The Government of Antigua and Barbuda has officially announced the funding source for its ambitious $100 million road improvement program, revealing that local financial institutions ECAB and ACB will provide the capital through a bond arrangement.
Prime Minister Gaston Browne disclosed the details during his radio show, confirming speculation about how the extensive road works would be financed.
The road program will focus heavily on building climate-resilient concrete roads instead of traditional asphalt surfaces, which the Prime Minister said have been deteriorating quickly under extreme weather conditions.
“The issue with the damage to our roads is not exclusively because of bad roads… We live in hostile climate environment… These heat waves melting the town… These floods as well wash off the tower,” he said.
To support this concrete-focused initiative, the government has already invested in its own concrete production capabilities, he declared.
“We have our own concrete plant now … we just decided two weeks ago in cabinet that we are scaling up the capacity of that plant,” Browne said.
He added that they have also purchased a pug mill that will be arriving within a matter of weeks that will mechanize the mixing of concrete for the roller compacted roads.
The funding arrangement includes strict accountability measures to ensure proper use of the borrowed funds.
“The bank will have their contractors or their engineers, I should say, making sure that they review the work of our contractors,” Browne said.
To service the $100 million bond, the government has proposed increasing vehicle licensing fees, though after public consultation, the increase is likely to be modified from the initially suggested 40 percent across-the-board hike.
