Report No. 3821-CRG Economic Memorandum on Antigua and Barbuda April 23, 1982 Latin America and the Caribbean Regional Office FOR OFFICIAL USE ONLY Document of the World Bank This document has a restricted distribution and may be used by recipients only in Ihe performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. J CURRENCY EQUIVALENTS Currency Unit East Caribbean Dollar Since its creation in 1965, the East Caribbean dollar was tied to sterling at the rate of 1,.00 = EC$4.8. In July 1976 the link with sterling was broken and the East Caribbean dollar was aligned with the US dollar at the rate US$1.00 = EC$2.70. Since Julv 1976: EC$1.00 = US$0.370 or US$1.00 = EC$2.700 FOR OFFICIAL USE ONLY This report is based on the work of an economic mission to Antigua and Barbuda during January 1982. The mission consisted of: Mr. Edison Zayas (IMF) - Chief of Mission; Mr. Carlos Elbirt (IBRD); Mr. Paolo Lucani (FAO); Mr. Derick Latibeaudiere (CDB); Mr. Davison Budhoo (IMF); Ms. Theresa Jones (IBRD); Mr. Emmy Ndungutse (IBRD); Mr. Federico Rubli- Kaiser (IMF); Mr. Luis Valdivieso (IMF); and Ms. Dolores Velasco (IBRD). Chapters I-IV and most of the statistical tables were prepared by the Staff of the IMF. The contribution by IBRD includes Chapters V-VIII and the Summary and Conclusions. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. ANTIGUA AND BARBUDA Table of Contents Page COUNTRY DATA SUMMARY AND CONCLUSIONS ........ . .......... . i-iii I. THE DOMESTIC ECONOMY ...................... # .......... . ....... 1 A. Overall Trends in Production and Expendituren.......- ..... 1 B. Output by Sector ................................... 4 C. Energy Sector Developments ......... . ...................... 7 D. Population, Employment, Wages, and Industrial Relations 8 E. Price Trends .............. .................. 0* ........................... 11 II. THE PUBLIC SECTOR.. . .... .. ..o 12 A. Structure of the Public Sector ............ ...-..... 12 B. Overall Public Sector Trends ................................ 12 C. Central Government Operations .............................. 12 D. Rest of the Public Sector.... ...................... oo ....... 19 lII. THE FINANCIAL SECTOR... ................................................. 20 A. Characteristics and Overall Trends ...... .... .....ooooooo 20 B. The East Caribbean Currency Authority- .................. 20 C. Operations of the Commercial Banks .................... 22 D. Other Financial Intermediaries .........0 ...... .......0 24 IV. THE EXTERNAL SECTOR..o..o.o... o ...o ........... ......... . ..... 26 A. The Balance of Payments ....................... o......... 26 B. Merchandise Exports ....... ....... .............. . . ........ 28 C. Merchandise Imports ... .. .. . . ... . ... ......... .o. 29 D. Tourism..... . . ......... .................... 30 E. Other Current Transactions and Transfers . ....... . .. 30 F. Official Capital and Other Capital Transactions ........... * 31 G. External Public Debt ........................o..................o ..... 31 H. Effective Exchange Rate .................................... 33 V. DEVELOPMENT POLICY ISSUES. o ..... . - ..... ... . .......o 35 VI. PRIVATE INVESTMENT AND EXPORT PROMOTION ...........o...... oo.. 40 VII. PUBLIC SECTOR INVESTMENT PROGRAM .......................... .. 42 VIlII. PROSPECTSo ......................... ..o...o.............. ...... 44 Table of Contents (Cont'd) Page ANNEX B .. .......... 49 ANNEX C .........#.... ** .............................................. 52 ANNEX D ....................................................... 56 GOVERNMENT'S PROJECT AND TECHNICAL ASSISTANCE LISTS ........... 61 STATISTICAL APPENDIX ............................... .......... . 140 MAP Preface and Abstract Antigua and Barbuda's GDP grew at an average annual rate of almost 8% during 1977-79. The growth rate slackened to 6% in 1980 and to about 4% in 1981. This decline is associated with a drop in tourism, the major activity. After a steady improvement until 1980, public finances deteriorated in 1981. Public sector savings decreased from 4% of GDP in 1980 to 2.4% of GDP in 1981 as large increases in current expenditures took place. Inflation decelerated to 11.5% in 1981 from 19% in 1980. The current account deficit of the balance of payments widened in 1981 and reached 44% of GDP. This was the result of big increases in imports of food and capital goods, and the slow down in tourist earnings. The country enjoys a good investment climate but its infrastructure needs to be upgraded and expanded. The Government has recognized that the prevailing system of short-term land leasing offers little incentive to on-farm investment and is contemplating measures to rectify it. There is a need to spell out the conditions under which concessions will be granted for industrial development. The Government is reputedly engaged in expanding its share in the hotel industry. Given the limited managerial and financial resources of the public sector, this is a doubtful direction to pursue at this time. Caution needs to be exercised in relation to further assumption of external indebtedness on commercial terms and borrowing should be for the highest priority projects. COUNTRY DATA - ANTIGUA AND BARBUDA Area and population Area (total) 170 square miles Antigua (108 square miles) Barbuda (62 square miles) Population (mid-1981 proj.) 76,138 Annual rate of population increase (1976-81) 1.3 per cent GDP (proj. 1981) SDR 106.4 million GDP per capita 1981 SDR 1,400 Origin of GDP (proj. 1981) (per cent) Agriculture, livestock, and fishing 8 Manufacturing 9 Construction 8 Tourism 12 Other 64 Ratios to GDP (proj. 1981) Exports of goods and nonfactor services 46.7 Imports of goods and nonfactor services 120.0 Central government revenues 23.1 Central government expenditures 36.6 External public and government-guaranteed debt (end of year) 45.8 Gross domestic savings -17.3 Gross domestic investment 56.0 Money and quasi-money 1/ 44.3 Annual changes in selected economic Proj. indicators 1978 1979 1980 1981 (In per cent) Real GDP per capita 8.2 6.3 5.9 2.9 Real GDP (at factor cost) 7.9 8.3 6.2 3.8 GDP at current prices 14.1 23.5 25.9 17.6 Domestic expenditure (at current prices) 12.8 41.3 43.3 24.4 Investment (18.7) (16.5) (81.5) (37.2) Consumption (10.6) (51-0) (31-9) (19.1) GDP deflator 4.3 14.7 17.4 13.0 Consumer prices (annual averages) 6.2 16.2 19.2 11.5 Central government revenues 28.4 13.8 34.6 23.6 Central government expenditures 30.8 -20.6 65.4 21.4 Money and quasi-money 1/ 12.8 2.0 11.3 17.9 Money 1/ (0.7) (9.2) (9.3) (2.0) Quasi-money 1/ (18.1) (-0.7) (12.1) (24.4) Net domestic credit 2/ 2.9 6.7 12.1 26.6 Credit to central government (net)2/ (5.3) (5.5) (0.3) (5.1) Credit to private sector 2/ (1.2) (-7.9) (14.9) (20.7) Merchandise exports (f.o.b., in U.S. dollars) 90.9 -19.1 171.6 21.3 Merchandise imports (c.i.f., in U.S. dollars) 14.3 57.9 54.6 23.3 Travel receipts (gross, in U.S. dollars) 19.4 31.1 9.8 9.2 COUNTRY DATA - ANTIGUA AND BARBUDA Proj. Central government finances 1978 1979 1980 1981 (In millions of East Caribbean dollars) Revenues 47.8 54.4 73.2 90.5 Expenditures 77.8 61.8 102.2 124.1 Current account surplus or deficit (-) -0.2 -3.5 -3.3 -9.4 Overall surplus or deficit (-) -30.0 -7.4 -29.0 -33.6 External financing (net) 28.6 2.4 27.4 21.9 Internal financing (net) and residual 1.4 5.0 1.6 11.7 Balance of payments (In millions of U.S. dollars) Merchandise exports (f.o.b.) 12.6 10.2 27.7 33.6 Merchandise imports (c.i.f.) -46.3 -73.1 -113.0 -139.3 Travel (net) 27.1 35.4 38.8 42.1 Other services and transfers (net) 4.4 4.2 6.9 7.5 Balance on current and transfer accounts -2.2 -23.3 -39.6 -56.1 Official capital (net) 10.5 1.4 8.8 16.1 Commercial banks (net) -1.7 2.4 -0.3 2.0 Private capital (net) and errors and omissions -6.9 19.6 29.4 37.6 Change in official net reserves (increase -) 0.3 -0.1 1.7 0.4 IMF data Membership February 25, 1982 Status Article VIII or XIV (not yet determined) Intervention currency and rate US dollar at EC$2.70 per US$ Present quota SDR 3.6 million 1/ Excludes deposits of other public entities and financial institutions, and nonresident deposits. 2/ In relation to liabilities to private sector at the beginning of the period. ANTIGUA AND BARBUDA SUMMARY AND CONCLUSIONS i. Real GDP grew at an average annual rate of almost 8% during 1977- 79. The growth rate slackened to 6% in 1980 and to about 4% in 1981. The decline in the rate of growth was associated with a drop in the number of stayover tourists which represents the largest single economic activity in the country. This decline is largely attributable to the recession in the major industrial countries. ii. After a steady improvement until 1980, public finances deteriora- ted in 1981. The current savings of the consolidated public sector de- creased from EC$11.5 million, 4% of GDP, to EC$8.0 million, 2.4% of GDP, as a result of a sharp deterioration in the Central Government finances, asso- ciated mainly with large increases in expenditures. iii. Domestic credit increased by 27% in 1981 as a result of expansion in credit to both the public and the private sectors. On the other hand, liabilities to the private sector increased by only 22%. This situation led to a deterioration in the foreign position of the commercial banks and to a tightening of liquidity in the banking system which, in turn, led to an upward adjustment in interest rates by 1 to 2%. iv. Increases in prices slowed down from 19% in 1980 to 11.5% in 198L. This development appears to be mainly a result of a decrease in the rate of inflation in the major trading countries and partially of moderate wage settlements within the economy. v. The current account deficit of the balance of payments widened sharply in 1981 and reached US$56 million, or 44% of GDP. This was the result of the big increase in the food import bill, the substantial increase in imports of capital goods, particularly for the rehabilitation and expansion of the oil refinery, and the slowdown in tourist earnings. On the capital account, inflows to the public and private sectors grew substantially in 1981. vi. Antigua and Barbuda enjoys a good investment climate, relatively tranquil industrial relations and the advantage of its proximity to major export markets. The economic infrastructure of the country, however, does not meet all the requirements to further develop the economy. The Govern- ment and the external community need to concentrate their efforts on upgrading and expanding the infrastructure, a pre-requisite to attract further private investments in agriculture, tourism and manufacture. vii. The prevailing system of short-term land leasing offers little incentive to on-farm investment. The Government has articulated a new land tenure policy which envisages long-term leasing and sale of viable acreages of land to farmers. Farm mechanization, needed in view of the shortage of labor, is being adversely affected by price ceilings on mechanized services, provided by specialized firms mostly to small- and medium-size - 11 - farms. There is an urgent need to strengthen the government agencies that provide extension and marketing services to farmers. It is also advisable that the Central Marketing Corporation discontinue alL operations which can be better performed by the private sector. In particular, it should divest itself of trading and importing functions which entail losses and constitute an unnecessary burden for public finances. viii. There is an urgent need to spell out clearly the conditions under which concessions will be granted for industrial development. Control of imports needs to be used with caution. Encouragement should be given to efficient import substitution and export promotion ventures and undue protection to local industries to t:he detriment of the consumers should be avoided to the extent possible. ix. The need to further develop the infrastructure, mainly energy, water, telephones and roads, should be tackled before any major expansion in the tourist industry. The Government has taken active steps to strengthen the Tourist Board so that it can play a more aggressive role in the promotion of non-seasonal (summer) tourism. x. The maintenance of a realistic exchange rate should be considered as an essential element of any effective program directed towards stimulating exports of goods and services. The need to monitor closely the competitiveness of the country's exports has become increasingly important recently owing to the appreciation of the US$. Since the EC$ is pegged to the US$, it has appreciated considerably against pound sterling during the past year. This developmient has rendered tourist services more expensive for visitors from Europe and Canada. xi. The Government plans to construct several large hotels and condo- miniums with an estimated cost of about US$200 million, or 160% of GDP. Given the pressing need to remove infrastructural deficiencies, to promote non-seasonal tourism and to improve operations of the two government-owned hotels, the government might well consider allocating its limited managerial and financial resources to resolving the existing problems in the sector rather than getting involved in an area where the private sector could be induced to invest, provided the needed infrastructure is in place and there is sufficient demand. Anry serious difficulties in the execution or management of the new hotel projects is likely to have a long-lasting negative impact on public finances and indirectly on private sector confidence. Moreover, contracting external debts for these projects will seriously impair the government's ability to borrow abroad for essential infrastructural projects. xii. Total disbursements on public sector investment programs amounted to EC$57 million in 1981, or about 16% of GDP, exceeding previous projec- tions. Almost 80% of this total was externally funded. Two large pro- jects, the new airport,terminal and two electricity generators, represented almost 50% of the total public investment in 1981. The sugar rehabilita- tion project, made some progress although it is experiencing serious diffi- culties and has been carefully reassessed by the Government. Some progress was also made in road maintenance. In relation to new construction, it is recommended that fixed cost contracts with proper bidding procedures be introduced. - iii - xiii. Antigua and Barbuda is currently receiving technical assistance in every sector of the economy, about US$2 million per year. These programs have had a positive impact on the development of the country and should continue. However, there is a need to prioritize the sectors in which further technical assistance will be required and to carefully plan the involvement of local personnel so as to maximize the contribution of these programs to the economy. xiv. Disbursements on the public investment program for the period 1982-85 are estimated at EC$239 million. The bulk of the disbursements would take place on infrastructure, namely transportation, energy, and water. The disbursements do not include the new hotels/condominiums previously mentioned because neither information on their disbursements nor ontheir feasibility was available to the mission. Because EC$52 million is required for amortization of the external debt, total financial require- ments for the 1982-85 period are estimated at EC$291 million. These finan- cial needs are projected to be met as follows: (i) public savings,EC$63 million or 21.6% of the total financial requirements; (ii) external grants and loans, EC$222.4 million or 76.4%; and (iii) commercial banks and other domestic sources, EC$5.6 million or 2% of the total. Since external sources will have to be relied upon to finance most of the requirements, additional commitments for about EC$100 million need to be secured. Approximately one-half of this amount may be forthcoming from the Indepen- dence Grant/Loan for specific projects. A major achievement wouldtake place if public savings reach the projected levels and the need to borrow from the domestic banking system would decline progressively with the result that indebtedness to the banks would be curtailed toward the end of the 1982-85 period. xv. The external public and publicly guaranteed debt of Antigua and Barbuda amounts to US$58 million or 46% of GDP. The debt service represented around 4% of foreign exchange earnings in 1981. However, this is projected to sharply increase in the coming years because several large loans become payable. This situation dictates prompt adoption of policies to raise public sector savings and foreign exchange earnings. Although the service on existing external debt will be burdensome with the adoption of such policies it should prove manageable. Nevertheless, caution needs to be exercised in relation to the further assumption of any substantial external loans on commercial terms. Moreover, such borrowing should be for the highest priority projects. Given the high level of public indebtedness and the large amount of additional external capital required to implement the public sector investment program, the country will have to rely, to a large extent, on capital grants and concessional loans. I. THE DOMESTIC ECONOMY A. Overall Trends in Production and Expenditure 1. According to officially prepared national accounts data,l! a decline in economic activity in 1976 affected nearly all sectors oT the economy but more so manufacturing, tourism, and tourist-related activi- ties. Output recovered in 1977-79 and real GDP at factor cost expanded at an average annual rate of almost 8% (Table 1). But in 1980 the growth rate slackened to 6% and slowed further to about 4% in 1981 as recessionary conditions in the major industrial countries led to a leveling off of tourism, Antigua's principal economic activity. 2. During 1977 and 1978 total domestic expenditure grew by an average of about 16% a year, compared with an average annual increase of nominal GDP of 19%. As a result, the resource gap in 1978 (deficit on goods and nonfactor services in the balance of payments) as a percentage of GDP fell slightly 26% from 27% in 1977. In 1979 gross domestic expenditure rose strongly and the resource gap widened to 44% of GDP. In 1980 and 1981 this rising trend was maintained; in the latter year the resource gap reached 73% of GDP, as both consumption and domestic investment continued to increase, well in excess of the growth in exports of goods and nonfactor services (Table 2). In 1980 and 1981 gross domestic expenditure rose by 32% and 19%, repectively. 