Andrea Perez-Sobers
Senior Reporter
andrea.perez-sobers@guardian.co.tt
Prime Minister Dr Keith Rowley yesterday told the House of Representatives that T&T has not signed a loan agreement with the US ExIm Bank and T&T.
In Parliament yesterday, during the Prime Minister’s question segment, MP for Oropouche West, Davendranath Tancoo asked for the key features of the recent loan agreement between the US Eximbank and T&T valued at US$500 millions.
Dr. Rowley repeated twice that there is no loan agreement and stated that a Memorandum of Understanding (MOU) was executed which provides the government with the option to access financing to fund equipment projects and programmes.
He said the MOU involves goods and services from suppliers, manufacturers and service providers in the US up to US $500 million.
“At this time, no loans have been accessed under this MOU since access to this facility is in its initial planning stages. The arrival of the chairman and president of the US ExIm Bank arose out of my visit to Washington a few months ago, which caused an uproar on the other side,” Rowley said.
Speaking at the MOU signing ceremony last month, Finance Minister, Colm Imbert, said the proposed initial use of the funds would be focused on maritime patrol vessels.
“We are looking at enhancing our capability in our maritime domain, with search and rescue and patrolling. And that’s where the national security perspective comes in. So the initial thrust of the relationship is to finance equipment and services and technical support with respect to managing and securing our maritime borders,” said Imbert.
The facility, Imbert said, would also be used for renewable energy projects and a clause has been inserted so that terms for additional uses could be added.
Chair of the US ExIm Bank, Reta Jo Lewis, said while typically the bank would not grant funding for military equipment, T&T had properly stated a case for an investment in such equipment.
“We have an exception whereby we can finance projects that are going to be used for dual use...We understand that there is this priority for the country and that the goods and services that would be needed are the types of items that ExIm can finance in this sector,” said Jo Lewis.
In Parliament yesterday, Tancoo also asked a question about a recent loan agreement between the Inter-American Development Bank (IDB) and T&T for some US$300 million for the restructuring of WASA.
The prime minister again clarified that there was no loan agreement between T&T and WASA.
“Instead, the Government entered into an agreement on March 7, 2023, with the IDB for the establishment of a conditional credit line for investment projects. Under this agreement the Government has an option to access financing of the amount up to US$315 million via loan agreements over 10 years. Each application for financing will be dealt with on a case-by-case basis over the next nine years and only, if necessary,” Rowley detailed.
He further stated that on the same day last year, a loan agreement was executed for US$80 million to fund projects, within the national water transformation sector project, under this arrangement, which is ongoing.