,4- 6M - Report No. 3412-MO Economic Memorandum on Montserrat FLE COP May 18, M91 RETL'RN To Latin America and the Caribbean Regional Office TO L4 & 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. Its contents may not otherwise be disclosed without World Bank authorization. FILE COPY CURRENCY EQUIVALENTS Currency Unit: East Caribbean Dollar Since its creation in 1965, the East Caribbean dollar was tied to sterling at the rate EL 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 Montserrat during January 23-28, 1981. The mission members consisted of: Eric Bell (IMF); Carlos Elbirt (IBRD); Derick Latibeaudiere (CDB); Luis Valdivieso (IMF); and Dolores Velasco (IBRD). Mr. Vilay Soulatha, National Accounts Specialist (IBRD), visited the country in December 1980. The assistance of the ECCM Secretariat in the preparation of some basic statistics is duly acknowledged. This document has a-restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. MONTSERRAT TABLE OF CONTENTS MAP Page COUNTRY DATA SUMMARY AND CONCLUSIONS ............................................. i - ii I. ECONOMIC BACKGROUND ................................................. 1 A. Recent Growth Performance ....................................... 1 B. Public Sector Finances .......................................... 1 C. Investment and Savings .......................................... 1 D. Money and Credit ................................................ 2 E. Prices and Wages ................................................ 2 F. Balance of Payments ............................................. 2 II. DEVELOPMENT POLICY ISSUES ........................................... 3 A. Introduction .................................................... 3 B. Agriculture ..................................................... 3 C. Tourism ......................................................... 4 D. Public Finances ...................4.... . 4 E. Industry ........................................................ 5 F. Social Infrastructure ........................................... 5 III. PUBLIC SECTOR INVESTMENT PROGRAM .................................... 6 A. Introduction .................................................... 6 B. Progress of the Program ......................................... 6 C. Global Results .................................................. 7 IV. PROSPECTS ........................................................... 8 GOVERNMENT'S PROJECT LIST .. 9 STATISTICAL APPENDIX .. 56 0~~~~~~~~~~~~~~~~1 . 11 tX g s E 1ql 1 X ,i,~~s 1111 .__'__'_ _._.___ 1 .-- C. W^ ;: 0 t : f-; t: f : : Vi:f; i : :f:- o : Page 1 of 2 pages COUNTRY DATA - MONTSERRAT AREA POPULATION DENSITY 102 km2 12,000 (mid-1980) 120 per km' Rate of Growth: -1.0 (from 1970 to 1979) 600 per km2 of arable land FOPULATION CHPRACFERISTICS 1978 HFALT11 1976 "rutde Birth Rate (;,er 1,OO) 20.3 Population per physician 1,588 Crudt Death Rate (per 1,000) 9.4 Population per hospital bed 233 Infant Mortality (per 1,000 live births 1976) 48.5 INCOME DTSTR1BUTION 1978 DISTRIBUTION OF LAND OWNERSIItP % of rational income, iighest quintile .. 7 owned by top 10% of owners lowest quintile .. % owned by smallest 10% of owners A(:CCES. TO PIPED UATER Sq7g_ ACCESS TO ELECTRICITY 4. or population - urban .% of population - urban - rti-al ,, - rural NUTRITION 1976 EDIJCATION Calorie intake as 7. of requirements .. Adult literacy rate %7 Per capita protein intake Primary school enrollment %. a/ GNP PER CAPITA in 1979 US $ 1,250 GROSS NATIONAL PRODUCT IN 1979 ANNUAL RATE OF GROWTH C(. constant prices) U5 $ MGn, % 1978-77 1979-78 GNP at Market Prices 15.2 100.0 0 13.3 Gross Dcmestic nlse3tment 13.1 86.2 52.9 81.0 Gross National Saving 9.1 59.9 -58.0 1,300.0 Ct:rrent Account Balance 4.0 26.3 Fxports of Goods, S.FS 4.5 29.6 13.0 -5.8 Imports of Goods, kFS 13.4 88.1 27.5 16.6 OUTPUT in 1979 Value Added &griculture 0.5 5.5 Injastry 2.3 25.3 Other 6.3 69.2 9.1 100.0 GOVERM-ENT F TNANCE Consolidated Public Sector- Central Government ( ECS Mln.j 7 of GDP (EC$ Mln.) % of GDP 1978 1979 1978 1979 1978 1979 1978 197q Current Receipts .. .. .. .. 8.0 11.4 28.0 27.8 Current Erpenditure 9. 5 12.2 33.2 29.8 Current Surplus 0.8 1.1 2.8 2.7 -1.5 --0.8 -5.2 2.0 Capital Expenditures 2.7 4.3 9.4 10.5 2.4 4.0 8.4 9.8 External Assistance (net) 4.2 5.3 14.7 12.9 3.5 5.3 12.2 12.9. a/ The Per Captta GNP estimate is at 1979 market prices, calculated by the same conversion technique as the 1979. World Atlas. All other conversions to dcllars 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 - MONTSERRAT MONEY, CREDIT and PRICES 1976 1977 1978 1979 1980 (Million EC$ Outstanding End Period) Money and Quasi Money 14.9 15.6 17.2 19.0 20.2 Bank Credit to Public Sector -0.5 -1.5 -1.1 -2.3 -2.3 3ank Credit to Private Sector 11.3 11.4 11.9 9.0 12.4 (Percentages or Index Numbers) Money and Quasi Money as % of-GDP 61.8 60.9 60.2 46.4 43.1 General Price Index (1964 - 100) 146.1 165.1. 180.6 210.0 272.1 Annual percentage changes in: General Pri_-- Index 13.1 13.0 9.4 16.3 29.5 Bank credit to Public Sector -150.0 -300.0 27.0 -109.0 0 Bank credit to Private Sector 2.7 0.9 4.3 -24.0 37.8 BALANCE OF PAYMENTS MERCHANDISE EXPORTS (AVERAGE 1975-77) 1977 1978 1979 US $ Mln % (Millions US $) Exports of Gooda, NFS 3.4 4.3 4.5 Cotton Lint .057 9.6 Imports of Goods, NFS 7.0 10.0 13.4 Cattle .042 7.1 Resource Gap (deficit = -) -3.6 -5.7 -8.9 Tomatoes .018 3.0 Retread Tires .017 2.9 All other comnodities Factor Payments (net) -0.03 -0.03 -0.03 Total .593 100.0 Net Transfers 4.8 4.8 4.9 Balance on Current Account 1.2 -0.9 -4.0 EXTERNAL DEBT, DECEMBER 31. 1979 US $ Mlr. Net MLT Borrowing 0.2 0.2 0.1 Disbursement 0.2 0.3 0.2 Public Debt, incl. guaranteed 1.1 Amortization - -C.1 -0.1 Non-Guaranteed Private Debt Total outstanding & Disbursed Capital Grants 2.3 0.5 1.3 Other Capital(net) -2.8 0.5 2.4 DEBT SERVICE RATIO FOR 1979 - Increase in Reserves -0.9 -0.3 0.2% (- increase) Public Debt, incl. guaranteed 1.0 Non-Guaranteed Private Debt Total outstanding & Disbursed RATE OF EXCHANGE IBRD/IDA LENDING IBRD IDA Since Hay, 1976 US$ 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 MONTSERRAT SUMMARY AND CONCLUSIONS i. Montserrat is a dependent territory of the United Kingdom in the Caribbean. With only 100 km and about 12,000 people, this mountainous island is characterized by its narrow resource base. Tourism-cum- construction and, to a lesser extent, agriculture are the main determinants of the island's economy. ii. Economic growth continued at a satisfactory rate during 1980. Although the real growth of GDP went down from 13.2% in 1979 to 3.4% in 1980, the growth performance in 1980 may still be regarded as satisfactory in view of the extreme sensitivity of the economy to major investments such as the medical college which was largely executed in 1979. iii. Public sector finances have been improving during recent years. This is mainly associated with the performance of the Central Government whose deficit on current account declined from EC$1.5 million in 1978 to EC$0.6 million in 1980. This resulted from changes in indirect taxes introduced in 1979 and a prudent management of expenditures. A surplus in current account of the Central Government is expected for 1981; hence, no budgetary grants will be needed, a major achievement toward financial viability. To further strengthen the public finances, it is recommended that the Government carefully study the structure of public employment since it appears that the public sector is experiencing a shortage of skilled manpower on one hand and an excess of personnel on the other. iv. Public investment increased from EC$4.3 million in 1979 to EC$8.6 million in 1980. This reflects, primarily, the execution of several siz- able projects in transportation, electricity and, to a smaller degree, industry. About 85% of the public investment was financed by external grants. v. Inflation accelerated in 1979 and early 1980 essentially as a result of the construction-related demand, the impact of new indirect taxes and the increase in oil prices. The increase in consumer prices peaked in April 1980 and has declined since then. It averaged about 30% in 1980. vi. The balance of payments of Montserrat developed large trade deficits in 1979 and 1980 because of construction-related impor!.s and the rise in fuel costs. The resource balance deficit increased froDr 58% of GDP in 1979 to 70% in 1980. This was financed by transfers from nationals living abroad, capital inflows to the private sector, and grants and loans to the public sector. vii. The authorities addressed themselves to the development policy recommendations raised in previous Bank economic reports and implemented some of them with varying degrees of success. - ii - viii. The Government is taking steps to provide land to proven small farmers, most of whom are now renting. It is expected that these measures will encourage long term investments, such as in fencing and fruit plants which are regarded as promising crops in Montserrat. There remains, however, some important issues to be resolved if agriculture is to develop: (a) the need to provide storage facilities as well as marketing information to the farmers, and (b) the lack of regular transportation that is negatively affecting exports. In this regard, it is recommended that the Government work closely with neighboring countries to coordinate sealine schedules. ix. The Government is making serious efforts to promote tourism. Ex- ternal technical assistance is required to carry out a study of hot water springs which can make a substantial contribution to tourist development. x. The Development Finance and Marketing Corportation (DFMC) is not viable as an independent financial corporation. This results from its high overhead costs associated with small scale operations. Previous Bank reports recommended replacing the credit operations of DFMC by a Montserrat "window" of the Caribbean Development Bank (CDB). The Government, however, is con- sidering establishing a National Bank which might also operate with indus- trial credits. It is advisable that this step be carefully studied before final decisions are taken and that the Bank be created only if there is con- clusive evidence of its economic and financial viability. xi. In the field of education, the need to improve and enlarge school facilities and to provide training for teachers remains. xii. The Government is now reviewing the investment program in light of the recent changes experienced by the economy to identify new projects. How- ever, a preliminary investment program has been prepared. xiii. The public investment for the period 1981/84 totals some EC$43.1 million. Directly productive projects represent 40% of the total investment, economic infrastructure 35% and the rest, mainly health and education, 25%. Public sector savings are expected to finance more than 20% of the total financing requirements, a very ambitious target. The rest is expected to be financed by external grants and loans; it is also expected that loans will play a more significant role during the 1981-84 period than previously. xiv. Given the narrow resource base of the country, the rate of economic growth projected at 3.3% per annum for the period 1981-84 may be regarded as an ambitious target that requires the successful implementation of the appro- priate policies previously discussed as well as the timely execution of the public investment program. xv. The country will have to continue relying on capital grants and concessional loans for financing its development program. External borrowing on conventional terms might become feasible if the indicated measures are implemented, public finances are further strengthened and viability is attained through participation in a larger economic unit. MONTSERRAT I. ECONOMIC BACKGROUND A. Recent Growth Performance 1. Montserrat is a dependent territory of the United Kingdom in the Leeward chain of the Caribbean Islands. With only 100 km2 and about 12,000 inhabitants, this mountainous island is characterized by its narrow resource base. Tourism-cum-construction and, to a lesser extent, agriculture are the principal determinants of the countryts economy. 