ST. GEORGE’S – The Grenada government has started to utilise a U.S. $67 million concessional loan from China Export and Import to upgrade the Maurice Bishop International Airport, according to a statement posted on the website of the Ministry of Finance.
“For the first time, the Chinese Yuan is a currency component of Government of Grenada’s external portfolio (2.8 percent) as a loan from the Republic of China was partially disbursed in the first quarter of 2021 for the St. George’s Airport Runway and Road Upgrade and Rehabilitation Project,” the statement noted.
While it did not provide the amount of funds being utilised under the project so far, the statement said “irrespective, the United States dollars remained the dominant currency contributing 66 percent of the external portfolio. It was followed by instruments contracted in Special Drawing Rights”.
Announced three years, the signing and ceremonial launch of the project had been done in the last quarter of last year.
The project was described by the Chinese officials at the sod-turning ceremony in October 2020, as another milestone for the bilateral cooperation under the “Belt and Road” initiative.
The Belt and Road initiative is a strategy initiated by the People’s Republic of China that seeks to connect Asia with Africa and Europe via land and maritime networks with the aim of improving regional integration, increasing trade and stimulating economic growth.
Work to be done at the airport includes resurfacing of the existing runway and pavement of runway shoulders, construction of an aircraft turning bay, apron and taxiway expansion.
Apart from the loan from China, Grenada is set to benefit from a regional World Bank project that seeks to “enhance regional connectivity by improving the safety of air transport and the resilience of airport infrastructure to natural disasters”.
The World Bank in May last year announced that the International Development Association financing of U.S. $17 million had been approved for Grenada.
The Grenada project, according to a World Bank media release, “will support increased safety and efficiency of airport operations and navigation, make climate resilience improvements, and strengthen the country’s capacity in civil aviation and airport management”.
(CMC)