3. A breakdown of aggregate consumption shows a slight fall in the ratio of private consumption to GDP in 1978 (to 81.2%) followed by a sharp rise in 1979 (to 102.4%), a further rise in 1980 to (105.5%), and a small fall in 1981 (to 104.2%). By contrast, public sector consumption fell in both 1977 and 1978; in the latter year it represented only 8.1% of GDP. But since then there has been a steady trend of increase, and in 1981 the ratio had reached 13.1%. Gross domestic investment as a percentage of GDP remained relatively stable at around 34% up to 1979, but rose sharply to 48% and 56% in 1980 and 1981, respectively. These increases reflect strong private investment growth; in 1981 such growth was due in large part to the refurbishing of the oil refinery. Foreign savings in 1977 and 1978 financed 80% and 73%, respectively, of gross domestic investment, with domestic savings financing the remainder (Statistical Appendix Table 2.2). But in 1979 gross national savings turned highly negative (minus 10.5% of GDP as against 9.6% positive in 1978) and this trend of dissavings worsened in both 1980 and 1981 (minus 15.8% of GDP, and minus 17.3% of GDP, respectively). This adverse development was due in large measure to heavy dissavings by the private sector to maintain rising levels of private consumption. By contrast, the consolidated public sector showed positive savings averaging around 3% of GDP in each of the years 1979 to 1981. 1/ Official national accounts for 1976-80 were prepared by the ECCM Secretariat with UNDP assistance. IMF staff revised the 1980 data and prepared estimates for 1981. -2- Table 1. Antigua and Barlbuda: Selected GDP Indicators Est. 1977 1978 1979 1980 1981 (In millions of East Caribbean dollars) Real GDP at factor cost (1977 prices) 142.0 153.2 165.9 176.2 182.9 GDP deflator (index 1977=100) 100.0 104.3 11.9.6 140.4 158.6 GDP at current market prices 162.5 185.4 229.0 288.2 338.9 (Annual percentage change) Real GDP at factor cost (1977 prices) 7.2 7.9 8.3 6.2 3.8 GDP deflator (index 1977=100) 14.8 4.3 14.7 17.4 13.0 GDP at current market prices 24.7 14.1 2'3.5 25.9 17.6 Sources: Statistical Appendix Tables 2.1, 2.3, and 2.4. - 3 - Table 2. Antigua and Barbuda: Summary of National Accounts 1977 1978 1979 1980 1981 (Annual percentage change) Nominal GDP at market prices 24.7 14.1 23.5 25.9 17.6 t,ross domestic expenditure 21.0 12.8 41.3 43.3 24.4 Consumption 19.0 10.6 51.0 31.9 19.1 Consolidated public sector (19.0) (-2.3) (8.8) (60.2) (49.3) Private sector (17.7) (12.4) (55.8) (29.6) (16.2) Gross domestic investment 27.7 18.7 16.5 81.5 37.2 Consolidated public sector (67.2) (6.7) (17.1) (17.5) (83.5) Private sector (14.4) (23.8) (16.3) (105.2) (27.4) Gross national savings 46.3 60.4 -235.4 -88.8 -28.8 Consolidated public sector -148.9 334.8 -25.9 70.6 -30.2 Private sector 111.3 -7.5 -349.2 -84.8 -16.8 External savings (resource gap) 21.8 8.2 110.7 83.3 35.2 Exports of goods and nonfactor services 32.2 25.2 22.6 23.3 10.1 Imports of goods and nonfactor services 29.5 18.9 52.0 51.1 24.2 (As per cent of GDP) Nominal GDP at market prices 100.0 100.0 100.0 100.0 100.0 Gross domestic expenditure 127.1 125.7 143.8 163.8 173.3 Consumption 93.2 90.4 110.5 115.8 117.3 Consolidated public sector (10.8) (9.2) (8.1) (10.3) (13.1) Private sector (82.4) (81.2) (102.4) (105.5) (104.2) Gross domestic investment 33.9 35.3 33.3 48.0 56.0 Consoliated public sector (10.2) (9.5) (9.0) (8.4) (13.1) Private sector (23.8) (25.8) (24.3) (39.6) (42.9) Gross national savings 6.8 9.6 -10.5 -15.8 -17.3 Consolidated public sector -1.4 2.9 3.0 4.0 2.4 Private sector 8.3 6.7 -13.5 -19.8 -19.7 'External savings (resource gap) 27.1 25.7 43.8 63.8 73.3 Exports of goods and nonfactor services 46.7 51.2 50.9 49.9 46.7 Imports of goods and nonfactor services 73.7 76.9 94.7 113.6 120.0 Sources: Statistical Appendix Tables 2.1 and 2.2. -4 B. Output by Sector Agriculture, Livestock, and Fisheries 4. Agriculture, once the key sector of the economy, had been declining continuously since the 1960s in relative importance. This demise was due mainly to the abandonment of sugar and the top priority given to tourism as the mainstay of the economy. Over the period 1976-78 agriculture contributed on average to about 9.5% of GDP at factor cost; this share was reduced to 8.1% on average during the subsequent two-year period and declined further in 1981 to 7.6% (Table 3). From a real annual growth rate of 9% for 1978 the sector experienced in 1979 negative growth of over 4% followed by practically no growth whatsoever over the last two years (Statistical Appendix Table 2.4). 5. Privately-owned agricultural, estates producing basic crops were acquired by the Government over a period of years. At present, the Government owns about 60% of the total. agricultural lands; it is estimated that about 50% is either abandoned or undercultivated. In 1978 a public project for re-establishing the sugar industry was initiated in order to satisfy domestic sugar requirements arid provide molasses for the production of rum. An old sugar factory--the only one in the island--was replaced by a smaller unit with an estimated production capacity of 25 tons per hour and a daily intake of some 480 tons of cane. The project, however, has run into severe technical and managerial dLifficulties. Assuming that these can be overcome, it is estimated that its demand for cane would require the cultivation of 2,600 acres. During 1S981 almost 500 acres were cultivated, but because of a serious canecutters' shortage only around 130 acres were harvested, resulting in heavy financiaLl losses. Cotton lint production, once an important crop in Antigua, has declined dramatically in the last three years from previous levels (Statistical Appendix Table 7.1). This is explained mostly by unfavorable weather, labor shortage, and high levels of infestation which have reduced the yields per acre. Only 350 acres were devoted to cotton production in 1980 and 1981. In 1975 a 3,000-acre cornsorghum scheme was established but. because of high investment costs and heavy operating losses the scheme has been abandoned. A new 500 acres pilot scheme is now under consideration. 6. The production of fruits and vegetables in Antigua has shown wide variation (Statistical Appendix Table 7.1) due to the vagaries of the weather and an underlying disinterest of a significant proportion of small farmers to cultivate if eaployment becomes available in the service sector of the economy. In an average year Antigua can produce about two thirds of its requirements of fruits and vegetables. The main crops are avocados, pineapples, mangoes, bananas, cucumbers, yams, and sweet potatoes. The Central Marketing Corporation (CMC) is the governmental agency in charge of marketing cash crops. It buys the product from farmers and sells it either directly to the hotels or through its own retail store. The CMC also imports rice (bulk and packed) and sugar (white and brown) in competition with other private traders and has thEt exclusive right to import cabbage, tomatoes, and carrots. It is also responsible for importing and distributing fertilizers, seeds, and pesticides. -5- Table 3. Antigua and Barbuda: Sectorial Contribution to GDP at Factor Cost Est. 1976 1977 1978 1979 1980 1981 (Annual percentage change) Real GDP at factor cost -9.0 7.2 7.9 8.3 6.2 3.8 Agriculture, livestock, forestry, and fishing 12.5 0.8 9.2 -4.2 -- 1.0 Manufacturing -55.5 25.4 27.0 33.0 25.0 8.2 Construction 1.1 -2.7 -3.7 9.7 13.3 9.0 Hotels and restaurants -5.4 18.0 12.6 16.5 6.6 2.5 (As per cent of total) Total 100.0 100.0 100.0 100.0 100.0 100.0 Agirculture, livstock, forestry, and fishing 9.8 9.2 9.3 8.3 7.8 7.6 Manufacturing 4.5 5.2 6.1 7.5 8.9 9.2 Construction 8.3 7.5 6.7 6.8 7.3 7.6 Hotels and restaurants 9.7 10.6 11.1 11.9 12.0 11.8 others 67.7 67.5 66.8 65.5 64.0 63.8 Source: Statistical Appendix Table 2.4. - El - 7. Livestock production has declined somewhat over the last three years; in 1981 the cattle population was around 16,000. Cattle are raised for both meat and milk production, but the latter has declined from an average of over 9,000 liters per year to about 6,000 liters in 1977-78 to an average of under 6,000 liters over the last three years. Other livestock includes 15,000 to 17,000 head of sheep and goats. The existing number of pigs and poultry, raised mainly in backyard units, is very small. 8. Fish catches fell by 25% in 1979 from the level attained in 1978. In the two subsequent years fish landings have remained stagnant due in part to an inability to replace equipment because of lack of adequate credit facilities for the small fisherman, and the continuing, relatively low price at which fish is marketed. Lobster catches, too, over the last two years have dropped off significantly from levels previously attained, principally because of indiscriminate overexploitation of the banks in the early and mid-1970s. Manufacturing 9. Manufacturing contributed 4.5% to GDP at factor cost in 1976; it is estimated that by 1981 the contribution of the sector to GDP doubled. Manufacturing consists mainly of import substitution industries--consumer goods, building materials, motor vehicle assembly, and tire retreading. Over the last three years, however, export-oriented manufacturing industries such as textiles and garments, rum, and mattresses have been growing in importance. These industries, mainly foreign owned, are attracted by cheap labor, a pleasant climate, a relatively stable political environment, extensive tax holidays, duty-free importation of inputs and equipment, subsidized rent of factory shells, and, occassionally, a subsidy to pay for the training of local personnel for a period of up to six months. There is no foreign investmoent code or similar regulation affecting foreign investment. Applications for investment are routed through the Trade Commissioner. 10. In terms of real growth, the manufacturing sector has registered increases averaging 28% annually over the period 1977 to 1980. These large growth rates mirrored intensified activity in the export-oriented industrial subsector. Garment manufacturing, in particular--a new industry--has been performing well. It is estimated that real growth of the manufacturing sector in 1981 decelerated to about 8% due to weak demand from export markets. The growth of the manufacturing sector has contributed to job creation and employment in manufacturing has increased from 6.7% of total employment in 197b to 7.4% in 1981. Construction 11. After declining on average for three years, construction activity expanded by almost 10% in 1979 . In 1980 the real expansion was over 13% and it is estimated that a growth of 9% occurred in 1981. Over the last - 7 - two years the sector's activities have been dominated by the construction of one hotel and extension of another and by some public projects including a new airport terminal and the new parliament building. The 1981 growth rate was also influenced by activities related to the refurbishing of the oil refinery and some public and private housing and condominium construction. Tourism 12. Tourism is the country's principal economic activity and it is estimated that in 1981 about one quarter of the total labor force was employed directly or indirectly by the tourist industry. The contribution of this activity to overall output, as proxied by the hotels and restaurants component of GDP at factor cost, was 9.7% in 1976 and increased to almost 12% of GDP in 1981. 13. Tourist infrastructure in Antigua is well developed and includes recreational spots, historical sites, and two casinos. The island is served by eight major airlines and numerous charters. Currently, there are 34 hotel establishments with a capacity of 3,642 beds, 32 cottages and apartments, and 20 guest houses. Tourism in Barbuda, however, is confined to one luxury hotel with 64 beds. In the past, the tourist sector, stimulated by investment incentives, was developed largely by foreign capital. The recent downturn in tourism, as a consequence of recessionary conditions in the major industrial countries, the loss of some degree of competitiveness with respect to the Dutch and French Caribbean islands, and insufficient promotional activities abroad, resulted in financial difficulties in the hotel sector. The number of stayover visitors (by air and by sea arrivals) peaked in 1979 at 99,536 and decreased thereafter to 94,724 in 1981.2/ This fall reflected a more than 2% decline of visitors by air as compared with the previous year. However, the total number of visitors increased by 1.5% because cruiseship passenger visitors grew by almost 6% relative to 1980. The share of US visitors--Antigua's principal tourist market--has been decreasing steadily since 1977, from 42% of the total to 34% in 1981. United Kingdom and European tourists have shown mixed shares during the last five years and in 1981 these visitors accounted for 21% of the total. Tourism volume represented by the number of tourist days3/ increased by 33% in 1978, 30% in 1979, 3% in 1980, and declined by 2% Tn 1981. C. Energy Sector Developments 14. Antigua and Barbuda has one of the highest per capita energy consumption in the East Caribbean, and utilizes about 1,000 barrels of petroleum products per day. The country does not have any oil or hydro 2/ Stayover visitors account for over 90% of tourist expenditures. Relative stagnation in their numbers from 1979 onward explains the slow growth in tourist expenditures in spite of a relatively much faster growth in the total number of visitors consequent on a rising trend in cruiseship visitors over the 1979-81 period. 3/ Calculated as follows: total number of air and sea visitors multiplied by average length of stay plus number of cruiseship visitors. - 8 - resources and consequently depends entirely on petroleum imports to meet its demand (Statistical Appendix Table 3.5). Operating a relatively large airport, Antigua and Barbuda also faces a significant re-export demand of jet fuel which amounts roughly to another 1,000 barrels daily. Reflecting the above, total imports of petroleum products increased in 1980 and 1981 by 38% and 22%, respectively. 15. Retail prices of petroleum products are considered among the lowest in the region (Statistical Appendix Table 8.3). For example, an imperial gallon of gasoline retailed at EC$4.96 in 1981 (US$1.53 per US gallon). This reflected an approximate increase of 5%; in price from the previous year. The price of gasoline was changed only once in 1981, and,that other petroleum products registered only slight price increases during that year (Table 4). 16. An oil refinery operated :in Antigua from 1966 until 1974; the shutdown was due to the instability of oil markets which followed the 1973-75 petroleum crisis. In 1980 the Government reached agreement with National Petroleum Ltd.4/--a Geneva-base company--to refurbish and reinitiate refining operations. The upgrading of plant and equipment at the refinery was completed during 1981, the company started refining operations in April 1982. It is hoped that the OECS area will be supplied with oil from this refinary.5/ It is proposed that the islands ship their required crude from Mexico and Venezuela (although Antigua has not negotiated any special pricing arrangements from these oil producers) to the Antiguan refinery which will process the crude at a fee, and guarantee a stable supply at competitive prices for its clientele. The capacity of the refinery is 18,000 barrels per day. 17. Electricity services are provided by the Antigua Public Utilities Authority. Total electricity generation in 1981 amounted to 54 million kwh, a 2% rise from the previous year. The last increase in electricity rates was in 1980 (Statistical Appendix Table 8.2). D. Population, Employment, Wages, and Industrial Relations Population and Employment 18. The availability of population and employment data is very limited. However, estimates made by the Statistics Division of the Ministry of Finance show the population growing at an annual average net rate of 1.3% over the last six years (Table 5). Total population in 4/ National Petroleum Ltd. owns 90%, of the shares while the Antiguan Government owns 10% with an option to acquire another 15%. 