Report No. 2948-CRG Economic Memorandum on St. Kitts-Nevis May 12, 1980 Latin America and the Caribbean Regional Office FOR OFFICIAL USE ONLY Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their official duties. It5 contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit: East Caribbean Dollar Since its creation in 1965, the East Caribbean dollar was tied to sterling at the rate E 1.00 - EC$4.8. In July 1976 the link with sterling was broken and the East Caribbean dollar was aligned with the US dollar at the rate US$1.00 = EC$2.70. Since July 1976: EC$1.00 = US$0.370 or US$1.00 = EC$2.700 FOR OFFICIAL USE ONLY This report is based on the work of an economic mission to St. Kitts-Nevis during September 24-October 4, 1979. The mission consisted of: Carlos G. Muniz (IBRD), Ewart Williams (IMF), Carlos Elbirt (IBRD), Paijit Habanananda (IMF), and Eric Armstrong (CDB). Thb document baa restricted distribution and may be used by recipients only in the performance of their oMcbl dutbe. Its contents may not otherwis be diclosed without World Bank authorization. ST. KITTS-NEVIS Table of Contents Page No. MAP COUNTRY DATA SUMMARY AND CONCLUSIONS . .......................... . i - iii I. ECONOMIC BACKGROUND ........ . . . . . ................................ . 1 A. Recent Growth Performance .......... ..1.......... B. Public Sector Finances 1 C. Investment and Savings ..... ............ 2 D. Money and Credit ............................... 2 E. Prices and Wages ............................... 2 F. Balance of Payments ..... ....................... 3 II. DEVELOPMENT POLICY ISSUES ........ .................. 4 A. Introduction . .................. .. 4 B. Agriculture .................................... 4 C* Industry ................................................... 6 D. Tourism .... .. ..6.... 7 E. Electricity ...... .......................... . 8 F. Communications .. .......... .............. . 8 G. Transportation ...... ........................... 9 H. Social Infrastructure ..... ..................... 9 I. Public Finances ....... ......................... 10 III. PUBLIC SECTOR INVESTMENT PROGRAM ................... 11 A. Introduction ...... ............................. 11 B. Progress of the Program ........................ 11 C. Global Results . * * .............................. * . 14 IV. OUTLOOK ............................................ 15 A. Financing the Investment Program ...... ......... 15 B. Conclusion ....... .............................. 15 GOVERNMENT'S PROJECT LIST STATISTICAL APPENDIX IBRD 15056 62'60' 62.4O' MAYS9S0 , ,*PP* eOy N*wton ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~E Mainn /Road\s NW- G 3 / M - G O AU L~~~~~~~~~~~~ \l°~ ~ ~~ '90$< CHRSTo/_ t X ~~ ~~ ST TbCH . RC - S T . K I\ T fT A cn -17-20 ~ ~ ~~~~ 0 H H N ~i t \\ ips1-0 \S ~ ~ Add O Tod/ A N N E2ETE 5 / foo fidc C H R I S T YA ql 9 '' EAS /VODER C.y~~~~~ 0 2 4 6 8 ' PooS MosQ,,o eJuff o 1 2 3 4 5( 6 T C d IitoGo v#roGId rs,SY OCfAN No,nM E V I S oirports |20 7RE20| T H O M A 5 - - - - - Parish nBounarie W daMln SP Oroond TP'5 ' CUBA RA/TB f f A N Sf ANT 'ST LUCLA /IT RO ROC 05TB MArh t. BAIBNDA.ST OHN RC./f ,<~~~~p¶R~ c ST fVS R0INIDAD THOMAS 01.o tuor,<_ 1 > .~~2 6wd"5~_or JARAAIA BOUTH AMERICAA /.62-6'6-20 .> ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~CuoLo CLrLBTW srKvotc bb s 6-0 t DOMINIQ~~~14 C,~ COMNIA A/ CAR/BS$AN SEA~~~~VRGI 1 QSNLE IA ?R 9B'- GEND Kum mco ST. KtTTS ANTIGSTUJOH 'TROINIDAD tt ,00 to ct,..,c.or0T,.4Ilo mo.A ..4 .d0 Or SOU T H AM E RI CA 6o9t,o 4 o.Ig..rnIO f62120' Page I of 2 pages COUNTRY DATA - St. KITTS-NEVIS AREAL POPULATION DENSITY 269 ks 2 49,729 (mid-1978) 185 per Ia2 Rate of Growth: 0.6 (from 1971to 1978) 333 per km2 of arable land POPULATION CHARACTERISTICS - 1978 HEALTH- 1976 Crude Birth Rate (per 1,000) 21.2 Population per physician 4,091 Crude Death Rate (per 1,000) 9.3 Population per hospital bed 203 Infant Mortality (per 1,000 live births) 41.0 INCOME DISTRIBUTION DISTRIBUTION OF LAND OWNERSHIP % of national income, hlghest quintile .. % owned by top 10% of owners lowest quintile ,, Z owned by smallest 10 of owners ACCESS TO PIPED WATER ACCESS TO ELECTRICITY % of population - urban .. % of population - urban - rural .. - rural NUTRITION EDUCATION- 1978, Calorie intake as % of requirements .. Adult literacy rate 7. Per capita protein intake .. Primary school enrollment Z. a/ GNP PER CAPITA in 1978 US $ 690 GROSS NATIONAL PRODUCT IN 1978 ANNUAL RATE OF GROWTH (%. constant prices) US $ P1n. % 1977 1978 GNP at Market Prices 35.2 100.0 -0.5 4.4 Gross Domestic Investment 6.4 18.2 13.2 13.1 Grogs National Saving 0.4 1.1 -148.7 Current Account Balance -6.0 -17.0 Exports of Goods, NFS 18.6 52.8 -17.7 0.2 Imports of Goods, NFS 26.8 76.1 -5.4 1.5 OUTPUT, LABOR FORCE AND PRODUCTIVITY IN 1978 Value Added USE $ln. 7% Agriculture 5.4 18.9 Industry 6.1 21.3 Other 17.1 59.8 Total 28.6 100.0 GOVERNMENT FINANCE Consolidated Ptthllir. -9or- Central Government (EC$ Mln.) % of GDP (EC$ Mln.) % of GDP 1977 1978 1977 1977 1978 1977 1978 Current Receipts .. .. .. .. 27.6 34.6 33.9 36.2 Current Expenditure .. .. .. .. 25.7 30.7 31.6 32.1 Current Surplus 7.3 3.7 9.0 3.9 1.9 3.9 2.3 4.1 Capital Expenditures 8.5 14.6 10.4 15.3 7.8 8.5 9.6 8.9 External Assistance (net) 1.0 6.0 1.2 6.3 2.1 5.9 2.6 6.2 a/The Per Capita GNP estimate is at 1978 market prices, calculated by the same conversion technique as the L978 World Atlas. All other conversions to dollars in this table are at the average exchange rate prevailing during the period covered. not available not applicable Page 2 of 2 pages COUNTRY DATA - ST.KITTS-NEVIS MONEY. CREDIT and PRICES 1974 1975 1976 1977 1978 (Million EC$ outstanding end period) Money and Quasi Money 35.7 42.3 55.0 64.6 77.2 Bank Credit to Public Sector 7.3 9.7 1.9 0.7 2.4 Bank Credit to Private Sector 23.8 20.9 -1.4 15.0 9.7 (Percentages or Index Numbers) Money and Quasi Money as % of GDP .. .. 72.8 79.4 80.8 General Price Index (1964 - 100) 216.0 236.7 266.0 317.5 356.2 Annual percentage changes in: General Price! Index 29.8 9.6 12.4 19.4 12.2 Bank credit to Public Sector 102.8 32.9 -80.4 -63.2 242.8 Bank credit to Private Sector 16.1 12.2 * * -35.3 BALANCE OF PAYMENTS MERCHANDISE EXPORTS (AVERAGE 1976-78) 1976 1977 1978 US $ Mln % (US$ million) Exports of Goods, NFS 19.3 16.7 18.6 Sugar 10.3 63.6 Imports of Goods, NFS 24.6 24.4 26.8 Molasses 0.4 2.5 Resource GaP -3T _ -777 =W7 Beer and Ale 0.2 1.2 Factor Payments (net) -0.1 -0.1 -0.2 All other conodities 5.3 32.7 Net Transfers 2.5 2.1 2.4 Total 16.2 lQ_0 Balance on Current Account -2-9 -5.7 -6.0 EXTERNAL DEBT. DECEMBER 31, 1978 Private Sector 5.7 4.1 3.1 US $ Mln Public Sector (net) 2.2 -0.4 2.5 Public Debt, incl. guaranteed 4.7 Banking System -5.0 2.0 0.4 Non-Guaranteed Private Debt .. Total outstanding & Disbursed a/ DEBT SERVICE RATIO for 1978 % Public Debt, incl. guaranteed 4.3 Non-Guaranteed Private Debt Total outstanding & Disbursed RATE OF EXCHANGE IBRD/IDA LENDING, (latest month) (Million US $): IBRD IDA Since May 1976 IJS$ 1.00 = EC$2.70 Outstanding & Disbursed EC$ 1.00 - US$0.37 Undisbursed Outstanding incl. Undisbursed a/ Ratio of Debt Service to Exports of Goods and Non-Factor Services. not available not applicable SUMMARY AND CONCLUSIONS i. Economic growth was satisfactory in 1978 with real GDP rising by 4.5%. According to preliminary estimates, GDP growth declined to about 2% in 1979. Sugar production, tourism and manufacturing experienced modest expansion in 1979. ii. The economy enjoys almost full employment during the sugar and tourism season. However, unemployment approximates 20% of the labor force during the off-season which lasts about six months. This seasonal character of employment dictates diversification measures. iii. Public sector savings declined from 4.0% of GDP in 1978 to 3.4% in 1979. This resulted from the deterioration in the Central Government finances whose savings declined from 4.1% of GDP in 1978 to 1% in 1979, due to an increased wages bill. Although the rest of the public sector improved its performance, this mainly reflected the financial position of the National Providen.t Fund (social security). Public sector capital expenditures reached EC$10.6 million or 11.1% of GDP in 1978, and EC$16.8 million or 15.6% of GDP in 1979. iv. The current account deficit of the balance of payments declined from 19% of GDP in 1977 to 15% in 1979 but remained at about the same absolute level. Increases in tourist earnings and in private remittances were almost sufficient to compensate for the augmented import bil.. Earnings from sugar and industrial exports increased slightly. The current account deficit has been largely an investment one, financed by official capital inflows to the public sector on concessional terms and to a lesser extent by direct private investment. v. In agriculture, the state economic enterprise that deals with sugarcane (NACO) has been successful in preventing the spread of smut disease. A replanting program has also been initiated but the need to tackle soil erosion remains. Agricultural diversification is still constrained by the absence of a comprehensive land use and land tenure policy. Although agricultural extension has improved with the addition of new staff, the quality and quantity of the service remains inadequate. Some progres has been made towards improving marketing and credit. Nevertheless, the institution in charge of marketing still suffers from a lack of proper staff, storage facilities and financial resources, and the restructuring oI the Developi lnt Finance Corporation remains to be implemented. vi. In industry, the sector still lags behind its potential. The tax rates on corporate income remain too high, and the restructuring of the Devel- opment Finance Corporation also remains to be implemented. vii. In tourism, the Government undertook promotional activities ir the United States. At the same time, new air services to the Island were intro- duced. As stated in last year's economic report, promotion in the European market and development of tourist attractions require Government attenti,n. - ii - viii. Progress is being made towards improving transportation facilities, communications and power. There is an urgent need to formulate an action program for energy conservation. Some progress is also being made towards improving the social infrastructure, but the Government's efforts have suffered from a scarcity of financial resources. ix. The public sector investment program in 1979 was targeted to reach EC$17.1 million. The actual amount invested is estimated at EC$16.8 million, or close to the original projection. This performance was facilitated *by the successful implementation of major transportation projects. Its financing pattern, however, differed from the one projected. External capital inflows fell short of the estimates while internal financing exceeded projections. x. The public sector investment program for the four-year period 1980-83 totals EC$90.7 million, of which EC$84.7 million represents projects that are presently identified as follows: agriculture 24.2%; industry and tourism 4.4%; transportation 37.1%, power and communications 11.7%; and social infrastructure 22.6%. Public sector investment is projected to average 18.7% of GDP during the period 1980-81 reflecting large expenditures on transporta- tion projects. It tapers off to an average of 13.3% of GDP for 1982-83. Gross investment, public and private, averages 21.5% of GDP for the 1980-83 period. This overall rate of investment is believed to be appropriate to generate a real growth rate of 3.0% per annum. xi. The total financing requirements (including external amortization of EC$2.4 million) for the four year public sector investment program are esti- mated at EC$93.1 million. This amount is projected to be financed as follows: (a) public sector savings EC$25.5 million or 27%; (b) other domestic sources such as capital revenue and domestic borrowing EC$6.4 million or 7%; and (c) external capital inflows EC$61.2 million or 66%. xii. The estimated external capital requirements for the 1980-83 period are about 20% over last year's estimates for the same period. This is attri- butable to inflation, cost overruns, and the inclusion of new industrial and tourist projects. Of the EC$61.2 million to be externally financed, EC$28.7 million have been committed to ongoing projects, EC$29.4 have some donor/ lender interest and the rest, EC$3.1 million, has no identified donor/lender interest. xiii. If the public sector investment program is to materialize, all the main components in the financing plan need to be realized. First, it is essen- tial that public sector savings attain the indicated levels. In this regard, the recent abolition of personal income taxation is a matter of serious con- cern and the government should take measures to at least compensate for the revenue loss. Second, it is crucial that donor/lender commitments be obtained for the projects included in the public sector investment program. Third, external technical assistance needs to be secured. xiv. The country's economic performance in recent years and its produc- tive potential indicate that the projected rate of economic growth at 3% per annum can be achieved. There are, however, several essential steps which - iii - must be taken to reach this target. Foremost among them are: (a) the suc- cessful execution of the public sector investment program; (b) the reduction of growth in the public sector current expenditures in order to achieve the projected savings; and (c) the pursuit of appropriate policies to deal with the major issues discussed in last year's economic report and in this memorandum. xv. The external debt service amounts to about 4.3% of export earnings and should be manageable. Nevertheless, because of the relatively low income per capita and the large amounts of external capital needed for development, St. Kitts-Nevis is not creditworthy at this juncture for borrowing on conven- tional terms. Therefore, it must continue to rely heavily on capital grants and concessional loans for financing its development program. External borrow- ing on conventional terms might become feasible over the longer term provided the indicated measures are implemented, public finances are strengthened, and economic growth achieves the targeted rates. 1. ECONOMIC BACKGROUND A. Recent Growth Performance 1. Sugar, which accounts for 20% of GDP and 60% of exports, has traditionally been the main determinant of the country's economic activity. Economic growth stagnated during the 1960's and early 1970's due to a large and steady decline in sugar production. In 1975 the government took over the sugar industry. Since then, sugar production has increased and a light manufacturing industry has also developed. As a result some economic growth took place between 1975 and 1977. 2. Economic performance during 1978 was good. Although sugar production declined, real GDP grew at 4.5% as a result of large increases in non-sugar manufacturing industry and tourism. Preliminary estimates indicate that economic growth continued in 1979, albeit at a lower rate of about 2%. Sugar, tourism and manufacturing industry contributed to this modest expansion. 3. The economy enjoys almost full employment during the sugar and tourism season. However, unemployment approximates 20% of the labor force during the off season which lasts about six months. This seasonal character of employment dictates diversification measures. B. Public Sector Finances 4. Since 1974 prudent fiscal management has enabled the country to generate public sector savings. However, in 1976 current expenditures began to grow at a faster rate than current revenues. As a result, public sector savings declined from 15.0% of GDP in 1976 to 4.0% in 1978 and 3.4% in 1979. 5. The Central Government temporarily improved its financial position in 1978. Despite considerable growth of current expenditures, due to a 40% increase in wages, a significant increase in sugar revenues enabled the Government to generate current account savings amounting to 4.1% of GDP. Based on preliminary information, it is estimated that current account savings declined to about 1% of GDP in 1979 because of further increases in current expenditures, especially wages. 6. The rest of the public sector--comprising the National Provident Fund, the Specialized Funds, the National Agricultural Corporation, the Sugar Manufacturing Corporation, the Central Marketing Corporation and the Frigate Bay Development Corporation--improved its performance in 1979 and saved about 2.4% of GDP. This group registered a small current account deficit in 1978. Although all the public entities improved their performance, the main contributor to savings was the National Provident Fund. 7. Public sector capital expenditures--including capital transfers-- reached EC$10.6 million or 11.1% of GDP in 1978, and EC$16.8 million or 15.6% of GDP in 1979. External sources financed about 80% of the public sector investment. - 2 - C. Investment and Savings 8. Overall gross investment rose slightly in real terms in 1979 and constituted 19% of GDP. External sources financed about 75% of this gross investment and national savings which constituted 4.1% of GDP financed the rest. The share of public sector investment which has been increasing over the last few years represented almost 80% of overall gross investment. in 1979. Most of the public sector investment was externally financed. Although the private sector improved its savings performance, the public sector remains the main contributor to national savings. D. Money and Credit 9. The monetary sector experienced a large increase in deposits and credit to the private and public sectors during 1979. The increase in credit was larger than that in deposits. As a result, the net foreign asset position. of the commercial banks declined to the lowest level in many years. The growth in deposits can be attributed to two factors: (a) the increase in interest rates--from about 4% to 7.5-8% for time deposits and from 2.5% to 3% for savings deposits; and (b) the opening of new bank branches. The expansion of credit to the private sector was used to finance mainly hotel construction and new factory establishments. There was also a sharp expansion of credit to the two largest public entities to finance the rehabilitation of the sugar crop and the purchase of a boiler for the sugar factory. Commercial credit for consumption purposes slackened marginally. E. Prices and Wages 10. Price inflation was close to 20% in 1977 but moderated to about 12% in 1978. Because of the sharp rise in import prices, particularly for fuel, inflation gathered momentum in 1979 and the estimated increase in prices for the year is in the vicinity of 20%. An even faster increase in retail prices was repressed by the reduction in markups on some imported commodities under price control. 