2. Economic growth continued at a satisfactory rate during 1980. Although real growth of GDP dropped from 13.2% in 1979 to 3.4% in 1980, this decline needs to be interpreted within the context of the small size of the economy and its extreme sensitivity to major investments. The economic growth during 1979 and 1980 is largely attributable to the construction of the medical college completed in mid-1980, the arrival of 450 students and the increase in stayover visitors, 19.7% in 1979 and 12.4% in 1980. 3. The population of Montserrat seems to have leveled off at around 12,000 after many years of steady decline. Since emigration continues, the population is concentrated in the younger age bracket; this may create a shortage of labor in the near future. B. Public Sector Finances 4. Public sector finances have been improving in recent years. This improvement is associated with the Central Government whose financial performance is a large determinant of the performance of the public sector in its entirety. Current revenues of the Central Government increased more than 30% in 1980, following the growth in the economy and the changes in the indirect taxes adopted in 1979. Current expenditures increased less rapidly than revenues thanks to the prudent fiscal management. As a result, the current account deficit of the Central Government fell from EC$0.8 million in 1979 to EC$0.6 million in 1980. A surplus on current account is expected this year and no budgetary grants will be needed. 5. Public sector investment increased from EC$4.3 million in 1979 to EC$8.6 million in 1980. This parallels the execution of several s zable projects in transportation, electricity and, to a smaller degree, lidustry. About 85% of the public investment was financed by external grants. C. Investment and Savings 6. Gross domestic investment fell from 86% of GDP in 1979 to 35% in 1980 following the completion of the medical college. Public investment - 2 - represented about 40% of the total in 1980. Since consumption is a very high percentage of GDP, the bulk of the investment has been financed by external capital inflows. D. Money and Credit 7. The operations of the commercial banks in Montserrat seem to be undergoing an important structural change. The net foreign assets of the commercial banks, excluding the net position with the Eastern Caribbean Currency Authority (ECCA), have increased from an average of EC$0.5 million in 1976-78 to an average of EC$5 million in 1979-80. This primarily reflects the increased operations with banks abroad associated with the financing of major projects and the presence of 450 foreign students since the opening of the medical school. Domestic assets grew substantially during 1980 but this was not accompanied by a corresponding growth in deposits. As a result, the domestic banks had to draw down their deposits with ECCA in order to finance the increased domestic demand for credit. This took place mostly in personal loans, commerce and transportation. Domestic interest rates have remained negative in real terms and have been totally unrelated either to world market rates or ECCA interest rates. E. Prices and Wages 8. A burst of inflation in 1979 and early 1980 originated chiefly in the construction-related demand, the increase in oil prices, and the impact of the new indirect taxes introduced in late 1979. The annual in- crease in consumer prices peaked in April 1980 with increases in fuel, food and housing leading the way. Inflation slowed down during the rest of 1980; the inflation rate averaged 29.5% in 1980 on an annual basis but it was only 17.7% on a year-end-to-year-end basis. This slowdown is expected to extend into 1981. 9. There are no summary wage data for Montserrat. Information concerning the public sector, an important employer, may be indicative of the economy as a whole. In March 1979 the Government instituted salary increases for civil servants and non-established workers ranging from 60% at the bottom of the pay scale to 35% at the top. Furthermore, the Government granted an increase to both civil servants and non-established workers of 5% in 1980 and another 5% in 1981. F. Balance of Payments 10. The current account balance of payments of Montserrat has developed large trade deficits in 1979 and 1980 because of construction- related imports and the rise in fuel costs. The resource balance deficit increased from 58% of GDP in 1979 to 70% in 1980. This was financed by private transfers from nationals living abroad, capital inflows to the private sector, and grants and loans to the public sector. - 3 - II. DEVELOPMENT POLICY ISSUES A. Introduction 11. Previous Bank reports on Montserrat stressed the need to pursue labor-absorptive options in agriculture, tourism and industry. In this context, a series of development policy recommendations was made. The authorities addressed themselves to these recommendations and implemented some of them with varying degrees of success. This chapter attempts to chart progress in implementing the policy recommendations and to highlight what remains to be accomplished. B. Agriculture 12. The situation in agriculture requires that arable land be brought into production through the settlement of qualified small farmers and the revival of cotton production. To achieve these goals, it is necessary to: (a) establish an effective land tenure and land use policy; (b) improve the marketing and transportation services; (c) provide adequate irrigation and extension services; and (d) formulate a soil conservation policy. 13. In relation to the land tenure issue, the Government is taking steps to provide land ownership to qualified small farmers, most of whom are now renting. Estates are being purchased by the Government which, in turn, subdivides them and transfers small units to the farmers. The farmers have to pay rent annually during a period of 25 years which would compensate for the infrastructural works previously carried out on the land. Farmers are on a probationary status during the first three years, but will become owners if their performance is satisfactory. It is expected that all these measures will encourage long term investments such as fencing, fruit plants which are regarded as promising in Montserrat, etc. 14. The Government is addressing itself to the marketing and trans- portation issues. It is studying the possible reorganization of the Develop- ment Financial and Marketing Corporation (DFMC). As stated in previous economic reports, the marketing agency should avoid, as much as possible, retail functions and concentrate on providing storage facilities as well as marketing information to the farmers in close coordination with the extension services. 15. The lack of regular transportation is negatively affecting exports of agricultural products. Given the relatively small tonnage to be shipped, a regional approach is advisable. Thus, it is recommended that the Govern- ment work closely with neighboring Caribbean countries to coordinat sealine schedules. 16. The authorities are trying to solve the irrigation problem through ongoing and new projects. They are working to build small dams and to utilize spring water. There is also salty water that may be - 4 - suitable for irrigation of some crops. Nevertheless, external technical and financial assistance is needed to develop a comprehensive irrigation program. 17. Some measures have been taken to improve the extension services. A training program has been undertaken and the Government plans to establish farmers' training centers. There is also a Government-owned livestock unit for improvement of cattle. 18. Additional efforts are needed for soil conservation. The need to enforce the existing legislation on forestry remains. On the positive side, a reafforestation project, financed by the United States Agency for International Development (USAID), is being implemented on schedule. C. Tourism 19. The retiree tourism-cum-construction industry continues to play a key role in Montserrat's economy. The Government is interested in expanding the sector and, within certain limits, in diversifying it into more conventional tourism. This requires: (a) improving access to the island; (b) increasing the promotion efforts to attract summer visitors; (c) developing tourist potential of hot water springs; and (d) developing the hotel/condominium infrastructure. 20. The Government has taken steps to improve access to the country. It bought a 20-seat plane to replace a smaller one that is currently being used. The purchase was financed by a loan from a local commercial bank. The new plane will operate between Antigua and Montserrat. 21. Other efforts have been made to promote tourism. The Government is implementing a study on market strategy and promotion with the help of an advisor, financed by the United Kingdom (UK). In relation to the development of the hot water springs, technical assistance is needed to carry out the required study. The Canadian International Development Agency (CIDA) has been approached for assistance. 22. The Government is also promoting the development of the tourist infrastructure although the bulk of the investment is expected to be carried out by the private sector. A feasibility study on the Little Bay Development Project is expected to be completed soon. If feasible, the Government, with financial help from the UK, may provide the infrastructure. The project comprises 200 rooms, a convention center, yacht and sport facilities. D. Public Finances 23. The expansion of economic activity during the last two years, combined with prudent fiscal management, has contributed to the improvement of public finances; therefore, no budgetary grants will be needed in 1981. It appears, however, that the public sector has a shortage of skilled manpower on one hand and an excess of personnel on the other; for this reason, it is recommended that the Government study this issue and take proper action. E. Industry 24. The DFMC is not viable. This stems from its high overhead costs associated with its small scale operations. Previous Bank reports recommended replacing the credit operations of DFMC by a Montserrat "window" at the Caribbean Development Bank (CDB). The Government, however, is considering establishing a National Bank which might also extend industrial credits. It is advisable that this step be carefully studied before final decisions are taken and that the Bank be created only if there is conclusive evidence of its potential economic and financial viability. F. Social Infrastructure 25. In the field of education, the need to improve and enlarge school facilities remains. It is also necessary to provide training for at least 50% of the teachers. The authorities are fully aware of these needs which have not been met due to financial constraints. 