5/ The Barbados refinery is incapable of meeting all the demand of Barbados, much less of the region and the transshipment terminal in St. Lucia and refinery in St. Croix owned by Hess Co., are aimed at supplying the US market. Table 4. Antigua and Barbuda: Changes in the Structure of Petroleum Prices in 1981 EC$ Per Imperial Gallon EC$ Per Cylinder Gasoline Kerosene Diesel Propane (100 lb.) Propane (20 lb.) March 16 1/ July 15 Dec. 21 July 15 Dec. 21 Mar. 16 Dec. 21 Mar. 16 Dec. 21 Retail price 4.96 4.25 4.34 4.41 4.65 111.0 114.0 21.50 22.15 Reseller's (dealers) margin 0.35 0.28 0.28 0.28 0.28 14.3 14.6 1.60 1.60 Wholesale 4.612 3.972 4.055 4.131 4.373 96.680 99.393 19.934 20.553 c.i.f. 3.368 3.344 3.417 3.155 3.385 72.265 74.701 14.453 14.940 Terminalling 0.105 0.080 0.089 0.079 0.089 5.710 5.963 1.576 1.644 Trucking 0.055 0.055 0.055 0.055 0.055 -- -- 0.440 0.500 Equipment -- -- -- -- -- 8.548 8.548 1.433 1.433 Levy (1 per cent c.i.f.) 0.034 0.033 0.034 0.032 0.034 0.723 0.747 0.145 0.149 West Indies Oil Company 0.380 0.380 0.380 0.380 0.380 6.934 6.934 1.387 1.387 Tax 0.670 0.080 0.080 0.430 0.430 2.500 2.500 0.500 0.500 Source: West Indies Oil Co. 1/ The price structure for gasoline was not changed after this date. - 10 - Table 5. Antigua and Barbuda: Population and Employment Est. 1976 1977 1978 19I79 1980 1981 Total population (in thousands) 71.5 72.5 73.3 74.3 75.2 76.1 Annual percentage net growth rate of population 1.3 1.4 1.2 :L.3 1.2 1.2 Total labor force (in thousands) 25.2 25.4 26.8 27.6 28.4 29.2 Total employment (in thousands) 20.0 20.2 21.3 22.0 22.5 23.2 Unemployment rate (per cent) 20.7 20.4 20.4 20.2 20.7 20.5 Sources: Statistical Appendix Tables 1.1 and 1.2. mid-1981 is estimated at 76,138 (Statistical Appendix Table 1.1). It is estimated that in 1981, 9% of the tol:al employed labor force was in the agricultural sector, 8% in manufacturing and mining, 11% in construction, 22% in trade and hotels, and transport, communications, utilities, banking and other services provided employment for 50% of the labor force. The Government has tackled the unemployment problem by increasing job opportunities in the economy as a whole, but the labour force has been growing faster than the overall popu:Lation. Consequently, new job opportunities have contained the unemployment level at 20% without reducing it. Wages and Labor Relations 19. Wage contracts are customarily set for three years with cumulative increases provided for each year. A comprehensive wage index is not available. However, scattered information from the Labor Commissioner's office for recent wage settlements in unionized industries as well as wage awards in the public sector can be considered as indicative of general wage trends in the country. The data indicate that wage settlements in the unionized industries in 1980 averaged around 20% for the first year of a typical contract. In 1981 wage negotiations provided for a 23% average increase for the first year and 12% and 10% for the second and third years, respectively. Public sector settlements have been slightly higher than those in the private sect:or. In 1978, the civil servants received a wage reward of 40 to 60%. After three years, they were granted a 30% increase in salaries and wages in September 1981. The rest of the public sector geared its wage award to that of the civil servants rather than to that of the private sector. In 1981, the Government introduced a minimum legal wage. About 50% of the employed labour force is unionized. The largest unions are the Antigua Trades and Labour Union (AT&LU) and the Antigua Workers Union (AWU); other irmportant unions are the Public Service Association, the Antigua Union of Teachers and the Employers Federation. - 11 - 20. Labor relations in Antigua and Barbuda are governed by the Labor Code of 1975 that lays down employment standards and stabilizes procedures for solving industrial disputes. Under the code the Labor Commissioner acts as a conciliator when there are deadlocks in labor negotiations. Either party can demand his intervention. If the differences cannot be settled through intervention of the Labor Commissioner, the Minister of Labor is obliged to step in to help settle the dispute. In the event that the intervention of the Ministry of Labour does not produce a settlement, either party in the dispute can refer to matter to the Industrial Court, established in 1976, whose ruling is final and binding on both parties. E. Price Trends 21. Given the high degree of openness of the economy of Antigua and Barbuda, domestic price trends are influenced to a large extent by international price developments. The present cost of living index consisting of seven categories was adopted in 1976. (The prior index had consisted of five categories.) The average annual inflation rate, as measured by changes in the cost of living index, was about 12% for the period 1977 to 1979, and accelerated to over 19% in 1980, mainly reflecting higher import prices of food and increases in domestic prices of housing and utilities (other than electricity). In 1981 the rate of inflation decelerated to 11.5%, closer to the international inflation rate as reflected by the rates of Antigua's principal trading partners (Statistical Appendix Table 8.1). 22. A new price control system to be monitored by the Division of Prices and Consumer Affairs will become effective in April of this year. Basically, the new scheme follows that of Barbados and St. Lucia. It establishes 18 basic and essential categories of imported consumer goods that bear a maximum legal selling price. It is intended that the system is aimed at monitoring prices rather than restraining imports, that it will not distort local productive capacity, and that it does not represent any disincentive to local producers. - :L2 - II. THE PUBLIC SECTOR A. Structure of the Public Sector 23. The consolidated public sector includes the Central Government (divided into ten Ministries), the Social Security System, the Medical Benefits Scheme, the Port Authority, the Public Utilities Authority, the Central Marketing Corporation, and the Industrial Development Board. In addition, there exists a number of unconsolidated public sector entities directly involved in production and in the provision of services. Noteworthy among these are the Sugar Industry Corporation, the Central Housing and Planning Authority, the Antigua Isle Company (for management of the government-owned Halcyon Cove Hotel) and the Antigua and Barbuda Development Corporation (for management of the government-owned Halcyon Reef Hotel). There is also a state-owned radio and television station, and a state-owned insurance company. A local Government authority serves the island of Barbuda. B. Overall Public Sector Trends 24. In 1978 the overall deficit of the public sector doubled, to represent 17% of GDP, but fell sharply in 1979 to under 1% of GDP (Table 6). Over the last two years there has been a steady deterioration in the overall balance (deficit of 5% of GDP in 1980 and 11% in 1981). The size and variability of the deficit reflects to a large extent the erratic behavior of capital expenditures over the period. During the last two years, 1980 and 1981, the rapid growth in the deficit was also associated with a relatively fast rise in central government current expenditures, and the leveling off of foreign grants and surpluses of state enterprises. C. Central Government Operations 25. Central government operations, which account for some two thirds of the financial operations of the consolidated public sector, showed a sharp reduction in overall deficit in relation to GDP in 1979 (from 16.2% of GDP to 3.2% of GDP) but in 1980 the overall deficit rose fourfold in size to reach 10.1% of GDP and remained stable at around that level in 1981 (Table 7). These fiscal outturns were largely related to the trend in capital outlays. Capital outlays in tuarn are associated with the availability of capital grants and external loans. In 19I80 and 1981 renewed investment in hotel construction accounted for over one third of total capital expenditures in those years. - 13 - Table 6. Antigua and Barbuda: Public Sector Operations Prel. 1977 1978 1979 1980 1981 (In millions of East Caribbean-dollars) Total current revenue 54.7 69.9 81.8 105.5 132.4 Central Government 33.0 43.7 49.2 62.0 78.2 Rest of public sector 21.7 26.2 32.6 43.5 54.2 Total current expenditure 57.0 64.5 75.1 94.0 124.4 Central Government T97 T WZ7 52.7 7 87.6 Rest of public sector 18.1 20.6 22.4 28.7 36.8 Current balance -2.3 5.4 6.7 11.5 8.0 Overall balance -14.2 -30.7 -1.3 -14.2 -37.3 Financing 14.2 30.7 1.3 14.2 37.3 Foreign assets (increase -) -0.1 0.1 -0.3 -0.5 -0.1 Net borrowing from ECCA 0.2 0.5 -- 3.1 0.7 Other net foreign borrowing 10.3 32.8 3.4 22.1 42.3 Net local bank borrowing 9.2 3.3 4.2 -5.6 -4.7 Other net domestic borrowing -5.4 -6.0 -6.0 -4.9 -0.9 (As per cent of GDP) Current balance -1.4 2.9 2.9 4.0 2.4 Overall balance -8.7 -16.6 -0.6 -4.9 -11.0 Sources: Statistical Appendix Table 5.1. - 14; - Table 7. Antigua and Barbuda: Central Government Operations Prel. Proj. 1977 1978 1979 1980 1981 1982 (In millions of East Caribbean dollars) Total revenue 37.2 47.8 54.4 73.2 90.5 105.5 Current revenue 3'3.0 43.7 49.2 62.0 78.2 92.5 Capital revenue (domestic) -- 0.1 0.1 0.2 2.5 2.5 Foreign capital grants 4.2 4.0 5.1 11.0 9.8 10.5 Total expenditure 59.5 77.8 61.8 102.2 124.1 222.8 Current expenditure 3T8.9 TT. 37T Z5T T7.T 113.1 Capital expenditure 12.1 31.2 8.3 35.7 36.0 109.2 Net lending 8.5 2.7 0.8 1.2 0.5 0.5 Current balance -5.9 -0.2 -3.5 -3.3 -9.4 -20.6 Overall balance -22.3 -30.0 -7.4 -29.0 -33.6 -117.3 Financing 22.3 30.0 7.4 29.0 33.6 117.3 Net foreign borrowing T13. 28.1 2.4 24.3 21.2 93.7 Foreign assets (increase -) -0.1 0.1 -0.3 -0.5 -0.1 -0.1 Net borrowing from ECCA 0).2 0.5 -- 3.1 0.7 ) Net local bank borrowing '5.2 4.7 5.3 0.3 5.7 ) 23.7 Other net domestic borrowing 7.2 3.3 3.0 1.6 5.0 ) Discrepancy -3.5 -6.7 -3.0 0.2 1.1 (As per cent of GDP) Total revenue 22.9 25.8 23.8 25.4 26.7 26.7 Current revenue 20.3 23.6 21.5 21.5 23.1 23.4 Total expenditure 36.6 42.0 27.0 35.5 36.6 53.0 Of which: capital 77T4 16.8W 3.6 12.4 1.6 26-Yu expenditure Current balance -3.6 -- -1.5 -1.1 -2.8 -5.2 Overall deficit -13.7 -16.2 -3.2 -10.1 -9.9 -28.0 Sources: Ministry of Finance; and IMF staff estimates. - 15 - 26. Foreign borrowing has traditionally been the major source of financing for the central government deficits. Apart from 1979--when all hotel construction activities were interrupted and capital outlays, (nearly always wholly financed externally) plummetted to almost one quarter of their 1977 level--net foreign financing has consistently covered at least 60% of the overall deficit; in 1978 and 1980, in fact, that proportion was considerably higher (94% and 84% respectively). About 90% of all foreign financing, apart from hotel construction, is provided on concessionary terms by regional institutions and bilateral aid agencies, mostly EDF? CIDA, USAID, and the Caribbean Development Bank. However, in 1978 and in 1980 and 1981 foreign commercial bank borrowing for hotel construction emerged as a major financing item; in 1978 such "hard term" financing comprised 72% of all net foreign disbursements. Comparable figures for foreign commercial financing for 1980 and 1981 were 49% and 60%, respec- tively (Statistical Appendix Table 4.2). 27. The most important sources of domestic financing are the commer- cial banking system and the Social Security Scheme, a public sector entity (Statistical Appendix Table 5.7). Over the 1977-79 period recourse to domestic banking credit remained relatively stable at around EC$5 million, and disappeared almost altogether in 1980. But in 1981 there was a resur- gence in net domestic bank financing; the latter contributed 17% of the overall central government deficit. Dependence on the Social Security Scheme was also quite considerable, particularly in 1977 when it outpaced net banking system credit, and in 1979 and 1981 when it contributed 30% and 10%, respectively (Table 7 and Statistical Appendix Table 5.9). ECCA financing of the deficit was either nonexistent or negligible in every year, except 1980 (11% of deficit). Recourse to other domestic sources of financing, including insurance companies, has been extremely negligible. Tax Revenue 28. Since the abolition of personal income tax in December 1976, Antigua and Barbuda has depended to a high degree on indirect taxation as a source of revenue; in 1981 such taxes represented 62% of total current revenue as against a contribution of only 15% by income and property taxes and 23% by nontax revenue (Table 8). Indirect taxes, boosted by increases in consumption taxes in 1978 and 1980 and by fairly regular adjustments in taxes levied-on the tourist sector, grew at an average rate of 24% between 1977 and 1981. As a percentage of GDP, total tax revenue grew slowly between 1977 and 1981 from 15.5% to 17.8% (Table 8). This ratio represents the lowest tax burden of any of the newly independent East Caribbean States. Direct taxation, as a proportion of GDP, was only 3.4% in 1981; this was the highest ratio recorded for any year since 1976. 29. Taxes on international transactions, comprising consumption tax, import duties, and the foreign currency levy represented 61% of total tax revenue in 1981, with import duties (29% of tax revenue in 1981) comprising the most important single source, closely followed by consumption tax (25%). However, with the partial implementation of a Common External Tariff for the Less Developed Countries, including Antigua and Barbuda, of the CARICOM area, and with a strong growth in exemptions from import duties - 16 - Table 8: Antigua and Barbuda: Selected Central Government Revenue and Expenditure Items Prel.Budget 1977 1978 1979 1980 1981 1982 (As a percentage of total current revenue) Direct taxation 14.2 10.1 10.0 10.8 14.6 Indirect taxation 62.1 58.6 62.2 65.8 62.4 Nontax revenue 23.7 31.3 27.8 23.4 23.0 (As a percentage of total tax revenue) Taxes Income taxes 17.1 13.3 12.1 13.1 17.3 14.0 Property taxes 1.6 1.3 1.7 :L.1 2.2 1.8 Consumption tax 25.0 22.3 31.0 24.4 25.1 24.8 Import duties 32.1 36.0 34.6 34.3 28.9 26.8 Foreign currency levy 7.1 7.3 6.5 6.3 6.6 4.8 Hotel and guest taxes 7.1 9.0 9.0 8.2 7.1 9.4 Stamp duties 3.2 3.3 3.4 3.8 3.5 2.5 Other 6.8 7.5 1.7 8.8 9.3 15.9 Direct taxation 18.7 14.7 13.8 14.1 18.9 15.8 Indirect taxation 81.3 85.3 86.2 85.9 81.1 84.2 (As a percentage of current expenditure) Expenditure categories Personal emoluments 57.8 68.5 61.8 51.0 47.8 49.7 Other goods and services 16.9 14.3 14.2 24.5 30.0 27.1 Transfers to: rest of public sector 2.5 1.4 2.3 0.3 1.7 5.0 interest 10.8 8.9 12.1 12.6 9.7 7.5 international transfers 6.4 2.7 3.0 4.0 4.9 5.2 (As a percentage of GDP) Total tax revenue 15.5 16.2 15.5 16.5 17.8 Of which: direct taxation 2.9 2.4 2.1 2.3 3.4 indirect taxation 12.6 13.8 13.4 14.2 14.4 Source: Ministry of Finance. - 17 - under the Fiscal Incentives and Hotel Incentives Laws, the growth in collections from import duties moderated significantly in 1981 (growth in collections of only 7% in 1981 as against 33% in 1980). 30. To help meet the resulting revenue shortfall, consumption taxes on a wide range of articles were increased at the end of 1980; revenue from the latter grew by 30% in 1981 after stagnating in both 1979 and 1980. A significant recent revenue development is the growth in collections of hotel and guest taxes over the 1977-81 period. Although the rates on these taxes have remained unchanged since 1977, their yields have increased almost fourfold to represent in 1981 over 9% of total tax revenue. These enhanced yields are totally a function of the growth of the tourist trade in Antigua and Barbuda. Expenditures 31. Between 1977 and 1980 total expenditures grew at an average annual rate of around 20%, and rose further in 1981 by 21%. The growth in expenditures was somewhat erratic, mainly because of intensified, but intermittent, hotel construction undertaken by the Ministry of Economic Development and Tourism over the 1978-81 period. Total expenditures rose in 1978 by 31% but fell by over 20% in 1979 as all hotel construction activity ceased in that year. In 1980, however, there was an escalation of 65% in total expenditures to reflect the rapid resumption of hotel construction by the Central Government. Thirty percent of the increase in total expenditures in 1980, and 50% in 1981 are accounted for by the growth of hotel construction. Total expenditures have doubled over the last two years from EC$62 million in 1979 to EC$124 million in 1981, or from 27% of GDP to almost 37%. 32. Over the years 1978 to 1981 current expenditures grew at a progressively accelerating pace, from 13% in 1978 to 34% in 1981. Wages and salaries, which account for over 50% of current expenditures, rose strongly (at an annual average rate of 17% during 1977-81) to reflect the Government's policy of easing unemployment through expansion of the public service,6/ and to mirror, too, two major wage awards to civil servants--the first in71978, and ranging from a 40% to a 60% increase and the second in late 1981, and equivalent to an average of 30% of existing wages and salaries. There has also been a rapid rise in expenditures in goods and services; such outlays grew more than fourfold between 1978 and 1981, to represent in the latter year 8% of GDP as against only 3% in 1978. Interest payments doubled between 1977 and 1980, but remained constant in 1981. Public sector transfers, while remaining unimportant in their impact on total current expenditures, escalated sevenfold in 1981, reflecting 6/ Elements of "make work" programs are incorporated in varying degrees in three special components of personal emolument charges, viz., in the wage bill of nonestablished workers, the labor crash program, and the recruitment of young people through an ongoing manpower training program. - 18 - mainly the need for the Government to subsidize the sugar factory and to provide funds to both the two major publicly owned hotels to help meet certain wages and salary obligations. Over the two-year period 1979-81 international transfers have increased by 169%. This escalation relates mostly to the establishment of diplomatic and trade representation offices overseas in anticipation of, and consequent on, the attainment of political independence. 