Government and the National Recovery Program Bureau (NRPB) in a joint statement (see related story) sought to clarify confusion over the denial of a request by St. Maarten Housing Development Foundation (SMHDF) for US $45 million from the Trust Fund to repair 408 damaged units and build new social homes. The secretariat of the World Bank, which administers the Dutch-sponsored fund, had indicated that the Steering Committee overseeing its use never received such a petition.
The release issued Thursday evening explained that the Council of Ministers submits proposals to the Steering Committee with technical input from stakeholders and instructs its representative regarding government’s position. SMHDF complained about not getting an opportunity to present its case, but the committee does not hear third parties.
It was pointed out as well that since the establishment of the Trust Fund 365 of SMHDF’s units were repaired, while NRPB was finalising preparation to refurbish 64 Belvedere tower apartments at a cost of $5.4 million. In March 2020 government had estimated that $22 million would be needed to deal with this crisis.
A so-called Rapid Housing Assessment was conducted by the World Bank. The latter offered extensive technical assistance to SMHDF for several years too, after a review of its operations had indicated the need for structural improvement in financial management.
The Steering Committee apparently did discuss low-cost housing based on these findings various times, but definitive amounts were not determined also because of concern there might not be enough means left in the fund considering other commitments.
Last July the committee at government’s request agreed to earmark $20 million for an unspecified potential housing project and blended financing is being studied to increase the available amount, with the hope of bringing in other investors. Government says consultations on the matter are scheduled with stakeholders including SMHDF.
That should certainly not change due to what transpired in recent days, because such talks can perhaps still offer SMHDF – and the tenants involved – a viable way out of their current predicament.