11. The latest increase in civil servant wages occurred in 1978 and it averaged 40%. There is no comprehensive wage index for the private sector. In January 1979, sugar workers received an across-the-board wage increase of 10%. In April 1979, another major group, the port workers, received a wage increase of 12.5%. In September 1979 new minimum wage levels were announced for unskilled workers, with increases ranging between 25% and 60%. These included certain wages in kind, such as provision at a subsidized rate of food, refreshment, and transportation to factory workers. Although incon- clusive, it would appear that in the light of the price inflation, increases in nominal wages in the private sector did not increase real wages during 1978-79. F. Balance of Payments 12. The current account deficit of the balance of payments has remained at the same absolute level during the last three years. However, as a percentage of GDP it declined from 19% in 1977 to 15% in 1979. Increases in tourist receipts and in private remittances almost offset the augmented import bill. Earnings from sugar and industrial exports increased slightly. The current account deficit has been increasingly financed by public sector capital inflows which reached 80% of the total deficit in 1979. - 4 - II. DEVELOPMENT POLICY ISSUES A. Introduction 13. Develupment efforts in St. Kitts-Nevis are focused on two major problems: the immediate problem of high unemployment and underemployment, particularly for the half-year slack season for the sugar and tourist indus- tries, and the long term problem of the country's dependence on sugar, a crop singularly subject to international price fluctuations. Consequently, the Government's development strategy aims at the diversification of the economy with emphasis on labor-intensive activities. To assist the Government in its development efforts, the Economic Report on St. Kitts-Nevis (No. 2439-CRB), prepared for the June 1979 conference of the Caribbean Group for Cooperation in Economic Development (CG), made a series of development policy recom- mendations. This chapter focuses on these recommendations and attempts to record progress made in implementing them. B. Agriculture 14. Although agriculture has declined in importance over the past two decades, economic activity still centers around the sector and sugar is in the mainstay of the econommy. Last year's economic report stressed the need for agricultural diversification and increased efficiency and improved tech- nology in sugar prodt:tion. To help facilitate these goals and to safeguard the growth of the sugar industry which has been affected in recent years by smut disease, prompt action in research was recommended. 15. The National Agricultural Corporation (NACO) has been successful in preventing the spread of smut disease. As a result, sugar production during 1978/79 and 1979/80 has been maintained at about 40,000 tons each year. Nevertheless, there is an urgent need to replant about 70% of sugarcane plantings with smut-resistant varieties. Assistance for replanting of smut resistant varieties was not forthcoming and NACO was forced to initiate the replanting program with local funds. In addition to smut, the sugar industry has been adversely affected by soil erosion. The situation was aggravated in 1979 due to heavy rainfall, and the government has requested technical and financial assistance from USAID. 16. Regarding the application of improved technology in sugar pro- duction, the 200-acre pilot sugar irrigation scheme remains at a standstill. The authorities, however, hope to make a breakthrough on this project in 1980. As for increasing the efficiency of sugar production, the government recognizes the need to reduce production costs, but is reluctant to do so because it will result in unemployment. The Government is encouraged to pursue last year's recommendation and to absorb the surplus labor in agri- cultural activities other than sugar, in industry, and in tourism and related services. 17. The 1979 economic report noted that attractive opportunities exist for agricultural diversification in both St. Kitts and Nevis but that this activity is constrained by a deficient land tenure policy, the absence of a comprehensive land use policy and inadequate support services in the areas of extension, marketing and credit. No concrete action has been t an to rectify land tenure and land use but the authorities intend to do so once the tech- nical assistance requested from UNDP is obtained and Government acquires clear title to land. 18. Last year's report stressed the need to improve extension facili- ties and recommended that an effective agricultural service be established, and that manpower and training needs be assessed. Although some progress has been made towards improving extension services with the addition of two agriculturalists in Nevis, both the quality and the quantity of extension remain inadequate. The authorities are aware of this serious situation and have requested technical assistance to correct it. 19. The 1979 economic report noted that the Central Marketing Corpora- tion (CMC) and the Development Finance Corporation (DFC) were not making the intended impact on the farming community, and that their roles, structure and functions needed to be reviewed. Some progress has been made towards improving these services. The CMC has recently begun to act as a purchasing agent for local hotels and has begun marketing the output of Government farms in CARICOM. Nevertheless, the role of the institution is still limited since it lacks proper storage facilities, technical expertise and adequate financial resources. Thus, the recommendations of last year's report remain valid and the Government is encouraged to pursue them. Concerning credit facilities, the Government- owned National Commercial Bank has recently established a special fund for agriculture. Also, the Government, with CDB assistance, appointed a task force to review DFC's role. The Government is encouraged to promptly implement the task force's recommendations. 20. The 1979 economic report pointed out that NACO has taken the lead in demonstrating the feasibility of producing a wide range of non-traditional crops. This program is being continued but on a smaller scale than had been anticipated due to NACO's staffing and financial constraints as well as to storage, marketing and transportation problems. Meanwhile, the Ministry of Agriculture is attempting to rehabilitate the coconut industry in Nevis and has requested funding from BDD. It is hoped that this effort will lead to the expansion of the industry as recommended in last year's report. The Gov- ernment also attaches high priority to a 65-acre vegetable project which aims at the commercial production of a wide range of vegetables. As recommended, a feasibility study has been completed by UNDP, and CDB is interested in financing this project. Its implementation might be delayed, however, since adequate water resources have not yet been established. 21. According to last year's report, reasonably good prospects exist for livestock development in St. Kitts-Nevis but they are constrained by in- adequate grazing practices, and by lack of proper livestock nutrition. To remedy this the report advised the authorities to prepare a comprehensive livestock development program. The Government, with CIDA's and EDF's assist- ance, is preparing such a program which will be presented to EDF and CDB for funding. 22. The 1979 economic report also recommended the implementation of a comprehensive fisheries development program and a 50-acre pilot forestry project. The authorities are interested in pursuing these recommendations but have not been able to obtain the required technical assistance. C. Industry 23. As an integral part of its development strategy, the Government has commited itself to an industrial development program financed by the private sector and supported by Governmental institutions. As a result of this policy and of the existence of an enterprising local trading class, industry has made an important contribution to economic development and to employment in the past few years. Nevertheless, last year's report indicated that industrial development had lagged behind potential and there were several major issues to resolve if this potential were to be realized. The relatively high marginal income tax rates on personal incomes discouraged savings and contributed to chronic shortages of entrepreneurial, managerial and technical personnel. Similarly, high corporate income taxes adversely affected corpo- rate investment in established enterprises. Another issue was the banking system's reluctance to channel credit to medium and small size enterprises. 24. The 1979 economic report made recommendations designed to solve these issues. To encourage the flow of capital to industry and the devel- opment of entrepreneurship, the report recommended an overhaul of the tax system with a view to reducing the high income tax rates while maintaining overall revenue. Pending such review, the report encouraged the implementa- tion of short-term measures such as: a) the establishment of corporate investment allowances whereby profits reinvested in "approved" industries would not be subject to tax; and b) income tax allowances in order to bring skilled nationals back from abroad. Technical assistance to implement these measures was recommended. To improve the flow of credit to small and medium size industry, last year's report advised on the urgent need to accelerate DFC's restructuring. 25. In April 1980, the new government recommended abolition of the personal income tax and reduction of the effective corporate income tax rate from 55% to 50%. These recommendations were adopted by the Assembly and will become effective on May, 1980. Although the abolition of the personal income tax should contribute to increased personal savings, and to attract and retain qualified personnel, its impact on fiscal revenue and central government's savings must be carefully examined. The minor change in the corporate income tax rate is not likely to have a significant impact on corporate investment. It is recommended that the government seek to over- haul the tax system with a view to compensating the negative revenue impact of the abolition of personal income taxation, and to further reducing the corporate tax rate. Concerning credit, as was previously mentioned, a task force has been appointed to review DFC's operations. The National Commercial Bank has also begun to offer medium-term credit for small scale enterprises. It is hoped that these will lead to concrete results in the near future. 26. The 1979 economic report identified other issues that needed Govern- ment attention. Of particular importance among these was the issue of the growing pool of unskilled male labor. Since most of the major industries that have been recently established rely mainly on unskilled female labor, female unemployment hz decreased and a relatively minor further effort in industrial expansion should eleminate female unemployment altogether. This is not the case with male labor where there is an increasing surplus of unskilled workers. Thus, last year's report recommended that in planning for industrial develop- ment, priority should be given to the identification of industrial projects that would help to generate male employment. The mission's findings indicate that although the Government is aware of this problem, no concrete action has been taken in this regard. Hence, last year's recommendation remains valid and the authorities are encouraged to implement it. 27. Last year's report also pointed out the need to streamline promo- tional activities and to carry out pre-investment studies for a number of industrial projects that have been identified. The report noted that techni- cal assistance was required to implement a number of ongoing projects and that the construction of factory shells should be planned in such a way that one was always available for immediate occupancy. These recommendations are being followed. EDF has funded an industrial development study that should lead to concrete pre-investment profiles, and to recommendations on how to improve in- dustrial promotion. The authorities have also requested technical assistance from UNDP for the implementation of ongoing projects and have requested funds from EDF in order to have one factory shell always available. D. Tourism 28. Considerable potential for tourist development exists in St. Kitts- Nevis but as indicated in last year's report the industry remains in an embryonic state of development, and its contribution to GDP and employment is insignificant. This situation reflects lack of adequate promotional activ- ities, especially for the summer months, and poor air communications to the islands. Thus, last year's report recommended that the Government should: a) increase its promotional and marketing budget and adopt a marketing strategy aimed at the potentially large European market and; b) pursue the development of the charter market for year-round tourism, with the European market as the target area. 29. Progress has been made in improving promotion and developing a year- round chartering market. During 1979 the Government undertook promotional activities in the United States and sent promotional materials to the UK and Germany. Also, efforts to develop a year-round chartering market in North America were intensified. In addition, Antillean Airlines (LM) inaugurated a weekly service connecting St. Kitts with Curacao, St. Marteen and Miami, and other international airlines are being encouraged to provide direct service to New York and Toronto. As a result of these efforts tourism during 1979/80 is likely to continue the upward trend initiated in 1977/78. In spite of this, hotels will probably be underutilized in summer and the Government has to actively pursue the European market as recommended in last year's report. The -8- authorities have indicated their intention of acting on this recommendation and have requested technical assistance from the UN. They also hope to bene- fit from the EDF-sponsored regional study of the European market. 30. The 1979 economic report also addressed other areas that required Government attention. Emphasis was placed on the need to promote historic sites, including Brimstone Hill and to improve its fee collection system. It was also recommended that the feasibility of a new fast ferry for Nevis be studied. The UK has expressed interest in providing technical and financial assistance for the restoration of historic sites, but so far funding has only been secured for improving Brimstone Hill. Hence, last year's recommendation to promote historic sites remains valid. The UK is also studying overall communications links between St. Kitts and Nevis, and if necessary will fund the ferry. The recommendation to improve fee collection at Brimstone Hill has not been followed, however, and remains valid. 