33. Capital expenditures have shown a very erratic rate of growth over the five-year period, with an increase of 158% in 1978, giving way to a fall of 73% in 1979 and rises of 330% in 1980, and 1%' only in 1981. Capital expenditure is virtually a function of (a) the availability of grants and concessional financing for infrastructural development, (b) the availability of foreign commercial financing for hotel construction, and (c) the availability of domestic credit, in 1979-81 around EC$5 million a year, for counterpart financing. Over the period infrastructural develop- ment has remained the most--and hotel construction the least--stable element of capital expenditures. With the recent agreement with external financiers for construction of an EC$250 million hotel and condominium complex, hotel construction related expenditures have begun to outweigh disproportionately infrastructural development outlays within the overall structure of investment expenditures. The Budget for 1982 34. The budget estimates for 1982 and their revisions project an unprecedented growth in capital expenditures from EC$36 million to EC$109 million, or from 11% of GDP to 26% of estimated GDP. EC$82 million of capital expenditures, or 75% of the projected total, is for hotel construction to be financed externally on commercial terms. An overall deficit of EC$117.3 million, or 28% of estimated GDP, is projected as agai-nst a current account deficit equivalent to 5% of estimated GDP. 35. On current account, an estimated 18% increase in current revenue is predicated on the inclusion of incorporated businesses into the company tax net, adjustment of various fees and licenses, and tighter tax administration especially in relation to consumption and import taxes. Current expenditures are budgeted to rise by 29%, from EC$88 million to EC$113 million. The substantial rise in current expenditures reflects mainly a 34% growth in personal emoluments (which account for half of total current expenditures) and an almost fourfold rise in the value of current transfers to the rest of the public sector. The much more rapid rise in current expenditures than in current revenue results in a projected current account deficit of EC$21 million, as against EC$9 milliLon in 1981. With capital expenditures projected to rise to EC$109 million (74% of which would be related to hotel construction) from EC$23 mil:Lion in 1981, the overall deficit escalates to EC$117 million, or about 28% of estimated GDP. 36. To a much greater extent than in 1981 the cenitral government deficit, excluding hotel construction, may have to be financed from domestic sources. Projected firm net foreign loans from international i-nstitutions and bilateral agencies amount to less than EC$10 million. On - 19 - present assumptions this will leave a fiscal gap of about EC$24 million to be financed internally, or from as yet unidentified foreign sources. The highest levels of domestic financing of the central government overall deficit ever achieved occurred in 1977 and 1981 when domestic financing from all sources contributed EC$12.4 million and EC$10.7 million, respectively. D. Rest of the Public Sector 37. Savings in the rest of the public sector has shown a relatively fast rate of increase in recent years from EC$10.3 million in 1979 to EC$17.4 million in 1981 (Statistical Appendix Table 5.7). Most of the savings generated in the public sector originate in the Social Security System and the Public Utilities Authority (water, electricity, and telephone). The accumulation of significant arrears in payment by the Central Government on behalf of civil servants and nonestablished workers restricts the viability of that scheme, and hampers its ability to build up and diversify its investments along appropriate actuarial lines. The Public Utilities Authority has maintained adequate charges and in 1980 rates were increased on all its services to reflect increasing operating costs. The financial position of the Central Marketing Corporation and the Industrial Development Board has deteriorated, and the Central Government has been obliged to make relatively heavy transfers, some of them unrecorded in the accounts of the Central Government and regarded as "below the line" to both enterprises in 1980 and 1981. The only major investment in the consolidated rest of the public sector over the last three years occurred in 1981 with the purchase and installation of two new electricity generators by the Public Utilities Authority at a cost of EC$21.3 million. This operation was financed externally by a UK firm on commercial terms. - 20 - III. THE FINANCIAL SECTOR A. Characteristics and Overall Trends 38. Antigua and Barbuda has no central bank and is a member of the East Caribbean Currency Authority (ECCA) which was established in 1965.7/ Commercial banking in Antigua and Barbuda is conducted by the branches of five foreign banks and two local conmercial banks--the Antigua Commercial Bank established in 1969 and the newly formed Bank of Akntigua which is not as yet fully operational. Three of the five foreign commercial banks in Antigua manage pools of ftnds from their branches throughout the ECCA area. Other financial institutions operating in the country include the Antigua and Barbuda Development Bank. and a number of insurance companies for which information is not available. 39. Antigua and Barbuda has no comprehensive banking law to govern the operations of the commercial banks. However, in April 1977 the Government imposed a 5% noninterest bearing requirement on all deposits with the foreign commercial banks to be held with the Treasury. Insurance companies, which are branches of foreign firms, have aLso been required since that time to hold 2% of all premiums collected iin Antigua and Barbuda with the Treasury. Antigua and Barbuda plans to operate offshore banking activities in the near future and legislation has been drafted for this purpose. B. The East Caribbean Currency Authority Background 40. The East Caribben Currency Authority (ECCA) was established in January 1965 replacing the British Caribbean Currency Board. ECCA has been endowed with powers which are less restrictive than those of a currency board but are nonetheless not as wide-ranging as those of a central bank. 41. Antigua and Barbuda and the other six ECCA members share a common currency, the East Caribbean dollar, issued by ECCA. Since July 1976 the East Caribbean dollar has been pegged to the US dollar at the rate of EC$2.70 per US dollar. ECCA is required by statute to maintain a foreign exchange cover equivalent to not less than 60% of the value of its currency in circulation and other demand liabilities. ECCA has certain other attributes of a central bank, such as authority to deal with international institutions joined by any of its member governments, to maintain accounts with central banks, to offer rediscount facilities, to accept deposits from commercial banks and member governments, and to purchase securities issued by member governments. 7/ Besides Antigua and Barbuda, the other members of the ECCA currency area are Dominica, Grenada, Montserrat, St. Kitts-Nevis, St. Lucia, and St. Vincent and the Grenadines. - 21 - 42. Practically the only lending activity undertaken by ECCA within the region consists of loans to member governments. This activity is subject to several constraints under the Articles of Agreement of ECCA: (i) total credit to member governments cannot exceed 40% of currency in circulation and other demand liabilities; moreover, holdings of securities other than Treasury bills may not exceed 15% of demand liabilities; and (ii) holdings of Treasury bills of any government cannot exceed 10% of that government's current revenue in any fiscal year. The maximum access of each member government to ECCA resources is usually calculated once a year (in March) by distributing ECCAs maximum loanable funds (i.e., 40% of currency in circulation and other demand liabilities as noted above) in proportion to the estimated current revenues of the member governments. The Board of Directors is empowered to make decisions regarding the granting of credits subject to the above specified limits. ECCA has been designated by two member countries as fiscal agency for dealings with the Fund in accordance with Article V, Section I, of the Articles of Agreement. ECCA is also an "other holder" of SDRs. Recent Developments in ECCA Operations 43. The net foreign assets of ECCA grew steadily from EC$118 million in 1977 to EC$167 million in 1979, while the commercial banks' net claims on ECCA rose from EC$71 million at the end of 1977 to EC$89 million in 1979 (Table 9). The reserve gain during this period reflected a strong expan- sion of export earnings and tourism in the area. The improvement in reserves in 1979 was also partly a result of large transfers of insurance Table 9 . Antigua and Barbuda: Summary Accounts of the East Caribbean Currency Authority (In millions of East Caribbean dollars) December- 31 Sept. 1976 1977 1978 1979 1980 1980 1981 Net international reserves 157.2 117.8 139.1 167.4 145.2 151.2 168.0 Net position with banks in ECCA area -111.0 -65.9 -75.7 -89.2 -61.6 -87.8 -92.0 Net domestic assets 11.2 12.9 12.6 13.3 13.9 12.8 21.7 Net claims on Government 24.5 26.0 28.7 33.5 40.3 38.2 41.9 Of which: Antigua and Barbuda 5.7 5.8 6.3 6.3 9.4 7.2 9.6 Treasury bills 1.8 1.8 2.3 2.3 5.4 3.2 5.6 Debentures 3.9 4.0 4.0 4.0 4.0 4.0 4.0 Net unclassified assets -13.3 -13.1 -16.1 -20.2 -26.4 -25.4 -20.2 Currency in circulation 57.4 64.8 76.0 91.5 97.5 76.5 97.7 Of which: Antigua and Barbuda 9.2 10.0 15.1 16.0 15.3 14.4 13.4 Source: Statistical Appendix Table 6.1. - 22 - payments and foreign assistance for damage done by Hurricane David to certain islands, combined with a slower growth in bank credit because of the interruption of economic activity caused by the hurricane. 44. During 1980, ECCA's net foreign assets declined to EC$145 million while the net position of area banks with ECCA declined to EC$62 million. The principal factors in this development were the damage to exports caused by Hurricane Allen, and the downturn in tourism and increased exports of foreign exchange from the region, arising from a sharp rise in foreign interest rates relative to rates in the region. With the objective of reducing the interest differential, in November 1980 ECCA raised the interest rate paid on 24-hour call money from 6% to 10% per annum and on three-month deposits from 7.75% to 12.5% per annum. These upward adjustments--and a recovery in agricultural exports--account in part for the 16% increase in ECCA's net foreign assets to EC$168 million during the first nine months of 1981. 45. The net credit extended by ECCA to member governments has expanded steadily over the past five years. Antigua and Barbuda borrowed (net) EC$0.1 million and EC$0.5 million in 1977 and 1973 respectively. In 1979 no borrowing from ECCA was undertaken and in 1980 the Government borrowed EC$3.1 million. As of December 1980, ECCA holdings of Antigua and Barbuda Treasury bills and debentures amounted to EC$9.4 million which more than exhausted the country's legal maximum access to ECCA resources of EC$9 million as of that date. As of October 1981, the outstanding amount increased after additional borrowing of EC$0.2 million of Treasury bills. C. Operations of the Commercial Banks 8/ 46. In 1979 the banking system experienced a pronounced liquidity squeeze, with total net domestic credit in relation to liabilities to private sector at the beginning of the period expanding by almost 7% while the liabilities to the private sector grew only by 1% (Table 10). As a result, the foreign reserve position of commercial banks deteriorated substantially. By contrast, net domestic credit in 1980 expanded at a slower pace than the growth in banking system liabilities and there was a slight improvement of the banks' foreign reserve position. Most of the total credit in 1980 was directed to the private sector (an increase of 15%)9/; net credit to the Central Government increased only marginally. The heavy growth in private credit reflected a sharp upward trend in personal loans and advances for housing and consumer durables. These sectors increased their share of total private sector loans and advances from 32% in 1979 to 46% in 1980. 8/ Prior to January 1979, the commercial banks' monthly reports to ECCA were highly aggregated, which precludes a detailed analysis of their underlying operations. Since that time, the reports include details of the main components of the banks' balance sheet. 9/ Percentage changes in bank credits referred to in this section are expressed in relation to banks' liabilities to the private sector at the beginning of the period. - 23 - Table 10. Antigua and Barbuda: Summary Accounts of the Commercial Banks 1/ December 31 1977 1978 1979 1980 1981 2/ (In millions of East Caribbean dollars) Net foreign assets -18.3 -13.8 -20.2 -19.3 -24.6 Assets 12.1 28.8 26.3 20.6 29.5 Liabilities -30.4 -42.6 -46.5 -39.9 -54.1 ECCA currency holdings 2.0 2.5 3.8 4.5 4.8 Domestic credit (net) 105.7 108.3 114.8 126.7 156.5 Net credit to Central Government 28.3 33.0 38.3 38.6 44.3 Of which: loans and advances 14.5 18.4 24.2 24.0 25.4 Credit to private sector 3/ 80.8 85.7 78.0 92.6 115.8 Net unclassified assets -3.4 -10.4 -1.5 -4.5 -3.6 Liabilities to private sector 89.4 97.0 98.3 111.9 136.6 Demand deposits 4/ 20.4 15.5 17.4 21.2 23.8 Savings deposits 41.3 43.5 37.7 51.8 61.1 Time deposits 27.7 38.0 43.2 38.9 51.7 (Percentage change) Domestic credit 5/ -2.9 2.9 6.7 12.1 26.6 Net credit to Central Government 5/ 5.5 5.3 5.5 0.3 5.1 Credit to private sector 5/ 4.4 1.2 -7.9 14.9 20.7 Liabilities to private sector -5.5 8.5 1.3 13.8 22.1 Source: Statistical Appendix Table 6.2. 1/ Since January 1979 the reporting forms from ECCA changed their format allowing for a major breakdown. In order to show a consistent series, the following assumptions for estimating 1976-78 data were made: Foreign currency holdings: 35 per cent of total cash holding as published in ECCA Bulletin. ECCA currency holdings: the remainder of total holding. Claims on ECCA: 51 per cent of total local assets as published in ECCA Bulletin. Claims on banks in ECCA area: the remainder of local assets. Nonresident deposits: difference between corresponding deposit data as published in ECCA Bulletin and those shown in Antigua quota paper. 2/ Preliminary consolidation using the November balance sheet of one bank (Interbank, Ltd.). 3/ Includes credit to public sector enterprises. 4/ Deposits of other public entities and financial institutions are excluded. 5/ In relation to liabilities to private sector at the beginning of the period. - 24 - 47. With net credit to the Cent:ral Government in 1981 expanding by 5% and private sector credit growing at 21%, total domestic credit increased by 27%, while liabilities to the private sector increased only by 22%. This situation led to a deterioration in the foreign position of banks and resulted in generalized tightening oi- the liquidity position of the banking system. Pressures for an upward adjustment of interest rates on deposits became irresistable, and in early 1982 deposit rates were increased by an average of 1% concomitant with an increase in the prime rate of 1-1/2%. 48. Despite these developments,, interest rates on deposits continue to be negative in real terms (Table 11). Between 1977-1980 nominal rates on saving deposits were 2.5 to 3%, while rates on time deposits up to 12 months ranged from 4 to 7.5%. The upward adjustment in rates, made in the past year, raised time deposit rates to 5.5-8.5% depending on the term, but these rates were still well below existing or expected rates of inflation.l1/ There has been a significant decline of the ratio of total private sector liabilities to the banking system as a percentage of GDP from 1977 to 1980 (from 55 to 39%). In 1981 the ratio increased only slightly to 40%. 49. The prime rate and other lending rates have shown some increases in recent years reaching 11% in December 1981 from a level of 8.6% in December 1979. The range of other lending rates increased from 8% in 1979 to 17% in 1981 (Statistical Appendix Table 48). D. Other Financial Intermediaries 50. A number of foreign insurance companies operate in Antigua and Barbuda, but there is no information available about their operations. On other financial intermediaries, the ALntigua and Barbuda Development Bank (ABDB) was formed in 1974 to channel and dispose of the funds lent by the Caribbean Development Bank. Over the last several years the ABDB has concentrated its operations on the financing of housing projects and agricultural schemes as the Agricultural Production Credit (APC). APC loans are either short or medium term. Short-term loans are repayable within 18 months; medium-term loans within five years. The purposes for which the loan may be used include laLnd preparation, fertilizers, irrigation, equipment, and disease control. In some instances minor credits may be granted for industrial, development, mainly small-scale industries, such as handicrafts related to tourism. 10/ Interbank Ltd., a small subsidiary of a European bank, operates at international rates. In December 1981 the saving rate at this bank was 15.6% and the range on time deposits was 15.6-20.5%. This bank is not a member of the clearing arrangements cf ECCA. - 25 - Table 11. Antigua and Barbuda: Selected Interest Rates and Financial Indicators Average Three-Month Ratio of Total Liabili- Time Deposit Rate ties to Private Sector Nominal Real- to GDP at Market Rate Rate 1/ Prices 1977 3.5 -10.3 55.0 1978 4.5 -1.7 52.3 1979 5.5 -10.7 42.9 1980 5.5 -13.7 38.8 1981 6.5 -5.0 40.3 Sources: Statistical Appendix Table 6.4; and IMF staff estimates. 1/ Using the average change in the cost of living index. - 26 - IV. THE EXTERNAL SECTOR A. The Balancie of Payments 11/ 51. Antigua and Barbuda's membiership in the East Caribbean Currency Authority tends to limit the country's flexibility in using monetary and exchange rate policies to adjust for internal and external economic imbalances. This structure in turn lhas served importantly to reinforce the link between fiscal policy and the balance of payments. With the Government's holdings of foreign assets being very small---and kept mostly as working balances against external liabilitiesl2/--the only buffer to the automatic adjustment of the country's imports to a drop in foreign exchange earnings is the private sector's (maLnly commercial banks) willingness to increase its net foreign exchange liabilities and the Government's capacity to borrow abroad. 13/ 52. The deficit of balance of payments on current account declined from US$9.6 million in 1977 to US$2.2 million in 1978. In 1979 the deficit ballooned to US$23 million and by 19131 to reach a record US$56.1 million (Table 12). As a proportion of GDP, the current account deficit, after experiencing a fall from 16% in 1977 to 3.2% in 1978, widened to 27.4% in 1979 and to 44.5% in 1981. The main underlying factors behind this worsening position were burgeoning food and fuel import bills and a sharp increase in imports associated with substantial foreign investment flows, particularly for the rehabilitation and expansion of the West Indies Oil Refinery. From 1979 a contributory i-actor was the decline in export receipts. In 1980-81 export earnings increased once again, but the growth in travel receipts slowed markedly. II/ Antigua and Barbuda does not prepare an official set of balance of payments statistics. Official trade data are available, but the latest available figures are for 1978. The trade data used in this section consists of a preliminary compilation of the customs' invoices prepared by the ECCM Secretariat and are subject to revision. The estimates for other categories of transactions were made by the staff on the basis of information obtained from a variety of sources. The balance of payments statistics herein presented, therefore, should be regarded merely as being indicative of trends. 12/ Holdings of foreign assets of the Government as of December 1981 amounted to about US$0.7 million. 