated a debt repayment plan with Haiti to help it recover from an earthquake in January last year, Wu said Grenada, unlike Haiti, is not a diplomatic ally.

The Associated Press reported on Tuesday that the government of Grenada had warned that “aggressive efforts” by Taiwan to collect a US$28 million ruling would hurt the tourism-dependent economy of the Caribbean island.

In an interview with the wire agency on Monday, Grenada Finance Minister Nazim Burke said cruise operators and airlines could halt operations in Grenada after receiving legal papers filed by US lawyers working for Taiwan compelling them to turn over any money they owe Grenada in fees or other payments.

Already, one cruise operator has threatened to cancel its 20 stops in Grenada until next year as a result of the effort to seize port fees.

“If this was to happen, we stand to lose millions,” Burke was quoted as saying.

The dispute centers on loans provided by the Export-Import Bank for a variety of infrastructure projects in Grenada in the 1990s, the report said.

Grenada officials have said they could no longer pay the loans because of a number of shocks to its economy, including the devastation from Hurricane Ivan in 2004 and the drop in tourism following the Sept. 11, 2001, terrorist attacks in the US, it said.

Taiwan filed suit in a US District Court for the Southern District of New York and won a summary judgement in 2007 that has grown to about US$28 million with interest and penalties, nearly the total value of its exports of goods in 2009, the report said.

The report quoted Paul Summit, a lawyer for the Export--Import Bank, as saying that Grenada has not paid any of the principal or interest on the judgement and that the bank is “pursuing a number of lawful avenues to achieve collection.”

Officials in the Caribbean nation have said Taiwanese officials refused to renegotiate the loans because Grenada had severed diplomatic relations in favor of China, it said.

Contacted by telephone yesterday, Wang Chi-chung (王吉忠), a spokesperson for the bank, would not comment on the matter.

“Any information about loans between the two countries pertains to state secrets,” Wang said.

“As a public servant, I can’t reveal any confidential information,” Wang said.

SOURCE: Taipei Times

Nazim Burke TTPP 26Oct2011 by mikebas

Chinese offer called “golden opportunity’’ for infrastructural development

St. George’s, September 16, 2011 – Grenada’s Works and Physical Development Minister, the Hon. Joseph Gilbert, is excited about a Chinese offer of monetary assistance for regional infrastructural development.

“Grenada and other Caribbean countries now have a golden opportunity to undertake much-needed investment in developing their physical infrastructure,’’ said Hon. Gilbert, who is also the Minister of Public Utilities.

He made the comment on his return from Trinidad where he was part of Prime Minister Tillman Thomas’ joint government/private delegation that attended the Third China-Caribbean Economic and Trade Forum on September 12 and 13.

Minister Gilbert attended the second day of the forum at the invitation of his Trinidad counterpart, the Hon. Jack Warner, Minister of Works and Infrastructure. A Structural Engineer, Mr. Gilbert was specially invited to attend a seminar on “Cooperation in Finance and Infrastructure.’’

China intends to pump more than US$1 billion into the region over the next five years. The package includes a “Special Purpose Fund’’ for infrastructure development, and would be accessible to governments as well as private sector enterprises at competitive interest rates.

As a condition of the loan arrangement, the borrower would be required to contribute 30 percent of the cost of the project to be funded, Minister Gilbert explained.

“It is also a requirement that the project be viable so as to satisfy the loan repayment plan,’’ he elaborated. “I, therefore, want  to encourage our private sector, in particular, to grasp the opportunity provided under this initiative by the Chinese,  to undertake as many major infrastructure development works in  Grenada as practicable; either on their own as private enterprise, or, in partnership with government.’’

Two other special seminars were held simultaneously; one was on “Cooperation in Tourism,’’ which was attended by Grenada’s Tourism Minister, the Hon. Peter David; and another on “Cooperation in Agriculture and Fisheries,’’ which included participation from Minister Denis Lett.

Other government officials in the Prime Minister’s delegation to the China-Caribbean Forum were Foreign Affairs Minister  Karl Hood, and Minister for Finance, Nazim Burke.

