Shaw Inks US$200 Million Policy-Based Loan with IDB Finance & Public ServiceAugust 3, 2010 RelatedShaw Inks US$200 Million Policy-Based Loan with IDB RelatedShaw Inks US$200 Million Policy-Based Loan with IDB RelatedShaw Inks US$200 Million Policy-Based Loan with IDB Advertisements FacebookTwitterWhatsAppEmail The Honourable Audley Shaw, Minister of Finance and the Public Service and Mr. Luis Alberto Moreno, President of the Inter-American Development Bank (IDB), signed a loan for US$200 million (JA$17.2 billion) today at the IDB Headquarters in Washington.The loan, under the Government’s Fiscal Consolidation Programme, is to support the GOJ’s efforts to achieve fiscal policy goals over the short and medium term, and was secured at an interest rate of 1.51 percent.Once disbursed, today’s loan represents a total of US$430 million (JA$37.0 billion) in funding from the IDB since Jamaica entered into an agreement with the International Monetary Fund (IMF) in February this year.In commenting on the IDB Loan Programme over the two-year period of the IMF Agreement, Minister Shaw said, “The IDB is committed to a disbursement of over US$600 million (JA$51.7 billion) in policy-based loans to Jamaica in this Calendar year at interest rates of less than 1.5 percent per annum.”“This represents the largest loan to a country as a percentage of its GDP in the IDB’s history. This represents an extraordinary level of confidence being shown by the IDB in the policies of the Government of Jamaica,” said Shaw.Outside of the IMF, which provides balance of payment support, the IDB is Jamaica’s largest source of budgetary support, with funding accessed through policy-based loans and channeled directly into the Fiscal Consolidation Programme. Specific areas of interest include the strengthening of fiscal discipline and accountability, reduction of the public debt/GDP ratio, and stimulation of economic growth and development in the Jamaican economy.Minister Shaw also underscored the Government’s strong commitment to sustained fiscal reform and good governance, and congratulated President Luis Alberto Moreno on his re-election to a second term as head of the IDB.Also at the signing were Ambassador Audrey Marks, Ambassador of Jamaica to the United States, Mr. Gerard Johnson, IDB Representative to Jamaica, and Ambassador Richard Bernal, Executive Director of the IDB for the Caribbean.
In spite of the challenging international economic situation arising from the health crisis, the Republic of Djibouti has entered 2021 with determination. The redevelopment of the historic port also includes the establishment of a ship repair yard, in partnership with one of the world leaders in the sector, Netherlands-based Damen. A floating drydock will allow the structure to accommodate very large vessels, thus saving the numerous shipowners operating in the Indian Ocean and Red Sea from costly towing fees. Spain’s Siemens Gamesa has been selected to build the Ghoubet wind farm. While work on the seawater desalination plant being carried out by the Eiffage Group in association with Tedagua, a Spanish company, is nearing completion. TAGSConstructionDjiboutieconomic growthTrade and investment Previous articlePower for All: Energy access trends for 2021Next articleHydropower sector to strengthen through IRENA and IHA partnership Nicolette Pombo-van ZylAs the Editor of ESI Africa, my passion is on sustainability and placing African countries on the international stage. I take a keen interest in the trends shaping the power & water utility market along with the projects and local innovations making headline news. Watch my short weekly video on our YouTube channel ESIAfricaTV and speak with me on what has your attention. Moreover, alongside the Doraleh facility, Djibouti has developed a first-rate ecosystem that encompasses the commissioning of the new railway line to Addis Ababa (October 2016), the commissioning of the Doraleh Multipurpose Port (DMP, 2017), the entry into service of the Djibouti International Free Zone (DIFTZ, July 2018), the mineral ports in Ghoubet (June 2017) and Tadjourah (June 2017), extended by the road corridor linking Balho, a border post with Ethiopia. This port and logistical offering include an ambitious programme for the future in two areas: the Djibouti Damerjog Industrial Development (DDID) project and the redevelopment of the centrally located historic port into an attractive international business hub, a continuation of the port infrastructure and free zones under the Port, Park and City (PPC) trinity. Have you read?AERC plenary mulls Africa’s economic recovery post-COVID-19 Low carbon, solar future could increase jobs in the future – SAPVIA Since 2013, when the Vision 2035 development plan was implemented, Djibouti has been committed to modernising its legislation and financial system, upgrading its human resources and building efficient infrastructure geared to the requirements of the international market. In January 2021, Djibouti has further consolidated its logistical pre-eminence in the region with the signing of an agreement between Air Djibouti and Ethiopian Airlines and the port of Djibouti (DPFZA). The goal is to offer a global air-sea freight hub from Djibouti airport, transporting by air cargo to the whole African continent the goods unloaded from ships at Doraleh. Accordingly, Djibouti has developed a business model based on unique port and logistics solutions. Sign up for the ESI Africa newsletter Have you read?Ed’s note: Mark this year down in the history as the start of African trade Djibouti to address energy, water & sustainable development AFD and Eskom commit to a competitive electricity sector BRICS This outlook is by no means coincidental. Lacking natural wealth, exposed to a demanding and arid environment, the Horn of Africa country has been able to build on its main asset: its geostrategic location at the entrance to the Bab-el-Mandeb Strait, at the intersection of major global shipping routes, used by a mega-ship every 25 minutes. The “old port”, which boasts over a century of existence, is now laying the groundwork for the start of this project after entering into an initial investment agreement of $350 million in early 2021 with the China Merchants Group, a strategic partner which plans to invest a total of $3 billion. Finance and Policy Have you read?Djibouti government approves Engie’s Grand Bara solar project In early October 2020, to better coordinate its long-term action, Djibouti equipped itself with the Djibouti Sovereign Fund (DSF), an innovative financial instrument. The fund will help to pool the country’s wealth, act in partnership on international investment projects, support the domestic private sector and gradually build intergenerational savings. Issued by the Republic of Djibouti. Addressing trade through an air-sea freight hub It will take 15 years for a total investment of $3.8 billion to complete the DDID project. The first phase of the project includes the construction of a refinery and a jetty for an oil terminal. To meet the challenges of its development, Djibouti maintains an active strategic and economic diplomacy. Its historic alliance with sister country Ethiopia has grown stronger over the years. Djibouti, faithful to its balanced and outward-looking policy, has forged strong and lasting ties with friends and partners, such as China, the United States, France, Japan, Saudi Arabia, and Turkey, and others. Djibouti thus resolutely inscribes its action in the global arena while preserving its independence and sovereignty. There are infrastructure projects planned for the key energy, water and sustainable development sectors as well. A French energy company, Engie, will be in charge of designing, building and managing the solar photovoltaic power plant project in the Great Bara Desert. In February 2018, after ending DP World’s concession of the Doraleh Container Terminal (DCT), which undermined the state’s sovereign powers on its own coastline, the government took back control of this essential infrastructure, effectively restoring its sovereignty. RELATED ARTICLESMORE FROM AUTHOR According to the World Bank’s Global Economic Prospects report, Djibouti is expected to experience the strongest GDP growth in Africa this year with a projected rate of 7.1%. Tracking progress through to Vision 2035 Today, the container terminal has established itself as one of the most efficient in the region. Generation The old port of Djibouti will undergo a transformation. Source: Republic of Djibouti UNDP China, CCIEE launch report to facilitate low-carbon development