13/ The Government's capacity to borrow abroad for balance of payments purposes from regional and multilateral institutions before joining the Fund consisted of placing Treasury bills and debentures with ECCA. As of November 1981 the cumulative borrowing position with ECCA amounted to EC$5.6 million in Treasury bills and EC$4 million in debentures. In both instruments Antigua and Barbuda has exhausted its maximum access to ECCA resources. - 27 - Table 12. Antigua and Barbuda: Summary Balance of Payments 1977 1978 1979 1980 1981 (In millions of U.S. dollars) Current account -9.6 -2.2 -23.3 -39.6 -56.1 Trade balance -33.9 -33.7 -62.9 -85.3 -105.7 Exports, f.o.b. (6.6) (12.6) (10.2) (27.7) (33.6)1/ Imports, c.i.f. (-40.5) (-46.3) (-73.1)(-113.0)(-139.3)2/ Services balance 21.5 26.3 33.6 36.7 39.5 Travel receipts (net) (22.6) (27.1) (35.4) (38.8) (42.1) Interest payments on public debt (net) (-0.5) (-0.5) (-1.7) (-1.8) (-2.0) ECCA profits (net) (0.3) (0.1) (0.5) (0.7) (1.0) Other services (net) (-0.9) (-0.4) (-0.6) (-1.0) (-1.6) Private transfers (net) 1.2 3.7 4.1 4.9 6.5 Official transfers 1.6 1.5 1.9 4.1 3.6 Capital account 9.5 1.9 23.4 37.9 55.7 Official capital 3/ 6.4 10T5 f.4 8.8 16.1 Central government (4.9) (10.4) (0.9) (9.0) (7.8) Rest official 3/ (1.5) (0.1) (0.5) (-0.2) (8.3) Commercial banks 1.0 -1.7 2.4 -0.3 2.0 Foreign private investment and errors and omissions 2.1 -6.9 19.6 29.4 37.6 Overall balance -0.1 -0.3 0.1 -1.7 -0.4 Financing 0.1 0.3 -0.1 1.7 0.4 Net ECCA borrowing 0.2 0.2 -- 1.5 0.3 Government foreign assets (increase -) -0.1 0.1 -0.1 0.2 0.1 (As per cent of GDP) Current account -16.0 -3.2 -27.4 -37.0 -44.5 Trade balance (-56.5) (-48.8) (-74.0) (-79.7) (-83.9) Services balance and private transfers (37.8) (43.4) (44.4) (38.9) (36.5) Capital account 15.8 2.8 27.5 35.4 44.2 Overall balance -0.2 -0.4 0.1 -1.6 -0.3 Sources: Ministry of Finance (Statistics Division); Department of Tourism; Post Office; Commercial banks; ECCA; ECCM Secretariat; and IMF staff estimates. 1/ Includes re-exports of goods other than jet fuel. -TI Includes US$30 million of self-financed imports for the oil re- finery. Does not include imports of jet fuel. 3/ Includes disbursements of government guaranteed loans outside the consolidated public sector. - 28 - 53. On capital account, capital inflows rose sharply over the four-year period 1977-80 to reach US$;38.7 million; it is estimated that for 1981 the corresponding figure was US$55.9 million. Official capital inflows, which declined from US$6.4 million in 1977 to about US$1.4 million in 1979, have since resumed growth toa reach US$16.1 milLion in 1981. Private nonbank capital flows and errors and omissions, which were negative at about US$7 million in 1978, turned, positive in 1979 and grew from US$19.6 million in that year to an estimated US$37.8 million in 1981. Net foreign borrowing by commercial banks displayed considerable year-to-year changes. 54. The overall balance of payments was in near equilibrium over the 1977-79 period. The largest deficit recorded was US$0.3 million or less than one half of 1% of GDP in 1978. For 1980 the overall deficit increased to about US$0.9 million, or almost 1% of GDP. In 1981 the overall deficit is estimated at US$0.2 million, or 0.2% of GDP. B. Merchandise Exports 55. Domestic export value almost doubled in 1978, but fell slightly in 1979 before increasing almost threefold in 1980. For 1981 domestic exports are expected to decline slightly from US$9.3 mi]l:Lon to US$9.1 million. Domestic export growth had been propelled in part by the outstanding developments in exports of manufactured goods; these increased from US$1 million to US$2.1 million between 1977 and 1979 and accelerated further in 1980 to US$5.5 million (Statistical Appendix Table 3.2) as several new establishments began operations. In 1981, manufactured exports are estimated to have risen by a further 15% to represent 69% of total domestic exports, as against 59% in 1980. Exports of beverages and tobacco, which in 1980 represented only 5% of total domestic exports, have remained unchanged since 1977. Exports of food and live! animals to other Commonwealth Caribbean countries, partly under the CARICOM Agricultural Marketing Protocol, peaked in 1980 at US$1.4 million (15% of total domestic exports), but is expected to drop drastically in 1981 as major hotels became more inclined to use local food. Notwithstanding the recent growth in domestic exports--domestic export earnings rose from an average 10.6% of gross tourism receipts over the period 1977-79, to an average 20.8% in the last two years--Antigua and Barbuda's foreign exchange earning ability is still determined mainly by developments of the tourist sector. 56. In the last five years Antigua and Barbuda has strengthened its role as an important entrepot in the Eastern Caribbean. At least three major wholesalers have established their warehouses in the country and engaged in regional distributive trades. As a result, re-exports have grown consistently at an average annual rate of 51.9% over the period 1977-81 to reach about US$24.5 million in 1981. Major re-exports include - 29 - machinery and transportation equipment and manufactured goods; together these account for over 95% of all re-exports.14/ 57. Antigua and Barbuda's major export trading partners have traditionally been the Commonwealth Caribbean, which accounted for 75% of total domestic exports in 1981, compared with 62.3% the year before. The United States' and Canada's share in exports has declined over the last two years to a combined ratio of 13.1% of domestic exports in 1981 after having reached as high a ratio as 26.2% in 1979. The United Kingdom's share in total exports, however, has displayed a steady increase from zero in 1977 to a 5.2% of total exports in 1981 (Statistical Appendix Table 3.4). C. Merchandise Imports 58. Total imports, which had risen at an annual rate of about 14% over the period 1977-78, increased more than four times as rapidly during 1979-80 to reach US$113 million or 105% of GDP in 1980. In 1981 the value of imports is estimated at US$139 million, indicating moderation in the rate of growth, from 55% in 1980 to 23% in 1981. However, as a proportion of GDP, total imports continued to rise, and reached 110% in 1981. 59. The accelerating growth in imports can be traced to the burgeoning food import bill closely associated to developments in the tourism industry, to a continuing growth in domestic fuel consumption; and to the relatively large import component of the investment projects of both public and private sectors. Large infrastructure projects and construction of new and expansion of existing tourist developments traditionally have utilized foreign suppliers and construction contractors and have not created significant domestic value added. The structure of imports has displayed an asymmetric concentration in food, fuel, and investment goods which together has accounted on average for about 80% of imports in the last five years. Fuel imports which had averaged about 15% of total imports over the period 1977-80 declined to about 12% of total imports in 1981. Chemical goods, particularly fertilizers, have continued to lose relative importance closely in line with sluggish developments in the agricultural sector (Statistical Appendix Table 3.3). 60. The United States' share in imports has increased from an average of 33% in 1976-80 to almost 53% in 1981. Conversely, both the United Kingdom and Canada have seen their shares declining, in both cases by about two thirds between 1977 and 1981. In 1981 the United Kingdom accounted for 12% of total imports, and Canada just over one half of that amount. The import share of CARICOM countries has remained relatively stable at about 13% with Trinidad and Tobago being the major supplier (Statistical Appendix Table 3.4). 14/ Jet fuel re-exports, which are not included in officially recorded imports and have no domestic value-added content, grew at an average of about 44% between 1977 and 1980 to reach US$15.9 million in the latter year, but fell to US$9 million in 1981. - 30 - D. Tourism 61. Tourism, the main foreign exchange earning activity in Antigua and Barbuda, slowed down in 1981 after four years of sustained growth. Since 1979 there has been a distinct slowdown in tourist earnings (Statistical Appendix Table 7.3). The slowdown can be partially explained by the depressed world demand for tourism, particularly due to recession in the United States, the country's major market, and the lack of promotion in nontraditional markets. Another factor that conceivab:Ly may have impeded the growth in tourism, particularly from Europe, is the increasing erosion in competitiveness arising from the recent appreciation of the East Caribbean dollar in relation to currencies other than the US dollar. 62. In spite of an increasing number of carriers and the introduction of wide-bodied airplanes, the number of stopover visitors arriving by air declined by almost 2% in 1981 as against stagnation in 1980 and relatively rapid growth of about 13% per year from 1977 to 1979. In 1981 the number of stayover visitors by sea declined even further than those coming by air. 63. Visitors from the United States accounted on average for about 45% of total visitors in 1977-81. However, the number of visitors from Europe, and particularly from the United Kingdom, almost doubled in the last five years and represented almost 21% of total tourist arrivals in 1981. The flow of visitors from the Caribbean countries remained constant in 1981 at about 21,000 persons or 23% of total arrivals. There are indications that the expenditure patterns of visitors may have changed as the most recent additions to accommodations have been of the condominium time-sharing type which are somewhat cheaper than traditional hotels and involve less domestic value added. E. Other Current Transactions and Transfers 64. The most noteworthy development in other current transactions consists of the rapidly growing burden of interest payments on the public debt. These payments, which amounted to about US$0.5 million per annum during 1977-78, jumped to US$1.8 million in 1979-80 and are estimated to have grown to US$2 million in 1981. The growth of interest payments as a significant foreign exchange charge 'has been accompanied by the emergence of external arrears on such payments. Identified interest payments arrears include an amount of US$0.4 million to the Eximbank and a somewhat larger amount to a consortium of banks involved in financing a government hotel expansion program. Antigua and Barbiuda's share of ECCA profits has grown steadily since 1977 to reach US$1 million in 1981. On the debit side of the services account, payments to embassies and governmernt bodies abroad, have increased from US$0.9 million in 1977 to US$1.6 million in 1981 (Statistical Appendix Table 3.1). 65. Net private transfers, which have shown a rising trend over the 1977-79 period, increased to about US$4.9 million in 1980 from US$4.1 million in 1979 and are estimated to have increased by an additional US$2.1 million in 1981. The increase mirrors a rise in the value of personal remittances from abroad channeled through the commercial banking system. - 31 - Transfers through the post office have remained constant (at around US$0.5 million) over the last three years, as have sales of stamps for philatelic purposes (US$0.3 million per annum since 1979). Official transfers which remained relatively stable between 1977-79 at under US$2 million, reached US$4.1 million in 1980, but declined to US$3.6 million in 1981. Main donor countries in 1981 were Canada and the United Kingdom; together these accounted for almost 70% of total grants. F. Official Capital and Other Capital Transactions 66. Net capital inflows rose from US$9.6 million in 1977 to US$39 million in 1980 and are estimated to have increased to US$56 million in 1981. The composition of capital inflows has changed significantly over the 1977-81 period with negative private foreign investment and errors and omissions in 1978 giving way to an unprecedented inflow of US$37.8 million in 1981. Net official inflows have grown less dramatically from US$6.4 million in 1977 to US$16.1 million in 1981, after experiencing considerable fluctuation in the intervening years. Net inflows into domestic commercial banks have been insignificant over the five-year period, inflows in some years affecting net outflows on other years. G. External Public Debt 67. The Central Government's direct and guaranteed external debt (excluding ECCA purchases and debt operations with locally based branches of foreign commercial banks) has increased at an annual rate of almost 30% over the five-year period 1977-81. Following a relative slowdown in debt contracting during 1979 when the total outstanding debt grew by only 5%, growth has resumed at accelerating rates from about 27% in 1980 to 38.7% in 1981 to reach an overall amount of US$57.7 million as of the end of 1981. In relation to GDP, the outstanding debt has displayed sudden jumps both in 1978 and in 1981. In the latter year the level of outstanding debt was above 45% of GDP compared to averages below 39% of GDP in 1977 and 1979-80 (Table 13). 68. The Central Government has been the major recipient of foreign loans over the five-year period; drawings by the rest of the public sector were mostly confined to four operations, viz., Eximbank loans to the Public Utilities Authority in 1977 (drawings of US$1.5 million), in 1979 (drawings of US$0.7 million), and in 1981 (drawings of US$0.5 million), and a commercial loan of US$7.9 million to the Public Utilities Authority in 1981 for the purchase of generators. As against a gross drawing of US$10.3 million by the rest of the public sector between 1977 and 1981, the Central Government utilized US$33 million in foreign loans. Of these, only US$11.6 million, or 35% of total drawings, were on concessionary terms, and granted by official bilateral agencies such as CIDA, USAID, and the British Development Division, and by regional and multilateral institutions such as the Caribbean Development Bank and EDF. The remainder, representing 65% of total gross disbursements, were commercial loans negotiated on commercial 32 - Table 13. Antigua and Barbuda: Summary External Debt Operations 1/ 1977 1978 1979 1980 1981 (In thousands of U.S. dollars) Outstanding debt at end of period 20,803 31,314 32,755 41,591 57,695 Outstanding debt at beginning of period 14,361 20,803 31,314 32,755 41,591 Net drawings 6,478 10,511 1,441 8,946 16,953 Drawings (6,533) (11,633)2/ (1,922) (10,100) (17,067)2/ Amortization (-) (55) (1,122) (481) (1,154) (114) Valuation adjustment -36 - -- -110 -849 Debt service payments 610 1,587 2,218 2,979 3/ 2,116 3/ Amortization 55 ,122 481 1,154 114 Interest 555 465 1,737 1,825 2,002 (In per cent) Debt outstanding/GDP 34.7 45.4 38.5 38.9 45.8 Net drawings/GDP 10.8 15.2 1.7 8.4 13.5 Debt service/exports and tourism 4/ 2.3 4.7 5.3 5.8 3.8 Average interest rate 5/ 3.9 2.2 5.5 5.6 4.8 Debt outstanding growth rate 44.9 50.5 4.6 27.0 38.7 Sources: Treasury, Ministry of Finance; and various state enter- prises. 1/ Unaudited figures. Excludes debt with locally-lbased branches of foreign commercial banks and with ECCA. 2/ Includes capitalization of interest amounting to US$0.4 million in 1978 and US$0.3 million in 1981. 3/ Excludes known arrears amounting to US$0.05 milLion in 1980 and US$1.9 million in 1981. 4/ Includes domestic exports and tourism receipts. 3/ Ratio of interest payments to debt at beginning of period. - 33 - terms (average interest rate of over 15%).15/ These commercial operations were confined mainly to three years--1978 4Sisbursements of US$10.4 million), 1980 (disbursements of US$6.3 million) and 1981 (disbursements of US$5.3 million)--and were mostly for the purpose of hotel construction (expansion of Halcyon Cove Hotel during 1977-80, and startup of operations in 1981 for construction of the Deep Bay Hotel-Condominium Complex). All in all, the Central Government's outstanding debt increased, as a proportion of total public debt outstanding, from 28% at the beginning of 1977 to 64% at the end of 1981. Two thirds of that increase represented the growth of commercial loan obligations for hotel expansion and construction (Statistical Appendix Tables 4.1 and 4.2). 69. Antigua and Barbuda's public debt service payment ratio, which had increased from 2.3% of total domestic exports and tourism receipts in 1977 to 5.8% in 1980, declined to 3.8% in 1981 (Table 13). However, if arrears in interest payments and amortization are taken into account, that ratio rises to almost 7.4% in 1981. Because of insufficient data on commercial bank operations, the average interest rate is difficult to compute. The most conservative estimate suggests that the rate rose from 3.9% in 1977 to around 5.6% in both 1979 and 1980, but declined to 4.8% in 1981. As interest payments on newly contracted debt on commercial terms enter the debt servicing stream, however, the average interest rate is expected to rise sharply. H. Effective Exchange Rate 70. Antigua and Barbuda's currency, the East Caribbean dollar has been pegged to the US dollar at a rate of EC$2.7 = US$1 since 1976.16/ The real trade- and tourism-weighted effective exchange rate fluctuated narrowly around the December 1976 base value over the period March 1976-June 1980, with cumulative depreciation never exceeding 5.4% and cumulative appreciation reaching no more than 1.8%. In the 12 months since midyear 1980, Antigua and Barbuda's currency has appreciated in real effective terms by about 10% (Statistical Appendix Table 3.6). The real effective exchange rate fluctuations observed during the March 1976-June 1980 period reflected the combined effects of nominal depreciation of the US dollar vis-a-vis European currencies and the high inflation of Antigua and Barbuda in relation to that experienced by its trading partners. The recent real effective appreciation has been caused in part by convergence of a nominal appreciation of the US dollar with respect to other major currencies and by a continuing high domestic inflation in relation to that of the country's trading partners. 