PHILIPSBURG – The government remains committed to the airport reconstruction financing agreement with the World Bank and the European Investment Bank. This appears from statements made by Prime Minister Leona Romeo-Marlin and Finance Minister Perry Geerlings during Wednesday’s Council of Ministers press briefing where the board of the airport holding and Minister Stuart Johnson (Tourism and Economic Affairs) were at the receiving end of severe criticism.
“I regret that speculation in the media about new financing options for the reconstruction of the airport have been fed by press releases from within the government,” Prime Minister Romeo-Marlin said. “Whatever the underlying intentions may be, the complex financial negotiations about the future of our international airport should under no circumstance be played out in the media. This discredits the government and puts existing agreements with the World Bank and the European Investment Bank at risk. Speculation also undermines the country’s international image and the investment climate.”
Romeo-Marlin remained firm in her opinion about the issue: “The reconstruction of the airport will be financed with the available funds from the World Bank trust fund and the European Investment Bank. This is also the position of the airport management and parliament has approved this approach through the adoption of the 2019 budget.”
Minister Stuart Johnson downplayed the issue by saying that the alternative financing options presented by the Curacao-based pension fund Vidanova and JPF Corporate Finance were merely a presentation – one that was organized by the board of the airport holding. “No decision has been taken,” he said, looking rather distraught.
Finance Minister Perry Geerlings who was instrumental to putting the financing agreements with the World Bank and the European Investment Bank in place said that he was not even made aware of the Vidanova-presentation. “The Council of Ministers took a decision about the way we want to go with the financing of the airport-reconstruction and the airport-board has taken a similar decision. And then they organize such a presentation. How professional are you then as the airport-board?”
While Johnson referred to the governing program – that includes a commitment to establishing a US pre-clearance facility – Geerlings pointed out that pre-clearance has its place in the development of the airport. “It comes with a heavy price tag. When you look at the airport’s financial predicament you will only fit in pre-clearance when it is financially responsible.”
“This government never said that pre-clearance is not a priority,” Geerlings continued. “But these things take time; you are talking about establishing a treaty here and we have to talk about tax-exemptions for the 80+ US-employees that are going to work there. You have to plan this in a responsible way so that it does not backfire on the country and its people.”
Prime Minister Romeo-Marlin presented an overview of the current state of affairs at the airport. It received $20 million over the past six months from the governments of the Netherlands and St. Maarten; the airport used this money “to avoid bankruptcy.” Furthermore, an agreement with the bondholders about the release of insurance funds is expected to be signed within the next two weeks.
The grant agreement with the World Bank will be signed shortly, the prime minister said. The grant amounts to $72 million in addition to the $50 million for reconstruction. Another million is allocated for project management and the World Bank will extend a $21 million liquidity support facility.
The $50 million loan agreement with the European Investment Bank can be signed as soon as the 2019 budget enters into force. The required 6-week waiting period (that gives the ombudsman the opportunity to file objections) expires on October 7.
The prime minister said that the loan conditions – with interest rates from 3.5 to 4.5 percent – are attractive and not available in the commercial market. The EIB-loan has a grace period of 5 years and the trust fund grant the government will loan to the airport has an 8-year grace period.
The National Recovery Program Bureau (NRPB) has established a task force that will work on improving corporate governance at the airport. The task force consists of former notary Mike Alexander, economist Rob van den Berg, attorney Frank Kunneman and the former secretary-general of the Audit Chamber, Joane Dovale-Meit.
Romeo-Marlin pointed out that there is “no quick fix that money can buy” for the airport. “We can break the existing agreement and push for alternative and probably more expensive financing but it will not speed up the work.”
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