Grenada becomes full member of IRENA

Roxie McLeish-Hutchinson & Dr Hugh Sealy

ST GEORGE’S, Grenada, July 15, 2011 - Grenada today (July 15, 2001) becomes a full member of the International Renewable Energy Agency (IRENA).

Grenada’s full membership takes effect on Friday following the mandatory 30-day waiting period after depositing its instrument of ratification on June 15.

In anticipation of full membership Grenada was elected a member of the Policy and Strategic Committee during IRENA’s governing Council inaugural meeting which concluded on Monday in Abu Dhabi.

Grenada was represented at the meeting by Dr. Hugh Sealy, Energy Advisor, Ministry of Finance, Planning, Economy, Energy and Cooperatives and Mrs. Roxie McLeish-Hutchinson, Foreign Service Officer, Ministry of Foreign Affairs, the Environment, Foreign trade and Export Development.

Grenada, as a member of the committee, is now at the centre of decision-making process and can make input into policy and strategy which governs the Agency.

IRENA was formally established as an intergovernmental organisation by 148 member states and the European Union at the first session of the Assembly in April 2011.

The Council is one of the two governing bodies of IRENA, reporting to the Assembly, and convenes twice per year. The membership consists of 21 countries for a term of two years.  The Council was opened by the President of the First Assembly, Dr. Sultan Al-Jaber, Special envoy for energy and climate change for the United Arab Emirates.

Australia was elected as the Chair of the Council, and the Republic of Korea the Vice-Chair, for 2011. Additionally, 32 observer states participated in the meeting. 

The Director-General, Adnan Amin, provided members with an overview of activities implemented since the Assembly, including operational and programmatic progress. IRENA has initiated a number of projects related to Innovation and Technology, Knowledge Management, Capacity Building and Policy Advice, involving collaboration with actors across the renewable energy sector.

During a round table discussion on the Work Programme of the Agency, members expressed their desire to further position the Agency at the centre of renewable energy worldwide through strategic partnerships and further staff recruitment, and to engage in fruitful exchanges of views with private sector and academia.  

The Council additionally endorsed and approved the membership and terms of reference of three Committees: Policy and Strategy, Finance, and Governance and Legal. 

These committees will support the Council and the secretariat through intensive support and review of matters assigned to them. Each Committee has a membership of eight countries, not including a Chair and Vice-Chair, but is open to full participation by observers. 

Antigua & Barbuda chairs the Finance Committee, Tonga the Governance and Legal Committee and the UK the Policy and Strategy Committee. 

The Council also approved the selection procedures for a US$350 million partnership between IRENA and the Abu Dhabi Fund for Development, the Abu Dhabi’s government leading development agency.  The fund will launch at the second Assembly January 14-15, 2012, and IRENA will immediately call to receive applications for funding. 

The fund was established in 2009 to disburse concessional loans for renewable energy generation and transmission projects located in developing countries that are signatories of the Agency.  As part of the operationalisation of the fund, the Agency will begin later this year a call for experts, who will lead technical review of the applications.

The initial focus of IRENA seems to be towards Africa and the Pacific regions. In this regard, Grenada’s presence along with council member Antigua served as a reminder to the council that the Caribbean should not be forsaken as the region share similar concerns and limitations as the abovementioned regions.

Grenada’s representatives at the meeting also held bilateral discussions with the Swedish and United Arab Emirates delegations and the IRENA secretariat.

Grenada: 8,000 Poor Families to Benefit from Improved Social Programme

WASHINGTON, July 5, 2011 — The World Bank Board of Directors approved today a US$5 million zero-interest credit to help Grenada strengthen its conditional cash transfer programme. As a result, the project will improve coverage of poor households receiving cash transfers provided children go to school and to health check-ups.

"Grenada's safety net includes three targeted cash transfer initiatives which will be consolidated into a comprehensive conditional cash transfer (CCT) programme," said Hon. Nazim Burke, Minister of Finance, Planning, Economy, Energy and Cooperatives. "Grenada welcomes the World Bank’s support for our reforms in the area of social protection having regard for its long track record of designing effective CCT programmes that have achieved good results in several countries." 

