Robert Hart, News Editor
PARLIAMENT ON Tuesday approved Government guarantees to support loans to the Port Authority of Jamaica Ltd. to finance the fifth stage of the Kingston Container Terminal expansion project.
The loans amount to US$111.5 million and include US$61 million for civil works from the Bank of Nova Scotia, Toronto, Canada and US$9.5 million for civil works from the Bank of Nova Scotia in Jamaica.
Also included is a loan of US$21 million from HSBC Bank, for straddle carriers and other container handling equipment, and US$15 million from China Exim Bank for two ship to shore post Panamax gantry cranes.
THE MOTION
Opposition spokesman on finance Audley Shaw commended the Port Authority for securing loans at low interest rates of between five and six per cent per annum and suggested the finance minister should be "inspired" to seek the same for future loans to Government.
"Oftentimes we were told that these rates were not achievable," Mr. Shaw told the House of Representatives. "What this is telling us is where there is a will there can be a way."
Only the loan from Scotiabank Jamaica had an interest rate higher than 5.6 per cent as it carried an interest rate of 8.75 per cent.
Mr. Shaw noted that Government has for a long time only been able to secure loans at an average interest rate of 13 per cent per annum.
