Barbadian PM Mia Motley signs contract with Chinese govt about road rehabilitation of 56 roads in Scotland districts

Barbados: On Friday, the Governments of Barbados and China signed a framework agreement on a concessional loan. The deal has been signed because of the road rehabilitation of around 56 roads in the Scotland districts.

This project has been valued at around $230 million Barbados dollars (or $115 million US dollars).

While addressing the media, Prime Minister Mia Amor Motley said that the agreement had been signed with the Exim Bank of China, which would provide the loan at an interest rate of two percent.

She further praised the Chinese Government for agreeing through this framework agreement.

She added, “To be able to allow us to pay at an interest rate of 2 over 20 years while they subsidize the difference between that two percent and the market rate that the Exim bank would normally settle, which would be somewhere between four and a half to five percent over course of the loan and if you look at that amount over the period of the 20 years you’re effectively looking at 85 million Barbados dollars in subsidy or the equivalent of 42 and a half million us dollars”.

She further thanked the Government of China, on behalf of the people of Darwinis and the Government of Barbados, for graciously agreeing to provide that subsidy while allowing us then to service the 2 percent interest on the 115 million USD.”

The ambassador, on behalf of China, stated that this agreement holds great significance in the pragmatic cooperation between our two countries.

He was quoted saying, “It is my great pleasure to sign the framework agreement or concession of loan between the government of People’s Republic of China and government of Barbados together with Prime Minister Mia Motley, which is of great significance in the pragmatic cooperation between our two countries.”

“We have been looking forward to start the actual work on the road as soon as the agreement is signed, which will certainly facilitate the enhanced commercial development and tourist-related activities on the east coast and create conditions for rapid economic recovery and development out of the influence of the COVID-19 pandemic,” He added.