THE Government of Jamaica and the European Investment Bank (EIB) this week signed a $165-million (15 million euro) loan agreement for the development of a water and sewerage project in Port Antonio, Portland.

The signing took place at the Ministry of Finance and Planning in Kingston and signatories were finance and planning minister, Dr Omar Davies; Michael Tutty, vice- president of the EIB; Donald Buchanan, minister of water and housing; E G Hunter, president of the National Water Commission (NWC) and Richard Byles, NWC chairman.

Buchanan said the money represented part financing for the $1.6-billion (39 million euro) project, with the remaining $984 million (24 million Euro) to be supplied by the Government and the NWC. The repayment of the loan will commence five years and 11 months after signing and will be paid in 15 equal annual instalments at three per cent interest per annum.

The Port Antonio sewerage project will be implemented in two phases. Phase one will be completed by the end of 2003 and will include drainage improvement, water distribution, piping improvement and the building of new sewers.

Phase two will start in 2004 and should be completed by the end of 2005. It will involve completion of the drainage, water production and the sewage pumping system. The drainage and water improvement in Phase one will be incorporated in the West Harbour Development Project, scheduled to be completed by the end of this month. The project will be implemented by the NWC.

Buchanan noted that the project was strategic in terms of its anticipated impact on tourism development in Port Antonio.

He said that as part of the agreement, government would be making arrangements for the financing of household connections. “Unaccounted for water control is also a critical component of the project,” Buchanan added.

Noting that it was government’s intention to construct a central sewerage system in all major towns, he said that new systems have already been constructed in Montego Bay, Ocho Rios and Negril. “The proposed system in Port Antonio means that we will have in place the requisite sewerage infrastructure in most of our tourism centres which is so vital to the protection of our coastal water quality … and to provide a reliable water supply system for the citizens.”

He said that in the last five years, the government has invested over $10 billion in water and sewage infrastructure. Some US$2.2 billion is needed to satisfy the domestic water, sewage and irrigation needs, the minister added.

In his remarks, Tutty said the EIB would continue to provide necessary developmental support for Jamaica. The non-profit banking arm of the European Union, the EIB has been working in Jamaica for some time, providing the country with technical expertise and loans at reasonably low rates.

He expressed the hope that the relationship would continue with the signing of the Cotonou agreement later this year.

— JIS