15/ All hotel construction-related commercial loans since 1977 have been contracted at interest rates ranging from 1% to 3% above LIBOR, exclusive of commissions and other charges. A 1981 loan to the Central Marketing Corporation carried an interest rate of 25%. 16/ For further details see Appendix A on the Exchange and Trade Restrictions report. - 34 - 71. The recent appreciation of the Antigua and Barbuda's currency which has been particularly pronounced in relation to the Canadian dollar and Western European currencies, has already affected tourism originating in these areas. As mentioned earlier, in 1981 the combined share of tourists from Western Europe and Canada in the total number of visitors declined by 4 percentage points from 1980. - 35 - V. DEVELOPMENT POLICY ISSUES Introduction 72. With a good investment climate, favorable industrial relations and the advantage of its proximity to major export markets in North and South America, the country has good prospects to further develop its econo- my. A major requirement for the realization of this goal is, however, the existance of a well-organized and soundly-financed public sector, able to upgrade and expand the needed infrastructure. It appears that this is the area in which the public sector should concentrate its limited human and financial resources while leaving to the private sector the undertaking of new investments in the productive sector, namely tourism, agriculture and manufacture. Agriculture 73. Manpower shortage is the main constraint to agricultural develop- ment in Antigua. The reputed high unemployment rate would tend to suggest that there would be a strong incentive to work on the estates (sugarcane, cotton) or, seasonally, on small farms. However, the traditional aversion of young people towards agriculture and the expectations of better renume- ration in the urban service sector, has brought about a scarcity of farm labor and very low efficiency in the fields. 74. The prevailing pattern of short-term land leasing arrangement offers little incentive to on-farm investment. An additional shortcoming is that lending institutions are reluctant to finance farmers who cannot offer land mortgage guarantees. The Government owns about 60% of the agri- cultural lands, including crop and grazing areas. Part of these lands are utilized by small farmers under some forms of continuing-term lease agree- ments. Provided farmers utilize their lands (generally not less than 5 acres) they cannot, in principle, be deprived of their lots unless the Government requires those lands for public use. In that case, farmers are relocated and compensated for the eventual crop losses. The Government has articulated a new land tenure policy which envisages long-term leasing and sale of viable acreages of land to farmers. This is an attempt to address the reluctance of lending institutions to finance farmers who were not able to offer land mortgages as guarantees. The farmer will thus be assured of a greater security of tenure and so have the necessary incentive for undertaking on-farm investment. The Government's new policy on land tenure will shortly be issued in a White Paper setting out agricultural development policy. 75. Of great importance is the land use issue. It is alleged that at least 50% of the available agricultural lands are underutilized orcomplete- ly abandoned. The Ministry of Agriculture in a work programme for 1982 has expressed a need for the zoning of land for agriculture and livestock production. However, the Ministry will require technical assistance to give effect to a comprehensive scheme for zoning. A land allocation exercise was carried out in 1966 but it should be updated and integrated with economic and social data so that it could form the basis of an - 36 - agricultural development plan. Interest has been shown by some inter-national agencies in providing funds and technical assistance for such a study, which could be completed, in principle, in about 20 to 30 man-weeks.Such a study should also include proposals for alternatives to short- and medium-term land leasing, with provisions for land ownership and long-term leasehold arrangements. 76. Farm machinery for land preparation is seldom available at the required time. This together with the unreliable supply of seeds, herbicides and other farm inputs, contribute to slowing down farmers' initiative and interest in farm development. Expansion of private sector investment in farm machinery is jeopardized by Government insistence on maintaining controlled prices for tractors and equipment services. Since these prices do not cover real amortization and operation and maintenance costs, they are not considered renunerative by contractors. Moreover, the private tractors' fleet is now obsolete and need to be replaced. Because of this the only mechanized services available to farmers on contract basis are provided by the Antigua Development Corporation (ADC) with about 13 old tractors and, sometimes, by the Sugar Corporation machinery. Some new tractors are now being acquired by the Government and will be put at the disposal of ADC shortly. ADC should. be strengthened so that it can provide more and better services to farmers. This requires that ADC be adequately staffed and new machinery be provided. 77. ADC is also presently managing the Diamond Estate, which includes some 140 acres under irrigation, of which 90 are cropped. It has also received about 700 acres belonging to Blakes Estate to be used for the pilot corn/sorghum project. In the light of the new responsibilities of ADC in connection with this proposed. corn/sorghum project, it is imperative to assess the managerial, financial, administrative and personnel capabili- ties since the project requires a relatively high degree of administrative and technical skills. 78. The role of the Central Marketing Corporation (CMC) in agricul- tural development should be clearly defined. CMC is presently involved in the marketing of perishables (vegetables, legumes, fruit) buying from producers and selling either directly to consumers or to hotels, or to the export market (ocra and hot peppers to the UK). CMC also imports rice and sugar in competition with private traders and is responsible for importing and supplying farm inputs (fertilizers, seeds, pesticides). Occasionally, CMC has been involved in marketing c,f merchandise not related to agricul- ture. From recent experience, it appeares advisable that: (i) operations not directly related to agriculture be eliminated; (ii) retail operations be discontinued; and (iii) efforts be concentrated on operations related to farm. In this regard, the establishment of a revolving fund should be reviewed in depth. - 37 - Industry 79. There is a need to clearly spell out the conditions under which development concessions will be granted. Since the manufacturing sector, mostly enclave light industry, has reached a respectable level, any future concession should be carefully evaluated, taking into account not only the job creation factor but also the infrastructural needs and other strains likely to be created by the prospective new firm. The Government is committed to the establishment of an Industrial Development Agency which will carefully vet the conditions under which concessions will be granted. 80. Control of imports needs to be used with caution and prohibition utilized only when serious difficulties have arisen resulting in, for example severe balance of payments problems. The aim should be to foster efficient import substitution combined with export promotion and not to give undue protection to local industries to the detriment of the consumers. 81. The Antigua and Barbuda Development Bank (ABDB) has improved its financial and managerial situation and should continue to do so if it is to play a role in the economic development of the country. If this improve- ment continues over the longer term, ABDB's operations will be facilitated by increased access to funds. Tourism 82. The need to further develop infrastructure is apparent and needs to tackled before any major expansion of the tourism sector takes place. Prompt and successful implementation of the related projects assumes a crucial importance that deserves concerted efforts by the Government and the international community. 83. The Tourist Board needs to be strengthened so it can play an active and more aggressive role in tourism promotion. In this connection the Government has appointed a Director of Tourism under technical assistance and the officer is an expert in the marketing of tourism. It is important to promote non-seasonal (summer) tourist activites in order to reduce seasonal unemployment and at the same time increase capital utilization. 84. The Government is reputedly engaged in expanding its share in the hotel industry. Since there is an urgent need to improve infrastructure, to promote non-seasonal tourism, to increase occupancy ratio and to improve operations of the two Government-owned hotels, this is a highly doubtful direction to pursue at this time. The Government might allocate more effectively its limited human and financial resources by con-centrating on solving the existing problems in the sector rather than getting involved in an area where the private sector could be induced to invest provided the needed infrastructure is in place and there is suffi-cient demand. Any serious difficulties in the execution or management of the new hotel projects is likely to have a long-lasting negative impact on public finances and indirectly on private sector confidence. Moreover, undertaking external debt for these projects will seriously impair the Government's ability to borrow abroad for essential infrastructural pro- jects. - 38 - Electricity 85. It is expected that the new generators purchased in 1981 will largely solve the shortage of electricity. The gap between electricity supply and demand has increased lately. In fact, the generating capacity increased only marginally during 1980-81 while peak demand grew about 12% over the same period. As a result, shutdowns have been experienced and there is limited time to carry out maintenance works on the generating equipment. 86. The need to further strengthen, financially and managerially, the Antigua Public Utilities Authority (APUA) remains. The company deals with electricity, water and telephone. So far only the telephone company has some measure of autonomy, although still limited. While the accounting functions and responsiblities of the three companies have been separated, the water and electricity companies still share management, office building and technical resources. The original intention to form the electricity company with a foreign private consortium has been abandoned and APUA has secured a supplier credit for two diesel generating sets, offsite training, one year service contract and rehabilitation of old engines. The complete separation of electricity, telephone and water operations remains desirable. Energy Conservation 87. The increase in import duties on cars over 2,000 cc and in license fees on cars over 1,600 cc, increasing in proportion to the size of the engine is a measure whose impact on energy conservation cannot be ascertained yet since this is a recent measure. However, continued exemp- tion of Government departments from such taxes may in itself be a loophole in the policy measure and should be reconsidered. 88. Incentives to encourage hotels to utilize solar power for heating have been successful and should continue. However, these incentives have not been successful in encouraging the more affluent residents and additional measures should be contemplated. Water 89. The current shortage of water is likely to persist until the several projects that the Government plans to implement and for which additional financing may be required are completed. Furthermore, the water department (within APUA) faces a major constraint in the shortage of skilled manpower. The latter calls for additional tech-nical assistance and for the implementation of intensive training courses Eor the relevant personnel. The following measures are also urgently needed to strengthen the water department: (i) installation of water meters at output points; (ii) periodic revision of water tariffs to reflect economic costs; and (iii) improvement of billing and collection procedures. - 39 - Port 90. Berthing space on the waterside remains inadequate. At the sametime, the lack of adequate unloading equipment and containers and space for cargo storage is causing landside congestion. Also, the need for a training program in port operations and maintenance remains critical. According to the management of the port, at least two engineers and three technical supportive staff are needed to rectify the situation. Measures to alleviate the situation such as the extension of the working time in order to reduce the need for extra berthing facilities, should be adopted promptly. The projected expansion of port facilities should be carefully studied and implemented only if they prove feasible. Issues in Barbuda 91. The potential for developing the island of Barbuda is seriously limited by the size of its population, 1,200 people. Nevertheless, there are identified activities that offer some potential, particularly in agriculture, fishing and tourism. 92. An important contribution to tourist development may emerge from the completion of the Dulcina Hotel. In fact, since a great deal of cons- truction has already taken place, and whose deterioation should be avoided, it is recommended that studies be made and decisions taken to complete and exploit this hotel as soon as possible. In this regard, an open consulta- tion with the private sector might be advisable. 93. The gradual improvement of the economic and social infrastructure of Barbuda is another requirement for the well being of its population. An urgent need is the installation of telephone facilities connecting Barbuda with Antigua and, perhaps, other neighboring islands. Another infrastruc- tural need is the improve-aent of the air communications, especially the installation of light facilities at the Barbuda airport. - 40 - VI. PRIVATE INVESTMENT AND EXPORT PROMOTION Introduction 94. Under official Government policy, the private sector has a major role to play in the economic development of Antigua and Barbuda. Liberal fiscal incentives are granted for the establishment of new enterprises, personal income tax has been abolished, and factory bui:Ldings are provided at a subsidized rate of rental in order to reduce capital costs of prospec- tive investors. Industrial relations appear to be stable and the private sector is, in general, optimistic about the future of the country. 95. The private sector has been playing a leading role in the deve- lopment of Antigua and Barbuda. In fact, private ownership predominates over public in tourism, manufacturing and distribution. Although the Government owns three hotels (only two operating), approximately 90% of the tourism sector is under the control of the private sector, predominately foreign. In manufacturing, there is practically no public investment with the exception of the oil refinery in which the Government has a minority participation. A large amount of agricultural land is publically owned, mostly the sugar estates acquired by the previous Government and leased back to small farmers. Issues 96. There are several constrairtts to private investment. Foremost among them are: (a) lack of infrastructure mainly in the areas of transporta- tion, electricity, telephones, roads and water. Importing goods is very expensive. Shipping schedules are erratic and, in certain instances, Antigua has been by-passed by shipping lines and cargo is landed in Trinidad for trans- shipment. It is not tnusual for cargo to lie in Trinidad for several months before the goods are forwarded to Antigua. This is the case particularly in respect of containerized cargo. Shortages of electricity and telephone lines as well as the bad shape of roads are negatively affecting tourism. Several steps need to be taken to solve these issues. The public sector investment program recogni- zes these needs and includes on-going and new projects which if successfully carried out, will largely solve the shortage of water, electricity and telephone lines and the poor condition of some roads. Shipping schedules should be care- fully worked out in the framework of regional agreements; and (b) the shortage of managerial staff and skilled labor is already a serious problem. In the event of any significant expansion in the cons1:ruction industry, for example, shortages may be expected of masons, electricians, plumbers, - 41 - and in other related categories of workers. On the managerial level, the situation is no different. The need often has to be met through the recruitment of expatriates and this is proving to be a costly and unsatisfactory situation since it is difficult and sometimes impossible to find local counterparts. To solve this long-term issue, additional efforts need to be undertaken through more vocational education, by training programs and by student loans for the most needed skills. 97. The maintenance of a realistic exchange rate should be considered as an essential element of any effective program directed towards stimulating exports of goods and services. The need to monitor closely the competitiveness of the country's exports has become increasingly important recently owing to the appreciation of the US$. Since the EC$ is pegged to the US$, it has appreciated considerably against pound sterling during the past year. This development has rendered tourist services more expensive for visitors from Europe and Canada. Investment Opportunities 98. In examining areas for new investment and/or expansion, one faces the small size of the domestic market and the consequent need to develop dependable export markets. At present maximum advantage is not being taken of fabrics made from sea island cotton, which is extremely popular, parti- cularly with tourists. The potential for expansion is not only in the local printing of fabrics but also in the manufacturing of garments from the material, both of which could be exported and would confer significant benefits on the economy. Given the proximity of Antigua and Barbuda to the United States of America, a well-conceived program for promoting export- oriented industries could be successfully implemented for labor intensive industries, especially if transport costs can be reduced and promotional efforts enhanced. In this regard, the work undertaken by a private consultant firm financed by USAID, might have a positive impact over the near future. 