The shipping Incentives Act, Cap 90A only extends concessions to 'approved
shipping companies'. It is now proposed that the Act be amended to allow for
a wider application of the incentives to all boats.
It will also be amended to support -
o The introduction of a refurbishment program to facilitate the alteration,
equipping, maintenance or repair of existing boats which are being used commercially
in the tourism industry, as well as acquisition of all marine equipment, sports
fishing gear, fittings and furniture.
o Concessions with regards to marketing in the industry will now be introduced
and will coincide with those.
The full set of the new arrangements for facilitation and marketing of this
sector are set out in an Appendix.
Energy
During the year 2001, production of both crude oil and natural gas fell as a
result of the natural decline of wells in production and also because no new
wells were drilled during the year. In the prevailing international climate,
we anticipate difficulties with energy supplies and prices.
To counter this the Barbados National Oil Company and its joint Venture Partner
Waggoner Barbados Ltd. will in November 2002 start a $25 million programme which
will entail the drilling of 9 development wells. This will stimulate production
of crude to 1500 barrels per day and natural gas to 2.5 million cubic feet per
day.
At the same time the National Petroleum Corporation will from November 2002
embark on a $15 million mains expansion programme to bring natural gas to an
additional 5000 Barbadian homes.. The expansion will be in approximately 42
areas in 7 parishes and will last over 2 years. The NPC will also reduce the
cost of installation of natural gas from its present $517 to a maximum of $250.
When the decision was made to close the Mobil refinery in 1998, it was decided
that the terminaling facility would be operated by the Barbados National Terminal
Company Limited until a new terminal could be established at another location.
In 1999 Government agreed to enter into negotiations with a consortium of four
oil companies, Shell, Esso, Texaco and BNOC for the establishment of a local
company to operate a terminal facility using sites at Holborn and Spring Garden.
After almost three years of prolonged negotiations, no agreement has been reached
with the parties on issues such as the rate of return and participation by the
public in the new shareholder company.
Time is of the essence since the BNTCL temporary operation must cease and the
site remediated in order that the new Hilton Hotel can be properly marketed
and opened in 21 months time. Cabinet has therefore agreed that the BNTCL should
be made responsible for the importation of energy products and the installation
of facilities for such products in Barbados. The facility will cost over $50
million and is estimated to be completed in 20 months time. On completion, the
public will be able to purchase shares in the new company.
Investment Programmes
Mr. Speaker, the capital works programmes of the public and private sectors
have, in my view, the potential to make a significant contribution to the Government's
efforts to return the local economy to a positive growth path.
Over the last twelve months, the Government has completed a number of capital
projects and has reached substantial completion on several others.
While one can be justifiably satisfied with the progress of the capital works
programme since my last Economic and Financial Statement a year ago, the Government
cannot afford to rest on its laurels but must seek continuously to add sound
projects to its capital investment programme. It is therefore my pleasure to
present to this House a number of such initiatives that will come on stream
during the next 18 months.
o With the start of construction on the New Barbados Hilton Hotel, Government,
through the Needham's Point Development Inc. which has responsibility for the
project, has redoubled its efforts to interest prospective investors and developers
in the future development of three separate parcels of land located at the Needham's
Point Peninsula for tourism-related purposes. These lands have been identified
as potential sites for the construction of condominiums and two 200 - 250 room
hotels.
o A framework has been put in place for the resolution of all the issues relating
to the implementation of the Pierhead Development Programme. It is expected
to start during the first half of 2003, and will now include the construction
of a marina. The construction of the marina is expected to be financed by a
US$35.0 million loan that is currently being negotiated with the Caribbean Development
Bank.
o Under a Public-Private Sector Partnership, the Barbados Tourism Investment
Inc. will join with two private sector entities to develop a major beach facility
on Crown lands at Harrison's Point, St. Lucy. This project, estimated to cost
in excess of $100 million, will complement the inland tourism developments of
the private sector entities that include golf courses, hotels and residential
units. This project will also involve the relocation of the headquarters of
the Barbados Youth Service.