31. Although hotel facilities are considered adequate, the industry may need to expand over the long term. Hence, the 1979 economic report recommended technical assistance to carry out a feasibility study on the con- struction and operation of a large hotel at Frigate Bay, and a marketing study of North American demand for condominiums at the Frigate Bay Complex. In late 1978 the Government requested technical assistance from the UN but so far has not received a positive response. Meanwhile, the authorities are encouraging North American and European investors to establish new hotels and condominiums at Frigate Bay. E. Electricity 32. The 1979 economic report noted that although St. Kitts' generating capacity was adequate, some expansion would be necessary after 1980 and, that power expansion was a high priority for Nevis. Progress has been made towards the provision of additional capacity in both St. Kitts and Nevis. The detailed specifications of a power expansion project in Nevis have been prepared, and it is likely that BDD will provide financing this year. As for St. Kitts, CDB has indicated interest in funding an expansion project, pending the completion of the necessary studies. The need to conserve energy is a task of the highest priority and it is recommended that Government undertake an action program to achieve this objective. F. Communications 33. Concerning communications, the 1979 economic report noted that tele- phone plants and equipment on both St. Kitts and Nevis were inadequate and recommended a two phase telephone replacement and expansion program. Conse- quently work in this area was started with local funds. Furthermore, BDD is financing a new VHF telephone link to Nevis, and the CDB has indicated interest in financing the replacement of defective cables and the expansion of exchanges and line plant networks. Technical assistance and financing for the replacement of the Basseterre and Charlestown exchanges remains to be secured and the authorities are encouraged to pursue this matter as soon as possible. G. Transportation 34. The 1979 economic report noted that St. Kitts' transportation infrastructure was adequate but that in Nevis agricultural feeder roads were needed to facilitate agricultural development, and an efficient, -ast ferry was necessary to improve travel between the islands. Both priorities are being attended. As indicated under Tourism, the UK is considering financing the ferry, and Nevis' feeder roads are being improved with UK funding. H. Social Infrastructure 35. The 1979 economic report discussed the most important issues facing the social sectors. In education, the major problems are the poor quality of physical facilities and instruction, and the serious shortage of trained public sector manpower. To upgrade the educational sector, the Government proposes to build a new secondary school, expand existing schools and replace 6 primary schools that are in dilapidated condition. To upgrade manpower training, the Government proposes to consolidate existing training centers into a college for continuing education. So far these programs have not been implemented since financing and technical assistance have not been secured. Nevertheless CDB is expected to allocate USAID funds to school construction projects in the near future. 36. While noting that both health infrastructure and the distribution of basic health care were adequate, the 1979 report pointed out that the population's trend of early pregnancies represented a threat to maternal and child health. The authorities are aware of this problem and are imple- menting vigorous education programs, as well as antenatal and postnatal preventive health care. The authorities are also interested in adding family planning facilities to health centers and would like to set up multipurpose youth centers where they plan to integrate recreation with vocational training, youth guidance and family planning. These plans, however, have not been implemented due to lack of financial resources. As indicated in last year's report, there is a shortage of trained personnel in the health sector. The authorities are aware of this but have not been able to make a breakthrough due to limited financial assistance. 37. Concerning water and sanitation, last year's report noted that grave deficiencies exist in the water supply systems of St. Kitts and Nevis that relate to supply, distribution, and water treatment. Based on a master plan prepared by CIDA in 1974, an investment program has been prepared to correct this situation. This program has not been implemented yet since further investigation on water resources remain to be done. The report also noted the serious need for an integrated sewerage system to serve the greater Basseterre area. The concern of the authorities for this need has increased and they intend to request technical assistance to examine the matter. - 10 - 38. The 1979 report pointed out that the provision of low income housing has been inadequate. The major issues that required governmental attention concerned: a) the high cost of construction; b) inappropriate design for lower income housing; and c) nonavailability of financing. Some progress is being made towards improving financing. A new repair program has been ini- tiated with funds from the National Commercial Bank, and in 1980 the author- ities intend to start a 50-house project with local and CDB funding. On the issues of cost and design no action appears to have been taken and last year's recommendations remain valid. I. Public Finances 39. Prudent fiscal management and the 1974 imposition of a sugar levy have enabled St. Kitts-Nevis to generate public sector savings. Since 1977, however, current expenditures have grown at a faster rate than current revenue. As a result, public sector savings have declined from 15.0% of GDP in 1976 to 4.0% in 1978. During 1979, public sector savings are estimated to have declined further to about 3.2% of GDP. In spite of increased sugar prices public sector savings might decline further during 1980 since wage increases under consideration are quite substantial. The recent abolition of personal income taxation will exacerbate this situation unless compensat- ing measures are taken. Certain offsetting measures were taken, but their adequacy remains undetermined. The government is encouraged to review the overall fiscal situation carefully, and to request any technical assistance that might be needed for this purpose. 40. The declining trend of public sector savings is very disturbing, and if allowed to continue would impair both public sector savings and the imple- mentation of the public sector investment program. The 1979 economic report recommended: a) that the wage and salaries component of current expenditures should not increase in real terms, and that any net growth of employment should be absorbed in the implementation of capital projects; b) that any wage adjustment that might be deemed necessary during 1979-83 should be kept at a fraction of the 1978 adjustment, and not more than 10%; and c) that expendi- tures on goods and services should be increased only marginally in real terms. 41. Although high sugar prices could enable the Government to raise current expenditures, it must be remembered that the sugar industry is still affected by smut and soil erosion, and that the replanting program will have some negative impact on yields. With such a scenario the sugar windfall might not be as large as under normal circumstances. Likewise, the upward trend in sugar prices might be as ephemeral as in the past. Therefore, the Government is encouraged to follow the recommendations of the 1979 economic report and to use additional revenues either in the implementation of additional investment projects or as a buffer against a future decline in the price of sugar. 42. On the revenue side, the 1979 economic report noted that the recommended changes in the income tax structure may lead to a reduction in overall revenue. If such were the case, the report recommended compensating changes in the tariff structure of the revenue-earning departments, partic- ularly of electricity and water. The authorities are encouraged to keep - 11 - this matter under close consideration while reviewing the tax system. Further- more, in view of the substantial increases that have taken place in the price of petroleum, there is considerable merit in reviewing electricity and tariff rates as a separate issue. III. PUBLIC SECTOR INVESTMENT PROGRAM A. Introduction 43. As an integral part of their development strategy, the authorities of St. Kitts-Nevis, with the help of a World Bank-led economic mission of September/October 1978, prepared a public sector investment program and financing plan for the period 1979-83. This program reflects the Government's policy of economic diversification and of satisfying the basic needs of the population. Investment on economic infrastructure accounts for a substantial part of the program. The program, as presently updated, is similar to that of last year's in composition, but about 6.5% larger in size. The reasons for this increase are: a) inflation; b) cost overruns; and c) the inclusion of two new projects to facilitate industrial and tourist development. External capital requirements have, however, increased by 13% since the program modifi- cations affect mostly its foreign exchange component. B. Progress of the Program 44. In agriculture, progress was made during 1979 towards improving the efficiency of operations and the productivity of the sugar industry. With local financing, the Sugar Manufacturing Corporation acquired and installed a new boiler. Also, a BDD-financed vacuum pan was installed and work was completed on a new NACC storage building. BDD continued funding irrigation studies that aim at providing irrigation for sugar cane producers. In addi- tion a sugar cane replanting program was initiated, albeit on a smaller scale than had been anticipated since external financing from BDD was not secured. 45. A considerable number of important small scale projects, ongoing and new, were successfully implemented with BDD assistance. Some of these projects support agricultural diversification and others aim to improve livestock productivity. The former include projects such as: (a) the establishment of nurseries for yam, coconut, pineapple and citrus propagation; (b) the provi- sion of vehicles and agricultural machinery; and (c) the construction of a marketing subdepot at Nevis. The latter involve: (a) communal grazing; (b) cattle and pig stock improvement; and (c) machinery for livestock stations. 46. Some major programs was designed to improve the efficiency of the sugar industry were not carried out. An ongoing BDD project that provides modern equipment to the Sugar Manufacturing Corporation was temporarily halted since the required machinery was not available in the UK. Financing remains to be secured for field and communications equipment that NACO requires to - 12 - replace obsolete equipment. BDD has shown an interest in this project and is likely to provide financing in 1980. A CIDA-sponsored irrigation investiga- tion was not initiated since CIDA is awaiting the results of a drilling program that will take place in 1980. 47. Two major projects formulated to increase agricultural and livestock productivity were not implemented. As a result of DFC's institutional weak- ness, no disbursements took place on the CDB-financed agricultural development credit program. Furthermore, this program is likely to be cancelled. Also, the construction of an abattoir was delayed since CIDA did not provide finan- cial assistance. It is likely, however, that construction of the abattoir will start in 1980. 48. In spite of the lack of implementation of the major projects and of the reduced scale of the sugar cane replanting program, total outlays in agriculture reached about EC$2.7 million, or 87% of the amount targeted in the 1979 economic report. This was due to the cost of the boiler for the sugar industry that was not included in the 1979 report. The financing of capital expenditures in agriculture, however, was much different than had been anticipated. While the 1979 report had targeted external inflows of EC$3.1 million, actual external assistance barely reached EC$750,000. 49. The implementation of industrial projects was constrained by DFC's financial and institutional weaknesses and by lack of external assistance. Capital expenditures which were originally estimated at EC$390,000 were about EC$90,000. The only industrial project carried out was the continuation of work on industrial site in Nevis. An ongoing project, the CDB-financed indus- trial estates program, was not continued because of DFC's financial condition. Two new factory shell projects were not initiated since funding was not secured from the UK and EDF, and DFC did not have the resources to provide bridge financing. Both EDF and the UK have shown interest, and it is likely that these projects will start in 1980. CDB has also shown interest in con- tinuing the ongoing factory shell program and in financing new programs once DFC's status is improved. A new project that aims to set up agro-processing facilities for copra and peanuts did not start since funding has not been obtained from BDD. BDD has, however, expressed interest in the project. 50. Some progress was made in increasing tourist promotion and restoring historic sights. With local funds, a promotion campaign was initiated in the United States and BDD continued financing restoration works at Brimstone Hill. CIDA finalized its tourist study and a small sewerage plant was added to the Frigate Bay Complex. Funding remains to be secured from BDD for the implemen- tation of two activities that were scheduled to take place in 1979. They are: (a) the printing of promotion materials; and (b) the start up of a feasibility study on a hotel in Nevis. As a result of expenditures on the Frigate Bay Complex sewerage plant which was not included in the 1979 economic report, expenditures in the tourist sector were higher than anticipated. 51. A considerable amount of investment took place in the transportation sector. Major accomplishments included the start up of work on the deep water port project, the resurfacing of the main road around St. Kitts, and the new terminal building at Golden Rock Airport. Expenditures on the CDB-financed - 13 - deep water port project were much higher than anticipated due to inflation and cost overruns. The project should be completed in 1982 at a cost of about EC$26.0 million as compared with EC$19.5 million estimated in the 1979 econo- mic report. Financing from CDB has been secured in the amount of EC$19.0 million. Expenditures on the main road resurfacing project are -timated to be on target. When completed in 1980, the quality of the road will have great- ly improved. Expenditures on the airport terminal building were much higher than estimated since work is proceeding at a faster pace than anticipated. When the new terminal is completed in 1980, Golden Rock Airport will be up to international standards. The successful implementation of these three major projects was facilitated by their turn-key nature. 52. In addition to the projects discussed above, a considerable number of important transportation projects were initiated and continued with BDD financial assistance. The UK continued its support of the Ministry of Commu- nications and Works by providing funds for the acquisition of equipment and the construction of the Bird Rock Road. Also, late in the year, BDD approved a large grant for the construction of a new plant for the Public Works Department. Funds were also provided for landslide prevention at Old Bay Road; for coast erosion protection at Fort Thomas and Brimstone Hill; and for drainage works at the Golden Rock Airport. An important development was the start up of work on a feeder road program for Nevis and on improvements to the airport terminal at Nevis. These two projects were initiated at an earlier stage than antici- pated and when completed will make an important contribution to Nevis' devel- opment. Funding remains to be secured for two projects that were scheduled for initiation during 1979. They are: (a) the coastal road protection project that aims at constructing embankments to protect existing roads; and (b) the Estate to Harbour Road. In addition, the funding that BDD has already approved for the feeder road program needs to be increased if a sizeable program is to be developed. 53. Thanks to local funds and BDD assistance, minor improvements were made to the electricity distribution system. One important new project that involves procurement and installation of two 380-KW power generating sets in St. Kitts was not carried out since funding has not been secured. However, BDD has indicated interest in financing the project in 1980. Since the improve- ments to the distribution system were not included in the 1979 economic report, expenditures on this project made up for the nonimplementation of the Nevis project. As a result, expenditures in the power sector were similar to the amount anticipated in the 1979 economic report. 54. In communications, a telephone works project was delayed since funding was not secured from BDD. BIJD, however, approved a grant to finance a new VHF link to Nevis and work on this project has started. The implementa- tion of the VHF link project made up for the delay in implementing the tele- phone works project and, as a result, expenditures in communications reached the targeted amount. 55. Some progress took place towards improving health and education. Minor improvements were made to school latrines with local funds. Also, the CDB-funded student loans program was continued. In health, with local funds and BDD and UNDP assistance, improvements took place to the general - 14 - hospital and the health centers. Funding remains to be secured for one proj- ect that is essential to the Government's program of improving primary and secondary education and involves the construction of a secondary school and the replacement of six primary schools. USAID has indicated its intention to finance two of the primary schools through CDB. Therefore, it is likely that the project will start in 1980. 56. In water and sanitation, minor repairs were carried out with local funds. No funding was obtained from BDD for the refurbishment of the Hamilton Reservoir and for the acquistion of pumps for Campswell at Nevis. Meanwhile, a major project, the water development program, was not initiated since CIDA is waiting for the results of a drilling program to be carried out in 1980. In housing, about EC$200,000 was disbursed in the newly launched housing repair program. 57. As a result of delays in implementing major projects, like school construction and water development, expenditures in social infrastructure reached about EC$630,000, as compared with EC$1.3 million that had been estimated in the 1979 economic report. Similarly, external assistance that had been projected at EC$680,000 barely reached EC$200,000. 