Burke said he expects that the combination of new financing and knowledge provided by the World Bank will greatly help improve Grenada's CCT programme.  Safety Net Assistance Programme is consistent with our Government’s commitment to social protection for the poor and vulnerable, good governance and sound economic management, Burke concludes.

The combined effects of lower levels of tourism revenues and transfers from abroad including foreign direct investment and remittances — recent rise in prices for food and fuel, and natural disasters —have reduced purchasing power among the poor, and raised unemployment levels.

Grenada’s available social safety net initiatives are not currently able to fully respond to mitigate the impacts of these shocks or effectively promote productive investments amongst the most vulnerable. 

“New financing will strengthen safety nets in order to prevent potential declines in living standards while maintaining investments by providing financial support to families most in need,” said Françoise Clottes, World Bank Director for the Caribbean.

Specifically, the Grenada Safety Net Advancement Project will finance a plan to strengthen the new consolidated Conditional Cash Transfer (CCT) Programme and the capacity of the Ministry of Social Development to implement it. 

It will also:

(i)       improve coverage of poor households receiving cash transfers; and

(ii)      improve education outcomes of poor children and health monitoring of vulnerable households.

Social policy officials in the OECS recommended in January 2010 a reform of Social Safety Net Programmes as Member Countries seek to design more efficient strategies to help the region's most vulnerable persons.

The two US$5 million zero-interest credits from the World Bank’s International Development Association (IDA) are repayable in 40 years, including a 10-year grace period.

SOURCE: World Bank

Chinese investors promise investment in Grenada

Text of report by Caribbean Media Corporation news agency website

ST.GEORGE'S, Grenada, CMC - Chinese investors have promised to plough US$200million dollars into Grenada's struggling economy after wrapping up a one week visit to the island. The investors have also announced for a follow-up trip in August to present specific project proposals.

They have signed a number of memorandums of understandings (MOUs) after a busy series of bilateral meeting with top government and private sector officials. "Based on the interest expressed by the visiting Chinese delegation we were able to match that by facilitating bilateral meetings" said Chris DeRiggs, the Director of Private Sector Development in the Ministry of Finance.

"So these meetings have happened and they have been very fruitful and in some instances they have gone to the extent of signing MOUs' "The investors from Beijing are targeting two major hotel projects, including a Four Seasons, which have been affected as a result of the global economic meltdown.

Government has been seeking US$100 million in private sector funding to build the hotel after the International Monetary Fund (IMF) cautioned against securing a state loan. Ongoing efforts by British developers to secure funding for the Four Seasons project have failed in light of a tight capital market.

The Chinese have expressed an interest in various other sectors including agriculture, fisheries, mining, energy and tourism. "Right now we are trying to sort out some legal issues and regulations with government" said Fu Zai Song, the head of the 19 member Chinese delegation.

The investors represent presidents and chair of various companies whose finances are managed by Touchstone Capital Partners, a Chinese financial company. "But I think we need a quicker process for our investment. We want to start investment very quickly .We have already discussed with the government for a quicker process" said Song, who is also the chairman of Touchstone Capital Partners.

A Government statement said that the investors have outlined a development plan for Grenada which includes an immediate injection of US$10 million into the economy.

Originally published by Caribbean Media Corporation news agency website, Bridgetown, 23 May 11.

Government and SGU continue to collaborate closely

Min. Burke & SGU Monitoring Committee

ST. GEORGE’S, GRENADA, April 27, 2011 - The newly reconstituted St. George’s University (SGU) Monitoring Committee, Chaired by Hon. Nazim Burke, Minister of Finance, held its first meeting with the SGU on Thursday April 21, 2011.

This was also the first meeting between Government and SGU since the signing of a new Agreement last December.

Among the many matters discussed were:

-         The commencement of a Clinical Teaching Programme, carded for September 2011 at the General Hospital in St. George’s; and

-         A degree programme for teachers.

The Clinical Teaching Programme will not only provide training for SGU students, but will provide additional equipment and Specialists at the General Hospital, thereby improving the delivery of Health Care in Grenada.

