PetroCaribe to the rescue!

Gov't to use Venezuela-backed fund to drive growth

Arthur Hall, Senior Staff Reporter

The Government has decided to radically transform the way the multibillion-dollar PetroCaribe Development Fund is used.

Finance Minister Audley Shaw yesterday told Parliament that the Venezuela-backed PetroCaribe fund will now be used to push development projects and assist entities which are critical to the country's growth plans.

Formulated in January 2006, the PetroCaribe Fund manages the proceeds of a Venezuelan oil facility where Jamaica is allowed to treat as loan proceeds the sale of oil from that country.

Opening the 2011-2012 Budget Debate yesterday, Shaw announced that at the end of March a total of US$1.5 billion, or approximately J$920 billion, had accrued to Jamaica under this agreement.

grateful to venezuela

He pointed out that this represents the largest source of concessionary funds available to the Government of Jamaica.

"I take the opportunity once again, Mr Speaker, to express our deep appreciation to President Hugo Chávez and the government and people of Venezuela for their generosity," Shaw said.

"We are sure that President Chávez, when he looks at the profile and the responsible expenditure by this government of the PetroCaribe funds, will be very proud of how we are operating," Shaw added.

The finance minister said for this fiscal year, the PetroCaribe Fund will make a total of J$28 billion in loan financing to the central government and self-financing public bodies.

"The fund will also play a critical role in financing the implementation of two important programmes which are consistent with national development.

"The establishment of a sustainable long-term model at the Students' Loan Bureau ... and PetroCaribe funds will also be directed at the implementation of an ambitious community development plan".

The Government has dubbed the new development plan the 'Community Renewal Programme', and Shaw said this will be a critical part of the growth inducement programme.

"It's objective is the development of human capital and the expansion of economic opportunities for our most vulnerable in both urban and rural communities.

"It will include the promotion on entrepreneurship and capacity building for micro and small enterprises," said Shaw to applause from his government colleagues.