99. As discussed earlier, the underutilization of large tracts of land as a result of withdrawal from sugar production, is another area which needs urgent attention. It is expected that with the implementation of the new land-tenure policy, government-owned land will be leased on a long-term basis to farmers to produce fruits, meats, and vegetables for the tourism industry and raw and processed fruits for export. Adequate services should be provided and proper policies pursued by the authorities to help increase efficiency and productivity in the sector so that it stops losing manpower to the more renumerative service sector. - 42 - VII. PUBLIC SECTOR INVESTMENT PROGRAM Progress and Issues in 1981 100. The performance in the imp:Lementation of the public sector investment program during 1981 was mLxed. Provisional estimates of the total disbursements on capital projects amount to EC$57.1 million, or about 16% of GDP. Disbursement of about EC$45 million had been projected for 1981. Therefore the execution may be regarded as very good in relation to the level of disbursements. However, there are some projects experiencing very delicate problems and these are discussed below. 101. Efforts to upgrade and expand the economic infrastruture conti- nued in 1981. During the year, the new airport terminal was practically completed and two electricity generators were purchased. These two pro- jects represented almost 50% of the total public investment during 1981. 102. The sugar rehabilitation project is experiencing serious diffi- culties. The project was initiated during 1979 with the ultimate aim of producing approximately 5,000 tons of sugar per year. The total area involved, at full development, would be about 2,600 acres, of which 1,200 acres would be managed by the Sugar Corporation, a public enterprise, and 1,400 acres cultivated by small farmers. During 1980/81, about 550 acres were established, 450 under estate annagement and 100 acres operated by small farmers. However, because of shortage of labor, only 103 acres of estate plantations and 28 acres of small farm holdings were harvested during 1981. Moreover, the factory machinery has had reputed mechanical problems accentuated by the lack of spare parts. As a result, production in 1981 was only 37 tons of sugar. A careful assessment has been completed by Government and is now being reviewed by the CDB and European Investment Bank. 103. Extensive repair and maintenance work was needed because of the unusually high level of rainfall throughout the year. The performance of the Public Works Department (PWD) in carrying out the necessary repairs and maintenance was mixed. While the condition of roads in St. John's, the capital, showed signs of deterioraticin, some progress was made in village road reconstruction and highway maintenance. 104. Implementation of scheduled new road projects was not satisfactory. Work on the Old Road/Falmouth Road Project has not yet begun. Meanwhile, grave doubt surrounds the implementation of the Feeder Roads project because the country does not agree with the condition established by the lending instituticon (CDB) that construction should be done by contract. - 43 - 105. During 1981 the Caribbean Development Bank resumed its credit disbursement to the Antigua and Barbuda Development Bank (ABDB). Globally disbursements were in line with the scheduled level and in the case of mortgage finance exceeded projections for the year. The mission's review of the ABDB's situation came up with the following findings: (i) the increasing rate of loan delinquency in the Agricultural Production Credit (APC); (ii) the Farm Improvement Credit (FIC) program, which is dominated by loans to the fishing sub-sector is being seriously affected by a build-up of arrears on loans. As a result, loans in the sub-sector have slowed down considerably; (iii) the lack of credit demand in the light manufacturing sub-sector and the extremely high demand for tourism projects; and (iv) disbursmentsunder the mortgage finance loan scheme have moved rapidly and ABDB thinks that it will require additional funds in 1982 for this purpose. 106. Antigua and Barbuda is receiving technical assistance in practi- cally every sector of the economy. In fact, as it is illustrated in the project list, the total cost of ongoing technical assistance programs amounts to more than US$6 million or, about US$2 million of disbursements per year. Since the absorptive capacity of the country in relation to technical assistance programs is limited, areas and programs in which technical assistance is requested should be clearly prioritized if a meaningful contribution is to be obtained from these programs. Whenever technical assistance is provided, the Government and the relevant agency should make efforts to guarantee that: (i) an appropriate local counterpart will be appointed; (ii) the local counterpart will be properly trained so she/he can eventually assume the duties and responsiblities performed by the external technical assist-ance personnel; and (iii) a fluid and permanent communication between the Government and the assistance personnel will take place. - 44 - VIII. PROSPECTS The Public Sector Investment Program for 1982-85 107. The public sector investment program for the next four years is a, very ambitious one. Its successful execution depends on the resolution of several crucial issues such as: (i) l:he weak financial situation of the public sector; (ii) the risks and strains associated with some major prospective investments in hotels and condominiums by the public sector; (iii) the need to improve efficiency in the execution of projects, thus avoiding excessive cost overruns; and (iv) the need to secure donor/lender commitments for new projects with stiLll unknown sourcesof financing. 108. Public sector savings decreased in 1981 and given present commitments they might continue to decline. This situation should be reversed. If prompt measures are talcen, especially to cut current expenditures in the Central Government, public savings should increase and reach around 4% of GDP in 1985, not a very high level in view of the large requirements for investment as well as for servicing the external debt. 109. The Government plans to construct several large hotels and condominiums with an estimated cost of about US$200 million, or 160% of GDP. In the case of the Deep Bay Hotel project, disbursement for US$3.6 million already took place in 1981 iII connection with architectural studies. This project, whose cost is around US$90 million, is to be financed by a loan from a foreign bank. There are several serious problems these projects raise: (i) there are no indications that the projects have been carefully evaluated from the point of view of their economic feasibility; (ii) the public sector is not equipped to adequately look after prospective investment:s in the hotel business, including their construction; (iii) these large projects require expensive studies. The amount for studies alone wou]d be sufficient to fund small and medium size hotels which could operate very rapidly and would not create major additional strains on the infrastructure of the country; (iv) any serious difficulties in the operations (construction, selling, administration, etc.) will have long-term repercussions on the public finances as well as on the Government's creditworthiness; and (v) given the characteristics of the projects, it does not appear that they can generate a great deal of domestic value added and even employment generation does not seem to be in line with the large amount of investments. - 45 - 110. The streamlining of procedures to control the execution and costs of public investment projects is highly advisable. A close monitoring of projects might result in avoiding excessive cost overruns such as the one experienced in the expansion of the Halcyon Cove Hotel. In this regard, it is recommended that fixed cost contracts with proper bidding procedures be used in new constructions. 111. A large amount of new commitments from the international communi- ty needs to be obtained. Excluding investments in new hotel/condomminiums previously discussed, additional commitments for about EC$100 million need to be secured. Approximately one-half of this amount may be forthcoming from the Independence Grant/Loan for specific projects. 112. The following analysis of the amount, composition and financing of the public sector investment program does not include the new hotels/ condominiums previously discussed because no information on disbursements for this program was available to the mission. Therefore, the scenario described in the following paragraphs would change substantially if the mentioned projects are implemented and their disbursements included in the investment program. 113. Disbursements on the public investment program for the period 1982-85 are estimated at EC$239 million. The bulk of these disbursements would take place on infrastructure, namely transportation, energy, and water. Because EC$52 million is required for amortization of the external debt, total financial requirements for the 1982-85 period are estimated at EC$291 million. These financial needs are projected to be met as follows: (i) public savings, EC$63 million or 21.6% of the total financial requirements; (ii) external grants and loans, EC$222.4 million or 76.4%; and (iii) commercial banks and other domestic sources, EC$5.6 million or 2% of the total. As can be seen, external sources will continue to finance most of the requirements. A major positive development would take place if public savings increase and the need to borrow from the domestic banking system progressively declines and even some overall repayments take place at the end of the 1982-85 period. 114. The external public and publicly guaranteed debt of Antigua and Barbuda amounts to US$58 million or 46% of GDP. The debt service on present loans represents around 7% of foreign exchange earnings but only about 4% was actually serviced in 1981. However, this is projected to sharply increase in the coming years because several large loans become payable. This situation dictates prompt adoption of policies to raise public sector savings and foreign exchange earnings. Although the service on existing external debt will be burdensome with such policies it should prove manageable. Nevertheless, caution should be exercised in the further assumption of any substantial external borrowing on commercial terms. Moreover, such borrowing should be for the highest priority projects. Given the high level of public indebtedness and the large amount of additional external capital required to implement the public sector investment program, the country will have to rely, to a large extent, on capital grants and concessional loans. - 46 - ANNEX A Antigua and Barbuda: Exchange and Trade System Exchange Rate System 1. The currency of Antigua and Barbuda is the East Caribbean dollar,l/ which is used by the East Caribbean Currency Authority. The East Caribbean dollar is pegged to the US dollar, the intervention currency at EC$2.70 per US$1. On January 31, 1982 the buying aLnd selling rates for the US dollar were EC$2.6882 and EC$27,169, respectively, per US$1. The Currency Authority also quotes daily rates for the Canadian dollar and the pound sterling. All foreign exchange purchases and sales are subject to a 1% levy; the minimum levy collection is EC$l per transaction. 2. Antigua and Barbuda became a member of the Fund on February 25, 1982. Administration of Control 3. Exchange control is administered by the Ministry of Finance and applies to all currencies. Export Licensing is required for a range of products particularly those subject to export duties. Import licenses are issued by the Collector of Customs of the Ministry of Finance, and the Ministry of Economic Development depending on the type of commodity. Prescription of Currency 4. Settlements with residents of member countries of the Caribbean Common Market (CARICOM)2/ must be made either in the currency of the CARICOM country concerned or in East: Caribbean dollars. Settlements with residents of other countries may be made either in any foriegn currency or in East Caribbean dollars. Settlements involving currencies from South Africa are not permitted. Nonresident Accounts 5. External accounts may be opened for nonresidents with the approval of the Ministry of Finance and may be maintained in any currency requested. American servicemen and employees of the US Government and international agencies may operate external accounts--pursuant to several agreements with their respective organizations. A few residents--firms and individuals--are also allowed to open external accounts. External accounts 1/ The East Caribbean dollar is also the currency of Dominica, Grenada, Montserrat, St. Kitts-Nevis, Anguilla, St. Lucia, and St. Vincent and the Grenadines. 2/ The CARICOM countries are Antigua and Barbuda, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Montserrat, St. Kitts-Nevis, Anguilla, St. Lucia, St. Vincent and the Grenadines, and Trinidad and Tobago. - 47 - ANNEX A are supposed to operate on credit only with proceeds from the sale of foreign currencies and with transfers from other External Accounts but not with payments by residents. Commercial banks report external accounts operations to the Ministry of Finance on a quarterly basis. Imports and Import Payments 6. All imports from South Africa are prohibited. Most goods may be freely imported under open general license (importer's license) granted by the Ministry of Finance. Certain other commodities require individual licenses, unless imported from CARICOM countries. Antigua currently follows the new CARICOM rules of origin adopted in June 1981. Payments for authorized imports are permitted upon application and submission of documentary evidence. Authority is delegated to commercial banks to endorse import licenses application forms after confirming sight of documents. 7. Imports that are exempt from import duties include basic foods and agricultural imports. All other exemptions for machinery, equipment and raw materials are granted on a case by case basis and generally under the Fiscal Incentives Law and the Hotel Incentives Act. Import duties range from 5 to 40% and are scheduled to be brought into line with the 35% CARICOM common external tariff by the end of 1982. All imports are subject to a stamp duty. Payments of Invisibles 8. Requests from residents for foriegn exchange for travel of up to US$750 per trip is normally granted on application by the Ministry of Finance; sums on excess of this amount are decided on a case by case basis. CARICOM travelers checks (which are denominated in Trinidad and Tobago currency) basic allowance is TT$500 per trip for holiday travel, TT$2,500 per trip for business and TT$3,000 per trip for medical expenses. Beyond these limits official authorization is required. There are no limits on the amount of local currency that may be taken out of the country. Profits may be remitted in full subject to confirmation by the Commission of Inland Revenue of registration for corporate income tax puLrposes. Student remittances are usually exempted from the foreign exchange levy on application. Exports and Export Proceeds 9. For certain commodities, no licenses are required for the export of goods to any destination. No surrender of export proceeds is required and re-exports do not produce any tax as they take place within the bonded area. Proceeds from Invisibles 10. Travelers to Antigua and Barbuda may bring in freely notes and coins denominated in East Caribbean dollars or in any foreign currency. Foreign currency coin is not normally exchanged. US and Canadian cash for - 48 - ANNEX A checks and drafts against US or Canadian cash can be tendered up to US$1,000 without restriction and with no levy. For over US$1,000 Ministry of Finance approval must be sought. Levy exemptions for transfers especially for charity purposes are usually granted. Capital 11. There are no legislated restrictions on capital movements. Foreign investment is granted the same incentives as domnestic investment under the Fiscal Incentives Act and the Hotel Incentives Act. Large transfers abroad for investment purposes can be phased over time by the Financial Secretary. Gold 12. There are no restrictions on imports of gold. Changes during 1981 June 1 13. Implementation of new Rules of Origin or Process List" affecting treatment of goods using imported inputs coming from outside the Caribbean Common Market. The new system's basic criterion relates to the degree of processing to which the imported input has been exposed instead of the value-added criterion used before. The system eliminates the Basic Materials List and is facilitated b;y the introduction of the use of the Customs Cooperation Council Nomenclature. July 1981 14. Temporary ban on imports of tomatoes. - 49 - ANNEX B Antigua and Barbuda: Structure of Public Sector General Government Central Government 1. Central Government expenditures are made from the Consolidated Fund for the ten Ministries of the Government including the Ministry of Economic Development that coordinates all ongoing Central Government hotel construction, and supervises management of two publicly owned hotels--the Halcyon Reef Hotel (through the Antiguan Isle Company) and the Halcyon Bay Hotel (through the Antigua and Barbuda Development Corporation). The Treasury keeps monthly records of actual expenditures incurred by spending agencies, and has sole responsibility for expenditure administration and control through the Office of the Budget Director and the Accountant General. The Treasury also maintains sinking funds against bonded debt and such funds are fed from budget outlays. The resources from the sinking funds are invested by ECCA. The Ministry of Finance has responsibility for contracting all debts of the Central Government and of guaranteeing the financial obligations of public sector enterprises. It is charged with the task of monitoring and documenting the public debt, and of meeting