Shaw heads to US for IMF talks

Finance Minister Audley Shaw will be heading to Washington tomorrow for face-to-face talks with officials of the International Monetary Fund (IMF) about the devastating impact of the recent flood rains on the national Budget.

With the damage to road network, drainage systems, river protection and associated infrastructure estimated at $10.6 billion and climbing, Shaw will eyeball IMF officials and representatives of other multi-lateral agencies to discuss how the country will finance the cost.

Information on the finance minister's trip to the United States was disclosed yesterday by Prime Minister Bruce Golding as he updated the nation on the impact of the rains associated with what developed into Tropical Storm Nicole.

"These discussions will determine the extent to which the programme will be adjusted to take account of the expenditure that must be undertaken as a matter of urgency to effect repairs and reconstruction," Golding told Parliament.

"The minister will also seek to determine the extent to which additional funds can be secured from our other multilateral partners or programmed funds reallocated to help in meeting these unplanned expenditures," Golding added.

Budget takes a hit

The prime minister left no doubt that, even though Jamaica was spared the worst of the winds associated with Nicole, the tropical storm blew a huge hole in the Budget.

"The cost to repair the damage and provide assistance to those severely dislocated will impact significantly on the country's delicate fiscal situation," said Golding.

He noted that it would cost approximately $1.7 billion to effect clearance and immediate works to roads that are blocked or collapsed, as well as structures that pose a danger to life and property.

In addition, the Ministry of Agriculture and Fisheries, through the Rural Agricultural Development Authority, has estimated damage to farm roads at $500 million and loss of crops and livestock at $500 million.

Damage to schools islandwide is estimated at $100 million and damage to health facilities at $98.5 million.