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Imf Identifies Climate Change Adaptation as a Key Area of Focus for Economic Sustainability in St. Kitts and Nevis

Shortly upon assuming office, the Government of St. Kitts and Nevis, under the leadership of Prime Minister Honourable Dr. Terrance Drew, earmarked the strengthening of the policy framework on climate change as one of its key priority areas going forward.
 
The Concluding Statement of the 2023 Article IV Mission by the International Monetary Fund (IMF), issued on January 31, 2023, suggests that St. Kitts and Nevis is on the right path in this regard, as it has identified achieving natural disaster resilience and climate change adaptation policies as two key areas that can help the Federation achieve greater economic sustainability.
 
The IMF mission, led by Mr. Alexandre Chailloux, visited St. Kitts and Nevis on January 16-27 for the 2023 Article IV consultation discussions on economic developments and macroeconomic policies.
 
“Enhancing natural disaster preparedness will require resolute policy implementation over the coming decades. Climate change adaptation policies, which will require substantial fiscal outlays, can improve welfare and achieve economic and fiscal sustainability. A long-term policy package should include higher resilient infrastructure spending, an optimal insurance framework against natural disasters, and renewable energy transition investment,” the IMF report said.
 
The IMF welcomed the Government’s decision to create a Sovereign Wealth Fund, which will be used to safeguard the country’s investments in international markets and industries over the long term.
 
“This Fund should be set up based on international best practices and aim to accumulate national wealth, finance resilient investment, and ensure adequate buffers,” Mr. Chailloux said.
 
Moreover, the IMF report stated that continued structural policy efforts are needed to strengthen competitiveness by enhancing the labor market and encouraging economic diversification.
 
“Ongoing efforts to improve the access and delivery of education and TVET should be complemented by Active Labor Market Policies with an emphasis on better integrating vocational training with the labor market to reduce skill mismatches and promote job opportunities. Linkages between the hospitality sector and the rest of the economy can be leveraged to provide more diversified and higher-quality job opportunities. The transition to renewable energy could help reduce energy costs and improve resilience,” the report said.

Historic Installation Ceremony of the First Female Governor-general of St. Kitts and Nevis to Take Place on Saturday, February 4

The historic installation ceremony of the first female Governor-General of the Federation of St. Kitts and Nevis, Her Excellency Ms. Marcella Liburd JP will take place at Government House on Saturday, February 4, 2023, at 4:30 pm. A wide cross-section of society has been invited to attend the momentous event by invitation only.

The installation ceremony will be broadcast live on ZIZ Radio (96 FM) and ZIZ TV (Channel 5 in St. Kitts and Channel 98 in Nevis. It will also be streamed live at www.zizonline.com

Her Excellency Liburd, 69, was sworn in at Government House on February 1, 2023, as the fifth Governor-General of St. Kitts and Nevis before a small group of attendees including Prime Minister Honourable Dr. Terrance Drew and his Cabinet Ministers and invited guests.

The Oath of Allegiance and the Oath of Office were administered by Resident High Court Judge Her Ladyship Tamara Gill.

Her Excellency Liburd has had a long and illustrious career spanning that of educator, lawyer, senator, first female Speaker of the National Assembly post-Independence, the first female to be elected Chairperson of the St. Kitts-Nevis Labour Party and first female Deputy National Leader of the St. Kitts-Nevis Labour Party, Member of Parliament and Minister of Government.

Having served as the Governor-General’s Deputy since September 2022, His Majesty King Charles III has now appointed her as the first female Governor-General of the Federation of St. Kitts and Nevis on the advice of Prime Minister Hon. Dr. Terrance Drew. All other Governors-General were appointed by the Her late Majesty Queen Elizabeth the Second, who passed away at the age of 96 on September 8, 2022, having served as the longest reigning British monarch with 70 years on the throne.

Her Excellency Liburd succeeds the fourth Governor-General of St. Kitts and Nevis His Excellency Sir Samuel Weymouth Tapley Seaton, GCMG, CVO, QC, JP, LL. D, 72, who was appointed Head of State on 1st September, 2015 and served until January 31, 2023.

Past Governors-General include His Late Excellency Sir Clement Athelston Arrindell GCMG, GCVO, QC (1983-1996); His Late Excellency Sir Cuthbert Montraville Sebastian, GCMG, OBE, KStJ ED (1996-2013) and His Excellency Sir Edmund Wickham Lawrence, GCMG, OBE (2013-2015).   