58. Some progress was made towards improving overall administration. With BDD assistance and local funds, improvements to police stations and to government buildings, took place. Expenditures on these projects were higher than anticipated. C. Global Results 59. The 1979 economic report targeted public sector investment during 1979 at EC$17.1 million. The actual level of investment carried out is esti- mated at EC$16.8 million or very close to the target. This level of invest- ment that represents 15.6% of estimated GDP is substantial by past standards. For example, public sector investment during 1976-78 averaged EC$11.6 million or 13.8% of GDP. Although the overall level of public investment nearly reached the targeted amount, its financing was different from what had been projected. External financing increased from EC$7.6 million in 1978 to an estimated EC$13.8 million in 1979, but fell short of external capital require- ments of EC$15.2 million. On the other hand, domestic financing which was targeted at EC$2.0 million, is estimated to have reached EC$3.0 million. 60. This high level of investment was facilitated by the successful implementation of the three major transportation projects discussed above, which accounted for about 65% of total public sector investment. Project implementation in agriculture was adequate in spite of a scarcity of external financial assistance. Project implementation in industry was constrained by DFC's problems as well as by the lack of financial external assistance. In power and communications, project implementation was adequate although financ- ing for important projects remains to be secured. Project implementation in social infrastructure was seriously constrained by problems of internal and external financing, and by the inconclusive results of the water resources investigation program. - 15 - IV. OUTLOOK A. Financing the Investment Program 61. St. Kitts-Nevis' public sector investment program for the four-year period 1980-83 totals EC$90.7 million, of which EC$84.7 million represents projects that are presently identified as follows: agriculture 24.2%; industry and tourism 4.4%; transportation 37.1%; power and communications 11.7%; and social infrastructure 22.6%. Public sector investment averages 18.7% of GDP during the period 1980-81 reflecting large expenditures on transportation projects. It tapers off to an average of 13.3% in 1982-83. Gross investment, public and private, averages 21.5% of GDP for the period as a whole. This overall rate of investment is believed to be appropriate to generate a real growth rate of 3.0% per annum. 62. The total financing requirements (including external amortiza- tion of EC$2.4 million) for the four year public sector investment program are estimated at EC$93.1 million. On the basis of the projected economic performance for 1980-83 and of the recommendations for fiscal management contained in last year's report, public sector savings are estimated to total EC$25.5 million over the period. Capital revenues are projected at EC$1.4 million, and domestic borrowing at EC$5.0 million. A balance of EC$61.2 million, or 65.7% of the total financing requirements, remains to be filled by external capital inflc#s. Of this amount, EC$28.7 million has been committed to ongoing projects, E.$29.4 has some donor/ lender interest and the rest, EC$3.1 million, has no identified donor/lender interest. 63. If the public sector investment program is to materialize, all the main components in the financing plan need to be realized. First, it is essential that public sector savings attain the indicated levels. Second, it is crucial that donor/lender commitments be obtained for the projects included in the public sector investment program. Third, external technical assistance needs to be secured. B. Conclusion 64. St. Kitts-Nevis' economic performance in recent years, and its productive potential indicate that the rate of economic growth projected at 3% per annum can be achieved. There are, however, several essential steps to be taken to reach this target. Foremost among them are: (a) the successful execution of the public sector investment program; (b) restraint regarding the growth of current expenditures in the public sector; and (c) the pursuit of appropriate policies to deal with the major development issues discussed in last year's economic report and in this memorandum. - 16 - 65. As indicated in paragraph 62 above, external capital require- ments for 1980-83 are estimated at EC$61.2 million. The external debt service ratio of about 4.3% of exports of goods and services should be manageable. However, in view of its relatively low income per capita, and of the large amounts of external capital needed for development, the country is not creditworthy at this juncture for borrowing on conventional terms. There- fore, it must continue to rely heavily on capital grants and concessional loans for financing its development program. Provided the indicated measures are implemented, public finances are strengthened, and economic growth achieves the targeted rate, external borrowing on conventional terms might become feasible over the longer term. - 17 - ST. KITTS-NEVIS GOVERNMENT'S PROJECT LIST 1. This annex contains a list of major ongoing projects, a list of projects for which external finance will be sought during the period 1980/83, individual project descriptions and individual technical assist- ance profiles. Each list contains the name of the project, the executing agency, the lender-donor, if any, the total cost, the external financing obtained or required, the counterpart contribution required, and the estimated recurrent costs during the 1980/83 period. The individual pro- files contain additional information which should be of interest to potential donors or lenders, including technical assistance requirements and the present status of the project. 2. Data for these projects, which will be presented to the meeting of the Caribbean Group for Cooperation in Economic Development scheduled for June 23-27, 1980, were provided by the Government of St. Kitts-Nevis as outlined in the Economic Report dated April 18, 1979 and in the present Memorandum. -18- ST. KITTS-INEVIS: NiJQR ONGOLEG PROJECTS (us$' 000) External Aaortizatinn Grace Counterpart Total Financing Interest Period Period Financing Recurrent Cost. Cost Secured Source 2 (Years) (Years) Anount X 1980T 1981 1982 1983 Agriculture Sugar Indu-try Equipment 272 272 UK Grant _ _ - _ Sugar Cane Replanting 1,512 - TIK Grant - - 756 50 Indu-try Large Factory BRildingo 350 350 CDB 4 15 5 - - - - - Transportat ion Plant, Eqoip-ent Workshon- PWD 76 76 UK Grant - - - - 2 2 3 3 Golden Rock Airport Terninal 2,333 2,333 CIDA Grant Ring Road Reinstate-nt 1,536 1,536 EDF Grant Deepwater Port and Equipmnot 9,600 8,700 CDB 4 15 5 900 9 - - - Ne-is Feeder Roado 489 329 UK Grant - - 160 33 Commn.ications Nevis UEF Link 300 300 UK Grant _- - _ Health Inprove-n-t of Health Centecs 93 74 UK//UNFPA Grant - - 19 B0 Education Student Loans Higher Education #1 76 76 CDB 4 15 5 Third Country Training 490 490 CIDA Grant - - Miscellaneous Misiion Adninintered FPnd 50 50 CIDA Grant -19- ST. KITTS-NEVIS: MAJOR NEW PROJECTS AND SOURCES OF FINANCING (US$'000) External Counterpart Total Financing Financing Recurrent Costs Cost Required Source Amount % 1980 1981 1982 1983 Agriculture Livestock Development 1,018 Local - 1,018 100 - - - - Irrigation Investigation 348 348 CIDA - - - - - - Abbatoir 174 156 CIDA 18 10 - - - - Livestock Production Sugar Cane Feed: Nevis 222 200 CDB, EDF 22 10 - - - - Fisheries Development 2,660 1,630 CDB 1,030 39 - - - - Corn-Cassava Mill 21 21 UNDP - - - - - - Minor Irrigation, Nevis 34 23 UK 11 32 - - - - Afforestation 55 55 CDB - - - - - - Nevis Coconuts and Cotton 95 95 UK - - - - - - Sugar Irrigation 283 283 UK - - - - - - Sugar Factory Equipment 93 93 UK - - - - - - 65-Acre Vegetable Project 313 192 CDB 121 39 - - - - NACO Field Equipment 472 472 UK - - - - - - Industry Factory Shells 130 130 EDF, CIDA - - - - - - Small Business Development 93 85 CIDA 8 10 - - - - Agriculture & Industrial Credit #2 900 900 CDB - - - - - - Development Industrial Estates 67 67 UK - - - - - - Agro-processing - Copra, Peanuts 58 58 UK - - - - - - Factory Shells 450 450 CDB - - - - - - Tourism Renovation Historic Buildings 38 38 UK - - - - - - Tourism Shopping Arcade 84 49 Unknown 35 42 - - - - Transportation Nevis Ferry 264 212 UK 52 20 - - - - Road Coastal Protection 76 76 UK - - - - 8 10 Newcastle Airport, Nevis 124 112 Unknown 12 10 - - - - Frigate Bay/Conaree Road 148 118 Unknown 30 20 - - - - Frigate Bay/Majors Bay Road 370 296 EDF 74 20 - - - - Road Maintenance & Garage Equipt. 191 168 Unknown 23 12 - - - - Feeder Roads, St. Kitts 352 308 CDB 44 13 - - - - Microwave Landing System 370 370 Unknown - - - - - - Power Power Station Extension/Nevis Electricity 852 657 UK 195 23 - - - - Replacement Underground Power Cables 93 56 Unknown 37 40 - - - - Upgrading Electrical System, St. Kitts 978 489 CDB 489 50 - - - - Communications Telephone Works 236 236 UK - - - - - - Telephone: Short Term Replace. Extension 1,095 611 CDB 484 44 - - - - Water and Sewerage Water Development 3,481 2,769 CIDA/CDB 712 20 - - - - Education Tertiary Education 1,007 - Local 1,007 100 - - - - Schools-Expansion, Renovation, Replacement 3,537 387 GDb, UK 3,150 90 10 12 14 16 Student Loans, Higher Education 150 150 CDB - - - - - - Housing Housing Program 444 444 CDB - - - - - - -20- ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Agriculture (US$ '000) I. NAME OF PROJECT: Livestock Development II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture III. TOTAL ESTIMATED COST: US$1,018 IV. EXTERNAL FINANCING REQUIRED: None V. LENDING AGENCY: Local VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project would establish a general program to improve livestock rearing practices and upgrade and expand the livestock population. B. Justification: Strong potential exists for increased livestock production on the islands both for local meat consumption and for export. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount X Local Costs 254 - 254 25 Foreign Costs 764 - 764 75 Total Costs - Amount 1,018 - 1,018 -% 100 - 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources 148 74 185 611 1,018 - External Sources - - - - - - Total 148 74 185 611 1,018 - -21- IX. STATUS OF PREPARATION: Project has been identified. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1980-83 Debt Obligations: None XI. TECHNICAL ASSISTANCE REQUIRED: Technical assistance will be required at all stages. -22- ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Agriculture (US$ '000) I. NAME OF PROJECT: Irrigation Investigation II. EXECUTING GOVERNMENT AGENCY: National Agricultural Corporation III. TOTAL ESTIMATED COST: US$348 IV. EXTERNAL FINANCING REQUIRED: US$348 V. LENDING AGENCY: CIDA VI. DESCRIPTION AND JUSTIFICATION: The study aims to investigate the possibilities for irrigation, especially of sugarcane, on St. Kitts. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 35 35 10 Foreign Costs - 313 313 90 Total Costs - Amount - 348 348 -% - 100 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - - - - External Sources 37 161 150 - 348 - Total 37 161 150 - 348 - -23- IX. STATUS OF PREPARATION: The study is related to the Water Development Project, financing of which is under consideration by CIDA. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: ) N Debt Obligations: N XI. TECHNICAL ASSISTANCE REQUIRED: CIDA is expected to provide the necessary technical assistance. -24- ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Agriculture (US$ '000) I. NAME OF PROJECT: Abattoir II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture III. TOTAL ESTIMATED COST: US$174 IV. EXTERNAL FINANCING REQUIRED: US$156 V. LENDING AGENCY: CIDA VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project consists of the construction of two small abattoirs, one in St. Kitts and the other on Nevis. B. Justification: Good prospects exist for increased meat production on the islands both for local consumption and for export. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 18 25 43 25 Foreign Costs - 131 131 75 Total Costs - Amount 18 156 174 - % 10 90 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources 8 8 2 - 18 - External Sources 63 43 50 - 156 - Total 71 51 52 - 174 - -25- IX. STATUS OF PREPARATION: The project is under consideration by CIDA. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: ) N Debt Obligations: N XI. TECHNICAL ASSISTANCE REQUIRED: CIDA is expected to provide necessary technical assistance. -26- ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Agriculture (US$ '000) I. NAME OF PROJECT: Livestock Production Sugarcane Feed: Nevis II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture III. TOTAL ESTIMATED COST: US$222 IV. EXTERNAL FINANCING REQUIRED: US$200 V. LENDING AGENCY: CDB, EDF VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project aims to develop a program of livestock rearing on Nevis based on sugarcane feed. B. Justification: Strong potential exists on the island for increased meat production for local consumption and export. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 22 67 89 40 Foreign Costs - 133 133 60 Total Costs - Amount 22 200 222 -% 10 90 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources 7 11 4 - 22 - External Sources 37 111 52 - 200 Total 44 122 56 - 222 -27- IX. STATUS OF PREPARATION: The project is under consideration by CDB and EDF. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: None during 1990-83. XI. TECHNICAL ASSISTANCE REQUIRED: CDB and EDF are expected to provide the necessary technical assistance. -28- ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Agriculture (US$ '000) I. NAME OF PROJECT: Fisheries Development II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture III. TOTAL ESTIMATED COST: US$2,660 IV. EXTERNAL FINANCING REQUIRED: US$1,630 V. LENDING AGENCY: CDB VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project involves a study to examine require- ments of the fishing industry in St. Kitts-Nevis in order to produce a regional strategy. The entire project is to be modeled on the ongoing Canadian fisheries project in St. Lucia which included improved techniques and local handling and storage. Specific components of the project include training, organizational improvements, provision of lending facilities and a starter fleet of 25 40-ft fishing vessels. B. Justification: The project would diversify economic activity on the islands, improve nutrition, promote food self-sufficiency and possibly exports. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 266 - 266 10 Foreign Costs 764 1,630 2,394 90 Total Costs - Amount 1,030 1,630 2,660 -% 40 60 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - 1,030 1,030 - External Sources - - 978 652 1,630 - Total - - 978 1,682 2,660 - -29- IX. STATUS OF PREPARATION: A grant from CIDA as part of the CIDA Regional Fisheries project is under consideration. A preliminary Report on Development of the fishing industry was undertaken in 1976. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1980-83. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: Technical assistance will be required for further preparation and implementation. -30- ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Agriculture (US$ '000) I. NAME OF PROJECT: Corn/Cassava Mill II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture III. TOTAL ESTIMATED COST: US$21 IV. EXTERNAL FINANCING REQUIRED: US$21 V. LENDING AGENCY: UNDP VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project involves establishment of a mill to process 100 tons of corn/cassava annually. B. Justification: The mill would promote import substitution of corn meal and flour. The present mill is obsolete and frequently inoperative. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 6 6 25 Foreign Costs _ 15 15 75 Total Costs - Amount - 21 21 -% - 100 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - - - - External Sources _ - 21_ 21 Total - - 21 - 21 -31- IX. STATUS OF PREPARATION: Project has been identified. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None (replaces existing mill). Debt Obligations: Not determined. XI. TECHNICAL ASSISTANCE REQUIRED: None. -32- ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Agriculture (US$ '000) I. NAME OF PROJECT: Brackish Water Fish Culture II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture III. TOTAL ESTIMATED COST: US$37 IV. EXTERNAL FINANCING REQUIRED: US$24 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project consists of procurement of survey equipment and aid for starting fish culture on a pilot basis, for a period of 3 years in the Conaree Pond and Frigate Bay Pond. B. Justification: The project would utilize existing pools of inland water to supplement the presently inadequate fish supply. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 13 17 30 80 Foreign. Costs - 7 7 20 Total Costs - Amount 13 24 37 -% 25 65 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources 13 - - - 13 - External Sources - 9 15 - 24 Total 13 9 15 37- -33- IX. STATUS OF PREPARATION: Pre-feasibility study has been undertaken. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: ) N Debt Obligations: N XI. TECHNICAL ASSISTANCE REQUIRED: Necessary technical assistance is to be provided by Regional Fisheries Association. -34- ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Agriculture (US$ '000) I. NAME OF PROJECT: Tick Control II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture III. TOTAL ESTIMATED COST: US$22 IV. EXTERNAL FINANCING REQUIRED: US$9 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project involves the establishment of spraying facilities at centralized locations where groups of farmers can have their cattle sprayed peri- odically, at a fee which would cover operating costs. B. Justification: The project would promote increased output of milk and beef as a result of improved pest control. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 9 - 9 40 Foreign Costs 4 9 13 60 Total Costs - Amount 13 9 22 - % 60 40 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources 13 - - - 13 - External Sources - 9 - - 9 Total 13 9 - - 22 -35- IX. STATUS OF PREPARATION: Project has been identified. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: ) N Debt Obligations: N XI. TECHNICAL ASSISTANCE REQUIRED: None -36- ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Agriculture (US$ '000) I. NAME OF PROJECT: Minor Irrigation: Nevis II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture III. TOTAL ESTIMATED COST: US$34 IV. EXTERNAL FINANCING REQUIRED: US$23 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project involves construction of 30 small dams and ponds on small farm holdings in Nevis in order to provide water for animals and for land watering of crops. B. Justification: The project would promote increased production of livestock and vegetables. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 11 23 34 100 Foreign Costs - - - - Total Costs - Amount 11 23 34 -% 32 68 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources 11 - - - 11 - External Sources - 11 12 _ 23 _ Total 11 11 12 - 34 - -37- IX. STATUS OF PREPARATION: The project has been identified. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: ) N Debt Obligations: N XI. TECHNICAL ASSISTANCE REQUIRED: None -38-. ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Agriculture (US$ '000) I. NAME OF PROJECT: Ginnery Improvement II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture III. TOTAL ESTIMATED COST: US$27 IV. EXTERNAL FINANCING REQUIRED: US$11 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project comprises repairs and maintenance to improve efficiency of the ginnery, and technical assistance. B. Justification: The project would promote increased production of cotton for export, by reducing incidence of pink ballworm and improving improving efficiency of the ginnery. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 7 - 7 25 Foreign Costs 9 11 20 75 Total Costs - Amount H 11 27 - % 60 40 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources 16 - - - 16 - External Sources - 11 - - 11 _ Total 16 11 - - 7 -39- IX. STATUS OF PREPARATION: The project has been identified. The UK has been approached for funding of aspects of the project. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: No incremental costs expected during the project. Debt Obligations: None XI. TECHNICAL ASSISTANCE REQUIRED: A cotton specialist will be required for project implementation. -40- ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Agriculture (US$ '000) I. NAME OF PROJECT: Afforestation II. EXECUTING GOVERNMIENT AGENCY: Ministry of Agriculture III. TOTAL ESTIMATED COST: US$55 IV. EXTERNAL FINANCING REQUIRED: US$55 V. LENDING AGENCY: CDB (USAID Funds) VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project involves establishment of 50 acres of timber on marginal lands for use in the production of forestry products. B. Justification: The project will assist in diversifying the agricultural sector and promote import substi- tution of forestry products. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 49 49 90 Foreign Costs - 6 6 10 Total Costs - Amount - 55 55 - % - 100 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - - - - External Sources - 23 32 - 55 Total - 23 32 - 55 -41- IX. STATUS OF PREPARATION: The project has been identified. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1980-83 Debt Obligations: Not determined XI. TECHNICAL ASSISTANCE REQUIRED: Technical assistance will be required to prepare the project and to trains local staff. -42- ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Agriculture (US$ '000) I. NAME OF PROJECT: Nevis Coconuts and Cotton II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture III. TOTAL ESTIMATED COST: US$95 IV. EXTERNAL FINANCING REQUIRED: US$95 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: A. Description: Project aims to expand and upgrade production of coconuts and cotton. B. Justification: The project would promote diversified agri- cultural production on Nevis. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 24 24 25 Foreign Costs - 71 71 75 Total Costs - Amount - 95 95 -% - 100 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - - - - External Sources - 57 38 - 95 Total - 57 38 - 95 -43- IX. STATUS OF PREPARATION: Project has been submitted to the UK. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: ) N Debt Obligations: N XI. TECHNICAL ASSISTANCE REQUIRED: The UK is expected to provide the necessary Technical Assistance. -44- ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Agriculture (US$ '000) I. NAME OF PROJECT: Sugar Irrigation II. EXECUTING GOVERNMENT AGENCY: NACO III. TOTN.L ESTIMATED COST: US$283 IV. EXTERNAL FINANCING REQUIRED: US$283 V. LEND-NG AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project aims to provide irrigation systems for sugarcane producers. B. Justification: The project is expected to increase output of sugarcane. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 71 71 25 Foreign Costs 212 212 75 Total Costs - Amount 283 283 - % 100 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - - - - External Sources - 189 94 _ 283 _ Total - 189 94 - 283 - -45- IX. STATUS OF PREPARATION: A request for project funding is under consideration by the UK. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: ) N Debt Obligations: N XI. TECHNICAL ASSISTANCE REQUIRED: The UK is expected to provide the necessary Technical assistance. -46- ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Agriculture (US$ '000) I. NAME OF PROJECT: Sugar Factory Equipment II. EXECUTING GOVERNMENT AGENCY: St. Kitts Sugar Manufacturing III. TOTAL ESTIMATED COST: US$93 IV. EXTERNAL FINANCING REQUIRED: US$93 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project involves procurement of a syrup filter and Edwards Hydraulic for the sugar mill. B. Justification: The equipment would improve efficiency of the sugar factory. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs Foreign Costs - 93 93 100 Total Costs - Amount - 93 93 -% - 100 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - - - - External Sources - 93 - _ 93 - Total - 93 - - 93 - -47- IX. STATUS OF PREPARATION: The project has been identified, and financing of some of the equipment requested is under considera- tion by the UK. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: ) N Debt Obligations: N XI. TECHNICAL ASSISTANCE REQUIRED: None -48- ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Agriculture (US$ '000) I. NAME OF PROJECT: 65-acre Vegetable Project II. EXECUTING GOVERNMENT AGENCY: NACO III. TOTAL ESTIMATED COST: US$313 IV. EXTERNAL FINANCING REQUIRED: US$192 V. LENDING AGENCY: CDB VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project involves commercial production of a wide variety of vegetables at Pond's Estate. B. Justification: The project would promote self-sufficiency in food production and improved nutrition. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount _ Local Costs 110 - 110 35 Foreign Costs 11 192 203 65 Total Costs - Amount 121 192 313 -% 39 61 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - 54 67 - 121 - External Sources _ 55 137 - 192 - Total - 109 204 - 313 - -49- IX. STATUS OF PREPARATION: Feasibility study has been undertaken. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: ) N Debt Obligations: N XI. TECHNICAL ASSISTANCE REQUIRED: Vegetable agronomist is needed to assist in implementation. -50- ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Agriculture (US$ '000) I. NAME OF PROJECT: NACO Field Equipment II. EXECUTING GOVERNMENT AGENCY: National Agricultural Corporation III. TOTAL ESTIMATED COST: US$472 IV. EXTERNAL FINANCING REQUIRED: US$472 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project involves procurement of field equipment, including five Broussard loaders; for NACO. B. Justification: The existing loaders are obsolete and maintenance costs are high. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - - - - Foreign Costs - 472 472 100 Total Costs - Amount - 472 472 -% - 100 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - - - - External Sources 190 189 93 - 472 Total 190 189 93 472 -51- IX. STATUS OF PREPARATION: The required equipment has been identified and costed. The UK has been approached for funding. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: ) Debt Obligations: None XI. TECHNICAL ASSISTANCE REQUIRED: None -52- ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Industry (US$ '000) I. NAME OF PROJECT: Factory Shells II. EXECUTING GOVERNMENT AGENCY: Development Finance Corporation III. TOTAL ESTIMATED COST: US$130 IV. EXTERNAL FINANCING REQUIRED: US$130 V. LENDING AGENCY: EDF, CIDA VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project would provide for a factory shell to be always ready for inspection and immediate occupency. B. Justification: The project would promote the establishment of private sector industrial enterprise on the islands. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount _ Local Costs 32 - 32 25 Foreign Costs 98 _ 98 75 Total Costs - Amount 130 130 % - - 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - - 130 - External Sources - 130 - - - - Total - 130 - - 130 - -53- IX. STATUS OF PREPARATION: The project is a continuation of ongoing programs. X. PROJECT IMPLICATIONS: Operating and HIaintenance Costs: ) N Debt Obligations: N XI. TECHNICAL ASSISTANCE REQUIRED: None -54- ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Industry (US$ '000) I. NAME OF PROJECT: Small Business Development II. EXECUTING GOVERNMENT AGENCY: Ministry of Trade, Industry and Tourism III. TOTAL ESTIMATED COST: US$93 IV. EXTERNAL FINANCING REQUIRED: US$85 V. LENDING AGENCY: CIDA VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project wil extend the Barbados Institute of Management and productivity into St. Kitts-Nevis to provide counselling for small business. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 8 - 8 10 Foreign Costs - 85 85 90 Total Costs - Amount 8 85 93 -% 10 90 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources 4 4 - - 8 - External Sources 33 33 19 _ 85 _ Total 37 37 19 - 93 - -55- IX. STATUS OF PREPARATION: A regional grant for small business develop- ment is presently under consideration by CIDA. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: ) N Debt Obligations: N XI. TECHNICAL ASSISTANCE REQUIRED: The necessary technical assistance will be provided by CIDA and the Barbados Institute of Management and Productivity. -56- ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Industry (us$ '000) I. NAME OF PROJECT: Agricultural and Industrial Credit #2 II. EXECUTING GOVERNMENT AGENCY: Development Finance Corporation III. TOTAL ESTIMATED COST: US$900 IV. EXTERNAL FINANCING REQUIRED: US$900 V. LENDING AGENCY: CDB VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project is a continuation of the CDB agricultural and industrial credit scheme. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount _ Local Costs - 200 200 100 Foreign Costs - - - - Total Costs - Amount - 200 200 -% - 100 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - - - - External Sources - 100 100 100 300 600 Total - 100 100 100 300 600 -57- IX. STATUS OF PREPARATION: CDB has been approached for a replenishment of the ongoing AIC. X. TERMS OF FINANCING: Interest Rate: 4 Amortization Period: 15 XI. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: None during 1980-83. XII. TECHNICAL ASSISTANCE REQUIRED: None. -58- ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Industry (US$ '000) I. NAME OF PROJECT: Development of Industrial Estates II. EXECUTING GOVERNMENT AGENCY: Development Finance Corporation III. TOTAL ESTIMATED COST: US$67 IV. EXTERNAL FINANCING REQUIRED: US$67 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project consists of construction of industrial estates. B. Justification: The project is expected to promote the establishment of private sector industrial enterprises. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 11 17 25 Foreign Costs - 50 50 75 Total Costs - Amount - 67 67- -% - 100 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - - - - External Sources - 19 48 - 67 Total - 19 48 - 67 -59- IX. STATUS OF PREPARATION: Funding for the project is under consideration by the UK. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: ) Debt Obligations: None XI. TECHNICAL ASSISTANCE REQUIRED: None -60- ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Industry (US$ '000) I. NAME OF PROJECT: Agro-processing (Copra-Peanuts) II. EXECUTING GOVERNMENT AGENCY: Ministry of Trade, Industry and Tourism III. TOTAL ESTIMATED COST: US$58 IV. EXTERNAL FINANCING REQUIRED: US$58 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project aims to set up agro-processing facilities based on crops produced in Nevis. B. Justification: The project would promote diversification of agricultural and industrial production. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 14 14 25 Foreign Costs - 44 44 75 Total Costs - Amount - 58 58 -% - 100 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - - - - External Sources - 29 29 - 58 - Total - 29 29 58 - -61- IX. STATUS OF PREPARATION: The UK has been approached. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: ) Debt Obligations: None XI. TECHNICAL ASSISTANCE REQUIRED: The UK is expected to provide the necessary technical assistance. - 62 - ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Industry (us$ '000) I. NAME OF PROJECT: Factory Shells II. EXECUTING GOVERNMENT AGENCY: Development Finance Corporation III. TOTAL ESTIMATED COST: US$450 IV. EXTERNAL FINANCING REQUIRED: US$450 V. LENDING AGENCY: CDB VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project consists of the construction of 35,000 square feet of factory space. B. Justification: To promote the establishment of private sector industrial enterprises. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 160 160 35 Foreign Costs 290 290 65 Total Costs - Amount 450 450 -% - 100 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - - - - External Sources - 65 130 130 325 125 Total - 65 130 130 325 125 - 63 - IX. STATUS OF PREPARATION: CDB is considering financing the project once DFC is restructured. X. TERMS OF FINANCING: Interest Rate: 4% Amortization Period: 15 years XI. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: None during 1980-83. XII. TECHNICAL ASSISTANCE REQUIRED: None. - 64 - ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Tourism (US$ '000) I. NAME OF PROJECT: Tourism Promotion Material II. EXECUTING GOVERNMENT AGENCY: Ministry of Trade, Industry, and Tourism III. TOTAL ESTIMATED COST: US$20 IV. EXTERNAL FINANCING REQUIRED: US$20 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project involves preparation and provision of tourism promotion materials (Brochures, etc.) VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 8 8 40 Foreign Costs - 12 12 60 Total Costs - Amount - 20 20 -% - 100 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - - - - External Sources 10 10 - - 20 Total 10 10 - 20 - 65 - IX. STATUS OF PREPARATION: The UK has been approached for funding. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: To be met by revenues from tourist sites. Debt Obligations: None XI. TECHNICAL ASSISTANCE REQUIRED: The UK is expected to provide the necessary, technical assistance (see Technical Assistance Profiles). - 66 - ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Tourism (US$ '000) I. NAME OF PROJECT: Renovation of Historic Buildings II. EXECUTING GOVERNMENT AGENCY: Ministry of Trade, Industry, and Tourism III. TOTAL ESTIMATED COST: US$38 IV. EXTERNAL FINANCING REQUIRED: US$38 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project involves repair and renovation of historic buildings. B. Justification: The sites are considered to hold potential attraction for tourists. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 9 9 25 Foreign Costs - 29 29 75 Total Costs - Amount - 38 38 -% - 100 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - - External Sources 19 19 - - 38 Total 19 19 38 - 67 - IX. STATUS OF PREPARATION: The UK has approached for funding. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: To be met from tourist revenues. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: The UK is expected provide the necessary technical assistance (see Technical Assistance Profiles). - 68 - ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Tourism (US$ '000) I. NAME OF PROJECT: Tourism Shopping Arcade II. EXECUTING GOVERNMENT AGENCY: Ministry of Trade, Industry, and Tourism III. TOTAL ESTIMATED COST: US$84 IV. EXTERNAL FINANCING REQUIRED: US$49 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project involves provision of a handicraft emporium for tourist shopping, selling local handicrafts as an extension to the currently operating handicraft manufacturing center as well as functioning as a tourism promotion center. B. Justification: The premises would enable tourists to examine and purchase handicrafts at one centralized site. An increase in tourism receipts and in local handicraft employment is expected to result from the project. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 21 - 21 25 Foreign Costs 14 49 63 75 Total Costs - Amount 35 49 84 - % 42 58 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - 14 21 35 - External Sources - - 28 21 49 - Total - - 42 42 84 - - 69 - IX. STATUS OF PREPARATION: The project has been identified and a site has been selected. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1980-83. Debt Obligations: Not determined. XI. TECHNICAL ASSISTANCE REQUIRED: None. - 70 - ST. KITTS-NEVIS 1979/83 Project List - Individual Project Description Transportation (US$ '000) I. NAME OF PROJECT: Nevis Ferry II. EXECUTING GOVERNMENT AGENCY: Ministry of Communications, Works and Public Utilities III. TOTAL ESTIMATED COST: US$264 IV. EXTERNAL FINANCING REQUIRED: US$212 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: A. Description: Project involves procurement of a flat-bottomed, low-loading, fast ferry capable of carrying 200 passengers, and cargo items of up to 20 tons in weight. Provision is included for a feasibility study to determine, inter alia, specific type vessel required, where ferry should dock, and what type pier is needed. B. Justification: Present ferry is slow, requires much maintenance, and is incapable of carrying heavy plant and equipment needed for development of Nevis. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 52 - 52 20 Foreign Costs - 212 212 80 Total Costs - Amount 52 212 264 - % 20 80 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - 26 26 52 - External Sources - - 106 106 212 Total - - 132 132 264 4 - 71 - IX. STATUS OF PREPARATION: Project has been identified. UK has been approached. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1980-83. Debt Obligations: Not determined. - 72 - ST. KITTS-NEVIS 1979/83 Project List - Individual Project Description Transportation (US$ '000) I. NAME OF PROJECT: Road Coastal Protection II. EXECUTING GOVERNMENT AGENCY: Ministry of Communication, Works and Public Utilities III. TOTAL ESTIMATED COST: US$76 IV. EXTERNAL FINANCING REQUIRED: US$76 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: A. Description: Project involves construction of embankments to protect existing coastal roads. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount _ Local Costs - 46 46 60 Foreign Costs - 30 30 40 Total Costs - Amount - 76 76 -% - 100 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - - - - External Sources 38 38 - - 76 Total 38 38 - - 76 - 73 - IX. STATUS OF PREPARATION: Project has been submitted to the UK for financing. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: 1982 1983 8 10 Debt Obligations: None XI. TECHNICAL ASSISTANCE REQUIRED: None - 74 - ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Transportation (US$ '000) I. NAME OF PROJECT: New Castle Airport: Nevis II. EXECUTING GOVERNMENT AGENCY: Ministry of Communications, Works and Public Utilities III. TOTAL ESTIMATED COST: US$124 IV. EXTERNAL FINANCING REQUIRED: US$112 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: Project involves extension of the runway by 2,000 ft. for a total of 4,000 ft. of asphalt, capable of lending AVRO 748's of Liat, and construction of a new terminal building. B. Justification: Project would permit direct service to Nevis by Liat 748's in order to attract a greater number of tourist arrivals. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 12 18 30 25 Foreign Costs - 94 94 75 Total Costs - Amount 12 112 124 -% 10 90 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - 12 12 - External Sources - - 63 49 112 - Total - - 63 61 124 - - 75 - IX. STATUS OF PREPARATION: CIDA has completed resurfacing of existing 2,000-ft runway. Feasibility study of further runway extension and new terminal building has yet to be undertaken. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1980-83. Debt Obligations: XI. TECHNICAL ASSISTANCE REQUIRED: Technical assistance is required for feasibility study. - 76 - ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Transportation (US$ '000) I. NAME OF PROJECT: Frigate Bay/Conaree Road II. EXECUTING GOVERNMENT AGENCY: Ministry of Communications, Works and Public Utilities III. TOTAL ESTIMATED COST: US$148 IV. EXTERNAL FINANCING REQUIRED: US$118 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: Project involves construction of a road from the airport to Frigate Bay development along a 100-ft. contour, the route is partially covered by bitumen. B. Justification: The route would bring tourists to Frigate Bay along a scenic route. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount _ Local Costs 30 29 59 40 Foreign Costs - 89 89 60 Total Costs - Amount 30 118 148 - % 20 80 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - 15 30 15 External Sources - - - 59 118 59 Total - - - 74 148 74 - 77 - IX. STATUS OF PREPARATION: Project has been identified. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1980-83. Debt Obligations: XI. TECHNICAL ASSISTANCE REQUIRED: None. - 78 - ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Transportation (US$ '000) I. NAME OF PROJECT: Frigate Bay/Majors Bay Road II. EXECUTING GOVERNMENT AGENCY: Ministry of Communications, and Public Utilities III. TOTAL ESTIMATED COST: US$370 IV. EXTERNAL FINANCING REQUIRED: US$296 V. LENDING AGENCY: EDF VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project involves construction of a primary road of approximately 5 miles. B. Justification: The project is prepared to contribute to revitalization of the Solar Salt industry, and to open up a peninsula for development and settlement. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 74 74 148 40 Foreign Costs - 222 222 60 Total Costs - Amount 74 296 370 - % 20 80 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - 37 74 37 External Sources - - 93 148 296 55 Total - - 93 185 370 92 - 79 - IX. STATUS OF PREPARATION: Project has been identified. EDF has been approached. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: ) N during 1980 83 Debt Obligations: N XI. TECHNICAL ASSISTANCE REQUIRED: None. - 80 - ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Transportation (US$ '000) I. NAME OF PROJECT: Road Maintenance and Garage Equipment II. EXECUTING GOVERNMENT AGENCY: Ministry of Communications, Works and Public Utilities III. TOTAL ESTIMATED COST: US$191 IV. EXTERNAL FINANCING REQUIRED: US$168 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: Project involves the purchase of garage equip- ment and tools, and road maintenance equipment including: one roller, two 5-ton lorries, one backhoe to front end loader, one bitumen distribution heater, one D-6 bulldozer, one motor grader, two land rovers. B. Justification: The equipment is needed to repair road construction/maintenance machinery, trucks, etc. of the PWD; to carry out routine road maintenance jobs and some reconstruction projects on feeder roads. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - - - - Foreign Costs 23 168 191 100 Total Costs - Amount 23 168 191 - % 12 88 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - 7 - 16 23 - External Sources - 30 74 64 168 - Total - 37 74 80 191 - - 81 - IX. STATUS OF PREPARATION: Project has been identified and equipment list prepared. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: ) N dui 1980 83 Debt Obligations: N XI. TECHNICAL ASSISTANCE REQUIRED: An equipment expect should be consulted to review the equipment list. - 82 - ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Transportation (US$ '000) I. NAME OF PROJECT: Feeder Roads: St. Kitts II. EXECUTING GOVERNMENT AGENCY: Ministry of Communications, Works and Public Utilities III. TOTAL ESTIMATED COST: US$352 IV. EXTERNAL FINANCING REQUIRED: US$308 V. LENDING AGENCY: CDB VI. DESCRIPTION AND JUSTIFICATION: A. Description: Project involves grading of feeder roads, with upgrading of Wingfield to Molineaux and Halfway Tree to interior with a bitumen surface. B. Justification: Feeder roads are expected to increase the amount of sugarcane land accessible to cultivation. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 44 167 211 60 Foreign Costs - 141 141 40 Total Costs - Amount 44 308 352 -% 13 87 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - 44 44 - External Sources - - 130 178 308 Total - - 130 222 352 - 83 - IX. STATUS OF PREPARATION: Project has been identified. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1980-83. Debt Obligations: Not determined. XI. TECHNICAL ASSISTANCE REQUIRED: None. - 84 - ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Transportation (us$ '000) I. NAME OF PROJECT: Microwave Landing System (MLS) II. EXECUTING GOVERNMENT AGENCY: Ministry of Trade, Industry and Tourism III. TOTAL ESTIMATED COST: US$370 IV. EXTERNAL FINANCING REQUIRED: US$370 V. LENDING AGENCY: Unkown VI. DESCRIPTION AND JUSTIFICATION: A. Description: Acquisition of an MLS. B. Justification: To improve airport landing facilities. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - - - Foreign Costs - 370 370 100 Total Costs - Amount - 370 370 -% - 100 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - - - - External Sources _ 370 - - 370 Total - 370 - - 370 - 85 - IX. STATUS OF PREPARATION: The project has been identified. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: To be met by airport revenues. Debt Obligations: Not known. XI. TECHNICAL ASSISTANCE REQUIRED: EDF finished in June 1979 a study on navigational facilities at Golden Rock Airport which included specifications for new equipment. - 86 - ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Power (US$ '000) I. NAME OF PROJECT: Power Station Extension (Nevis)/Generating Sets for Nevis Electricity. II. EXECUTING GOVERNMENT AGENCY: Ministry of Communications, Works and Public Utilities. III. TOTAL ESTIMATED COST: US$852 IV. EXTERNAL FINANCING REQUIRED: US$657 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: A. Description: Project involves procurement and installation of two 580-KV power generating sets for Nevis, and construction of a new power station. B. Justification: The power constraint on Nevis is severe and is expected to worsen with increased demand arising from industrial expansion. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 85 - 85 10 Foreign Costs 110 657 767 90 Total Costs - Amount 195 657 852 -% 23 77 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - 195 195 - External Sources 96 189 187 185 657 - Total 96 189 187 380 852 - - 87 - IX. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1980-83. Debt Obligations: Not determined. - 88 - ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Power (US$ '000) I. NAME OF PROJECT: Replacement Underground Power Cables II. EXECUTING GOVERNMENT AGENCY: Ministry of Communications, Works and Public Utilities III. TOTAL ESTIMATED COST: US$93 IV. EXTERNAL FINANCING REQUIRED: US$56 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project involves installation of new under- ground cables in Basseterre to replace the existing worn-out cables. B. Justification: The underground cables are old and overworked, requiring replacement to ensure uninterrupted power supply. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 19 - 19 20 Foreign Costs 18 56 74 80 Total Costs - Amount 37 56 93 -% 40 60 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - 37 - - 37 - External Sources - - 56 - 56 Total - 37 56 - 93 - 89 - IX. STATUS OF PREPARATION: Project is ready for implementation. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: No increase in operating costs expected. Debt Obligations: None XI. TECHNICAL ASSISTANCE REQUIRED: None - 90 - ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Power (US$ '000) I. NAME OF PROJECT: Upgrading Electrical System: St. Kitts II. EXECUTING GOVERNMENT AGENCY: III. TOTAL ESTIMATED COST: US$978* IV. EXTERNAL FINANCING REQUIRED: US$489 V. LENDING AGENCY: CDB VI. DESCRIPTION AND JUSTIFICATION: A. Description: Project involves installation of a 3.6 Megawatt generating unit in existing space in the present building, or installation of a 2.6 megawatt generating unit. Which unit is selected will depend partly on outcome of detailed project study to be prepared during 1981-82. The larger unit is estimated to be adequate to meet demand up to 1986, the smaller to 1985, but actual requirements depend on development of Frigate Bay scheme and Water Supply Department. B. Justification: The available firm supply of electrical power on St. Kitts is estimated to fall short of demand by 1980. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 98 - 98 10 Foreign Costs 391 489 880 90 Total Costs - Amount 489 489 978* -% 50 50 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - 22 111 281 489 75 External Sources - 89 74 200 489 126 Total - 111 185 481 978* 201* * If smaller generating unit is selected. - 91 - IX. STATUS OF PREPARATION: Project study was undertaken by CDC in 1978. Additional technical assistance is required to reassess demand in light of developments in tourism and public utilities sectors, and to write detailed specifications suitable for seeking of competitive bids. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: ) Debt Obligations: None during 1980-83. XI. TECHNICAL ASSISTANCE REQUIRED: Technical assistance will be required at all stages. - 92 - ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Communications (US$ '000) I. NAME OF PROJECT: Telephone Works II. EXECUTING GOVERNMENT AGENCY: Ministry of Communications, Works and Public Utilities III. TOTAL ESTIMATED COST: US$236 IV. EXTERNAL FINANCING REQUIRED: US$236 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: A. Description: Project involves capital improvements to the telephone system. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 24 24 10 Foreign Costs - 212 212 .90 Total Costs - Amount - 236 236 -% - 100 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - - - - External Sources - 86 94 56 236 Total - 86 94 56 236 - 93 - IX. STATUS OF PREPARATION: The UK has been approached. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: ) Debt Obligations: None during 1980-83. XI. TECHNICAL ASSISTANCE REQUIRED: The UK is expected to provide the necessary Technical Assistance. - 94 - ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Communications (US$ '000) I. NAME OF PROJECT: Telephone-Short Term Replacement/Extension II. EXECUTING GOVERNMENT AGENCY: Ministry of Communications, Works and Public Utilities III. TOTAL ESTIMATED COST: US$1,095 IV. EXTERNAL FINANCING REQUIRED: US$611 V. LENDING AGENCY: CDB VI. DESCRIPTION AND JUSTIFICATION: A. Description: Project involves: (a) replacement of defective cables, (b) limited expension of all four exchanges of the system, (c) expansion of the line plant network. The project is expected to meet most of the vital needs in the short term, and is to be followed by the Long Term Replacement/ Extension Program. B. Justification: Present capacity is only 1,619 lines, and the waiting list which is now 1,500 is expected to grow with industrial and hotel expansion. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount _ Local Costs 219 - 219 20 Foreign Costs 265 611 876 80 Total Costs - Amount 484 611 1,095 -% 44 56 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - 111 113 260 484 - External Sources _ 167 111 333 611 _ Total - 78 224 593 1,095 - - 95 - IX. STATUS OF PREPARATION: Project has been broadly defined; implemen- tation has begun with local funds which are insufficient to complete the project. CDB has been approached. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1980-83. Debt Obligations: Not determined. XI. TECHNICAL ASSISTANCE REQUIRED: ITU and UNDP have expressed interest in providing technical assistance for preparation and implementation. - 96 - ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Water Supply and Sewerage (US$ '000) I. NAME OF PROJECT: Water Development II. EXECUTING GOVERNMENT AGENCY: Ministry of Communications, Works and Public Utilities III. TOTAL ESTIMATED COST: US$3,481 IV. EXTERNAL FINANCING REQUIRED: US$2,769 V. LENDING AGENCY: CIDA, CDB VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project involves implementation of a long term master plan for water supply which includes a short term plan for Nevis. The plan includes a treatment plant, reservoirs, pipelines, and wells. B. Justification: A water storage system is needed on both islands to ensure uninterrupted supply, since rainfall is highly variable. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount _ Local Costs 712 158 870 25 Foreign Costs - 2,611 2,611 75 Total Costs - Amount 712 2,769 3,481 - % 20 80 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - 83 370 259 712 - External Sources - 658 260 1,185 2,769 555 Total - 741 630 1,444 3,481 555 - 97 - IX. STATUS OF PREPARATION: Project study was completed in 1974, financed by CIDA. CIDA is considering a grant of C$2.5 million (US$2.2 million) towards the project and CDB has been approached to finance some of the local costs. CIDA is undertaking a survey of ground water as a pre- condition for the grant. Government has accepted as conditions for CDB financing the establishment of a Water Management Authority and Leak Detector Survey. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: )N dui 1980 83 Debt Obligations: N XI. TECHNICAL ASSISTANCE REQUIRED: CIDA is expected to provide the required technical assistance for implementation. - 98 - ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Education (US$ '000) I. NAME OF PROJECT: Development Tertiary Education II. EXECUTING GOVERNMENT AGENCY: Ministry of Education, Health and Social Affairs III. TOTAL ESTIMATED COST: US$1,007 IV. EXTERNAL FINANCING REQUIRED: None V. LENDING AGENCY: LOCAL VI. DESCRIPTION AND JUSTIFICATION: A. Description: The proposed college would consist of a consoli- dation and renovation of existing, scattered facilities for the training of nurses and other paramedicals, technicians, first year university level students, teachers, civil servants, continuing education students. B. Justification: Prevent standards of tertiary education are low due to poor facilities and inefficient use of teaching resources. A single institution would better utilize facilities and staff. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 252 - 252 25 Foreign Costs 755 - 755 75 Total Costs - Amount 1,007 - 1,007 - 100 - 1,000 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - 107 345 1,007 555 External Sources - - - - - - Total - - 107 345 1,007 555 - 99 - IX. STATUS OF PREPARATION: Project has been identified. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: No incremental costs during 1980-83. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: None. - 100 - ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Education (US$ '000) I. NAME OF PROJECT: Expansion Secondary/Renovation Primary Schools/ Replacement Schools II. EXECUTING GOVERNMENT AGENCY: Ministry of Education, Health and Social Affairs III. TOTAL ESTIMATED COST: US$3,537 IV. EXTERNAL FINANCING REQUIRED: US$337 V. LENDING AGENCY: UK, CDB (USAID funds) VI. DESCRIPTION AND JUSTIFICATION: A. Description: Project involves the construction of one additional comprehensive secondary school (enrollment 600); expansion of existing secondary school by construction of additional classrooms and laboratories; replacement of six primary schools; provision of four school buses. B. Justification: There are 1,500 secondary school age children without facilities for secondary education; existing schools are already overcrowded; six primary schools are dangerously dilapidated and require replacement; no public transporta- tion exists to transpoprt students to secondary schools. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 884 - 884 25 Foreign Costs 2,316 337 2,653 75 Total Costs - Amount 3,200 337 3,537 - % 90 10 100 - 101 - VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources 223 186 317 324 3,150 2,150 External Sources 113 224 50 - 387 - Total 336 410 367 324 3,537 2,150 IX. STATUS OF PREPARATION: Project study was undertaken in 1971. The UK and CDB (USAID) have been approached for financing of part of the project. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: 1980 1981 1982 1983 (vehicle operating costs) 10 12 14 16 Debt Obligations: None XI. TECHNICAL ASSISTANCE REQUIRED: None - 102 - ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Education (US$ '000) I. NAME OF PROJECT: Student Loans Higher Education No. 2 II. EXECUTING GOVERNMENT AGENCY: Development Finance Corporation III. TOTAL ESTIMATED COST: US$150 IV. EXTERNAL FINANCING REQUIRED: US$150 V. LENDING AGENCY: CDB VI. DESCRIPTION AND JUSTIFICATION: A. Description: Project involves a continuation of existing CDB student loan scheme. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 150 150 100 Foreign Costs - - - - Total Costs - Amount - 150 150 -% - 100 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - External Sources 37 37 37 39 150 Total 37 37 37 39 150 - 103 - IX. STATUS OF PREPARATION: Financing is presently under consideration by CDB. X. TERMS OF FINANCING: Interest Rate: 4 Amortization Period: 15 XI. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: None during 1980-83. XII. TECHNICAL ASSISTANCE REQUIRED: None. - 104 - ST. KITTS-NEVIS 1980/83 Project List - Individual Project Description Housing (US$ '000) I. NAME OF PROJECT: Housing Program II. EXECUTING GOVERNMENT AGENCY: Central Housing and Planning Authority III. TOTAL ESTIMATED COST: US$444 IV. EXTERNAL FINANCING REQUIRED: US$444 V. LENDING AGENCY: CDB VI. DESCRIPTION AND JUSTIFICATION: A. Description: A program of public capital expenditure on housing is proposed to include rehabilitation and expansion of existing housing and sites and services for low income households, to be undertaken with owner self help. B. Justification: The program aims to address the need for new and renovated housing at costs which families can afford without subsidization. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 111 111 25 Foreign Costs - 333 333 75 Total Costs - Amount - 444 444 -% - 100 100 VIII. DISBURSEMENT PERIOD: Post 1980 1981 1982 1983 Total 1983 Local Sources - - - - - External Sources 74 74 74 222 444 Total 74 74 74 222 444 - 105 - IX. STATUS OF PREPARATION: CDB has been approached. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: None during 1980-83. XI. TECHNICAL ASSISTANCE REQUIRED: Technical assistance will be required for project preparation. - 106 - ST. KITTS-NEVIS Technical Assistance Requirements The following projects require technical assistance for prepara- tion of project documentation and/or feasibility studies and to our knowledge at present no source has been identified: Livestock Development* Afforestation 65-Acre Vegetable Project* Renovation Fire Station Newcastle Airport: Nevis Road Maintenance and Garage Equipment Upgrading Electrical System: St. Kitts* Telephone - Long Term Replacement/Extension* The following nonproject-specific technical assistance schemes are also required: Agriculture Support Staff* Tourism Promotional Strategy Frigate Bay Reassessment Sea Island Cotton Development (Jointly with Montserrat) * Indicates high priority - 107 - St. Kitts-Nevis 1980/83 Project List - Technical Assistance Profile I. SECTOR: Agriculture II. PROJECT TITLE: Agricultural Support Staff III. LENDING AGENCY: Unknown IV. EXECUTING GOVERNMENT AGENCY: V. DESCRIPTION AND OBJECTIVES: Technical assistance is required as institutional support to the Ministry of Agriculture, in the areas of physical planning, agri- cultural credit, extension, agronomy, livestock development. VI. TECHNICAL ASSISTANCE REQUIREMENTS: About 140 man-months of attachment to the Ministry by personnel in the above areas. VII. ESTIMATED COST (US$'000): 600 - 108 - St. Kitts-Nevis 1980/83 Project List - Technical Assistance Profile I. SECTOR: Tourism II. PROJECT TITLE: Tourism Promotional Strategy III. LENDING AGENCY: UK has been approached IV. EXECUTING GOVERNMENT AGENCY: Ministry of Trade, Industry and Tourism V. DESCRIPTION AND OBJECTIVES: Technical assistance is required to advise the Government on develop- ment of promotional strategy with special reference to the European market, and on restoration of historic sites, including a publicity campaign for Brimstone Hill. VI. TECHNICAL ASSISTANCE REQUIREMENTS: Short term consultancy by tourism planner/marketing expert, and an advertising specialist. VII. ESTIMATED COST (US$'OOO): 50 - 109 - St. Kitts-Nevis 1980/83 Project List - Technical Assistance Profile I. SECTOR: Tourism II. PROJECT TITLE: Frigate Bay Reassessment III. LENDING AGENCY: Unknown IV. EXECUTING GOVERNNENT AGENCY: V. DESCRIPTION AND OBJECTIVES: Technical assistance is required to undertake a reassessment of the Frigate Bay Development Scheme in order to update information on realistic prospects for its development. VI. TECHNICAL ASSISTANCE REQUIREMENTS: 4 man-months of consulting by tourism planners. VII. ESTIMATED COST (US$'000): 17 - 110 - St. Kitts-Nevis 1979/83 Project List - Technical Assistance Profile I. SECTOR: Agriculture II. PROJECT TITLE: Sea Island Cotton Development III. LENDING AGENCY: Unknown IV. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture V. DESCRIPTION AND OBJECTIVES: Technical assistance is required to study the potential for development of sea island cotton production in Nevis. The technical assistance should be shared with Montserrat. VI. TECHNICAL ASSISTANCE REQUIREMENTS: Short-term consultancy by cotton specialist - total 4 man months (St. Kitts-Nevis' share). VII. ESTIMATED COST (US$'000): 20 -111- STATISTICAL APPENDIX Table No. I. POPULATION AND LABOR FORCE 1.1 Population Trends, 1971-79 II. NATIONAL ACCOUNTS 2.1 Sectoral Origin of Gross Domestic Product at Current Factor Cost, 1976-78 2.2 Resources and Uses of Resources at Constant Market Prices, 1976-78 2.3 Expenditures on Gross Domestic Product, 1976-79 2.4 Actual and Projected Sources and Uses of Resources, 1978-83 III. BALANCE OF PAYMENTS 3.1 Balance of Payments, 1976-79 3.2 Merchandise Imports by End Use Category, 1973-79 3.3 Merchandise Exports by Major Commodities, 1973-79 3.4 Actual and Projected Balance of Payments, 1978-83 IV. EXTERNAL PUBLIC DEBT 4.1 Summary of External Public Debt Operations, 1974-78 V. PUBLIC SECTOR FINANCES 5.1 Central Government Current Expenditures, 1974-79 5.2 Central Government Current Revenue, 1974-79 5.3 Central Government Operations, 1974-79 5.4 Financing of Public Sector Investment, 1974-79 5.5 Actual and Projected Central Government Finances, 1978-83 5.6 Actual and Projected Financing of Public Sector Investment, 1978-83. 5.7 Public Sector Investment Program, 1980-83 VI. MONEY AND BANKING 6.1 Summary Commercial Bank Operations, 1973-78 6.2 Distribution of Bank Loans and Advances, 1973-78 VII. AGRICULTURE, INDUSTRY AND TOURISM 7.1 Production of Selected Agricultural Products, 1974- 79 7.2 Tourism Data, 1972- 78. VIII. PRICES 8.1 Retail Price Index, 1972- 79. -112- Table 1.1: ST. KTITS - NEVIS - POPULATION TRENDS, 1971-1979 Estimated 1971 1972 1973 1974 1975 1976 1977 1978 1979 Total end of year Population 47,649 48,105 47,414 47,794 43,751 49,461 49,864 49,594 49, 875 Crude Birth P~te u er '003) 23.6 25.8 24.8 24.0 22.8 26.9 24.4 21.2 20.0 Crude Death Raze "per '300) 9.3 11.3 11.0 10.7 8.9 9.7 10.1 9.3 9.3 P2-e of N.tural Increase (peur '000) 14.2 14.5 13.8 13.3 13.9 17.2 14.3 11.9 10.7 Total 3_rths 1,107 1,236 1,186 1,143 1,199 1,320 1,212 1,059 992 Total Deat hs 439 541 525 510 427 476 503 466 461 Natural Pasu_.aion Increase 668 595 661 633 672 844 7039 593 531 Net 60grationa/ 6C2 -239 -1,352 -253 285 -134 -306 -863 -250 Net Pcnulaztion T-hcroase 1,270 456 -691 380 957 710 403 -270 281. a/\e g r-gratIon GArrivals - -)9art,ures. Source: Planning Unit, lNinistry of Finance. -113- Table 2.1: ST. KITTS-NEVIS - SECTORAL ORIGIN OF GROSS DOMESTIC PRODUCT AT CURRENT FACTOR COST, 1976-78 (EC$ million) 1976 1977 1978 Sugar Cane 7.3 8.6 7.8 Other Agriculture 5.4 6.2 6.8 Mining and Quarrying 0.1 0.2 0.3 Manufacture 3.2 3.5 4.4 Sugar and Molasses 6.8 8.6 7.3 Electricity and Water 0.7 0.7 0.9 Construction 3.4 4.6 4.9 Wholesale and Retail Trade 5.4 6.2 7.0 Hotels 0.6 0.8 2.2 Transport and Communication 4.9 5.7 6.3 Government Services 10.8 10.8 14.7 General Services 11.0 12.2 14.5 GDP at Factor Cost 59.6 68.1 77.1 Source: Ministry of Finance, mission estimates. -114- Table 2.2: ST. KITTS-NEVIS - RESOURCES AND USES OF RESOURCES AT CONSTANT MARKET PRICES, 1976-78 (EC$ million - 1977 prices) 1976 1977 1978 Gross Domestic Product 81.7 81.4 85.1 Imports (including NFS) 69.8 66.0 67.0 Exports (including NFS) 54.8 45.1 45.2 Consumption 84.6 88.6 91.4 Public 23.3 21.6 25.3 Private 61.3 67.0 66.1 Investment 12.1 13.7 15.5 Public 6.8 12.2 8.8 Private 5.3 1.5 6.7 Gross National Savings 3.9 -1.9 1.1 (Public Sector) (12.5) (7.3) (3.4) (Private Sector) (-8.6) (-9.2) (-2.3) Memorandum Items Investment Financing 12.1 13.7 15.5 (National Savings) (3.9) (-1.9) (1.1) (Current Account Balance) (8.2) (15.6) (14.4) Source: Mission estimates. -115- Table 2.3: ST. KITTS-NEVIS - EXPENDITURE ON GROSS DOMESTIC PRODUCT, 1976-79 (EC$ million) Actual Estimated 1976 1977 1978 1979 Total Consumption 78.2 88.6 100.3 109.3 Public 21.5 21.6 27.8 32.0 Private 56.7 67.0 72.5 77.3 Gross Domestic Investment 11.2 13.7 17.4 21.2 Public 6.3 12.2 9.9 16.6 Private 4.9 1.5 7.5 4.6 Goods and Non Factor Services -13.9 -20.9 -22.2 -22.9 Balance Exports of Goods and NFS 50.6 45.1 50.2 51.3 Imports of Goods and NFS 64.5 66.0 72.4 74.2 Gross Domestic Product at Current Market Prices 75.5 81.4 95.5 107.6 Minus: Indirect Taxes 15.9 13.3 18.4 20.1 Gross Domestic Product at Current Factor Cost 59.6 68.1 77.1 87.5 Net Factor Income Payments Abroad -0.2 -0.3 -0.6 -0.3 Gross National Product at Current Factor Cost 59.4 67.8 76.5 87.2 Source: Ministry of Finance, mission estimates. -116- Table 2.4: ST. KITTS-NEVIS - ACTUAL AND PROJECTED SOURCES AND USES OF RESOURCES, 1978-83 (EC$ million - 1977 prices) Actual Estimated Projected 1978 1979 1980 1981 1982 1983 Gross Domestic Product 85.1 86.8 89.4 92.1 94.8 97.7 Imports (including NFS) 67.0 61.3 68.2 68.0 70.4 74.6 Exports (including NFS) 45.2 41.7 45.8 48.2 51.6 55.4 Consumption 91.4 89.3 90.4 92.9 94.0 97.0 (Public) (25.3) (26.1) (26.0) (24.8) (24.4) (25.3) (Private) (66.1) (63.2) (64.4) (68.1) (69.6) (71.7) Investment 15.5 17.1 21.4 19.0 19.6 19.9 Gross National Savings 1.1 4.3 9.2 10.7 13.6 14.8 (Public) (3.4) (3.0) (1.8) (4.3) (3.8) (6.0) (Private) (-2.3) (1.3) (7.4) (6.4) (9.8) (8.8) Memorandum Item Investment Financing 15.5 17.1 21.4 19.0 19.6 19.9 (National Savings) (1.1) (4.3) (9.2) (10.7) (13.6) (14.8) (Current Account Balance) (14.4) (12.8) (12.2) (8.3) (6.0) (5.1) (as % of GDP in current prices) Gross Domestic Product 100.0 100.0 100.0 100.0 100.0 100.0 Resource Balance 23.2 21.3 20.3 15.3 12.1 10.4 Imports (including NFS) 75.8 68.9 72.2 68.8 68.2 69.2 Exports (including NFS) 52.6 47.6 51.9 53.5 56.1 58.8 Consumption 105.0 101.6 96.3 94.6 91.3 89.7 (Public) (29.1) (30.1) (27.7) (25.3) (23.7) (23.3) (Private) (75.9) (70.0) (68.6) (69.3) (67.6) (66.4) Investment 18.2 19.7 24.0 20.7 20.8 20.7 Gross National Savings 1.3 4.1 10.3 11.6 14.5 15.4 (Public) (3.9) (0.6) (2.0) (4.7) (4.1) (6.2) (Private) (-2.6) (3.5) (8.3) (6.9) (10.4) (9.2) Memorandum Item Investment Financing 18.2 18.9 24.0 20.7 20.8 20.7 (National Savings) (1.3) (4.1) (10.3) (11.6) (14.5) (15.4) (Current Account Balance) (16.9) (14.8) (13.7) (9.1) (6.3) (5.3) -117- Table 3.1: ST. KITTS-NEVIS - BALANCE OF PAYMENTS, 1976-79 (US$ million) Actual Estimated 1976 1977 1978 1979 Exports of Goods and NFS 19.3 16.7 18.6 19.0 Imports of Goods and NFS 24.6 24.4 26.8 27.5 Resource Balance -5.3 -7.7 -8.2 -8.5 Net Factor Service Payments -0.1 -0.1 -0.2 -0.1 Transfers (net) 2.5 2.1 2.4 2.7 Current Account Balance -2.9 -5.7 -6.0 -5.9 Private Capital 5.7 2.6 4.6 1.0 Public Capital 2.2 1.1 1.0 4.7 Grants 1.8 2.5 0,8 2.2 Loans 1.8 0.4 0.5 3.1 Amortization -1.1 -1.0 -0.6 -0.7 ECCA 0.5 - - - Other (Change in Reserves-Income) -0.8 -0.8 0.3 0.1 Financial System -5.0 2.0 0.4 0.2 Source: Mission estimates. -118- Table 3.2: ST. KITTS-NEVIS - IMPORTS BY S.I.T.C. CLASSIFICATION, 1974-79 (US$ million) Estimated 1974 1975 1976 1977 1978 1979 Total 19.1 23.5 22.3 21.9 24.3 25.8 Food 5.2 4.9 5.0 5.0 5.9 6.0 Beverages and Tobacco 0.4 0.5 0.5 0.5 0.8 0.8 Crude Materials Inedible, except Fuels 0.6 0.6 0.6 0.7 0.5 0.6 Mineral Fuels, Lubricants, and Related Materials 1.3 1.6 1.7 1.9 2.0 2.3 Animal and Vegetable Oils and Fats 0.1 0.2 0.2 0.2 0.2 0.3 Chemicals 1.9 2.3 2.2 1.7 2.2 2.4 Manufactured Goods classified chiefly by material 3.4 3.4 3.7 4.0 4.6 4.8 Machinery and Transport Equipment 4.6 8.0 6.6 6.2 5.4 6.0 Miscellaneous Manufactured Articles 1.6 2.0 1.8 1.7 2.6 2.6 Miscellaneous Transactions - - - - 0.1 - Source: Ministry of Finance, Planning Unit. -1 19- Table 3.3: ST. KITTS-NEVIS - MAJOR EXPORTS, 1974-79 (Value in US$'OOO and volume in units indicated '000 Estimated 1974 1975 1976 1977 1978 1979 Sugar Value 6,099.6 12,626.9 10,205.2 9,367.0 11,333.0 10,795.0 Volume (tons) 23.0 22.0 31.0 38.0 34.9 36.6 Unit Price 265.2 573.95 329.2 245.6 324.7 294.9 Molasses Value 132.2 526.1 255.5 356.0 384.0 512.3 Volume (gallons) 236.0 1,644.0 998.0 1,480.0 1,600.0 1,970.0 Unit Price 0.56 0.32 0.26 0.24 0.24 0.26 Cotton Value 21.4 46.4 79.8 33.4 19.7 6.0 Volume (pounds) 24.0 32.0 49.0 21.0 15.0 5.0 Unit Price 0.89 1.45 1.63 1.59 1.31 1.31 Beer and Ale Value 19.5 15.2 120.0 189.0 261.6 358.8 Volume (gallons) 11.0 5.0 48.0 75.0 100.6 114.3 Unit Price 1.77 3.03 2.50 2.52 2.60 3.14 Lobsters Value 29.1 32.0 43.9 74.2 119.3 113. Volume 27.0 18.0 33.0 55.0 42.6 39.0 Unit Price 1.08 1.78 1.33 1.35 2.81 2.82 Total Exports 11,756.0 21,468.0 17,757.0 15,174.0 15,818.0 15,688.5 Source: Planning Unit, Ministry of Finance. -120- Table 3.4: ST. KITTS-NEVIS - ACTUAL AND PROJECTED BALANCE OF PAYMENTS, 1978-83 (US$ million) Actual Estimated Projected 1978 1979 1980 1981 1982 1983 Exports of Goods and NFS 18. 6 19.0 22.9 26.6 31.5 37.3 Imports of Goods and NFS 26.8 27.5 31.8 34.3 38.3 43.9 Resource Balance -8.2 -8.5 -8.9 -7.7 -6.8 -6.6 Net Factor Service Payments -0.2 -0.1 -0.2 -0.3 -0.5 -1.0 Transfers (net) 2.4 2.7 3.1 3.4 3.8 4.2 Current Account Balance -6.0 -5.9 -6.0 -4.6 -3.5 -3.4 Private Capital 4.6 1.0 - 0.7 3.0 1.1 Public Capital 1-0 4.7 8.2 6.2 3.8 3_9 Grants 0.8 2.2 : T3 1.1 1.1 Loans 0.5 3.1 5.7 4.7 3.3 2.9 Amortization -0.6 -0.7 -0.3 -0.2 -0.2 -0.2 ECCA - - 0.3 0.2 - 0.4 Other (Change in Beserves 0.3 0.1 0.2 - -0.4 -0.3 -Increase) Financial System 0.4 0.2 -2.2 -2.3 -3.3 -1.6 Source: Mission estimates. -121- Table 4.1: ST. KITTS-NEVIS - SUMMARY OF EXTERNAL PUBLIC AND PUBLICLY GUARANTEED DEBT OPERATIONS,a/ 1974-78 (US$ million) 1974 1975 1976 1977 1978 Outstanding and Disbursed Debt at End of Period 5.4 5.3 5.4 4.8 4.7 Outstanding and Disbursed Debt at Beginning of Period 5.7 5.4 5.3 5.4 4.8 Plus: Net Disbursements -0.3 -0.1 0.9 -0.6 -0.1 (Disbursement) - 0.1 2.0 0.4 0.5 (Amortization) 0.3 0.2 -1.1 -1.0 -0.6 Valuation Adjustment -- -- -0.8 Debt Service Payments 0.4 0.2 1.2 1.1 0.8 Amortization 0.3 0.2 1.1 1.0 0.6 Interest 0.1 -- 0.1 0.1 0.2 (percent) Disbursed Balance/GDP .. .. 18.7 15.8 13.0 Net Disburser,ent/GDP .. .. 3.1 -2.0 -0.3 Debt Service/GDP .. .. 4.2 3.6 2.3 Debt Service/Exp. of Goods and Non Factor Services .. .. 