Prime Minister Dr. Luc Mercelina.
~ No stringent conditions ~
PHILIPSBURG--The government of St. Maarten has received a 75.6 million Netherlands Antillean guilder loan from the Dutch government to help purchase new generators for utilities company GEBE.
The generators are part of government’s long-term plans to further stabilise the energy crisis that faced the country last year. Mercelina told reporters on Wednesday that the funds are already on the government’s accounts. “We have already the good news that we have received the loan that we have negotiated in those hectic months that passed us by trying to control the consequences of the crisis,” stated the prime minister.
“We didn’t only stabilise back the grid, but we also, while the hectic-ness was going on, this government was able to secure an amount for the purchase of the generators that we rely on for the future, for the sustainability and we are talking in total about an amount of [NAf. - Ed.] 75.6 million that we got as a loan from the government of the Netherlands on our request to move forward with making sure that we have sustainability for the energy supply for the people of St. Maarten,” he said.
There are no stringent conditions of the loan. “There are actually two conditions: the loan will be 25 years and the interest percentage will be 2.43%,” said the prime minister, adding that such a low percentage interest rate can never be obtained on the market. “So, I am very proud that I could get a loan to help my country, our country, with an only 2.43% interest rate. I am very, very proud of that. It is very difficult to get on the international market.”
Mercelina said government will enter into an agreement with GEBE so that they can purchase the generators. “It’s going to be in a collaboration with GEBE, but there are going to be very evident agreement conditions from government towards GEBE; and at the end of the day, the idea is not only to rent them, but to make it in a construction of a rent-to-own, because we have to help GEBE too that they pay enough, that at a certain moment that they have it, that they can continue to make it a healthy company,” explained the prime minister.
He said there will be conditions in the agreement with GEBE. This is still being worked on. “It’s quite complicated to guarantee, of course, a good agreement that all parties can adhere to in meeting the obligation in the payback, and especially because it's the money of the people we are using. It is important that it goes in a transparent way with a lot of checks and balances. At the end of the day, the biggest aim is to make sure that the sustainability of energy supply is guaranteed for the people of this country. We are working now on the conditions before we get into the deeper negotiations with GEBE about the conditions we now are going to offer them, the monthly [payment] for the purchase of the generators and even in the phase of the purchasing also, the government will stay involved to make sure that it goes in a transparent way,” he said.
