A resolution for the authorization of a credit facility from the International Development Association (ID) or World Bank for Dominica’s Housing Recovery Project was brought before Parliament and passed on Monday June 25, 2018.
Government has concluded negotiations with the World Bank for a financing facility in the amount of US$27,800,000 Special Drawing Rights (SDR) comprising of US$7 million IDA loans and US$20,800,000 in IDA grants.
The government of Dominica and the IDA have entered into an agreement whereby the government of Dominica will contract a credit facility in the sum of EC$27 million or US$7 million.
These funds will be used to assist Dominica in the recovery of housing for households affected by hurricane Maria and to improve the application of resilient practices in the housing sector.
The bill was tabled by the Hon Deputy Prime Minister, Reginald Austrie.
“Approximately 1700 eligible homeowners will be provided with a subsidy in the form EC$42,000 grant, that’s US$16,000,” Hon Austrie explained. He said further “design and supervision services for construction works for eligible beneficiaries and the establishment and operation of a project implementation unit and an implementation support team” will also be funded through this credit facility.
“This loan is consistent with the government of Dominica debt strategy and is being provided on very concessional terms,” he remarked.
These terms include an interest rate of ¾ of 1% per annum and a commitment charge of ½ of 1% per annum; repayment will be in fifty semi-annual instalments commencing August 15, 2028 (a grace period of ten years).
Hon Austrie says government was able to negotiate those terms based on its fiscal prudence.