26. In relation to health, two issues require prompt attention: the upgrading of equipment and hospital buildings and the purchasing of a bulldozer for garbage disposal. Both projects still lack financing. - 6 - III. PUBLIC SECTOR INVESTMENT PROGRAM A. Introduction 27. To realize its development objectives, the Government of Montserrat prepared, with the assistance of the World Bank/IMF/CDB mission of January 1980, a public sector investment program and financing plan for the period 1980-83. The purpose of this chapter is to discuss the progress made in the implementation of the investment program during 1980. The Government is now reviewing the investment program in light of the changes experienced by the economy lately in an effort to identify new projects. B. Progress of the Program 28. Disbursements for agricultural projects were lower than programmed but the overall performance may be regarded as satisfactory. Cotton rehabilitation continued with the planting of 130 acres. The pilot irrigation project, financed by the CIDA, progressed as scheduled. Execu- tion of other projects, such as reafforestation, fisheries demonstration and land registration, proceeded satisfactorily. Most of these projects are financed by the United Kingdom. Implementation of new projects, such as the abbatoir and the estates development, experienced some delays. 29. In the field of industry and tourism, several projects were successfully carried out during 1980. This includes projects financed by the United Kingdom, CIDA and the Caribbean Development Bank (CDB), such as industrial estates, credit program, handicrafts, and the development of the stitching industry, cotton spinning and small business. 30. Implementation of transportation projects proceeded satisfactorily with the execution of several projects that represented more than 30% of the total public investment during 1980. Most of the projects are still ongoing such as the St. John's/Trant Road, financed by the United Kingdom and the European Development Fund (EDF), and the purchase of factory and equipment for the Ministry of Communications and Works, financed by the United Kingdom (UK). Improvement of the port facilities took place, financed by CIDA. 31. The expansion of the electrical plant continued during 1980 although disbursements were somewhat lower than programmed. This project, financed by CDB, is expected to be completed this year. 32. Project implementation in the field of education experienced mixed results. Most of the ongoing programs, with external financing, continued to be implemented on schedule. This is the case of the minor schools project, financed by the United Kingdom, and the training programs, funded by the UK and CIDA. Implementation of new projects, however, lagged behind schedule due to the lack of financing. 33. In the water sector, a program on wells and reservoir rehabilitation, funded by the United Kingdom, continued on schedule. 7- C. Global Results 34. The public investment during 1980 amounted to about EC$8.6 million. Following the pattern of previous years, external grants and loans financed more than 90% of this total. Although short of target, the performance may be regarded as satisfactory, especially taking into consideration the limited absorptive capacity of Montserrat. Main problems detected in the implementation of the public sector investment program are related to the institutional weaknesses of some Government agencies and the unavailability at the time needed of external resources. IV. PROSPECTS 35. The Government of Montserrat, in an effort to identify new projects, is now reviewing the investment program in light of the changes experienced by the economy lately. However, an indicative investment program is presented in this memorandum. The program includes several ongoing projects as well as identified new projects in which the Government is interested. 36. The estimates of the public investment for the period 1981-84 total EC$43.1 million. Directly productive projects represent 40% of the total investment, economic infrastructure 35% and the rest, mainly health and education, 25%. Public sector savings are projected to finance more than 20% of the total financing requirements, a very ambitious target. The rest of the investments are expected to be financed by external grants and loans; it is also expected that loans will play a more significant role during the 1981-84 period than previously. 37. Given the narrow resource base of the country, the rate of economic growth projected at 3.3% per annum may be regarded as an ambitious target that requires the successful implementation of the appropriate policies previously discussed as well as the timely execution of the public investment projects. 38. The country must continue to rely on capital grants and concessional loans for financing its development program. External borrowing on conventional terms might become feasible if the indicated measures are implemented, public finances are further strengthened and viability is attained through participation in a larger economic unit. - 9 - MONTSERRAT 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 1981-84 and individual project descriptions. 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 1981-84 period. The individual profiles 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 23-26, 1981, were provided by the Government of Montserrat or furnished by the World Bank-led mission of January 1981. MONTSERRAT - MAJOR ONGOING PROJECTS (US$'000) Amorti- External zation Grace Counterpart Recurrent Total Financing Source Interest Period Period Financing Costs Cost Secured 2 (Years) (Years) Amount % 1981/84 Lrectly Productive Projects Integrated Sea Island Cotton Project 858 644 CDB 4 15 5 214 25 - Abbatoir 187 187 UK Grant - - - - Farm Improvement Credit 129 129 CDB 4 15 5 - - Estates Infrastructure - Lees, Hermitage & Otway Estates 60 60 UK Grant - - - - Reafforestation 75 75 USAID Grant - - - - Agriculture Import Subsidy 42 42 UK Grant - - - - Pilot Irrigation - Lees and Trants 50 35 UK Grant - - 15 30 Industrial Estates I 364 364 CDs 4 15 5 - - Small Industry Credit II 100 100 CDB 4 15 5 - - Handicraft 213 213 CIDA Grant - - - - Development of Stitching Industry 165a/ 143 UK Grant - - 22a' 13 Tourism Development 43 43 UK Grant - - - - !onomic Infrastructure St. John's/Trants Road (EDF) 525 508 EDF Grant - - 17 3 - St. John's/Trants Road (UK) 452 452 UK Grant - - 29 Airport Resurfacing 289 289 UK Grant - - - - Twin Otter Aircraft 1.596 1,406 b Commercial Bank 9 8 6 Months 190 12 Civil Engineering and Earthmoving Plant 556 556 UK Grant - - - - Expansion of Electrical Plant 849 679 CDB 4 15 5 170 20 thers Improvement to Broadcasting Services 39 39 UK Grant - - - - New Broadcasting Equipment 71 71 UK Grant - Wells and Reservoir Rehabilitation 42 42 UK Grant - - - - Redevelopment of Spring Sources of Water 133 133 USAID Grant - - - - Student Loans - Higher Education II 131 131 CDB 4 15 5 - - Third Country Training III & IV 644 644 CIDA Grant - - _ _ UK/WI Training Scheme 163 163 UK Grant - - - - Counterpart financing comes from the private sector. This amount includes a long-term loan for EC$2,990,000 and a short-term loan of EC$810,000. This short-term loan, repayable within six months from the date of drawing, will be paid from the proceeds of the sale of the Trislander. MONTSERRAT - MAJOR NEW PROJECTS AND SOURCE OF FINANCING (US$ '000) External Counterpart Recurrent Total Financing Source Financing Costs Cost Required Amount % 1981/84 Directly Productive Projects Development of Estates 500 500 UK - - - Fishing Boat Slipway 19 19 UR - - Fruit Crop Establishment 259 259 Unknown - - - Soil Conservation 244 244 Unknown - _ Dairy Project 444 444 Unknown - - - Farm Improvement Credit II & III 654 654 CDB - - - Industrial Estates II 435 435 CDB - - - Small Industry Credit II & III 646 646 CDB - - - Tourist Facilities (Hot Water Pond) 70 70 Unknown - - - Economic Infrastructure Harbor Protection and Yacht Facility 117 117 UK - - - Road Improvement Program 974 974 UK - - - Plymouth Harbor - Minor Construction 200 200 Unknown - - - Water Storage Improvement 667 667 Possibly EDF - - - Electricity Project 1,250 1,000 Unknown 250 20 - Others Handicraft - Leather 57 57 Possibly CIDA - - - Low Cost Housing - Construction 1,111 1,111 Unknown - - - Bulldozer for Sanitary Landfill 56 56 Unknown - - 3 Storage Space 9 9 Unknown - - - Health, Education, Welfare Ministry Building 166 166 Unknown - - - Nursery Schools/Infant Block - Kinsale 156 156 Unknown - - - Furniture for Schools/Laboratory Equipment for Industrial Arts Center 122 122 Unknown - - - Junior Secondary School - Construction 370 370 Unknown - - - Student Loans 200 200 CDB - - - Old People's Home 278 278 UK - - - - 12 - MONTSERRAT 1981/84 Project List - Individual Project Description Agriculture (US$'000) I. NAME OF PROJECT: Development of Estates II. EXECUTING GOVERNMENT AGENCY: Land Development Authority III. TOTAL ESTIMATED COST: US$500 IV. EXTERNAL FINANCING REQUIRED: US$500 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: Project involves the acquisition, management, and development of land for settlement and direct production. The project is a key element in the agricultural development plan for 1980/1983 that has been prepared by Montserrat. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 350 350 70 Foreign Costs - 150 150 30 Total Costs - Amount - 500 500 - -% - 100 - 100 VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - - External Sources 240 93 110 57 500 - Total 240 93 110 57 500 - IX. STATUS OF PREPARATION: UK had considered financing this project. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1981/84. Debt Obligations: None. XI. TECHNICAL ASSISTANCE: The UK is providing the required technical assistance. - 13 - MONTSERRAT 1981/84 Project List - Individual Project Description Agriculture (US$000) I. NAME OF PROJECT: Farm Improvement Credit II and III II. EXECUTING GOVERNMENT AGENCY: DFMC III. TOTAL ESTIMATED COST: US$654 IV. EXTERNAL FINANCING REQUIRED: US$654 V. LENDING AGENCY: CDB VI. DESCRIPTION AND JUSTIFICATION: The project is a continuation of the farm improvement credit scheme. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - - Foreign Costs - 654 654 100 Total Costs - Amount - 654 654 - % - 100 - 100 VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - - External Sources - 151 151 176 478 176 Total - 151 151 176 478 176 IX. STATUS OF PREPARATION: CDB is to be approached. X. TERMS OF FINANCING: Interest Rate: Unknown. Amortization Period: Unknown. XI. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: Unknown. XII. TECHNICAL ASSISTANCE: None. - 14 - MONTSERRAT 1981/84 Project List - Individual Project Description Agriculture (US$'000) I. NAME OF PROJECT: Fishing Boat Slipway II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture, Trade and Housing III. TOTAL ESTIMATED COST: US$19 IV. EXTERNAL FINANCING REQUIRED: US$19 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: The project involves the construction of a slipway for fishing boats. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount Local Costs - 3 3 16 Foreign Costs - 16 16 84 Total Costs - Amount - 19 19 - -% - 100 - 100 VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - - External Sources - - 19 - 19 _ Total - - 19 - 19 IX. STATUS OF PREPARATION: Project proposal has been submitted to the UK. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: Potentially self-liquidating. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: Technical assistance is required for project preparation and implementation. - 15 - MONTSERRAT 1981/84 Project List - Individual Project Description Agriculture (US$'000) I. NAME OF PROJECT: Fruit Crop Establishment II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture, Trade and Housing III. TOTAL ESTIMATED COST: US$259 IV. EXTERNAL FINANCING REQUIRED: US$259 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project comprises subprojects of 10-12 acres supported by springs and small dams. It would be implemented over a four-year period. B. Justification: To promote agricultural production by alleviating water shortages during dry seasons. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 65 65 25 Foreign Costs - 194 194 75 Total Costs - Amount - 259 259 - - % - 100 - 100 VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - - External Sources - 56 72 35 163 96 Total - 56 72 35 163 96 - 16 - IX. STATUS OF PREPARATION: Project profile has been prepared. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: Technical assistance is required for preparation and implementation. - 17 - MONTSERRAT 1981/84 Project List - Individual Project Description Agriculture (US$'000) I. NAME OF PROJECT: Soil Conservation II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture, Trade and Housing III. TOTAL ESTIMATED COST: US$244 IV. EXTERNAL FINANCING REQUIRED: US$244 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: This project is a positive effort to check soil erosion and maintain soil cover and fertility. It will promote the establishment of soil conservation measures on hillside lands. B. Justification: Most of the useable land is exposed to rapid erosion and the cultivation of sea island cotton on steep slopes some years ago has accelerated the erosion. The project aims at improving and maintaining the production capability of these lands. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 195 195 80 Foreign Costs - 49 49 20 Total Costs - Amount - 244 244 - - % - 100 - 100 - 18 - VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - - External Sources - 45 45 37 127 117 Total - 45 45 37 127 117 IX. STATUS OF PREPARATION: Concept has been identified. USAID will possibly finance this project. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: Not determined. XI. TECHNICAL ASSISTANCE REQUIRED: Technical assistance is required to prepare the project and to advise the Ministry of Agriculture on implementation. - 19 - MONTSERRAT 1981/84 Project List - Individual Project Description Industry (US$'000) I. NAME OF PROJECT: Handicraft/Leather II. EXECUTING GOVERNMENT AGENCY: Montserrat Industrial Enterprises, Ltd. (MIEL) III. TOTAL ESTIMATED COST: US$57 IV. EXTERNAL FINANCING REQUIRED: US$57 V. LENDING AGENCY: Possibly CIDA VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project proposes to revive the leather workshop set up in 1974 which has declined due to lack of management, design and marketing capability. The project will include a three- year leather craftsmen training program. B. Justification: The enterprise, if successfully revived, could employ 35 skilled craftsmen and provide a forward linkage for the new tannery with the tourism sector. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 23 23 40 Foreign Costs - 34 34 60 Total Costs - Amount - 57 57 - -% - 100 - 100 VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - - External Sources - 19 38 - 57 - Total - 19 38 - 57 - 20 - IX. STATUS OF PREPARATION: Feasibility study was undertaken in 1978. A handicraft project is being financed by CIDA. At present there are three leathercraft workshops with three craftsmen. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: Not determined. XI. TECHNICAL ASSISTANCE REQUIRED: A technical leather shop advisor from CFTC will assist in project implementation. - 21 - MONTSERRAT 1981/84 Project List - Individual Project Description Industry (uss$'000) I. NAME OF PROJECT: Dairy Project II. EXECUTING GOVERNMENT AGENCY: DFMC/MIEL III. TOTAL ESTIMATED COST: US$444 IV. EXTERNAL FINANCING REQUIRED: US$444 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project consists of constructing and equipping a dairy plant to pasturize milk for the local market. B. Justification: To substitute for imported milk products and encourage cooperative milk production as well as develop potential for beef and hides production. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 178 178 40 Foreign Costs - 266 266 60 Total Costs - Amount - 444 444 - - % - 100 - 100 VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - - External Sources 74 74 100 100 348 96 Total 74 74 100 100 348 96 - 22 - IX. STATUS OF PREPARATION: CFTC produced a feasibility study in 1977. Cooperative dairy farms have yet to be organized. Discussions have been held with CDB, CIC, BDD, and CIDA. Project is being re-examined and most probably will be implemented at a scale much smaller than anticipated when it was originally identified. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: Not determined. XI. TECHNICAL ASSISTANCE REQUIRED: A dairy farming expert is required to assist in project implementation. - 23 - MONTSERRAT 1981/84 Project List - Individual Project Description Industry (US$'000) I. NAME OF PROJECT: Industrial Estates II II. EXECUTING GOVERNMENT AGENCY: DFMC III. TOTAL ESTIMATED COST: US$435 IV. EXTERNAL FINANCING REQUIRED: US$435 V. LENDING AGENCY: CDB VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project consists of 32,000 square feet of factory shell space to be constructed when industrial tenants are identified. B. Justification: To promote the establishment of private sector industrial enterprises in Montserrat. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 106 106 25 Foreign Costs - 329 329 75 Total Costs - Amount - 435 435 - -% - 100 - 100 VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - - External Sources - 145 148 142 435 Total - 145 148 142 435 - 24 - IX. STATUS OF PREPARATION: CDB has been approached. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: Not determined. XI. TECHNICAL ASSISTANCE REQUIRED: The donors are expected to provide the necessary technical assistance. - 25 - MONTSERRAT 1981/84 Project List - Individual Project Description Industry (US$'000) I. NAME OF PROJECT: Small Industry Credit II and III II. EXECUTING GOVERNMENT AGENCY: DFMC III. TOTAL ESTIMATED COST: US$646 IV. EXTERNAL FINANCING REQUIRED: US$646 V. LENDING AGENCY: CDB VI. DESCRIPTION AND JUSTIFICATION: The project is a continuation of the small industry credit scheme. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - - Foreign Costs - 646 646 100 Total Costs - Amount - 646 646 - -% - 100 - 100 VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - - External Sources - 155 143 174 472 174 Total - 155 143 174 472 174 - 26 - IX. STATUS OF PREPARATION: CDB is to be approached. X. TERMS OF FINANCING: Interest Rate: Unknown. Amortization Period: Unknown. Xi. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: Unknown. XII. TECHNICAL ASSISTANCE REQUIRED: None. - 27 - MONTSERRAT 1981/84 Project List - Individual Project Description Tourism (US$'000) I. NAME OF PROJECT: Tourist Facilities - Hot Water Pond II. EXECUTING GOVERNMENT AGENCY: Chief Minister's Office III. TOTAL ESTIMATED COST: US$70 IV. EXTERNAL FINANCING REQUIRED: US$70 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project involves the establishment of facilities for hot mineral baths on the site of hot springs which formed a tourist attraction some years ago. B. Justification: To attract additional tourists to the island. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 14 14 20 Foreign Costs - 56 56 80 Total Costs - Amount - 70 70 - - % - 100 - 100 VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - External Sources - 35 35 - 70 Total - 35 35 - 70 - 28 - IX. STATUS OF PREPARATION: The concept has been identified. Feasibility study will be done by the Government. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: Potentially self-liquidating. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: Technical assistance is required at all stages. - 29 - MONTSERRAT 1981/84 Project List - Individual Project Description Transport (US$'000) I. NAME OF PROJECT: Harbor Protection and Yacht Facility II. EXECUTING. GOVERNMENT AGENCY: Ministry of Communications and Works III. TOTAL ESTIMATED COST: US$117 IV. EXTERNAL FINANCING REQUIRED: US$117 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: A. Description: Project includes construction of a 450-foot clearance yacht arm to 20-foot depth of water to the left of the Ro-Ro facility at Plymouth Harbor (similar to yacht arm under construction at Vue Point). B. Justification: To meet existing demand for berthing facilities and segregate pleasure craft from commercial craft. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 29 29 25 Foreign Costs - 88 88 75 Total Costs - Amount - 117 117 - -% - 100 - 100 VIII. DISBURSEMENT PERIOD: post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - - External Sources - 43 74 - 117 Total - 43 74 - 117 - 30 - IX. STATUS OF PREPARATION: Project proposal has been submitted to the UK which is financing construction of yacht arm at Vue Point. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: Potentially self-liquidating. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: None. - 31 - MONTSERRAT 1981/84 Project List - Individual Project Description Transport (US$'000) I. NAME OF PROJECT: Road Improvement Program II. EXECUTING GOVERNMENT AGENCY: Ministry of Communications and Works III. TOTAL ESTIMATED COST: US$974 IV. EXTERNAL FINANCING REQUIRED: US$974 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: A. Description: Project includes upgrading of existing roads (widening and surface-dressing) and construct- ing of about eight miles of new roads. B. Justification: The project will improve access to villages and agricultural areas. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount Local Costs - 390 390 40 Foreign Costs - 584 584 60 Total Costs - Amount - 974 974 - -% - 100 - 100 VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - - External Sources - 78 74 222 374 600 Total - 78 74 222 374 600 - 32 - IX. STATUS OF PREPARATION: The project has been identified. BDD has been approached. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1981/84. Debt Obligations: None during 1981/84. XI. TECHNICAL ASSISTANCE REQUIRED: None. - 33 - MONTSERRAT 1981/84 Project List - Individual Project Description Transport (US$'000) I. NAME OF PROJECT: Plymouth Harbor - Minor Construction II. EXECUTING GOVERNMENT AGENCY: Ministry of Communications and Works III. TOTAL ESTIMATED COST: US$200 IV. EXTERNAL FINANCING REQUIRED: US$200 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project comprises: (a) addition of two catwalks atop piles leading to the mooring dolphins on either side of new concrete pier, and widening of stairway for passenger unloading; (b) reconstruction of the berth- fending destroyed by the hurricane; (c) instal- lation of new concrete slab; and (d) completion of other work for repairment or enlargment. B. Justification: To permit vessels up to 500-feet to be berthed alongside pier, and to reconstruct the berth for use primarily by sandbarges; catwalks would also improve safety of crews on vessels tied alongside pier. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount _ Local Costs - 50 50 25 Foreign Costs - 150 150 75 Total Costs - Amount - 200 200 - - % - 100 - 100 - 34 - VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - - External Sources - 50 50 100 200 Total - 50 50 100 200 IX. STATUS OF PREPARATION: An old identified project is to be reformulated due to the damages of the hurricane. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: Not determined. XI. TECHNICAL ASSISTANCE REQUIRED: None. - 35 - MONTSERRAT 1981/84 Project List - Individual Project Description Water (US$'000) I. NAME OF PROJECT: Water Storage Improvement II. EXECUTING GOVERNMENT AGENCY: Ministry of Communications and Works III. TOTAL ESTIMATED COST: US$667 IV. EXTERNAL FINANCING REQUIRED: US$667 V. LENDING AGENCY: Possibly EDF VI. DESCRIPTION AND JUSTIFICATION: A. Description: To increase water storage capacity. B. Justification: To meet the increasing water demand. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount _ Local Costs - 133 133 20 Foreign Costs - 534 534 80 Total Costs - Amount - 667 667 - -% - 100 - 100 VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - External Sources 333 334 - - 667 Total 333 334 - - 667 - 36 - MONTSERRAT 1981/84 Project List - Individual Project Description Health (US$'000) I. NAME OF PROJECT: Bulldozer for Sanitary Landfill II. EXECUTING GOVERNMENT AGENCY: Ministry of Education, Health and Welfare III. TOTAL ESTIMATED COST: US$56 IV. EXTERNAL FINANCING REQUIRED: US$56 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project consists of procurement of a bulldozer to enable sanitary landfill to be properly covered and pressed. B. Justification: The bulldozer would contribute to a better maintenance of enviromental health. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount Local Costs - - Foreign Costs - 56 56 100 Total Costs - Amount - 56 56- -% - 100 - 100 VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - - External Sources - 28 28 - 56 Total - 28 28 - 56 - 37 - IX. STATUS OF PREPARATION: EDF will be approached to finance this project. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1981/84. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: Technical assistance is required. - 38 - IX. STATUS OF PREPARATION: Project has been identified. USAID and/or CIDA will be approached. X. PROJECT IMPLICATIONS: 1984 Operating and Maintenance Costs: 3 Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: None. - 39 - MONTSERRAT 1981/84 Project List - Individual Project Description Health (US$'000) I. NAME OF PROJECT: Storage Space II. EXECUTING GOVERNMENT AGENCY: Ministry of Education, Health and Welfare III. TOTAL ESTIMATED COST: US$9 IV. EXTERNAL FINANCING REQUIRED: US$9 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project consists of provision of hospital basement storage space with adequate shelving, lighting, and ventilation. B. Justification: The current storage space at the hospital is inadequate for efficient operation, precluding bulk purchasing of drugs and other supplies. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 2 2 22 Foreign Costs - 7 7 78 Total Costs - Amount - 9 9 - -% - 100 - 100 VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - External Sources - - - 9 9 Total - - - 9 9 - 40 - IX. STATUS OF PREPARATION: Concept has been identified. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: None. - 41 - MONTSERRAT 1981/84 Project List - Individual Project Description Power (US$'000) I. NAME OF PROJECT: Electricity Project II. EXECUTING GOVERNMENT AGENCY: Montserrat Electricity Services, Ltd. III. TOTAL ESTIMATED COST: US$1,250 IV. EXTERNAL FINANCING REQUIRED: US$1,000 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: To improve and expand the capacity of the electric plant. B. Justification: To meet increase in demand. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 250 200 450 36 Foreign Costs - 800 800 64 Total Costs - Amount 250 1,000 1,250 - -% 20 80 - 100 VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - 125 125 250 - External Sources _ 500 250 250 1,000 - Total - 500 375 375 1,250 - - 42 - IX. STATUS OF PREPARATION: A feasibility study is needed to determine the necessary requirements. X. TERMS OF FINANCING: Interest Rate: Unknown. Amortization Period: Unknown. XI. PROJECT IMPLICATIONS: Operating and Maintenance Costs: To be determined. Debt Obligations: Unknown. XII. TECHNICAL ASSISTANCE REQUIRED: Technical assistance might be required in all phases of the project. - 43 - MONTSERRAT 1981/84 Project List - Individual Project Description Education and Health (US$'000) I. NAME OF PROJECT: Health, Education, Welfare Ministry Building II. EXECUTING GOVERNMENT AGENCY: Ministry of Education, Health and Welfare III. TOTAL ESTIMATED COST: US$166 IV. EXTERNAL FINANCING REQUIRED: US$166 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project consists of the transformation of the old hospital building into offices, storage space and a teachers' resource center. B. Justification: The present partly-wooden building is very old and too cramped to permit efficient operations. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount _ Local Costs - 41 41 25 Foreign Costs - 125 125 75 Total Costs - Amount - 166 166 - - % - 100 - 100 VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - - External Sources - 11 74 81 166 - Total - 11 74 81 166 - - 44 - IX. STATUS OF PREPARATION: Concept has been identified. UK will be approached. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1981/84. Debt Obligations: Not determined. XI. TECHNICAL ASSISTANCE REQUIRED: None. - 45 - MONTSERRAT 1981/84 Project List - Individual Project Description Education (uss'000) I. NAME OF PROJECT: Nursery Schools/Infant Block - Kinsale II. EXECUTING GOVERNMENT AGENCY: Ministry of Education, Health and Welfare III. TOTAL ESTIMATED COST: US$156 IV. EXTERNAL FINANCING REQUIRED: US$156 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project involves construction of three nursery schools, one daycare center, and an infant block, each with activity area, toilet, office facilities, and furnishings. B. Justification: Present infant classes are overcrowded; nursery school/daycare center permits mothers to work outside the home. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 39 39 25 Foreign Costs - 117 117 75 Total Costs - Amount - 156 156 - -% - 100 - 100 VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - - External Sources - - 56 100 156 - Total - - 56 100 156 - - 46 - IX. STATUS OF PREPARATION: Concept has been identified. USAID will be approached. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1981/84. Debt Obligations: None during 1981/84. XI. TECHNICAL ASSISTANCE REQUIRED: None. - 47 - MONTSERRAT 1981/84 Project List - Individual Project Description Education (US$'000) I. NAME OF PROJECT: Furniture for Schools/Laboratory Equipment for Industrial Arts Center II. EXECUTING GOVERNMENT AGENCY: Ministry of Education, Health and Welfare III. TOTAL ESTIMATED COST: US$122 IV. EXTERNAL FINANCING REQUIRED: US$122 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project consists of provision of: (a) school furniture (700 desks and chairs, 16 filing cabinets, 100 lab stools, cupboards); (b) equipment for science laboratories; and (c) equipment for Industrial Arts Center at the senior secondary school. B. Justification: The lack of proper furnishings hinders the effectiveness of classroom and laboratory instruction. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 24 24 20 Foreign Costs - 98 98 80 Total Costs - Amount - 122 122 - - % - 100 - 100 - 48 - VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - External Sources - - 89 33 122 Total - - 89 33 122 IX. STATUS OF PREPARATION: Needs have been identified. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: Negligible. Debt Obligations: Negligible. XI. TECHNICAL ASSISTANCE REQUIRED: None. - 49 - MONTSERRAT 1981/84 Project List - Individual Project Description Education (us$'000) I. NAME OF PROJECT: Construction Junior Secondary School II. EXECUTING GOVERNMENT AGENCY: Ministry of Education, Health and Welfare III. TOTAL ESTIMATED COST: US$370 IV. EXTERNAL FINANCING REQUIRED: US$370 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project consists of constructing and equipping a new comprehensive junior second- ary school. B. Justification: The school will provide places for the 33% of primary school leavers presently without accommodation. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 92 92 25 Foreign Costs - 278 278 75 Total Costs - Amount - 370 370 - -% - 100 - 100 VlII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - - External Sources - - 148 111 259 111 Total - - 148 111 259 111 - 50 - IX. STATUS OF PREPARATION: Building plans have been drawn and a site acquired. The UK has expressed interest in financing the project. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1981/84. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: None. - 51 - MONTSERRAT 1981/84 Project List - Individual Project Description Housing (US$'000) I. NAME OF PROJECT: Low Cost Housing II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture, Trade and Housing III. TOTAL ESTIMATED COST: US$1,111 IV. EXTERNAL FINANCING REQUIRED: US$1,111 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project involves construction and rehabil- itation of housing for low income groups, employing aided self-help. The cost of self- help labor is not included in the project cost. B. Justification: Low income groups are virtually excluded from the private housing market because of high building and finance costs. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 278 278 25 Foreign Costs - 833 833 75 Total Costs - Amount - 1,111 1,111 - - % - 100 - 100 VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - - External Sources 204 204 241 278 927 184 Total 204 204 241 278 927 184 - 52 - IX. STATUS OF PREPARATION: The UK has approved funds for construction of five model units on an experimental basis. The UK and CDB may be approached for funding of the total project. This is regarded as a priority project. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: The necessary technical assistance will be provided by the UK. - 53 - MONTSERRAT 1981/84 Project List - Individual Project Description Education (us$ '000) I. NAME OF PROJECT: Student Loans II. EXECUTING GOVERNMENT AGENCY: DFMC III. TOTAL ESTIMATED COST: US$200 IV. EXTERNAL FINANCING REQUIRED: US$200 V. LENDING AGENCY: CDB VI. DESCRIPTION AND JUSTIFICATION: This is a continuation of the student loan scheme. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - - - Foreign Costs - 200 200 100 Total Costs - Amount - 200 200 - -% - 100 - 100 VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - - External Sources - 50 76 74 200 - Total - 50 76 74 200 - - 54 - IX. STATUS OF PREPARATION: CDB will be approached. X. TERMS OF FINANCING: Interest Rate: Unknown. Amortization Period: Unknown. XI. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: Unknown. XII. TECHNICAL ASSISTANCE REQUIRED: None. - 55 - MONTSERRAT 1981/84 Project List - Individual Project Description Others (US$'000) I. NAME OF PROJECT: Old People's Home II. EXECUTING GOVERNMENT AGENCY: Ministry of Education, Health and Welfare III. TOTAL ESTIMATED COST: US$278 IV. EXTERNAL FINANCING REQUIRED: US$278 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: The project proposal is to convert the old Glendon Hospital into a home for the aged. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 56 56 20 Foreign Costs - 222 222 80 Total Costs - Amount - 278 278 - - % - 100 - 100 VIII. DISBURSEMENT PERIOD: Post 1981 1982 1983 1984 Total 1984 Local Sources - - - - - - External Sources - 87 191 - 278 - Total - 87 191 - 278 - IX. STATUS OF PREPARATION: UK has agreed to finance this project. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1981/84. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: Psychiatrist. - 56 - STATISTICAL APPENDIX Table Page I. POPULATION AND LABOR FORCE 1.1 Population Trends, 1975-80 .................................. 58 1.2 Emnloyment Trends and Unemployment, 1970-80 ................. 59 HI. NATTONAL ACCOUNTS 2.1 Sectoral Origin of Gross Domestic Product at Current Factor Cost, 1977-80 .............................. 60 2.2 Sectoral Origin of Gross Domestic Product at Constant Prices, 1977-80 .................................. 61 2.3 Expenditure on Gross Domestic Product at Current Prices, 1977-80 ................................... -62 2.4 Expenditure on Gros-s Domestic Product at Constant Prices, 1977-80 .................................. 63 2.5 Actual and ProjectZd Sources and Uses of Resources, 1979-84 ........................................ 64 ITI. BALANCE OF PAYMENTS 3.1 Balance of Payments, 1977-80 ................................ 65 3.2 Merchandise Imports by End Use Category, 1975-79 ............ 66 3.3 Selected Merchandise Exnorts by Major Commodities, 1976-80 ................................................... 67 3.4 Actual and Projected Balance of Payments, 1980-84 ............ 68 IV. EXTERNAL PUBLIC DEBT 4.1 Sumnary of Fxternal Debt and Publicly Guaranteed Debt Operations, 1976-80 .................................. 69 V. PUBLIC SECTOR FINANCES 5.1 Central Government Current Expenditures, 1977-80 ............ 70 5.2 Central Government Current Revenues, 1977-80 ................ 71 5.3 Central Government Operations, 1977-80 ...................... 72 5.4 Financing of Public Sector Investment, 1976-80 .............. 73 5.5 Actual and Projected Central Government Finances, 1980-84 ................................................... 74 5.6 Actual and Projected Financing of Public Sector Investment, 1980-84 ....................................... 75 5.7 Public Sector Investment Program, 1981-84 ................... 76 - 57 - STATISTICAL APPENDIX (Continued) Table Page VI. MONEY AND BANKING 6.1 Summary of Commercial Bank Operations, 1976-80 .............. 78 6.2 Distribution of Credit to Private Sector, 1975-80 ........... 79 VII. AGRICULTURE, INDUSTRY AND TOURISM 7.1 Crops Purchased by DFMC, 1975-79 ............................ 80 7.2 Industrial and Electricity Production, 1974-79 .............. 81 7.3 Tourism Data, 1977-80 ....................................... 82 VIII. PRICES 8.1 Consumer Prices, 1976-80 .- - - --. ......... 83 - 58 - Table 1.1: MONTSERRAT - POPULATION TRENDS, 1975-80 1975 1976 1977 1978 1979 1980 Total End-of-Year Population Mid-Year Population Estimates 11744 11647 11494 11252 11221 12070-/ Crude Death Rate of Mid-Year Estimated Population (per 000) 18.1 17.7 17.8 17.1 21.2 20.3' Crude Death Rate of Mid-Year Estimated Population (per 000) 10.9 11.1 12.0 13.1 10.3 9.4- Rate of Natural Increase of Mid-year Estimated b Population (per 000) 7.2 6.6 5.8 4.0 10.9 10.9- Total Births 213 206 205 192 238 245-/ Total Deaths 128 128 138 147 116 113 / Natural Population Increase 85 78 67 45 122 132 Net Migration -163 -153 -236 -288 -153 -151-/ Net Population Increase -133 -126 -166 -187 -131 - 19 a/ Provisional estimates for 1980 population census. b/ Derived from the estimated mid-year population for 1980. c/ Projected by rising average annual percentage increase over the previous four years. Sources: Statistical Office and ECCM Secretariat - 59 - Table 1.2 MONTSERRAT - EMPLOYMENT TRENDS AND UNEMPLOYMENT, 1970-80 a!/c 1970- 1975-l 1980-/ Agriculture, Forestry, Fishing 770 765 960 Manufacturing 220 215 430 Construction 880 875 350 Utilities 380* 375* 90* Trade and Hotels 120 120 350 Transport and Communications 200 200 270 Services 1170 1160 1410 Not Stated 30 40 - TOTAL EMPLOYMENT 3770 3750 3860 Unemployment Rate 7.2 7.9 a/ 1970 Census data. b/ Total employment derived from mid-year estimated population for 1975 and participation rate of 1970 Census; breakdown by industry based on 1970 Census. c/ Total derived from provisional 1980 Census figure; industry breakdown based on Manpower Survey 1977 by Foster & Evans. d/ Hotels included under Services; not available separately. * 1970 Census data and estimates for 1975 not comparable with 1980. Sources: Statistical Office and ECCM Secretariat - 60 - Table 2.1: MONTSERRAT - SECTORAL ORIGIN OF GROSS DOMESTIC PRODUCT AT CURRENT FACTOR COST, 1977-80 (EC$ million) Prel. Industry 1977 1978 1979 1980 Agriculture 1.3 1.3 1.7 2.1 Mining and quarrying 0.3 0.3 0.4 0.5 Manufacturing 0.5 0.5 0.6 0.8 Construction 3.2 3.9 11.0 5.9 Electricity and water 0.8 0.9 0.8 1.0 Transportation and communication 3.1 3.5 4.7 5.6 Wholesale and retail trade 3.0 3.4 4.3 6.0 Banking and insurance 1.6 1.7 1.8 2.1 Hotels, restaurants and bars 2.9 3.2 3.7 4.8 Public administration 3.3 3.5 3.7 6.1 Ownership of dwellings and real estate 2.2 2.3 2.3 3.3 Other services 0.4 0.5 0.6 0.7 GDP at factor cost 22.6 25.0 35.6 38.9 Net indirect taxes 3.0 3.6 5.3 8.0 GDP at market price 25.6 28.6 40.9 46.9 Source: Mission estimates - 61 - Table 2.2: MONTSERRAT - SECTORAL ORIGIN OF GROSS DOMESTIC PRODUCT AT CONSTANT PRICES, 1977-80 (in millions of 1977 EC$) Prel. Industry 1977 1978 1979 1980 Agriculture 1.3 1.3 1.4 1.5 Mining and quarrying 0.3 0.3 0.4 0.4 Manufacturing 0.5 0.4 0.5 0.6 Construction 3.2 3.5 5.7 3.0 Electricity and water 0.8 0.8 0.7 0.6 Transportation and communication 3.1 3.1 3.0 3.6 Wholesale and retail trade 3.0 3.0 3.3 3.8 Banking and insurance 1.6 1.5 1.3 1.3 Hotels, restaurants and bars 2.9 2.8 3.0 3.5 Public administration 3.3 3.1 2.8 3.8 Ownership of dwellings and real estate 2.2 2.0 1.7 2.1 Other services 0.4 0.5 0.6 0.7 GDP at factor cost 22.6 22.2 24.4 24.9 Net indirect taxes 3.0 3.4 4.6 5.1 GDP at market price 25.6 25.6 29.0 30.0 Source: Mission estimates - 62 - Table 2.3: MONTSERRAT - EXPENDITURE ON GROSS DOMESTIC PRODUCT AT CURRENT PRICES, 1977-80 (EC$ million) Prel. 1977 1978 1979 1980 Final Consumption Expenditure 24.4 27.4 29.4 58.9 Government 8.0 9.3 12.2 15.8 Private 16.4 18.1 17.2 43.1 Gross Fixed Capital Formation 10.9 16.4 35.4 20.5 Exports of Goods and NFS 9.2 11.7 12.1 13.9 Imports of Goods and NFS 18.9 26.9 36.0 46.4 GDP at Market Prices 25.6 28.6 40.9 46.9 Source: Mission estimates - 63 - Table 2.4: MONTSERRAT - EXPENDITURE ON GROSS DOMESTIC PRODUCT AT CONSTANT PRICES, 1977-80 (in millions of 1977 EC$) Prel. 1977 1978 1979 1980 Final Consumption Expenditure 24.4 25.1 21.6 36.8 Government 8.0 8.5 9.0 9.9 Private 16.4 16.6 12.6 26.9 Gross Fixed Capital Formation 10.9 14.2 25.7 15.6 Exports of Goods and NFS 9.2 10.4 9.8 9.7 Imports of Goods and NFS 18.9 24.1 28.1 32.1 GDP at Market Prices 25.6 25.6 29.0 30.0 Source: Mission estimates - 64 - Table 2.5: MONTSERRAT - ACTUAL AND PROJECTED SOURCES AND USES OF RESOURCES, 1979-84 (EC$ Million - 1977 Prices) Actual Estimated Projected 1979 1980 1981 1982 1983 1984 Gross Domestic Product 29.0 30.0 31.0 32.0 33.5 34.5 Imports (incl. NFS) 28.1 32.1 32.0 31.0 31.0 32.0 Exports (incl. NFS) 9.8 9.7 10.0 11.0 11.5 12.0 Consumption 21.6 36.8 37.0 35.0 35.0 35.5 (Public) (9.0) (9.9) (10.0) (10.0) (10.0) (10.5) (Private) (12.6) (26.9) (27.0) (25.0) (25.0) (25.0) Investment 25.7 15.6 16.0 17.0 18.0 19.0 Gross National Savings 17.4 3.0 4.0 7.0 8.5 9.5 (Public) (0.8) (0.8) (0.9) (1.0) (1.1) (1.2) (Private) (16.6) (2.2) (3.1) (6.0) (7.4) (8.3) Memorarndum Item Investment Financing 25.7 15.6 16.0 17.0 18.0 19.0 (National Savings) (17.4) (3.0) (4.0) (7.0) (8.5) (9.5) (Current Account Balance) (8.3) (12.6) (12.0) (10.0) (9.5) (9.5) (As % of GDP in Constant Prices) Gross Domestic Product 100.0 100.0 100.0 100.0 100.0 100.0 Resource Balance 63.0 74.7 71.0 62.5 58.2 58.0 Imports (incl. NFS) 96.8 107.0 103.2 96.9 92.5 92.7 Exports (incl. NFS) 33.8 32.3 32.2 34.4 34.3 34.7 Consumption 74.4 122.7 119.4 109.4 104.4 102.9 (Public) (31.0) (33.0) (32.2) (31.2) (29.8) (30.4) (Private) (43.4) (89.7) (87.2) (78.2) (74.6) (72.5) Investment 88.6 52.0 51.6 53.1 53.8 55.1 Gross National Savings 60.0 10.0 12.9 21.8 25.3 27.5 (Public) (2.7) (2.7) (2.9) (3.1) (3.3) (3.5) (Private) (57.3) (7.3) (10.0) (18.7) (22.0) (24.0) Memoraridum Item Investment Financing 88.6 52.0 (51.6) 53.1 53.8 55.1 (National Savings) (60.0) (10.0) (12.9) (21.8) (25.3) (27.5) (Current Account Balance) (28.6) (42.0) (38.7) (31.3) (28.5) (27.6) Source: Mission estimates - 65 - Table 3.1: MONTSERRAT - BALANCE OF PAYMENTS, 1977-80 (US$ million) 1977 1978 1979 1980 Exports of Goods and NFS 3.4 4.3 4.5 5.2 Imports of Goods and NFS 7.0 10.0 13.4 17.2 Resource Balance -3.6 -5.7 -8.9 -12.0 Net Factor Service Payments -0.03 -0.03 -0.03 -0.05 Transfers (net) -'l 4.8 4.8 4.9 5.6 Current Account Balance 1.2 -0.9 -4.0 -6.4 Private Capital b/ -2.8 0.5 2.4 3.8 Public Capital 2.5 0.7 1.4 3.0 Grants 2.3 0.5 1.3 2.7 Loans 0.2 0.3 0.2 0.4 Amortization - -0.1 -0.1 -0.1 Change in International Reserves -0.9 -0.3 0.2 -0.4 (- increase) a/ Includes budgetary grants. b/ Including errors, omissions and commercial banks. Source: Mission estimates - 66 - Table 3.2: MONTSERRAT - MERCHANDISE IMPORTS BY END USE CATEGORY, 1975-79 (US$ million) 1975 1976 1977 1978 1979 Total a/ 7.6 7.9 6.9 10.0 13.3 Food 2.1 2.0 1.9 2.3 3.2 Beverages and Tobacco 0.5 0.5 0.5 0.7 0.9 Crude Materials 0.3 0.5 0.4 0.2 0.5 Fuels 0.6 0.6 0.4 0.7 0.9 Oils and Fuels -- 0.1 0.1 0.1 0.1 Chemicals 0.5 0.5 0.4 0.6 0.8 Manufactured Goods 1.5 1.6 1.3 1.8 2.4 Machinery and Transport 1.1 1.4 1.1 2.5 2.9 Miscellaneous Manufactured Articles 0.9 0.8 0.8 1.1 1.5 Miscellaneous Transactions -- -- 0.1 0.1 0.1 a/ Totals may not add due to rounding. Source: Ministry of Finance - 67 - Table 3.3: MONTSERRAT - SELECTED MERCHANDISE EXPORTS BY MAJOR COMMODITIES, 1976-80 (US$'000) 1976 1977 1978 1979 1980 Cattle 38.3 32.6 11.6 46.1 0.9 Cotton Lint 78.9 50.1 21.4 0.3 -- Electric Machinery -- -- 181.2 124.1 130.2 Hot Peppers 0.1 0.1 34.2 123.4 41.8 Live Plants -- -- 9.3 58.2 86.7 Pepper Paste ... ... ... 