Last Updated on Saturday, 26 December 2015, 21:01 by GxMediaThe Caribbean Development Bank (CDB) is providing loans totalling USD 65 million dollars to four shareholder governments of regional airline LIAT to assist with the purchase of aircraft under a Fleet Modernisation Project, the airline said in a statement.
The loan agreements provide for the loans to be on-lent to, and repaid by, LIAT over a
thirteen-year period, following a grace period of two years. Co-financing for the project is being provided by shareholder equity contributions and from the sale of LIAT’s existing aircraft.
“The project provides LIAT with the most cost-effective means of improving the reliability of its service and consequently its contribution to the socio-economic development of the region,” said LIAT.
The loans were approved by the Bank’s Board of Directors during a meeting at its Headquarters in Barbados on July 18, 2013.
LIAT’s shareholder governments are Barbados, Antigua and Barbuda, St. Vincent and the Grenadines, and Dominica.
The Fleet Modernisation Project involves the replacement of LIAT’s aging fleet through a combination of lease and purchase of aircraft; the transition costs associated with the changeover; the upgrade of maintenance facilities; and other institutional strengthening activities.
It will have significant impact on the operational efficiency and financial performance of the airline. Realisation of these results will require the involvement of all stakeholders. Reliable and efficient air transportation is essential for connectivity, mobility and accessibility within the region, and for some of CDB’s borrowing members, LIAT provides the only air links with the rest of the region.
This Project is consistent with CDB’s strategic objective of supporting regional cooperation and integration and contributes to CDB’s overall mandate of reducing poverty in the region through social and economic development.