o Following the completion of the Bridgetown Roads and Safety Improvement Project,
the Government will be turning its attention to the expansion and rehabilitation
of some of the major roads of Barbados. These will include the reconstruction
of Martindales Road and Hindsbury Road. The major new activity, however will
be the phased expansion of the ABC Highway into a four-lane highway, commencing
with the section between the Emancipation Statute and the Garfield Sobers Roundabouts.
o In the Health Sector, the Government will continue its programme for the redevelopment
of the Queen Elizabeth Hospital. A study has been commissioned to spell out
a programme on the rationalization of the use of space at this health institution
and will facilitate decisions by Government on issues such as the relocation
of common hospital services for the purpose of releasing space for additional
patient care and clinical use.
o Mr. Speaker, we need to broaden the range of services Barbados offers. Government
has received a number of proposals for the establishment of retirement villages
and resorts in Barbados. Typically, these resorts offer residential accommodation,
including assisted living suites, state-of-the art medical facilities, as well
as surgical, specialist and intensive care, and a range of amenities including
spas, saunas, gyms, tennis courts, swimming pools, lakes and parks. The Government
is convinced that Barbados, with its highly developed physical and human resource
base, is ideally placed to reap significant benefits from these proposals. Consequently,
I am prepared to put in place an appropriate enabling environment that would
facilitate the establishment of such retirement community projects on the island.
o With the Cheapside Market Rehabilitation Project almost completed, the Government
will focus its attention on upgrading the Fairchild Street Market which, as
you are fully aware Mr. Speaker, is in dire need of attention. The project is
designed to provide modern, functional and comfortable facilities for vendors
and is estimated to cost $8.5 million, of which approximately $5.4 million is
expected to be financed by a loan from the Government of Venezuela.
o The Pierhead Development Programme will utilize the land area of Fort Willoughby,
the current headquarters of the Barbados Coast Guard. Consequently, the Coast
Guard headquarters will be relocated to reclaimed lands at Spring Garden, St.
Michael. The objective of this project, which is estimated to cost $45.0 million,
is to provide a modern naval facility that will contribute to the efficient
delivery of maritime services to Barbados. The project will involve the design
and construction of breakwater, mooring and haul-out facilities, living accommodation
for 300 persons, administrative buildings, workshops, fuel storage areas and
car parks. The project is scheduled to be completed by October 2004.
In addition to the projects that comprise the public sector investment programme,
a number of private sector financed projects that have obtained the approval
of Government's regulatory agencies, are expected to commence over the next
year and a half.
Planning permission has been granted for the restoration, renovation and conversion
of a listed building at the Pavilion, Hastings, Christ Church, into a 16,000
foot conference facility and associated bar and restaurant. In addition, a new
219-room hotel will be constructed on the compound of the Pavilion.
At Rices, St. Philip, a holiday resort will be established on 24 acres of beachfront
land. The resort will comprise 58 villas and other ancillary facilities.
Also in the tourism sector, Mr. Speaker, a number of hotels will be adding to
their room capacity over the coming months. At Coconut Creek Hotel, St. James,
approximately 75,000 square feet of floor area will be used to develop 21 condominium
units carrying a total of 63 beds. At Cacrabank Apartment Hotel, Christ Church,
permission has been granted for the extension of the hotel to make provision
for an additional 46 one and two-bedroom units. At Accra Beach Hotel, Christ
Church, an additional 19 units, carrying a total of 24 beds, will be constructed
and the existing restaurant renovated. And at the Crane Resort, St. Philip,
construction of 63 units will commence as Phase 2 of the hotel's expansion programme.
In the industrial sector, permission has been given granted for the construction
of a building to house a new still at the West Indies Rum Refinery. The still
is expected to increase the volume of rum produced by approximately 50 per cent.
Finally, Mr. Speaker, the Government has, over the last nine months, granted
permission for the subdivision of land into approximately 1, 700 residential
lots across the island. This significant increase in the number of residential
lots creates the potential for further expansion of housing construction in
the medium term.