St. Kitts Energy Unit Holds Training Exercise in the Use of Solar City Simulator

 The St. Kitts Energy Unit in collaboration with International Renewable Energy Agency (IRENA) held a training exercise on the use of the solar city simulator for the Federation of St. Kitts and Nevis on January 31. 
 
The solar city simulator is a web-based simulator application created to help households, businesses, and municipal authorities evaluate their prospects for generating electricity using rooftop-mounted solar photovoltaic systems.
 
Energy Officer in the St. Kitts Energy Unit, Denasio Frank, said that the 18 stakeholders who participated were very engaged with the training exercise.
 
He added that “IRENA went through the simulator using live examples from St. Kitts. They were able to simulate a project on a roof in the Basseterre area showing the production and performance of the project and an estimated cost of the project.”
 
He also stated that the stakeholders will test the simulator, and give their feedback based on their own experience in installing this equipment.
 
In an interview last week, Mr. Franks said, “What the Energy Unit wants to do this year is we want to do more training because we recognise the importance of training for the energy sector, and we want to hold one training session in each quarter.”
 
“The training is to help us to understand how to best use the simulator. The simulator is to help with figuring out the cost and the power measurements with solar. You can actually go into the simulator and look at the rooftop and see how many panels and how much power it would cost to install solar on your roof.”
 
The simulator covers the greater Basseterre area, Sandy Point, Cayon, and Charlestown in Nevis.

Her Excellency Marcella Liburd Jp Sworn in as St. Kitts and Nevis’ First Female Governor-general

 History was witnessed on February 01, 2023, in the Federation of St. Christopher and Nevis when the first female Governor-General was sworn in, in the person of Her Excellency, Marcella Liburd JP, during a brief but significant ceremony at Government House.
 
Her Excellency Liburd, who succeeds His Excellency Samuel Weymouth Tapley Seaton, GCMG, CVO, QC, JP, LL.D, was administered the Oath of Office and Oath of Allegiance, making her the fifth Governor-General of the Federation of St. Christopher and Nevis.
 
Before being appointed as Governor-General, Her Excellency Liburd served as the Federation’s Governor-General’s Deputy since September 2022.
 
The swearing-in of Governor-General Her Excellency Ms. Marcella Liburd was attended by a small group of invitees. An installation ceremony is scheduled for the first female Governor-General at Government House on Saturday, February 04, 2023 at 4:30 p.m.

Imf Reports That St. Kitts and Nevis is Recovering From the Covid-19 Pandemic and Cost of Living Crisis; Growth in 2023 is Projected at 4.5 Percent

The International Monetary Fund (IMF) is reporting that the hard-hit St. Kitts and Nevis economy from the COVID-19 pandemic is recovering and that the cost of living crisis is improving. However, the report pointed out that although “the outlook is positive, risks are somewhat tilted to the downside” with “growth projected at 4.5 percent in 2023, supported by a strong recovery in tourism and other service sectors.

The assessment comes following an IMF Mission, led by Mr. Alexandre Chailloux, who visited St. Kitts and Nevis during January 16-27, 2023, for the 2023 Article IV consultation discussions on economic developments and macroeconomic policies. The mission team benefited from candid and constructive discussions with public and private sector counterparts and other stakeholders.

“St. Kitts and Nevis is recovering from the COVID-19 pandemic and cost of living crisis. The large fiscal buffers accumulated over a decade of prudent fiscal policy have supported the authorities’ forceful policy response to protect the livelihood of the population. The outlook is positive but subject to downside risks in the short term, primarily stemming from global headwinds impacting key tourism source markets and commodity price volatility. Preserving the country’s legacy of fiscal prudence, in a context of concerns over the sustainability of Citizenship-by-investment program (CBI) resources, and a pressing need for investment in climate change adaptation will require prioritizing policies. This includes tightening the fiscal stance through phasing out crisis-related measures, rationalizing and controlling current spending, streamlining social transfers, and a holistic overhaul of the taxation framework. Fiscal space could support investment in climate change adaptation, accelerate economic diversification, and restore waning competitiveness. The concentration of risks in the banking sector calls for a business model change, including de-risking of the investment portfolio, addressing legacy asset quality issues, and safeguarding government deposits, while supporting credit growth and financial stability,” Mr. Chailloux said.

According to the report, the Gross Domestic Product (GDP) shrunk by 14.5 percent in 2020 and 4.3 percent in 2021 due to the COVID-19 pandemic. Tourism recovery in the Federation lagged behind other countries of the Eastern Caribbean Currency Union (ECCU) because of “stricter and longer-lasting COVID-19 restrictions”.