63.4 10.4 Plastic Bags -- 7.8 8.4 18.1 53.1 Polythene Bags -- 69.3 3.4 -- 215.1 T-Shirts ... ... ... -- 54.1 Tomatoes 14.6 28.6 22.3 21.1 6.7 Source: Montserrat Statistics Office - 68 - Table 3.4: MONTSERRAT - ACTUAL AND PROJECTED BALANCE OF PAYMENTS, 1980-84 (US$ million ) Estimated 1980 1981 1982 1983 1984 Exports of Goods and NFS 5.2 6.5 8.0 9.0 10.0 Imports of Goods and NFS 17.2 18.0 19.0 19.5 20.0 Resource Balance -12.0 -11.5 -11.0 -10.5 -10.0 Net Factor Service Payments -0.05 -0.1 -0.1 -0.1 -0.1 Transfers (net) 5.6 6.0 6.5 7.0 8.0 Current Account Balance -6.4 -5.6 -4.6 -3.6 -2.1 Private Capitala/ 3.8 1.2 1.9 0.9 -0.6 Public Capital 3.0 4.4 2.7 2.7 2.7 Grants 2.7 3.5 2.1 2.0 2.0 Loans 0.4 1.0 0.7 0.8 0.9 Amortization -0.1 -0.1 -0.1 -0.1 -0.2 Change in International Reserves (- increase) -0.4 - - - - a/ Includes commercial banking system Source: Mission estimates - 69 - Table 4.1: MONTSERRAT - SUMNfARY OF EXTERNAL DEBT AND PUBLICLY GUARANTEED DEBT OPERATIONS, 1976-80 (US$ thousands) Prel, 1976 1977 1978 1979 1980 Outstanding and Disbursed Debt at end of Period 510.1 704.3 914.4 1,127.7 1,484.8 Outstanding and Disbursed Debt at beginning of Period 359.8 510.1 704.3 914.4 1,127.7 Plus: Net Disbursements 217.0 194.2 210.1 213.3 357.1 Disbursements 217.0 194.2 256.9 224.8 379.8 Amortization -- -- 46.8 11.5 22.7 Valuation Adjustment -66.7 -- -- -- -- Debt Service Payments 20.7 28.1 76.7 45.2 73.0 Amortization -- -- 46.8 11.5 22.7 Interest 20.7 28.1 29.9 33.7 50.3 (in per cent) Disbursed Balance/GDP 5.6 7.4 8.5 7.3 8.5 Net Disbursement/GDP 2.4 2.0 2.0 1.4 2.1 Debt Service/GDP 0.2 0.3 0.7 0.3 0.4 Debt Service/Exports of Goods and NFS 0.7 0.8 1.8 1.0 1.4 Average Interest Rate b/ 5.8 5.5 4.2 3.7 4.5 a/ Includes Central Government and Central Government guaranteed debt. b/ Rates of interest payments to debt at beginning of period. Sources: Government of Montserrat and mission estimates - 70 - Table 5.1: MONTSERRAT - CENTRAL GOVERNMENT CURRENT EXPENDITURES, 1977-80 (EC$ million) Estimated 1977 1978 1979 1980 Current Expenditure 8.3 9.5 12.1 15.7 Wages and Salaries 3.7 4.2 4.2 6.9 Goods and Services 3.8 4.8 7.0 7.5 Interest 0.1 0.1 0.1 0.1 Pensions 0.4 0.4 0.4 0.6 Transfers 0.3 0.3 0.4 0.6 Sources: Ministry of Finance and mission estimates - 71 - Table 5.2: MONTSERRAT - CENTRAL GOVERNMENT CURRENT REVENUES, 1977-80 (EC$ million) Estimated 1977 1978 1979 1980 Current revenue 7.3 8.0 11.4 15.1 Tax revenue 5.4 6.2 8.9 12.3 Direct taxes 2.4 2.6 3.6 4.3 Income tax 1.5 1.7 2.7 3.4 Income tax surcharge 0.2 0.3 0.1 0.1 Property tax 0.7 0.6 0.8 0.8 Indirect taxes 3.0 3.6 5.3 8.0 Taxes on foreign trade 1.3 1.7 2.9 4.5 Import duties (1.1) (1.4) (2.5) (3.7) Foreign exchange levy (0.2) (0.3) (0.4) (0.8) Taxes on domestic transactions 1.7 1.9 2.4 3.5 Consumption tax (1.2) (1.4) (1.8) (2.4) Stamp duties (0.1) (0-1) (0.2) (0.2) Hotel occupancy tax (--) (0.1) (0.1) (0.2) Airport tax (0.1) (0.1) (0.1) (0.1) Licenses (0.3) (0.2) (0.2) (0.6) Nontax revenue 1.9 1.8 2.5 2.8 Registration and other fees (University) 0.1 0.1 0.1 0.5 Rents -- -- -- -- Revenue from services 1.3 1.3 1.6 1.0 Interest 0.2 0.2 0.4 0.4 Other 0.3 0.2 0.4 O. 9 External Budgetary Grants 2.0 1.7 1.3 1.1 a/ Includes net income of EC$0.1 million from operations of existing plane Trilander. Sources: Ministry of Finance and mission estimates - 72 - Table 5.3: MONTSERRAT - CENTRAL GOVERNMENT OPERATIONS, 1977-80 (EC$ million) Estimated 1977 1978 1979 1980 Current Revenue 7.3 8.0 11.4 15.1 Current Expenditure 8.3 9.5 12.2 15.7 Current Account Deficit -1.0 -1.5 -0.8 -0.6 External Budgetary Grants 2.0 1.7 1.3 1.1 Central Government Balance 1.0 0.2 0.5 0.5 Capital Expenditures 3.4 2.4 4.0 6.5 Overall Deficit -2.4 -2.2 -3.5 -6.0 Financing 2.4 2.2 3.5 6.0 Capital Grants 6.4 1.7 3.4 6.1 Net External Borrowing 0.5 0.1 0.6 1.0 Change in Internal Reserves(- increase) -2.3 1.2 0.6 -1.1 Net Domestic Financing -2.2 -0.8 -1.1 -- Source: Ministry of Finance - 73 - Table 5.4: MONTSERRAT - FINANCING OF PUBLIC SECTOR INVESTMENT, 1976-80 (EC$ million) Estimated 1976 1977 1978 1979 1980 Public Sector Capital Expenditure 6.2 3.4 2.7 4.3 8.6 Financing 6.2 3.4 2.7 4.3 8.6 Public Sector Savings -0.5 -0.6 -0.9 -0.2 0.1 External Budgetary Grants 3.0 2.0 1.7 1.3 1.1 Net Domestic Borrowing -0.8 -2.7 0.5 -1.3 0.3 (Banking System) (-0.7) (-1.0) (-0.4) (-1.2) (-) (Other) (-0.1) (-1.7) (0.9) (-0.1) (0.3) Net External Financing 4.5 4.7 1.4 4.5 7.1 (Grants) (4.4) (6.4) (1.7) (3.4) (7.3) (Development Loans) (0.1) (0.6) (0.8) (0.6) (1.1) (Amortization) {-) (-) (-0.3) (-0.1) (-0.2) (Change in Foreign Assets) (-) (-2.3) (-0.8) (0.6) (-1.1) - 74 - Table 5.5: MONTSERRAT - ACTUAL AND PROJECTED CENTRAL GOVERNMENT FINANCES, 1980-84 (EC$ million) Estimated Projected 1980 1981 1982 1983 1984 Current Revenue 15.1 19,5 21.0 23.0 25.0 Direct Taxes 4.3 5.2 5.5 6.5 7.0 Indirect Taxes 8.0 9.7 10.5 10.0 12.0 Other 2.8 4.6 5.0 5.5 6.0 Current Expenditure 15.7 17.9 19.0 20.5 22.0 Wages and Salaries 6,9 8.8 9.0 9.5 10.0 Goods and Services 7.5 7.5 8.0 8.5 9.0 Other 1,3 1.6 2.0 2.5 3.0 Current Account Surplus/Deficit (-) -0.6 1.6 2.0 2.5 3.0 Budgetary Grants 1.1 -- -- Central Government Surplus/Deficit(-) 0.5 1.6 2.0 2.5 3.0 Capital Expenditures 6.5 10.0 7.0 7.0 7.5 Overall Deficit 6.0 8.4 5.0 4.5 4.5 Source: Mission estimates - 75 - Table 5.6: MONTSERRAT - ACTUAL AND PROJECTED FINANCING OF PUBLIC SECTOR INVESTMENT, 1980-84 (EC$ million) Estimated Projected 1980 1981 1982 1983 1984 Public Sector Capital Expenditures 8.6 12.7 9.5 10.2 10.7 Financing 8.6 12.7 9.5 10.2 10.7 Public Sector Savings 1.2 1.7 2.3 3.0 3.5 Net Domestic Borrowing 0.3 -0.8 -- -- -- Net External Financing 7.1 11.8 7.2 7.2 7.2 (Grants) (7.3) (9.4) (5.6) (5.5) (5.5) (Loans) (1.1) (2.7) (1.9) (2.0) (2.2) (Amortization) (-0.2) (-0.3) (-0.3) (-0.3) (-0.5) (Change in Foreign Assets) (-1.1) (-) (-) (-) (-) Source: Mission estimates - 76 - '9 111111 91191 9 11111 111111 liii ii I ii 11911 I iii,, 0 111111 lilt',, 11911 1111111 liii II I ii 1011 i*l'l I 11101 -t I" 0 -, 10 0% 0 - .4 - 111111 1-11111 I 19111 I ililililil ii I ii i.J'9i 14.1 I 11101 0 0 -t 10 - 111111 till l0%l 11919 '1111111111 ii S ii liii, I 11111 0 0' 0 I 1.-ill 9 iO'019.9l liii, Ilillilli II ii I 9 1001 l I 11101 10 .010  0 0% 0 - 10 9l0ilill 0'*it0%i ii Ill lililillil I II I Ii lfl ii,. I 11101 0 10 .010 149 0 - 10 -t .-, - - 10 0% - 111111 1111101 11119 lIllilli ill ii I ii 'liii I liii, 0% 0 0 9-' 0 Il-Ili 091r-0io*ll II 10'1 11111111111 ii I II l0%l 1110 I 11100% 0% 100 10 100 -l 0% 0 10 0%0. .009 10 10 0% 0 11119 I 19 9,-C 1.41 1110% I Ilillililil II I I I 10%' 9110 I '99090% - 0 10 10 009 - 0% .0 - -0 04 'Iii 1111101 II III 09 IllillIlil II I I ii,', .4 I 0 - 0 10 90 '9 00909090910 0%00%10099-10 100910101- CO-JO 0%1010099'. 00%10 1010 0% .00% 0%100100% 10 10.00%010 09 -0 1010090910 1010-400090 0%10104.109 10100%09-410101009 0 -.0% 10 10 0904100910 10 0% 090 09 1009 0% 09.-, 09 -1010 10 0% 09 0% 10 10 09 10 0 09 .000%.010 0%00%10091010 100101010 10100% 0%1010.410 00%0 1010 0 00% 0%090100% 10 10t0%010 09 0 10090910 1010-$0909.009 0%10101009 .040%090910101004 0 090% .0 1010 14 10-101010 lo 10 - 09 10 09 09 9, 0 99 090 0 0. 99 0 10 0 0. 049 0 10' 99 000 0 09 0. 0. 10 09 0- 0049 0 0---' 0 .000% 10 '9 090 0 1, 09 0. 0090900.-I 09 - 0910 09 00% 009 09 009 1, 009 00.0000 09 090 09 0 0% 010091, 00 09 '9 0- '9 '90 I 0- 0 09 0900. 0 10 100 .4 4 00 99 0000 0-0 0 LI Al '9 090 1, 1, 01, .09 . 1,0 0 091,09090 100 09 0. 09 10 0909 10 0909490900. 00. 10 0.4 09091009 '9 0..4 01,' 0. 00. 1010 0.0 10 9090.0>090 0 09 0 01, 40 1,0. 10 190909 010 09  09 ' 090. 0.> 0 0000090 .0 00 0 1,09 1,0 00090 009 '90 0. 0 900 04 0.0. 0% 0-0. 090.1,0 0909091,090909 090 ..0900% 009900. 010 1, 0 >0- 0 9091,0. 10 0.09 0909 0. 00.009.400900 01, 09 0 '9 0. 000 .909000.0 0 09 00 090 1, 00 0 0.01,0% 1,00.4 0 090. 00 00091 0009010. 0 10 0 0 oo0 09 0..0 090 (0 090 '91 0.4 00900 0 00 009 00009000909 0909 0. 009 094.00>. 0 00. 00 09 '90090% .0009 4909090 1- 1009 1,1,01000.009 0.000< 0 0 - 99 1,0 090.0. 0 090 090. 09 10.00 0009090 >0 09 0 0> 0 -'--'-0001,00900% 0 .40 0 0 090. '9'900.'- 0 0.09 00 0 .4009090000 009090 09 00901, -- 001,0900909 09009 0 00 94 0 40.0 0 09 0 00909 10 '90>0.00910000009000909010 09 '0100 101,000 0 909 1, 09 100. 09'90%'9 990.0090  14 00.94-10 '9 09000 0 00 0900009009 -9 00 0 00 0090 09 09.40 0 .409 09...00.0900000 009000 09 090909090.00100.00 0 9,0 09 10 0- 0' 090990<09 oo0ooooo.001, 0% -000.000.-090090>1, 0 0 0. 01 00 - 0000.00900.4 0910000909 --9 0 10100009009-0090 09 1,09 0 '9 00 .0909 LI '9009-...--. 0' 0-0.01,090.409000.0.090900910090 0.0090090.00.1, 0 0. 0999 - g09-o ofl 091, 009 - 00.099009100.000090 00909900 0 .0.1,00>00009 0 0. 0 0 10*-" '- 0. 000.00 0 100<10>00900.0910 0 0909 '9 10 0901 1,0009100 00909400 0 cOoSo 0 '-09090009-9009090 0 00 0.000.0009091,C0%.0 0 0 -00090 <090.0909.2 09 090900910 09 0. 09 100910 Table 5.7: HONTSERRAT - PUBLIC SECTOR INVESTMENT PROGRAM, 1981-84 (Continued) (EC$'000) 1981 1982 1983 1984 Total External Local Total External Local Total External Local Total External Local NEW PROJECTS Agriculture Development of Eatates 648 648 - 251 251 - 297 297 - 154 154 Fishing Boat Slipway - - - - - - 51 51 - - - Fruit Crop Establishment - - - 151 151 - 194 194 - 95 95 Soil Conservation - - - 122 122 - 122 122 - 100 100 Dairy Project 200 200 - 200 200 - 270 270 - 270 270 - Farm Improvement Credit II & III - - - 408 408 - 408 408 - 475 475 Industry Industrial Estates II - - - 392 392 - 400 400 - 383 383 Small Industry Credit II & III - - - 418 418 - 387 387 - 470 470 - Handicraft - Leather - - - 51 51 - 103 103 - - - Tourism Tourist Facilities (Hot Water Pond) - - - 95 95 - 94 94 - - - Transport Harbor Protection and Yacht Facility - - - 116 116 - 200 200 - - - Road Improvement Program - - - 211 211 - 200 200 - 599 599 Plymouth Harbor - Minor Construction - - - 135 135 - 135 135 - 270 270 Water Water Storage Improvement 899 899 - 902 902 - - - _- - Electricity Electricity Project - - - 1,350 1,350 - 1,013 675 338 1,012 675 338 Housing Low Cost Housing - Construction 550 550 - 550 550 - 651 651 - 751 751 - Health Bulldozer for Sanitary Landfill - - - 76 76 - 75 75 - - - - Storage Space - - - - - - - - - 24 24 - Health, Education, Welfare Ministry Building - - - 30 30 - 200 200 - 219 219 - Education Nursery Schools/Infant Block - Kinsale - - - - - - 151 151 - 270 270 - Furniture for Schools/Laboratory Equipment for Industrial Arts Center - - - - - - 240 240 - 89 89 - Junior Secondary School - Construction - - - - - 400 400 - 300 300 - Student Loans - - _ 135 135 - 205 205 - 200 200 - Others Old People's Home - - - 235 235 - 515 515 - - - - SUMMARY Ongoing Projects 10,387 10,000 387 1,927 1,827 100 1,126 1,028 98 780 780 - New Projects 2,297 2,297 - 5,828 5,828 - 6,311 5,973 338 5,681 5,343 338 Non-Projectized - - - 1,600 - 1,800 2,800 500 2,300 4,300 i,bO0 2,700 TOTAL 12,684 12,297 387 9,555 7,655 1,900 10,237 7,501 2,736 10,761 7,723 3,038 - 78 - Table 6.1: MONTSERRAT - SUMMARY OF COMMERCIAL BANK OPERATIONS, 1976-80 (EC$ million) December 31 1976 1977 1978 1979 1980 Net Foreign Assets 0.3 0.7 0.6 4.8 5.2 Assets 10.7 8.8 10.6 14.4 17.8 Claims on banks in territory 9.3 7.0 7.8 9.9 10.2 Claims on banks abroad 1.4 1.8 2.8 4.5 7.0 Short-term liabilities -10.4 -8.1 -10.0 -9.6 -12.5 Balances due to banks in territory 0.9 1.1 1.1 1.5 2.1 Balances due to banks abroad 2.2 1.5 2.9 2.2 3.7 Nonresident deposits 