IT will take the Jamaican government 10 years to repay the US$28.7 million it has borrowed from the Caribbean Development Bank (CDB) to cover its share of the US$100-million start-up cost for the Caribbean Court of Justice.

At an interest rate of 5.5 per cent, the government will end up paying back US$44.8 million on the loan, which is to be serviced in 40 equal, or approximately equal, consecutive quarterly instalments. Finance and Planning Minister Dr Omar Davies signed the loan agreement with the CDB on June 6 of this year.

The court should cost the region approximately US$64.3 million during the first five years of its operation. The annual cost of US$5.6 million will be split between US$3.8 million for recurrent costs, such as salaries and utilities, while US$1.7 million will go towards capital costs, such as computers and motor vehicles.

“The Caribbean Community (Caricom) Secretariat, with the help of the Caribbean Development Bank (CDB), had prepared the estimates and the CDB will be sourcing the estimated US$100 million from international financial markets to establish the trust fund that will ensure the sustainable financial security of the entity,” said Attorney-General and Minister of Justice AJ Nicholson at a press briefing Tuesday.

Jamaica’s contribution to the US$100-million start-up trust fund is calculated on the basis of a scale of assessments for the 11 Caricom countries that are borrowing member countries of the CDB.

Nicholson added that the budget was based on the assumption that all 10 judges of the court will be hired from the outset. However, the calculations do not factor in an estimated US$206.8 million for furnishing and equipment which is to be provided by the Trinidad and Tobago government. Trinidad has given a commitment to provide US$5 million, in kind, for the headquarters seat, together with furnishings for the use of the CCJ and the regional judicial and legal services commission.

The trust fund managing the finances of the CCJ is expected to invest US$88 million in long-term securities, while US$12 million will be invested in the short term but used for the start-up operations of the court.

The membership of the fund’s board of trustees includes the following persons or their nominees:

* the secretary-general of Caricom;

* the vice-chancellor of the University of the West Indies;

* the president of the Insurance Association of the Caribbean;

* the chairman of the Association of Indigenous Banks of the Caribbean;

*the president of the Caribbean Institute of Chartered Accountants;

*the president of the Organisation of Commonwealth Caribbean Bar Associations;

* the chairman of the Conference of Heads of the Judiciary of Member States of the Caribbean Community;

*the president of the Caribbean Association of Industry and Commerce; and

* the president of the Caribbean Congress of Labour.

The fund, which will be located in Trinidad and Tobago, will be managed by the board which is responsible for appointing an executive officer, an investment manager and an auditor.