£5.2 million export credit support for infrastructure project that will boost tourism and benefit rural communities.

WATER AND POWER shortages experienced by thousands of people living on St Kitts & Nevis in the West Indies are set to be tackled by Sutton-based international development company Crown Agents in a project backed by the Government's Export Credits Guarantee Department (ECGD).

About 36,000 people who live on the island of St Kitts suffer from water shortages. The island's daily shortfall for this year is forecast to run to two million gallons per day. In addition, the ageing power network cannot cope with demand at peak times.

Crown Agents will oversee the installation of wells, piping and storage facilities to make better use of ground water supplies, and will also replace the outdated 11kv mains to help reduce electricity supply problems.

ECGD has guaranteed a £5.2 million five-year buyer credit for the project (with financing arranged by Scotiabank Europe) to the Federation of St Kitts & Nevis’ Ministry of Finance.

International Trade Minister Baroness Symons said: "This project will be of great benefit to the thousands of people in St Kitts who are facing shortages in two essentials of life - water and power.

"Upgrading these vital components of the island's infrastructure will have significant benefits, particularly for its tourist industry and rural population.

"And I am pleased to note that this ECGD-supported project satisfies both environmental and sustainable development criteria - in addition to providing valuable support to a UK exporter."

As part of ECGD's assessment of the environmental impact of the project, a study carried out by Canadian consultants found that the proposed water extraction levels are well within the capacity of current groundwater sources.

Islanders will also benefit further from the project with the Sutton-based company encouraging the development of local skills.

Rob Gilmour, Crown Agents' Operations Manager for the project, explained: "The on-site work is being carried out by the Federation of St Kitts & Nevis and we are contributing our expertise to supply the required materials and equipment and provide specialist contractors to assist and train local staff."


Notes to Editors:

1. ECGD, the Export Credits Guarantee Department, is the UK's export credit agency. We are a separate Government Department reporting to the Secretary of State for Trade and Industry. We have more than 80 years' experience of working closely with exporters, project sponsors, banks and buyers to help UK exporters of capital equipment and project-related goods and services. We do this by providing:
· Insurance against non-payment to UK exporters;
· Help in arranging finance packages for buyers of UK goods by guaranteeing bank loans; and
· Overseas Investment Insurance - a facility that gives UK investors up to 15 years’ insurance against political risks.

2. More information about ECGD can be found at www.ecgd.gov.uk


Press Contact:
Matthew Trainer, ECGD Press Officer, Tel: 020 7512 7401
(Out of Hours: 07790 887852)