GDP is estimated to have grown by 9 percent in 2022. The authorities’ proactive policy response helped dampen inflation pressure with average inflation rising to only 2.7 percent,” the report stated.

“The previous administration made a substantial repurchase of land (7.6 percent of GDP) from the land-to-debt swap arrangement, hereby reducing its deposits and contingent liability (which now remains at 12 percent of GDP). These measures came at a cost to public finances: despite receiving record-high CBI revenues, the government incurred the largest primary deficit in two decades,” the report added.

Please click on the link below for the full report.

https://www.imf.org/en/News/Articles/2023/01/31/cs13123-st-kitts-and-nevis-staff-concluding-statement-of-the-2023-article-iv-mission

Moneygram Donates to Prison Rehabilitation Programme

The work of the Rehabilitation Programme at His Majesty’s Prison (HMP) will be enhanced following the donation of a laptop and a commitment for future support from MoneyGram.

The company’s Managing Director, Damion Hobson, recently presented the donation to HMP’s Rehabilitation Officer, Virgil Hodge, noting that he was moved to act after hearing several inmates share stories of reform while attending the International Men’s Day Service at the Antioch Baptist Church last November.

“At the end of the service, I spoke to Commissioner [of Prisons], [Terrance] James and told him that my company would be interested to partner with the department to see how we can help to foster better relationships and try to grow the programme that they have,” Mr. Hobson stated.

Twenty-four hours later, a letter was received from HMP outlining a need for computers. Mr. Hobson said that he “immediately ordered a laptop.”

Officer Hodge said that the laptop will be used to assist with prisoner amassment, course design and tutorial lessons.

“We want to really thank him for taking that initiative to donate this laptop to the rehabilitation programme,” she said, adding that it will “go a long way” to enhance the effectiveness of the programme.

Mr. Hobson said that he will make additional contributions moving forward and encouraged like-minded persons to lend a helping hand.

“We need to encourage the rehabilitation of the prisoners. I think that augurs well for the community in which we live. At the end of the day, they (prisoners) have to come back out into society. And we want them to be on their best behaviour with all of the skills to live a proper life,” he expressed. “So, anything that we can do small or big, sometimes it is just our time they need, sometimes its equipment. I encourage everyone to help.”

Delegation From the Federation Benefits From Energy Efficiency and Renewable Energy Workshop Held in Barbados

 A delegation of 14 people from the Federation of St. Kitts and Nevis benefited from an energy efficiency and renewable energy workshop which was held in Barbados from January 16 to 20, 2023.
 
Persons who travelled to this workshop came from the Energy Unit, SKELEC, NEVLEC, and the Nevis Island Administration.
 
Director of the Energy Unit, Dr. Bertill Browne was a part of the delegation that traveled for this workshop and said that the entire delegation learned a lot.
 
 In an interview last week, he spoke about his experience at the seminar.
 
“The first two days dealt with energy efficiency, and it looked at ways in which we could improve the energy efficiency within the Federation. The other days looked at renewable energy and how we could model renewable energy projects to ensure that they don’t destabilize the grid. It stressed large renewable energy projects and grid stability which was the main focus of that particular workshop,” said Dr. Browne
 
He stated that renewable energy resources destabilize the grid because of their inconsistency. He said, “For example, you can have a solar farm on the grid, and it is shining bright with a particular output, but it changes when a cloud passes by.”
 
Dr. Browne also added that the workshop educated the stakeholders on how to combat destabilization. He said, “The main way is storage to combat destabilization as the battery would kick in when there is a drop in output and also these distributions (renewable energy projects) would not be at a single location, they would be distributed and that would affect how currents flow in the line.”
 
 “They were showing us how to model them so we can find out even before they were implemented how they would affect current flow in the electrical lines,” he said.
 
He said that going forward large projects will have to have storage if the Federation of St. Kitts and Nevis is to move towards 100% renewable energy.

Post-cabinet Briefing for Monday, January 30, 2023

The Cabinet Ministers met under the Chairmanship of the Prime Minister, The Honourable Dr Terrance Drew, on Monday, January 30th, 2023, and made several significant decisions to improve the well-being of our people.
 
Following a 2-month window where the general public, including non-governmental organizations and civil society organizations, were able to scrutinize and provide feedback on drafts Bills, Cabinet approved the following pieces of legislation, namely:
 
The Integrity in Public Life (Amendment) Act, which gives the Integrity Commission the necessary legislative support and creates the Office of the Special Prosecutor to receive complaints, investigate, and prosecute acts of corruption throughout the Public Service and within Statutory Corporations;
 
The Anti-Corruption Act, which creates criminal offences of corruption, seeks to protect whistleblowers and gives the Special Prosecutor powers to not only prosecute offenders but to seek recovery of proceeds of corrupt activities; and
 
The Freedom of Information (Amendment) Act, which promotes the disclosure of information in the public interest and provides an effective mechanism by which members of the public, particularly the press, can gain access to Government information.
 
