RESOLUTION OF PARLIAMENT TO BORROW FOR CAPITAL OR CURRENT EXPENDITURE – SIXTH WATER (VIEUX FORT WATER SUPPLY REDEVELOPMENT) PROJECT – AMENDED LOAN AGREEMENT – SECTION 63(1)
Commencement [26 February 2021]
RESOLUTION
WHEREAS it is provided by section 63(1) of the Public Finance Management Act, (the Act), that the Minister of Finance may, by an affirmative Resolution of Parliament, borrow from a bank or other financial institution for the capital or current expenditure of Government;
AND WHEREAS it is further provided by section 64 of the Act that money borrowed by the Government must be paid into and form part of the Consolidated Fund;
AND WHEREAS by Resolution of Parliament published as Statutory Instrument, No. 27 of 2015, Parliament authorized the Minister of Finance to borrow from the Caribbean Development Bank an amount not exceeding USD19,675,000.00, consisting of a Special Funds Resources portion in the amount of USD6,000,000.00 and an Ordinary Capital Resources portion in the amount of USD13,675,000.00 (in this Resolution referred to as “the Loan Agreement”) for the purpose of financing the redevelopment of the Vieux Fort water supply;
AND WHEREAS the Minister of Finance considers it necessary to amend the Loan Agreement —
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(a) to borrow from the Caribbean Development Bank an additional amount from its Ordinary Capital Resources not exceeding USD7,378,000.00, which consists of an amount of USD4,178,000.00 from the Equity and Market resources of the Caribbean Development Bank (Additional E&M Tranche) and an amount of USD3,200,000.00 allocated from the European Investment Bank — Climate Change Action Line of Credit (Additional EIB-CALC Tranche) (in this Resolution referred to as “the Amended Loan Agreement”) to assist in financing the Sixth Water (Vieux Fort Water Supply Redevelopment) Project;
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(b) to change the interest rate payable on the Ordinary Capital Resources portion withdrawn and outstanding from time to time —
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(i) in the case of the European Investment Bank – Climate Change Action Line of Credit Tranche, from 2.23% to 2% per annum,
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(ii) in the case of of the Equity and Market Tranche, from 3.95% to 3.75% per annum;
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(c) to insert the commitment charge at the rate of 1% per annum, on the amount of the Ordinary Capital Resources portion unwithdrawn from time to time and which accrues —
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(i) in the case of the Loan Agreement, from the 60th day after the date of the Loan Agreement;
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(ii) in the case of the Amended Loan Agreement, from the 60th day after the date of the Amended Loan Agreement;
BE IT RESOLVED that Parliament authorizes the Minister of Finance to borrow from the Caribbean Development Bank an additional amount from its Ordinary Capital Resources not exceeding USD7,378,000.00, which consists of an amount of USD4,178,000.00 from the Equity and Market resources of the Caribbean Development Bank (Additional E&M Tranche) and an amount of USD3,200,000.00 allocated from the European Investment Bank to the Caribbean Development Bank under the Climate Change Action Line of Credit (Additional EIB-CALC Tranche) to assist in financing the Sixth Water (Vieux Fort Water Supply Redevelopment) Project;
BE IT FURTHER RESOLVED that —
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(a) the interest rate payable on the Ordinary Capital Resources portion withdrawn and outstanding from time to time is —
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(i) in the case of the European Investment Bank – Climate Change Action Line of Credit Tranche Tranche, 2% per annum,
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(ii) in the case of the Equity and Market Tranche, 3.75% per annum;
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(b) the commitment charge is paid at the rate of 1% per annum, on the amount of the Ordinary Capital Resources portion unwithdrawn from time to time and which accrues —
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(i) in the case of the Loan Agreement, from the 60th day after the date of the Loan Agreement,
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(ii) in the case of the Amended Loan Agreement, from the 60th day after the date of the Amended Loan Agreement.