6.2 6.6 4.3 Average Interest Rate b/ 1.8 -- 1.9 1.9 4.2 .. Not available. a/ Includes Central Government and Central Government guaranteed. Excludes debt held by ECCA. b/ Ratio of interest payments to debt at beginning of period. -122- Table 5.1: ST. KITTS-NEVIS - CENTRAL GOVERNMENT CURRENT EXPENDITURES, 1974-79 (EC$ million) Actual Estimated 1974 1975 1976 1977 1978 1979 Current Expenditures 16.8 20.2 25.9 25.7 30.7 37.0 Personal Emoluments 5.5 8.2 9.5 10.5 14.8 17.0 Other Wages and Salaries 2.6 1.8 4.3 2.3 3.1 5.4 Goods and Services 5.3 6.1 7.9 7.0 8.1 9.4 Interest 1.6 2.0 2.1 3.4 1.9 2.0 Pensions and Gratuities 0.8 1.0 1.2 1.6 1.7 1.8 Transfers 1.0 1.1 0.9 0.9 1.1 1.4 Other Public (0.1) (0.3) (0.2) (--) (0.1) (0.1) Rest of the World (0.9) (0.8) (0.7) (0.9) (1.0) (1.3) Source: Ministry of Finance -123- Table 5.2: ST. KITTS-NEVIS - CENTRAL GOVERNMENT CURRENT REVENUE, 1974-79 (EC$ million) Actual EstimateL. 1974 1975 1976 1977 1978 1979 Current Receipts 18.0 22.1 29.4 21_f, 34.6 38.0 Direct Taxes 2.9 3.5 5.3 6.4 8.8 7.2 Income Taxes (2.7) (3.3) (5.2) (6.0) (8.4) (6.8) Property Taxes (0.2) (0.2) (0.1) (0.4) (0.4) (0.4) Indirect Taxes 10.8 12.7 15.9 1 18.4 20.1 Consumption Tax (2.2) (2.5) (4.3) (5.1) (5.9) (6.5) Import Duties (3.2) (3.5) (4.1) (4.0) (4.7) (4.9) Export Duties (sugar) (0.2) (0.2) (0.3) (0.3) (0.3) (0.3) Stamp Duty (0.3) (0.3) (0.4) (0.4) (0.4) (0.4) Sugar Levy (4.6) (5.8) (5.9) (2.5) (5.1) (5.6) Other Taxes (0.3) (0.4) (0.9) (1.0) (2.0) (2.4) Nontax Revenue 4.3 5.9 8.2 7.9 7.4 10./ Distribution of ECCA Pro- fits, transferred from Abroad 0.6 1.2 1.4 0.9 0.6 1.5 Revenue of Departmental Enterprises 1.9 2.1 2.3 2.4 2.4 4.4 Other, transferred from Private Sector 1.8 2.6 4.5 4.6 4.4 4.8 Budgetary Grants 1.9 -- -- Source: Ministry of Finance. -124- Table 5.3: ST. KITTS-NEVIS - CENTRAL GOVERNMENT OPERATIONS, 1974-79 (EC$ million) Actual Estimated 1974 1975 1976 1977 1978 1979 Current Revenue 18.0 22.1 29.4 27.6 34.6 38.0 Budgetary Grants 1.9 -- -- -- -- -- Current Expenditure 16.8 20.2 25.9 25.7 30.7 37.0 Current Account Surplus or Deficit (-) 3.1 1.9 3.5 1.i9 3.9 1.0 Capital Receipts -- 0.1 0.1 0.6 0.5 0.6 Capital Expenditures 12.8 6.7 9.9 118 4.5 10.7 Overall Deficit -9.7 -4.7 -6.3 -9.3 -0.1 -9.1 Financing 9.7 4.7 6.3 9.3 0.1 9.1 Capital Grants 3.3 1.2 4.6 6,6 2.3 2.5 Net Foreign Borrowing -0.6 -0.3 1.9 -0.5 -0.4 4.4 Net ECCA Borrowing 1.4 -- 1.4 - -- Change in International Reserves (- increase) 0.6 -0.6 0.1 -1.9 -0.5 0.9 Net Domestic Financing 5.0 4.4 -1.7 5.1 -1.3 1.3 Source: Ministry of Finance -125- Table 5.4: ST. KITTS-NEVIS - FINANCING OF PUBLIC SECTOR INVESTMENT, 1974-79 (EC$ million) Actual Estimated 1974 19751976 1977 1978 9 Public Sector Capital Expenditure 8.8 4.1 11.7 12.5 10.6 16.8 Capital Formation (8.6) (4.0) (6.3) (12.2) (.9.9) 16.6. Other Capital Expenditure (0.2) (0.1) (5.4) (0.3) (0.7) (0.2) Financing 8.8 4.1 11.7 12.5 1°.6 16.8 Public Sector Savings 4.2 3.6 11.6 7.3 3.7 3.7 Capital Revenues - 0.2 0.2 0.6 0.6 0.5 Net Domestic Borrowing 0.6 1.1 -5.7 1.8 3.4 _ (Banking System) (3.7) (2.4) (1.9) (0.7) (2.4) (-) (Other) (-3.1) (-1.3) (-7.6) (1.1) (1.0) ( Net External Financing 4.0 -0.8 5.6 2.8 2 .9 12.6 (Grants) (3.3) (1.1) (4.6) (6.6) (2.3) (5.9) (Development Loans) (-0.6) (-0.3) (4.7) (1.1) (1.3) (8-3) (Amortization) (-2.8) (-2.7) (-4.6) (-1.9) (ECCA Borrowing) (1.4) (-- ) (1.4) (--) (--) (Change in Foreign Assets) (-0.1) (-1.6) (-2.3) (-2.2) (0.9) (0.3) Source: Ministry of Finance, National Provident Fund, St. Kitts Public Enterprises, mission estimates. -126- Table 5.5: ST. KITTS-NEVIS - ACTUAL AND PROJECTED CENTRAL GOVERNMENT FINANCES, 1978-83 (EC$ million) Actual Estimated Projected 1978 1979 1980 1981 1982 1983 Current Revenue 34.6 38.0 39.6 43.0 49.0 56.5 Direct Taxes 8.8 7.2 9.0 10.3 11.7 13.2 Indirect Taxes 18.4 20.1 19.8 22.4 25.5 28.7 Nontax Revenue 7.4 10.7 10.8 10.3 11.8 14.6 Current Expenditure 30.7 37.0 38.8 40.4 46.0 50.3 Wages and Salaries 17.9 19.4 20.0 20.0 22.4 23.0 Goods and Services 8.1 12.4 12.5 13.2 15.3 17.4 Interest 1.9 2.0 2.6 2.9 3.5 4.9 Pensions and Gratuities 1.7 1.8 2.0 2.2 2.4 2.5 Transfers 1.1 1.4 1.7 2.1 2.4 2.5 Other Public (0.1) (0.1) (0.2) (0.4) (0.5) (0.5) Rest of the World (1.0) (1.3) (1.5) (1.7) (1.9) (2.0) Current Account Surplus or Deficit (-) 3.9 1.0 0.8 2.6 3.0 6.2 Capital Receipts 0.5 0.6 0.5 0.3 0.3 0.3 Capital Expenditure 8.5 10.7 20.0 17.0 .18.1 22.0 Overall Surplus of Deficit (-) (-4.1) -9.1 -18.7 -14.1 -14.8 -15.5 Source: Mission estimates. -127- Table 5.6: ST. KITTS-NEVIS - ACTUAL AND PROJECTED FINANCING OF PUBLIC SECTOR INVESTMENT, 1978-83 (EC$ million) Actual Estimated Proj3ected 1978 1979 1980 1981 1982 1983 Public Sector Capital Expenditure 10.6 16.8 25.3 22.2 19.6. 23.6 Capital Formation (9.9) (16.6) (2-5.0) (21.7) (19.1) (22.7 Other Capital Expenditure (0.7) (0.2) (0.3) (0.5) (0.5) (O. 9' Financing 10.6 -16.$ 295.5 22.2 19.6 23. Domestic Sources 7.7 4-2 2.9 5.3 9.7 13.2 Public Sector Saving 3.7 3.7 2.4 6.3 6.2 10.6 Capital Revenue 0.6 0.5 0.5 0.3 0.3 0.3 Domestic Borrowing (Net) 3.4 - - -1.3 3.2 2.3 External Sources 2.9 12.6 22.4 16.9 9.9 10.4 Grants and Loans 3.6 14.2 21.7 16.9 11.7 10.8 Ongoing 3.6 14.2 19.4 7.3 1.6 0.4 New - - 2.3 9.6 10.1 10.4 Amortization -1.6 -1.9 -0.7 -0.5 -0.6 -0.6 ECCA Borrowing - _ 0.8 0.5 - 1.0 Change in Foreign Deposits 0.9 0.3 0.6 - -1.2 -0.8 (-increase) Source: Mission estimates -128- Page 1 of 7 Table 5.7: ST. KITTS-NEVIS - PUBLIC SECTOR INVESTMENT PROGRAM, 1980-83 (EC$ '000) 1980 1981 1982 1983 Total External Local Total External Local Total External Local Total External Local AGRICULTURE Ongoing Projects Sugarcane Replanting 1,180 646 534 1,180 - 1,180 1,180 1,180 - - - - New River Communal Grazing 12 12 - - - - - - - - - Agricultural Machinery Livestock Devt.: Nevis 40 40 - - Sugar Industry Equipment 306 306 - - NACO Office Extension 80 80 - - La Guerita Plant Propagation 50 50 - - Subtotal 1 1134 534 - 1,18118080 1,18 New Projects Livestock Development 400 - 400 200 - 200 500 - 500 1,650 - 1,650 Irrigation Investigation 100 100 - 435 435 - 405 405 - - - Abattoir 192 170 22 138 118 20 140 135 5 L ivestock Production Sugar Cane Feed: Nevis 120 100 20 329 300 29 151 140 11 - - Fisheries Development - - - - - - 2,640 2,640 - 4,541 1,761 2,780 Corn-Cassava Mill - - - - - - 57 57 - - - - Brackish W4ater Fish Culture 35 - 35 24 24 - 40 40 - Tick Control 35 - 35 24 24 - - - - Minor Irrigation: Nevis 30 - 30 30 30 - 30 30 - Ginnery Improvement 43 - 43 30 30 - - - - - - - Afforestation - - - 62 62 - 86 86 - - - - Nevis: Coconuts and Cotton - - - 154 154 - 103 103 - - - - Sugar Irrigation - - - 510 510 - 254 254 - - - - Sugar Factory Equipment - - - 251 251 - - - - - - - 65 Acre Vegetable Project - - - 295 148 147 550 370 180 - - - NACO Field Equipment 513 513 - 513 513 - 250 250 - - - - Agricultural Dept. Office - - - - - - 124 - 124 232 - 232 NACO Comnunication System 51 51 - 51 51 - - - - - - Extension to CMC Building 102 102 - - - - - Subtotal 1,621 1,036 585 2,650 396 54510 820 6 1 Total Agriculture 3,289 2,I70 1,119 4,226 2,650 1,576 6,510 5,690 820 6,423 1.761 4,662 -129- Page 2 of 7 Table 5.7: ST. KITTS-NEVIS - PUBLIC SECTOR INVESTNENT PROGRAM, 1980-83 (EC$ '000) 1980 1981 1982 1983 Total External Local Total External Local Total External Local Total External Local INDUSTRY Ongoing Projects Industrial Estate: Nevis 35 35 - - - - - - - - - - Large Factory Building 128 128 - 100 100 Agricultural and Industrial Credit I 40 40 - - - Solar Salt Study 81 81 - - - - - - - - - - Subtotal 284 284 - 100 100 - - - - - - New Projects Factory Shells - - - 350 350 - - - - Small Business Development 100 90 10 100 90 10 51 51 - - Agricultural and Industrial Credit II - - - 270 270 - 270 270 - 270 270 Development of Industrial Estates - - - 50 50 - 130 130 - - - Agro-processing (Copra, Peanuts) - - - 78 78 - 50 50 - - - - Factory Shells - - - 175 175 - 350 350 - 350 350 - Subtotal 100 90 10 1,023 1,013 10 851 851 - 620 620 - Total Industry 384 374 10 1,123 1,113 10 851 851 - 620 620 - -130- Page 3 of 7 Table 5.7: ST. KITTS-NEVIS - PUBLIC SECTOR INVESTMENT PROGRAM, 1980-83 (ECS '000) 1980 1981 1982 1983 Total External Local Total External Local Total External Local Total External Local TOURIS! Ongoin Projects Touri_ Promotion 100 - 100 Irimstone Mill 50 50 - Subtotal 150 50 100 - _ - - - - - _ _ New Projects Tourism Promotion Material 27 27 - 27 27 - - - - - - - Renovation of Historic Building 50 50 - 50 50 - - - - - Tourisu Shopping Arcade - - - - - - 113 76 37 113 57 56 Bath Motel: Nevis Study 60 60 - - - - - - - Renovation Bath House - - - - - - 125 84 41 Convention Promotion Study 50 50 - - - - - Subtotal 187 187 - 77 77 - 238 160 78 113 57 56 Total Tourism 337 237 100 77 77 - 238 160 78 113 57 56 -131- Page 4 of 7 Table 5.7: ST. KITTS-NEVIS - PUBLIC SECTOR INVESTMENT PROGRAM, 1980-83 (EC$ '000) 1980 1981 1982 1983 To~tal Exteryal Lcal Total External Local Total External Local Tota- xcer-nal TRANSPORTATION Ongoing Projects Nevis Feeder Roads 145 145 - 10 L 100 - 120 120 - 240 120 120 Plant, PW-D 200 200 - 200 200 - - Charlestown Jetty: Nevis [10 1t0 - 80 80 - Golden Rock Airport Terminal 3,650 3,650 - - Main Road Resurfacing 3,500 3 ,500 - - Deepwater Port and Equipment 9,200 9,200 7 io 6,600 500 2,000 - 2000- Subtotal 1 6 , 8 905 1 6~,805 6,99 0 500 2,120 120 2,000 240 120 120 New Projects MLS Navigational Aids - - 1,000 1,000 - - Nevis Ferrv Sievis Perry - - ~~~~~~~~~~~~~~~~~~~~- - 3 60 290 7 0 360 290 70) Road Coastal Protection 103 103 - 103 103 - - 2 7 3 New Castle Airport: Nevis - - - - - 170 170 - 170 132 38 Frigate Bay/Conarce Road - - - - - 200 160 40 Frigate Ray/Majors Bav Road - - - - 250 250 - 500 400 410 Road Maintenance and Garage Equipment - - 100 80 20 200 200 - 216 172 44 Feeder Roads: St. Kitts - - - - - - 350 350 - 600 480 120 Improvements to Indian Castle Road 36 36 - - Estate to Harbour Road - - 52 52 - - Subtotal 139 139 _ 1,255 1,235 20 70 0 1 4 Total Transportation 169 6,944 ,4- 745 8,225 520 3,450 1,380 2,70 2,286 1,754 532 -1 32- Page 5 of 7 Table 5.7: ST. KITTS-NEVIS - PUBLIC SECTOR INVESTMENT PROGRAM, 1980-83 (EC$ '000) 1980 1981 1982 1983 Total External Local Total External Local Total External Local Total External Local POWER New Projects Generating Sets for Nevis Electricity 260 260 - 510 510 - 510 510 - - - - Power Extension: Nevis - - - - - - - - - 1,025 500 525 Replacement Underground Power Cables - - - 100 - 100 150 150 - - - tJpgrading Electrical System: St. Kitts - - 300 240 60 500 200 300 1,300 540 760 Subtotal 260 260 - 910 750 160 1,160 860 300 2,325 1,040 1,285 COMMUNICATIONS Ongoing Projects Nevis UhF Link 700 700 Subtotal 700 700 New Projects Telephone Works - - - 230 230 - 250 250 - 150 150 - Telephone Short-Term Replacement Extension - - - 750 450 300 600 300 300 1,600 900 700 Telephone Long-Term Replacement Study - - - - - - 500 300 200 500 400 100 Subtotal - - - 980 680 300 1850 500 2 250 1 450 800 Total Communications 700 700 - 980 680 300 1,350 850 500 2,250 1,450 800 bo ~ ~~ ° 1' 1100101 01 010 to~~ ~~~ cr Cl -ujO CC)j C) ~1 I I 0)011r t CC cO\ I I I I E°\ O ICCC I 0101 ' n1- C1N .Y ° °°l ° ' 'j I °I1I1 CI 010l a~~~~~~~~~C - CI IICI 01 dc1c v rv 3 1 1 °I°°1-1 -I 1 121 D C ° 1G | I I I I 1~I I I 00 |\ CC 4,1f I I°1 1 o l L ,, 0C C:~~~ .c I O : o = 93 o l ,, 1 -l 34 - Page 7 of 7 Table 5.7: ST. KITTS-NEVIS - PUBLIC SECTOR INVESTMENT PROGRAM, 1980-83 (EC$ '000) 1980 1981 1982 1983 Total External Local Total External Local Total External Local Total External Local EDUCATION Ongoing Projects Student Loans Aigher Educ. 01 90 90 - - - - - _ _ _ Third Country Training 200 200 - 100 100 _ - 103 100 - 101 130 Subtotal 290 290 - 100 100 - 100 100 - 100 100 - New Projects Development Tertiary Education - - - - - - 300 - 300 930 - 930 Expansion Secondary/Renovation Primary Schools 900 300 600 1,000 600 400 1,000 150 850 875 - 875 Student Loans #2 100 100 - 100 100 - 100 100 - 100 100 - Ministry Offices - - - - - - - - - 147 - 147 Subtotal l,000 400 600 700 400 1251 850 1 100 1,022 Total Edocation 1,290 690 000 1,2_0 800 400 1,200 350 850 00 1,022 HOUSING New Projects Housing Progra-n 200 200 - 200 210 - 200 2no - 600 600 Total Housing 200 200 - 200 200 - 200 200 - 600 600 OTHER Ongoing Projects Mission Ad:rinistered Funds 100 100 - 100 100 - 100 100 1')0 i1O Community Development 50 50 - 50 S0 - 50 50 - 50 50 Subtotal 150 190 - 150 150 - 150 150 150 _10 New Projects Garbage Disposal Vehicles - - - 5(00 500 - 501 500 - Subtotal _500 50 500 500 - - - - Total Other 151 150 - 650 650 - 650 650 - 150 _50 Summary Total Ongoing Projects 20,127 19,493 634 9,070 7,340 1,730 3,550 1,550 2,00n 490 370 120 Total New Projects 3,878 2,312 1,566 11,727 9,S85 2,142 14 ,577 10,141 4,136 21,269 10,462 10,8r)7 Total Non-Projectized 1,300 - 1,300 ,400 - - 1,00 1,800 - 1,800 (DRAND TOTAL 25,305 21,805 3,500 22,197 16,925 S,272 19,627 11,691 7,936 23_559 10,832 12727 -135- Table 6.1: ST. KITTS-NEVIS - SUMMARY COMMERCIAL BANK OPERATIONS, 1973-78 (EC$ million) December 31 1973 1974 1975 1976 1977 1978 Net Foreign Assets 2.0 7.3 6.0 19.0 13.5 12.4 Assets 11.0 15.6 21.1 35.0 30.9 34.5 Claims on banks in territory 0.5 0.7 2.5 22.8 20.6 24.6 Claims on banks abroad 10.5 14.9 18.6 12.2 10.3 9.9 Liabilities -9.0 -8.3 15.1 -16.0 -17.4 -22.1 Balances due to banks in territory 0.1 -- 1.7 4.2 3.3 4.7 Balances due to banks abroad 3.3 1.8 5.7 2.7 4.1 6.7 Nonresident deposits 5.6 6.5 7.7 9.1 10.0 11.7 Demand (0.8) (0.6) (1.3) (1.1) (1.0) (1.1) Savings (4.1) (4.1) (4.3) (4.6) (5.1) (5.1) Time (0.7) (1.8) (2.1) (3.4) (3.9) (5.5) ECCA Currency Holdings 1.4 1.4 1.7 2.0 2.3 2.2 Net Domestic Assets 25.9 27.0 34.8 35.0 50.4 62.6 Net Credit to Centrai Government 2.7 6.0 8.2 10.2 10.4 11.8 Treasury bills (1.6) (4.8) (4.4) (6.6) (5.6) (5.9) Debentures Loans and advances (1.1) (1.2) (3.8) (3.6) (4.8) (5.9) Credit to rest of public sector 0.9 1.3 1.5 1.4 1.9 2.9 Credit to private sector 20.5 23.8 20.9 25.6 34.6 41.7 Net unclassified assets 1.8 -4.1 4.2 -2.2 3.5 6.2 Assets (5.1) (8.9) (12.4) (8.4) (17.9) (20.4) Liabilities (-3.3) (-13.0) (-8.2) (-10.6) (-14.4) (-14.2) Liabilities to Private Sector 29.3 35.7 42.5 56.0 66.2 77.2 Demand deposits 4.2 6.5 5.2 6.4 6.5 7.4 Savings deposits 18.7 20.2 22.7 35.4 41.3 46.8 Time deposits 6.4 9.0 14.6 14.2 18.4 23.0 Source: East Caribbean Currency Authority, mission estimates. -136- Table 6.2: ST. KITTS-NEVIS - DISTRI3UTION OF BANK LOANS AND ADVANCES, 1973-78 (EC$ million) December 31 1973 1974 1975 1976 1977 1978 Total Loans and Advances 22.5 26.3 26.2 30.6 41.3 50.5 Agriculture 2.6 2.2 1.5 0.8 2.1 - Manufacturing 0.6 0.4 0.8 1.4 3.2 3.3 Distributive Trades 4.0 5.0 5.6 6.3 8.2 7.1 Tourism 1.9 1.6 1.7 1.8 2.2 5.1 Transport 4.0 4.3 2.5 2.6 4.1 8.7 Building and Construction 1.9 2.6 0.3 0.5 1.1 4.6 Central Government 1.1 1.2 3.8 3.6 4.8 5.9 Personal 5.5 7.7 8.5 12.0 13.6 13.1 Other Loans and Advances 0.9 1.3 1.5 1.6 2.0 - Source: East Caribbean Currency Authority. -137- Table 7.1: ST. KITTS-NEVIS - PRODUCTION OF SELECTED AGRICULTURAL PRODUCTS, 1974-79 1974 1975 1976 1977 1978 1979 Commodity 1, Sugar (St. Kitts only) Production Volume (000 tons, basis 960) 26,102 25,103 34,782 41,000 38,992 39,709 Value (EC$'000) 13,743 28,490 27,773 26,775 32,407 30,903 Acres 8,974 8,525 9,625 11,140 11,100 9,453 Yield per acre (tons) 2.91 2.94 3.69 3.73 3.59 4.20 Consumption (excluding spillage and spoilage) Volume (tons) 2,736 2,910 3,160 2,700 3,100 3,094 Value (EC$'000) 903 960 1,045 1,485 1,759 1,756 Exports Volume (tons) 23,178 21,825 31,617 37,500 35,386 36,615 Value (EC$'000) 12,840 27,530 26,730 25,290 30,648 29,147 Change in Stocks - - - - - Commodity 2, Cotton (Nevis only) Production Volume ('000 lbs seed cotton) 72 95 157 70 45 9 Acres 197 247 523 315 205 72 Yield per acre (lbs) 365 385 300 224 219 132 Exports Volume ('000 lbs pure cotton) 24.0 31.5 49.5 21.0 i3.0 3.0 Value (EC$'000) 43.5 101 209 90 n.a. n.a. Change in Stocks - - - - Source: Government of St. Kitts-Nevis. -138- Table 7.2: ST. KITTS-NEVIS - TOURISM DATA 1972-78 1972 1973 1974 1975 1976 1977 1978 Total Visitor Arrivals 20,917 16,371 17,252 19,416 17,820 16,391 22,326 of which: Cruise Ship Passengers 4,672 1,434 4,001 4,758 3,056 953 2,092 Total Bed Capacity (hotels) 414 564 561 550 587 698 825 Bed Occupancy Rates Hotels .. 14.0 12.7 14.9 14.7 14.1 14.1 Guest Houses .. .. .. .. .. Average Length of Stay (nights/ hotels) .. 5.0 5.5 5.2 5.8 5.0 6.0 Tourist Expenditure (EC$ million) 3.7 3.4 3.3 3.3 3.3 3.4 7.6 (As % of Total Visitor Arrivals (Air and Sea) By Country of Origin: United States 25.6 27.2 25.6 25.2 28.8 31.8 40,9 Canada 6.3 5.5 7.5 9.0 6.8 7.7 4.8 Commonwealth Caribbean 36.3 30.8 31.0 28.9 30.1 25.8 35.3 United Kingdom 5.0 5.4 6.8 6.1 7.1 6.1 4.9 Other 26.8 31.1 29.1 30.8 27.2 28.6 14,.1 Source: Statistical Office, Planning Unit. .. Not available -139- Table 8.1: ST. KITTS-NEVIS - RETAIL PRICE INDEX, 1972-79 (1964 100) Aloholic Household Beverages Fuel and Mis- Clothing All and and cellaneous and Items Food Tobacco Housing Light Items Footwear Services Weights 100.0 59.6 5.8 6.6 5.2 6.1 5.8 10.9 New Weights a/ 100.0 50.0 5.6 7.6 6.6 9.4 7.5 13.3 Annual Averages 1972 144.0 150.5 199.5 105.1 131.0 133.0 170.3 100.7 1973 166.4 176.0 204.6 105.5 137.8 145.0 166.1 155.6 1974 216.0 230.5 211.8 167.3 222.1 184.6 186.6 199.0 1975 236.7 250.9 236.1 175.3 235.3 224.1 212.6 217.1 1976 266.0 281.0 290.9 185.8 269.8 241.1 240.2 245.2 1977 317.5 340.7 355.1 190.0 300.5 307.2 301.5 270.3 1978 356.2 388.4 371.1 228.7 313.4 353.9 328.6 284.6 Annual Percentage Change 1973 15.6 16.9 2.6 0.4 5.2 9.0 -2.5 54.5 1974 29.8 31.0 3.5 58.4 61.2 27.3 12.3 27.9 1975 9.6 8.9 11.5 4.8 5.9 21.4 13.9 9.1 1976 12.4 12.0 23.2 6.0 14.7 7.6 13.0 12.9 1977 19.4 21.2 22.1 2.3 11.4 27.4 25.5 2.4 1978 12.2 14.0 4.5 20.4 4.3 15.2 9.0 5.3 January - July 1979 5.6 4.9 10.7 1.5 -3.2 8.4 8.7 9.8 a/ New weights for 1978 Source: Ministry of Finance, Planning Unit.