Additionally, the Cabinet approved the Official Gazette Act which will create certainty as to when laws and statutory instruments are published and to provide for the digitization and publication of the Official Gazette of Saint Christopher and Nevis and the Criminal Records (Amendment) Act which seeks to expand the offences by which convicted persons’ criminal records can be expunged.
 
These approvals represent the St. Kitts-Nevis Labour Party Administration’s seriousness and commitment to the implementation of good governance structures. Members of the public can expect to see these Bills tabled and debated during the upcoming National Assembly Sittings on February 8th and 22nd this year.

Minister of Foreign Affairs Meets With Scholarship Recipients in Havana

Minister of Foreign Affairs et al, the Rt. Hon. Dr. Denzil L. Douglas, met with students of Saint Kitts and Nevis on 26th January, 2023 while on his visit to participate in the Congress on the New International Economic Order (NIEO) held in Cuba.
 
The Honourable Minister interacted with the students and listened to their experiences and concerns encountered while studying in Cuba. H.E. Verna Mills recounted her time spent as a student in Cuba and encouraged the students to make good use of the scholarships and to persevere despite the circumstances.
 
The students expressed their appreciation for the opportunities afforded them and indicated their desire to specialize in necessary medical areas for the benefit of St. Kitts and Nevis in the near future.

St. Kitts and Nevis’ Minister of Foreign Affairs Attends Meeting in Havana

On 26th January 2023, the Minister of Foreign Affairs et al, the Right Honourable Dr. Denzil Douglas arrived in Havana to attend the Congress on the New International Economic Order (NIEO), which took place during the V International Conference for World Balance “With all and for the good of all,” Dialogue of Civilizations. At the conference, the Republic of Cuba welcomed 1100 plus delegates from across some 87 countries.

L-R: MINISTER OF FOREIGN AFFAIRS OF ST. KITTS AND NEVIS RT. HON. DR. DENZIL DOUGLAS; MINISTER OF FOREIGN AFFAIRS OF THE REPUBLIC OF CUBA, H.E. BRUNO RODRIGUEZ PARRILLA

The Conference considered and discussed ideas and strategic responses to a broad range of issues including the renewal of the “Declaration on the Establishment of a New International Economic Order (NIEO).”
 
On Friday, 27th January, 2023, Minister Douglas was invited to deliver a few opening remarks on the NIEO. In addressing the gathering, the Minister expressed the importance of the date of 1st May, 2024, which will mark the 50th Anniversary (1974-2024) since the historic endorsement of the United Nations (UN) Resolution on the NIEO. On examining the future of the NIEO, Dr. Douglas articulated that the three-fold task of the NIEO over the next two years would be to reflect on its history and the events that led to its formation; to renovate its vision for the 21st century, and to outline the plans and strategies required to fulfill this vision.
 
Also on Friday, during the margins of the conference, the Rt. Hon. Dr. Denzil Douglas paid a courtesy call on his Cuban counterpart, H.E. Bruno Rodriguez Parrilla. Among the topics discussed were Cuba’s leadership role in the G77+China and challenges of the current global landscape; the blockbuster court case over Cuba’s debt; and the US-Cuba relations.
 
Following the encounter with Minister Rodriguez Parrilla, the Hon. Minister Douglas met with H.E. Felix Plasencia, Executive Secretary of the Bolivarian Alliance for the Peoples of Our America – Peoples’ Trade Treaty (ALBA-TCP). Issues raised during the meeting included the challenges and structure of the organisation, future membership in the organisation and in the ALBA Bank and the upcoming ALBA Games scheduled for 19th April, 2023 in Venezuela.
 
Later that evening, the Hon. Minister Douglas, together with the Minister of Foreign Affairs of Saint Lucia, Hon. Alva Baptiste sustained a joint meeting with the CARICOM Caucus of Ambassadors in Havana. In general, the meeting discussed relations between CARICOM countries and Cuba, challenges faced by the missions in Havana as well as possible solutions to these issues.
 
The Hon. Minister was accompanied by H.E. Verna Mills, Ambassador of St. Kitts and Nevis to the Republic of Cuba as well as Mr. Winston Hanley, Counsellor.