Pierre Clarifies Terms of Loan from Saudi Fund for Development

Tuesday, Aug 15

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n Monday, August 14th, Prime Minister Honourable Philip J Pierre provided some stipulations for the $200-million loan agreement between the Government of Saint Lucia and the Saudi Fund for Development.

 Pierre denies the existence of any hidden clauses or agendas. Pierre says the “lies” perpetuated by government detractors do not stand to scrutiny and promises to deliver a completed St. Jude Hospital as soon as possible.

 They determined a scope of works for the original building [which was costed], including the George Odlum Stadium. The stadium has to be completely redone. There’s a ceiling of $275-million and the loan will expire in 2028”, the Prime Minister disclosed. He, however, clarified that the hospital, along with the stadium, will not be completed in 2028. Pierre continued, “I did not say [the projects] will finish in 2028. I said the loan will expire in 2028; every loan has a lifespan.”

Pierre restated other aspects of the loan, which were already made public. “It’s a 2% loan, that’s what's important. It is not a direct award with an interest of 1% per day. We have a 5-year grace period and to repay in 20 years. We have to complete the hospital, refurbish it and complete the stadium because that’s what the people want and that’s what they’ll get!”, Pierre explained.

The “direct award” to which the Prime Minister made reference is an agreement which was made between the former administration and a contractor for the construction on a new St. Jude Hospital wing. This agreement ensured the contractor had to be paid EC$ 70 million, with an interest of 1% per day should the government fail to pay on time. By the end of the Chastanet-led administration’s reign, however, only the shell casing was completed with no electrical works, utilities, or equipment purchased. This limited scope of work was over EC$ 300 million.

 The Prime Minister challenges the opposition to stop “peddling lies” in an attempt to fool the public. Notably, the former administration commissioned a report into the St. Jude Hospital Reconstruction Project, where it was advised that the government complete the original structures. Despite those findings. Work was stopped on the original St. Jude Project for over two years along with the demolition of two buildings.