POND ISLAND–A virtual takeover of the supervisory and management boards of Princess Juliana International Airport is among the conditions the Dutch government and the World Bank are demanding in exchange for financial support for the reconstruction loan for the terminal building, according to Tourism and Economic Affairs Minister Stuart Johnson.
Another stumbling block is the possible exclusion of local companies from acquiring work in the terminal reconstruction due to stringent criteria of the World Bank and European Investment Bank (EIB).
Johnson told the press on Wednesday that help is welcomed from the Dutch government and other outside entities, “but under no guise should help become a hostile takeover of our most valuable strategic asset.”
He dismissed Dutch State Secretary for Kingdom Relations Raymond Knops’ claim that the local government is apparently not interested in the US $100 million offer of the Dutch government and EIB for the airport project. “This is a complete misrepresentation of the facts. … It can even be considered malicious, given its timing to coincide with the kick off of the 75th anniversary celebrations of the airport,” he said.
Discussions are ongoing about a $50 million loan from EIB to be matched by a $50 million grant from the Dutch government-financed recovery trust fund. However, government is still waiting for the “actual terms and conditions” of this proposed financing and that of other potential financiers to be spelled out in writing, said Johnson.
“Until this is done, I as shareholder’s representative [for the airport – Ed.] and the Council of Ministers as the representatives of the people of St. Maarten cannot naturally take any decision. We must also take into account that the St. Maarten government cannot contract any loans while under financial supervision, without the explicit and written consent of the Dutch,” Johnson said.
Government itself is not in negotiations with other potential financiers for the airport project, said Johnson.
Prime Minister Leona Romeo-Marlin, also reacting to Knops’ statement, said in the Council of Ministers press briefing on Wednesday that while government is not directly involved in negotiations with other potential financiers for the airport, the Council of Ministers, as shareholder, has taken note of reports of these undertaken by the airport.
In accordance with the articles of incorporation, the Council of Ministers has asked the airport’s holding company to provide a detailed analysis of the different financing options that are on the table.
“Financial decisions of this magnitude should not be taken lightly and should be based on a thorough analysis of available information. This Government remains focused and determined to ensure that the airport is fully up and running as soon as possible for the people and businesses of St. Maarten,” said the prime minister.
Source: The Daily Herald https://www.thedailyherald.sx/islands/83825-johnson-assistance-welcomed-but-not-as-disguised-hostile-takeover-of-airport
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