News that the Trust Fund for St. Maarten’s reconstruction will hold a maximum of 470 million euros is bound to be frowned on by some. After all, an amount of 550 million euros had been mentioned until now, although it was also clear the Wold Bank would charge a fee to administer the financing of projects, currently estimated at between 5 and 9 per cent (23.5 to 42.3 million).
Dutch State Secretary of Home Affairs and Kingdom Relations Raymond Knops further explained that 24.6 million euros had already been used as liquidity support, while another 7 million was allocated for early recovery projects involving non-governmental organisations (NGOs). He also said the remaining means are intended for direct help from the Netherlands in cases where financing via the Trust Fund is not possible or undesirable.
The latter is not unimportant, but perhaps even more significant is the identification of three major areas The Hague wants tackled. It regards a stronger border control and economy, sustainable waste and wastewater management in cooperation with the French side as well as good governance focussing on government, policy, finances and public order/safety.
While there have been complaints about the way the state allocated its rebuilding assistance over there, the French side has one major advantage; they at least know which parts are respectively grants and loans, as well as for what the money has been destined.
The latter is still sorely lacking on the Dutch side, where the public basically remains in the dark about St. Maarten’s plans. That does not promote the kind of clarity and confidence towards the future the private sector, including potential investors, would like to see.
Moreover, with the socioeconomic situation fast getting worse, the sooner some of the projects can get started, also to provide a much-needed boost for the local business community, the better.
The main issue is therefore not the exact figure involved, but the extent to which spending these means will be making a difference.