In respect of the degree programme for teachers, this is consistent with Government’s thrust to lift the quality of education, through an increased number of Graduate Teachers.

The SGU delegation was headed by Dr. Charles Modica, Chancellor of the University.

The members of the newly reconstituted Monitoring Committee are:

-         Hon. V. Nazim Burke, Minister for Finance – Chairman

-         Hon. Franka Bernadine, Minister for Education – Deputy Chairperson

-         Mr. Rohan Phillip, Attorney General

-         Mr. Timothy Antoine, Permanent Secretary, Ministry of Finance

-         Mr. Aaron Moses, Office of the Prime Minister

-         Mr. Terron Gilchrist, Policy Advisor to the Minister of Health

-         Mr. Christopher De Riggs, Director, Private Sector Development, Ministry of Finance

The Committee and the University have agreed to meet on a monthly basis to monitor the implementation of activities with respect to the new Agreement.

SOURCE: Ministry of Finance, Planning, Economy, Energy & Cooperatives

Government cuts price of cooking gas for 20-lb cylinder

ST. GEORGE’S, GRENADA, Friday, April 15, 2011: Having regard for the financial challenges facing the Grenadian people in the face of the steady rise in energy prices; Government has stepped in to cushion the effect of rising energy prices in two ways.

First, the price of a 20 pound cylinder of cooking gas will fall from $54.62 to $47.96 from Monday, April 18, 2011.  If Government did nothing, the price of a 20 pound cylinder would have risen to $56.46.  Based on average monthly sales, this action will cost Government about $200,000 per month.

Second, Government has decided to reduce the tax collected on each gallon of gasoline sold by 50 cents, the maximum allowed under the law at any price change.  If Government had done nothing, the price of gasoline would have risen from $14.68 to $15.62 per gallon.  With this decision, the price of petrol will now be $15.12.  This decision also means that Government will lose approximately $500,000 in revenue from petrol tax for the next month (April 18 – May 17, 2011).

It is important for the public to know that contrary to popular opinion, Government does not benefit from high oil prices.  On the contrary, Government often loses revenue because it is forced to cut the tax collected on each gallon of fuel sold.  This is precisely the situation at this time.

               

It is even more important for the public to understand that notwithstanding these efforts by Government, petroleum prices are likely to remain high and rise even further over the next few months.  Since Grenada imports nearly all of its fuel, there is limit to how much Government can do to cushion the effect of these high prices.  As a consequence, the public must make every effort to conserve energy.

In light of Government intervention, the general public is hereby informed that, effective, Monday 18^th, April 2011 the retail prices of petroleum products (Gasoline, Diesel, Kerosene and LPG (Cooking Gas) will be as follows:

GRENADA:

Products                                 Old Price                                 New Price

Gasoline                                  $14.68/IG                               $15.12/IG

Diesel                                      $14.83/IG                               $15.43/IG

Kerosene                                 $11.71/IG                               $12.85/IG

L.P.G (Cooking Gas):

20 lbs Cylinder              $54.52                                                              $47.96

100 lbs Cylinder            $267.17                                                $276.89

Bulk                               $2.73/lb                                              $2.83/lb

CARRIACOU:

Products                                 Old Price                                New Price

Gasoline                                  $14.84/IG                               $15.78/IG

Diesel                                      $14.99/IG                               $15.59/IG

Kerosene                                 $12.39/IG                               $13.02/IG

L.P.G (Cooking Gas)

20 lbs Cylinder                        $63.52                                        $56.96                    

100 lbs Cylinder                      $290.17                                       $299.89

Bulk                                         $2.73/lb                                      $2.83/lb

                                               

PETITE MARTINIQUE:

Products                                 Old Price                                New Price

Gasoline                                  $11.84/IG                                   $12.78/IG

Diesel                                      $11.98/IG                                  $12.59/IG  

Kerosene                                 $12.39/IG                                    $13.01/IG

All consumers are encouraged to act wisely by conserving and using energy efficiently.  Furthermore, consumers are encouraged to immediately notify the Price Control/Consumer Affairs Unit in the Ministry of Finance of any instance of overpricing at telephone number 440-1369.