7.3 5.5 6.0 5.9 7.1 Demand (0.9) (0.4) (0.7) (0.4) (0.8) Savings (3.8) (4.4) (0.8) (5.1) (5.9) Time (2.6) (0.7) (4.5) (0.4) (0.3) Claims on ECCA 1.9 4.4 5.6 7.7 6.0 Currency holdings 0.9 0.7 0.9 1.0 1.5 Deposits 1.0 3.7 4.7 5.7 4.5 Net Domestic Assets 13.0 10.7 11.0 6.8 9.0 Credit to Central Government (net) 0.8 0.2 -0.7 -0.6 -0.1 Loans and advances 0.8 0.2 -- -- -- Deposits -- -- 0.7 0.6 0.1 Credit to rest of public sector (net) -1.3 -1.7 -0.4 -1.7 -2.2 Credit DFMC 0.4 0.1 ... ... ... Credit to private sector and nonbank nonfinancial intermediaries 10.9 11.3 11.9 9.0 12.4 Net unclassified assets .2.2 0.8 0.2 -- -1.1 Liabilities to DMFC 0.3 0.2 -- -- -- Liabilities to Private Sector 14.9 15.6 17.2 19.0 20.2 Demand deposits 2.7 3.1 3.8 5.8 5.7 Time deposits 3.8 2.2 1.5 1.9 1.9 Savings deposits 8.4 10.3 11.91 11.3 12.6 Sources: East Caribbean Currency Authority and mission estimates - 79 - Table 6.2: MONTSERRAT - DISTRIBUTION OF CREDIT TO PRIVATE SECTOR, 1975-80 (In percent) December 31 September 1975 1976 1977 1978 1979 1979 1980 Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Agriculture 2.1 2.4 3.3 1.7 1.6 1.5 0.6 Manufacturing 3.0 3.3 3.8 2.2 2.5 3.6 4.3 Tourism 5.1 6.2 9.3 8.0 10.8 9.5 2.3 Transportation 9.4 13.7 7.6 4.0 6.5 5.0 4.7 Construction 10.8 9.0 27.1 8.6 7.3 31.3 2.8 Commerce 17.3 19.2 23.7 26.8 19.8 21.1 21.8 Services 5.5 6.3 3.7 1.6 3.1 3.0 3.7 Personal 43.4 37.6 20.9 47.0 46.2 21.9 56.1 Other 3.4 2.3 0.6 0.1 2.0 3.1 4.0 Source: East Caribeean Currency Authority - 80 - Table 7.1: MONTSERRAT - CROPS PURCHASED BY DFMC, 1975-79 1975 1976 1977 1978 1979 White Potatoes lb. 419,857 459,835 147,388 6,363 8,152 Sweet Potoatoes lb. 4,509 12,498 3,672 4,035 6,587 Tomatoes lb. 67,801 71,636 77,030 54,986 92,329 Carrots lb. 41,271 69,512 7,452 626 18,376 Onions lb. 10,536 99,577 7,644 - 7,550 Cabbage lb. 9,988 7,090 5,728 1,146 11,180 Pumpkins lb. 22,979 7,197 4,528 1,180 1,267 Pineapples lb. 9,548 14,984 7,816 - 4,264 Lime lb. 35,879 30,216 25,965 8,710 8,495 M4angoes lb. 7,624 5,800 12,106 - 620 Cucumbers lb. - - - - 39,865 Lime Juice gal. 325 260 678 120 1,050 Source: Statistics Office - 81 - Table 7.2: MONTSERRAT - INDUSTRIAL AND ELECTRICITY PRODUCTION, 1974-79 INDUSTRIAL PRODUCTION 1974 1975 1976 1977 1978 1979 MANUFACTURERS Recapped Tires 83,276 88,756 n.a. n.a. n.a. n.a. Plastics 7,000 --- n.a. n.a. Soft Drinks 214,617 281,694 n.a. n.a. n.a. 340,596 Private Block Making 158,001 n.a. 420,704 474,856 497,807 513,393 QUARRYING Sand and Gravel 215,094 251,312 n.a. n.a. 241,000 302,000 ELECTRICITY PRODUCTION 1974 1975 1976 1977 1978 1979 Installed Capacity Megawatts 3.786 3.776 3.776 3.776 3.776 3.776 Killowatt Hours Generated (millions) 8.10 8.56 8.98 9.39 10.0 10.17 Killowatt Hours Used (millions) 7.03 7.23 7.24 7.86 8.55 8.75 Revenue ECS (does not include fuel surcharges revenue) 754,347 900,402 916,809 1,184,868 1,291,133 1,484,347 Source: Government of Montserrat - 82 - Table 7.3: MONTSERRAT - TOURISM DATA, 1977-80 1977 1978 1979 1980 Total visitor arrivals 12,741 15,350 16,890 20,483 Stayover visitors 10,892 11,531 13,808 15,530 Cruise visitors 1,849 3,819 3,082 4,953 Average expenditure for stayover visitors (EC$) 700.9 694.0 765.0 842.0 Tourist expenditure (EC$ millions) 7.6 8.0 10.0 11.6 Source: Mission estimates - 83 - Table 8.1: MONTSERRAT - CONSUMER PRICES, 1976-80 Prel. 1976 1977 1978 1979 1980 (March 1974 = 100) Average 146.1 165.1 180.6 210.0 272.1 Food 149.2 170.2 187.3 228.2 282.5 Alcoholic beverages and tobacco 139.5 168.8 194.4 226.2 261.2 Housing 100.0 102-9 108.7 110.6 153.9 Gas, electricity and water 178.9 247.3 260.9 290.6 434.1 Household and miscellaneous items 149.8 162.1 183.6 210.8 266.6 Clothing and footwear 162.2 231.1 244.4 306.8 354.4 Other 131.4 145.3 156.6 182.7 224.6 End of Period 147.8 175.5 191.5 238.8 281.2 Food 156.0 182.4 204.1 272.6 290.7 Alcoholic beverages and tobacco 140.2 184.1 200.7 252.5 266.2 Housing 100.0 108.7 108.7 112.2 147.3 Gas, electricity and water 181.7 262.5 262.6 321.1 474.3 Household and miscellaneous items 154.2 165.7 201.1 237.1 287.9 Clothing and footwear 209.5 231.9 269.9 332.6 359.6 Other 134.6 152.4 163.1 205.9 232.7 (Percentage change from preceding year) Average 13.0 10.9 16.3 29.5 Food 14.1 10.0 21.8 23.8 Alcoholic beverages and tobacco 21.0 15.2 16.4 15.5 Housing 2.9 5.6 1.7 39.1 Gas, electricity and water 38.2 5.5 11.4 49.4 Household and miscellaneous items 8.2 13.3 14.8 26.5 Clothing and footwear 42.5 5.7 25.5 15.5 Other 10.6 7.7 16.7 22.9 End of Period 18.7 9.1 24.7 17.7 Food 16.9 11.9 33.6 6.6 Alcoholic beverages and tobacco 31.3 9.0 25.8 5.4 Housing 8.7 0.0 3.2 31.3 Gas, electricity and water 44.5 0.0 22.3 47.7 Household and miscellaneous items 7.4 21.4 17.9 24.1 Clothing and footwear 10.7 16.4 23.2 8.1 Other 13.2 7.0 26.2 13.0 Source: Statistical office TO- LL MONTSERPAT A D D E N D U M The Government of Montserrat has provided us with an amended list of projects (copy attached). This is a revision of the original lists included in the Economic Memorandumr of Nlay 18, 1981. One on-going project has been added and there are several deletions and additions to the list of new projects. Project profiles are attached in tlle case of new projects which have been added. 1 ~? f .e - MONTSERRAT - MAJOR ONGOING PROJECTS (USS000) Amorti External zation Grace Counterpart Recurrent Total Financing Source Interest Period Period Financing Costs Cost Secured % (Years) (Years) Amount % 1981/84 Directly Productive Projects Integrated Sea Island Cotton Project 858 644 CDBI 4 15 5 214 25 Abbatoir 187 187 UK Grant - - - - Farm Improvement Credit 129 129 CDB 4 15 5 - - Estates Infrastructure - Lees, Hermitage & Otway Estates 60 60 UK Grant - - Reafforesta-tion 75 75 USAID Grant - - - - Agriculture Import Subsidy 42 42 UK Grant - - - - Pilot Irrigation - Lees and Trants 50 35 UK Grant - - 15 30 Industrial Estate I 364 364 CDB 4 15 5 - - Small Industry Credit II 100 100 CDB 4 15 5 - - Handicraft 213 213 CIDA Grant - - - Development of Stitching Industry i65-~/ 143 UK Grant - - 2 > 13 - Tourism Development 43 43 UK Grant - - - - - Economic Infrastructure St. Johnts/Trants Road (EDF) 525 508 EDF Grant - - 17 3 - St. John's/Trants Road (UK) 452 452 UK Grant - - - - 29 Airport Resurfacing 289 289 UK Grant - - - - - Twin Otter Aircraft 1,596 1,40 > Commercial 9 8 6 Months 190 12 _ Bank Civil Engineering and Eatthmoving Plant 556 556 .U .v Grant - - - - - Expansion of Electrical Plant 849 679 CDB 4 15 5 170 20 _ Yacht Finger 100 100 UK Grant - - - Amorti- External zation Grace Counterpart Recurrent Total Financing Source Interest Period Period Financing Costs Cost Secured % (Years) (Years) Amount % 1981/84 Others Improvement to Broadcasting Services 39 39 UK Grant - - New Broadcasting Equipment 71 71 UK Grant - - - - Wells and Reservoir Rehabilitation 42 42 UK Grant - - _ _ _ Redevelopment of Spring Sources of Water 133 133 USAID Grant - - - - Student Loan - Higher Education II 131 131 CDB 4 15 5 - - - Third Country TraiLiing III & IV 644 644 CIDA Grant - - - _ _ UK/WI Training Scheme 163 163 UK Grant - - - _ _ i/ Counterpart financing comes from the private sector. This amount includes a long-term loan for EC$2,990,000 and a short-term loan of EC5810,000 repayable within six months from the date of drawing. This short-term loan will be paid from the proceeds of the sale of the Trislander. MONTSERRAT - MAJOR NEW PROJECTS AND SOURCE OF FINANCING (Usst 000) External Counterpart Recurrent Total Financing Source Financing Costs Cost Required Amount % 1981/84 Directly Productive Projocts Developuent of Estates 500 500 UK Soil Conservation 244 244 Unknown - - - Dairy Project 444 444 Unknown. - - - Farm Improvement Credit II & III 654 654 CDB - - Industrial Estates II 435 435 CDB - - - Small Industry Credit II & III 646 646 CDB - - Tourist Facilities (Hot W'ater Pond) 70 70 Unknown - - - Economic Infrastructure Harbour Protection and Groyne 117 117 UK - - - Water Storage Improvement 667 667 Possibly EDF - - - Others Handicraft - Leather 57 57 Possibly CIDA - - - Low Cost Housing - Construction 1,111 1,111 Possibly Trinidad - - - Student Loans 200 200 CDB - - - Old People's Home 278 278 UK - - MONTSERRAT 1981/84 Project List - Individual Project Description (US$tOOO) I. NAME OF PROJECT: Public Works Department Extension II. EXECUTING GOVERNMENT AGENCY: Ministry of Communications & Works III. TOTAL ESTIIMATED COST: US$80 IV. EXTERNAL FINANCING REQUIRED: US$80 V. LEN DING AGENCY: UK VI. DESCRIPT1ON AND JUSTIFICATION: The Project consists of an extension to the Public Works Departmient Workshop to provide (i) storage for heavy Plant (ii) a paintshop (iii) additional vehicle storage. VII. COST COMPONLNTS AND FINANCING: Financed by Local External Sources Sources Local Costs 32 Foreign Costs 48 Total Cost 80 VIII. DISBURSEMENT PERIOD: 1981 1982 IX. STATUS OF PREPARATION: UK approached. X. PROJECT IMIPLICATIONS; Operating and Mainteniance Costs: US$102 p.a. Debt Obligations& None. XI. TECHNICAL ASSISTANCE: UK has provided. MONTSE1lRAT 1981/84 Project List - Individual Project Description (US$1000) I. NAME OF PROJECT: Rescue Craft for Blackburne II. EXECUTING GOVERNHENT AGENCY: Ministry of Communications & Works III. TOTAL ESTIMAT9D COST: US$20 IV. EXTERNAL FINANCING REQUIRED: US$20 V.. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIEICA'TION% Provision of a Rescue Boat for Blackburne Airport. VII. COST COMPONENTS AND FINANCING: Financed by Local External Sources Sources Local Costs - Foreign Costs 20 Total Cost 20 VIII. DISBURSEMENT PERIOD: 1981 1982 IX. STATUS OF PREPARATION: UK approached. X. PROJECT IIPLICATIONS: Operating and Maintenance Costs: $1 Debt Obligationss None. MONTSERRAT 1981/84 Project List - Individual Project Description (us$teOO) I. NAME OF PROJECT: Little Bay Development II. EXECUTING GOVERNMENT AGENCY: Chief Minister's Office III. TOTAL ESTIMATED COST: - IV. EXTERNAL FINANCING REQUIRED: US$660 (Preliminary Estimate) V. LEN DING AGt;NCYs BDD/Unknown VI. DESCRIPTION AN) JUSTIFICATION: Provision of essential infrastructure for major Tourism Development. VII. COST COMPONENTS AND FINANCINGs Financed by Total Local External Amount % Sources Sources Local Costs 2600 2600 40 Foreign Cost 4000 4000 60 Total Cost 6600 6600 V.III. DISBURSEMENT PERIOD: 1982 1982 1983 1981 Local Sources Uncertain External Sources Total IX. STATUS OF PREPARATION: Feasibility Study to be completed. X. XI. TECHNICAL ASSISTANCE: Various donors will be approached. MONTSEIIRAT 1981/84 Project List - Individual Project Description (US1t000) I. NAME OF PROJECT: Refurbishing Public Works Department Plant and Equipment. II. EXECUTING GOVERNMENT AGENCY: Ministry of Communications & Works. III. TOTAL ESTIMATED CoST: US$300 IV. EXTERNAL FINANCING R6QUIRED; US$300 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: The objective of the project is to repair items of Plant and equipment, owned by the Public Works Department when it is considered economic to do so. VII. COST CO4PONENTS AND FINANCING: Financed by Local External Sources Sources Local Costs 20 Foreign Costs 280 Total Costs - Amount 300 VIII. DISBURSEMENT PERIOD: 1981 1982 250 50 IX. STATUS OF PREPARATION: UK approached. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: No increase Debt Obligations: None. XI. TECHNICAL ASSISTANCE: None required.