Central Government debt obligations as they became due. The Established Civil Service comprises 2,658 persons, 684 of which are employed by the Ministry of Education, 701 by the Ministry of Health, and 387 by the Police Force. Social Security System 2. The Social Security System was established in April 1973. Contributions, related to a sliding scale of earned income, are made by all employed persons 16-60 years of age, including self-employed persons on a voluntary basis. Draft legislation is presently being considered to incorporate self-employed persons in the scheme on a more formal basis. There are at present 37,000 employees and dependents and 3,000 registered employers covered by the scheme. Benefits include sickness, maternity benefits and grants, funeral grants, old-age pensions and grants, invalidity pensions and grants, and survivors' pensions and grants. Surplus funds are invested in Treasury bills and debentures, in debt instruments of government statutory bodies, and in time deposits at commercial banks. The system, which employs 55 persons, does not invest in nonfinancial private sector enterprises. Medical Benefits Scheme 3. The Medical Benefits Scheme came into being on October 1, 1978. Under the Act establishing the scheme each employer is authorized to deduct from the wages of each employee 2-1/2% of gross earnings. The employer contributes an equal amount on behalf of each employee. Medical benefits - 50 - cover the supply of medical or surgical care and services, and include hospitalization, drugs, laboratory tests, and X-ray services. The scheme covers insured persons; persons who suffer from hypertension, diabetes, certified lunacy, cardio vascular disease, leprosy, glaucoma, sicklecell anemia, and cancer; persons under 16 years of age; and persons rendered incapable of work by virtue of age. The scheme's portfolio of investible funds is negligible at the present t:Lme. Established staff numbers 45. Local Government 4. There is only one local government authority; it serves the sister island of Barbuda. This authority, established in 1981 to supersede the Central Government Ministry of Barbuda Affairs, is responsible for central government revenue collections in Barbuda and for administering a wide range of government programs and services in sectors as diverse as agriculture, forestry and fisheries, public health, road construction and maintenance, hotel development, and public utilities. One major issue to be resolved between the Central Government and the Barbuda Local Government Council is the legal status of publicly owned lands in Barbuda. At present the Council is seeking more autonomy in the administration of Barbuda affairs. Antigua and Barbuda Broadcasting Corporation (ABS) 5. The Government owns the Antigua and Barbuda Broadcasting Television and Radio stations. Both are commercially-oriented enterprises, but are at present heavily subsidized by the Central Government. The radio station employs 27, and the television 29 persons. Central Housing and Planning 6. The Central Housing and Planning Authority was established by legislation in the 1940s primarily for the purpose of carrying out under the provisions of the ordinance, an island-wide low income housing scheme. The program has received substantial assistance both from the British Government in the form of grants and loans, and from private estate owners in the form of housing sites. In recent years the Housing and Planning Authority has tapped resources of the Caribbean Development Bank and of the Social Security Scheme for its housing and rehousing programs. Financial data on operations of the Authority are not at present available. Nonfinancial Public Sector Enterprises The Central Marketing Corporation 7. The Central Marketing Corporation is a government agricultural outlet, established by Act of Parliament in 1952. It buys and markets the produce of Antiguan farmers, and in relation to this function has always received annual subsidies from the Central Government. In recent years it has started importation of agricultural inputs such as fertilizers and pesticides. The corporation is at a present undergoing considerable financial difficulties following incurrence of an external debt of approximately EC$4 million in 1980 relating to the import, for domestic resale, of television sets and other items, incuding hams and frozen turkeys, not easily traded in Antigua and Barbuda. The corporation is run by a General Manager, and employs 58 persons. - 51 - ANNEX B Antigua Public Utilities Authority 8. Antigua Public Utilities Authority is a statutory body established by law to manage the three public utilities, viz., electricity, water, and telephone. It employs 410 persons. It has fixed assets of over EC$50 million with an annual revenue stream that in 1981 exceeded EC$21 million. In recent times the Authority has been plagued by the problem of large outstanding dues by consumers, including the Central Government and other public sector bodies. With the installation in early 1982 of a new power plant, inclusive of three generators with a combined capacity of 19.5 megawatts, the problem of power shortage in Antigua is expected to be eliminated for several years to come. The latest tariff rates were promulgated in May 1979 (electricity), July 1980 (telephones), and December 1980 (water). The Port Authority 9. The Port Authority was established as a department of the Government in 1968 by Act of Parliament, but in 1973 became a full fledged statutory body. The Authority operates the Port of St. John's, is responsible for all cargo handling and distribution, and receives income from berthing fees, wharfing fees, and lighting dues. It manages a subsidiary company--Terminal Operating Company--and has a monthly-paid, established staff of 20 under an Executive Chairman. It employs, in addition, about 40 longshoremen and 15 maintenance personnel. Early in 1981 the Port Authority was authorized by Cabinet to effect a 10% increase in t:onnage dues which constitutes about 75% of the total revenues of the Authority. Over the last several years the Authority has consistently achieved a modest surplus on current account. Plans are under way to expand the facilities of the Port Authority as present berthing space is congested and somewhat inadequate to cope with the growing volume of maritime traffic at the port. The Industrial Development Board 10. The Industrial Development Board was established by Act of Par]Liament in 1952 and charged with the task of promoting and facilitating the growth of industry. At present, however, its functions relate solely to coordination of the production and sale of copra meal, edible oil, cotton seed, cotton meal, and cotton seed hull. To this end it operates a factory that produces ediole oil and animal feed, and gins locally-produced cotton. It also manages a small plant that manufactures ceramics. The Board, which from its inception has been subsidized by the Central Government, consists of 15 members appointed by the latter. It employs an administrative staff of 6, headed by an Executive Secretary. - 52 - ANNEX C Antigua and Barbuda: Summary of Recent Tax Measures Date Tax Measure December 1976 1. Personal income tax for residents was abol- ished. March 1977 1. Introduction of a 5 per cent stamp duty on transfers of properties to be paid by seller. Previously there was a 2.5 per cent tax paid by buyer. 2. Introduction of landholding tax on undevel- oped land held by nonbelongers. First year 5 per cent, increasing by 5 per cent each additional year. 3. Increase in gasoline consumption tax. 4. Increase in hotel occupancy tax from EC$2.50 to EC$L0.00 per night. 5. Increase in embarkation tax from EC$3 to EC$5 for CARICOM citizens and from EC$5 to EC$8 for alL others. 6. Introduction of a 1 per cent entertainment tax. 7. Introduction of a customs surcharge of 3 per cent. 8. Introduction of a tax of 3 per cent on value of insurance premiums. 9. Introduction of reserve requirements on banks at 7 per cent of deposit liabilities. 10. Increase in reserve requirements on insurance companies from EC$50,000 to EC$100,000. March 1978 1. Reduction on consumption tax on alcohol and cigarettes from 10 per cent to 7 per cent. 2. Increase in consumption tax on gasoline from EC$0.51 per gallon to EC$0.67 per gallon. - 53 - ANNEX C Antigua and Barbuda: Summary of Recent Tax Measures (continued) Date Tax Measure March 1978 3. Increase in consumption tax on luxurious (continued) goods from 12 per cent to 20 per cent. 4. Introduction of a travel (tickets) tax of 10 per cent of value of ticket. 5. Increase in entertainment duty. 6. Increase in telecommunications tax from 5 per cent to 10 per cent. 7. Increases in the following fees and licenses: airport landing fees; radio operators; plea- sure boats; and aircraft pilots. 1979 No change. December 1980 1. Elimination of consumption duty on records, tapes, and cassettes produced by locals. Also, soaps, toothpaste, insecticides, mos- quito coils. 2. Accelerate depreciation allowances: for vehicles from 20 per cent to 25 per cent; trucks from 22 per cent to 27 per cent; machinery from 10 per cent to 12-1/2 per cent; other assets from 15 per cent to 20 per cent. 3. Eliminate travel tax (tickets) for those 16 years of age and under. 4. Increases in consumption duty rates as fol- lows: (a) For all articles not specified in a separate schedule a rate increase from 10 per cent to 15 per cent; (b) lWine, spirits, and cigarettes increase from 7 per cent to 10 per cent; (c) Ethylalcohol, rum, vodka, and vinegar increase from 12 per cent to 15 per cent; (d) Items for commerce and industry remain at 20 per cent; - 54 - ANNEX C Antigua and Barbuda: Summary of Recent Tax Measures (continued) Date Tax Measure December 1980 (e) SmaLl cars with engine c:apacity up to (contimued) 1,600 cc. remain at 20 per cent.; from 1,601 to 3,000 cc. increase from 20 per cent to 30 per cent; from 3,001 cc. and more increase from 20 per cent to 50 per cent. 5. Introduction of a cruise ship tax of US$2. 6. Increases in licenses as follows: (a) Beer selling (new license): from EC$15 to EC$100 depending on location of establish- ment; (b) Retail license: St. John: from EC$96 to EC$200; outside St. John: from EC$60 to EC$100; Barbuda: from EC$24 to EC$30; (c) Trade license wholesale increase from EC$500 to EC$1,000; (d) Hotels: 20 rooms or less: from EC$72 to EC$500; 21 to 50 rooms: from EC$72 to EC$1,000; over 50 rooms: from EC$72 to EC$1,500; (e) Importers: increase from EC$24 to EC$300; (f) Motorcars licenses inc:reases: Up to 2,100 lbs. from EC$29 to EC$70; From 2,100 lbs. to 3,100 lbs. from EC$33 to EC$120; Over 3,100 lbs. ... to EC$200; Rent-a-car ... to EC$150; Taxis ... to EC$50 (g) Commercial vehicles: Up to 2,100 lbs. ... to EC$120; From 2,100 lbs. to 3,100 lbs. ... to EC$180; From 3,100 lbs. to 6,720 lbs. ... to EC$250; Over 6,720 lbs. ... to EC$300 (h) Club license increase from EC$72 to EC$250; (i) Other license increases: Driver license, motor vehicle registration, change of registration, and vehicle inspection. - 55 - ANNEX C Antigua and Barbuda: Summary of Recent Tax Measures (concluded) Date Tax Measure September 1981 1. Exemption of some CARICOM Agreement Area goods from duty. 2. Introduction of a separate and higher rate of tax for beer and ale from non-CARICOM countries of $12.50 per liquid gallon. The original rate of $2.50 per gallon applies to CARICOM countries. - 56 - ANNEX D Antigua and Barbuda: Tax Summary, December 1981 (All amounts in East Caribbean dollars) Tax Nature of Tax Esanytions and Dedac:tions Rates Taxes on income and profits 1.1 Taxes on income Basis of assessment. The basis EnemyGaas. Official emniumea,ts oif Gaornor Income tax is payable at graduated rates on Law Cap.266 Amended 1980 of assessments is the income of Ceocral, irc-ma (other than that derived chargeable income of nonresident indivi- the previous calendar year for fr-m traide), of lcal a.uthritis, statutory duals and at a flat rate for companies as nonresidents and the accounting bodies, friendly societies, ecclesiastical, follows: year for companies. Wage and chanrtable, and edocation Institutions. salary earners are not subject Also emoluments payable to permanent con- (a) Individuals to income tax. sular nenbErn, armed forces, wound and dis- ability pensions nod gratuities paid tO Income bracket Rate of tax (Z) armed forces, income of the Government Devel- EC$1 - 1,000 From 2-1/2 to 5 opment Bank and Government Savings Bank, and 1,001 - 2,000 7-1/2 to 10 income derived from any allowance to public 2,001 - 4,000 10 to 20 officers, allowances to the Chief Justice of 4,001 - 7,500 25 to 30 the West Indies snd scholarships and other 7,501 - 20,000 35 to 45 educattanat .alloances. Income derived from 20,001 - 30,000 50 co 55 investment.: an Government's Treasury bills Over 30,000 55 and develapyent bonds. (b) Companies 40 Liability to income tax. Non- Deductions include normal operating costs, in- resident individuals are taxed terest, rart of land and industrial building on income from any source with- depreciation, provoun losses not already off- in Antigua. Income tam is set against income, income coming under the levied on the income of any Hotels Aid Ordinace Act 1952, the Fiscal company registered in Astigua lncentives Ordinance 1976. Contributions to and on the income of foreign charitable, religious, education, and scienti- companies which is generated fic institutions. Dividends are taxable in in Antigu-. the shareholder's hands. Assessable income is defined as Personal reliefs. (a) earnings in money or kind lone. from employment; (b) profits from trade; (a) dividends, in- terest, and discounts; (d) pen- sions and annuities; (e) pro- perty income; (f) undistributed profits of a company controlled by no more than S persons may be deemed income of the share- holders and taxes as such pro- viding it could be distributed without detriment to the com- pany's existing business. Sub- sequent distribution of such income is excluded from tax. - 57 - ANNEX D Antigua and Btrbuda: Ta.x S-Imry, December 1981 (Continued) (All .amounts inl East Caribbean dollars) Tax Nature of Tax Exemptions and Deductions Rates 1.2 Tax on interest, rents, Tax on interest paid to nonresi- royalties, premiums and dents is deductible for companies annuities payable to and credited at source against the nonresidents recipients' liabilities for the relevant year of assessment. 1.3 Nonresident withholding Paynents made to a nonresident in None Individual - 20 per cent on account the form of a dividend, interest Companies - 40 per cent on discounts, rental, lease, pre- Any other income - 25 per cent miun on incOme, royalties, manage- ment fees, comission, annuities or any other payment of an income nature are subject to withholding on account. Taxes on Property 2.1 Land and buildings Basis of assessment. Annual Government buildings used for public Houses, from 3 to 10 per cent of assessed Laws: Cap.267. Law 13,15, rental value of house or area of purposes, buildings owned and used by the rental value; for land, less than one 17: amended 1979 land, or any property. Subject University of the West Indies, buildings half acre exempt. For one half acre or to revision every five years. used for religious purposes. more, EC$2 per acre. 2.2 Undeveloped land tax A tax on declared undeveloped None 5 per cent first year, increasing 5 per owned by nonbelongers land. cent each additional year. 2.3 Property transfer tax on A tax on transfers by non- None 5 per cent of the capital gain. nonbelongers. belongers to be paid by the vendors. 2.4 Property transfer tax Paid by means of stamps. -- 2-1/2 per cent paid by purchasers (Part of stamp duty 5 per cent paid by vendor. ordinance) Taxes on Goods and Services 3.1 Consumption tax Consumption tames comprise ad Goods which are exempt fron consumption Representative rates include: Act 11/1980 valorem and specific taxes en taxes under the provisions of Act No. 11 Motor spirits, including bunker, asphalt, goods (mainly consumer durables of December 1980. Articles imported by shale - from $0.03 to $0.67 per liquid and luxuries) payable by the the Government or the British Council, gallon. importer. The same rate is line animals, meats, dairy products, lubricating oils, jet fuels - from $0.02 applicable to locally produced fishery products, cereals, fruits and to $0.22 per liquid gallon. goods (e.g., rum, cigarettes, nuts, cane sugar, vegetables, animal and Beer and ale - $2.50 per liquid gallon. and furniture). There are vegetable oils, fats and greases. Ethyl alcohol, rum, vodka, vinegar - eight schedules of goods. Articles used as building material. 15 per cent. Engi..s for boats in fishing industry. Drapes. wise. vermouths. migarette. - records, tapes, cassettes, toothpaste, 10 per cent. soap, insecticides, and fungicides. Photographic goods, boilers, mechanical appliances, electrical machinery, optical instruments, deaf ids; medical, dental, surgical instruments and furniture; brooms, etc., - 20 per cent. - 58 - ANNEX D Antigua and Barbuda: Tax Summary, December 1981 (Continued) (All amounts in East Caribbean dollars) Tax Nature of Tax Exemptions and Deductions Rates 3.1 Cigars, essential oils, pearls, precious stones, ships, boats, musical instruxents, r.eords, metor vebiolos with engine capa- city of not more than 2,000 cc., clocks, watches - 30 per coot. Video tapes, cassettes, arms, amunitions, caviar, gas water heaters, disc-operated machines for games of skill, vehicles with engine capacity of iore than 2,000 cc.- 50 per cent. All goads not included in any of abose pay 15 per cent. 3.2 Consumption tax on fuel Specific Name EC$0.67 per gallon of motor spirits EC$0.43 per gallon of gas oil, diesel oil EC$0.08 per gallon of kerosene 3.3 Excise duty Levied on locally manufactured Collected only wben excise duty is more EC$1.32 per gallon rum than corsumption tax 3.4 Hotel accommodation tax Paid by hotel proprietor. Hters; from $2.50 per person per night Law 14/62 amended to $10. 3.5 Guest hotel tax Payable by guest on hotel rooms, None 5 per cent Law 14/62 food and drink charges 3.6 Embarkation tax Passengers eb-arking aL an air- Enbrkkatien: $5.00 per person traveling port fnr external flights to ECCM countries; $8.00 per person traveling to outside ECCl countries. 3.7 Travel tax Payable on tickets abroad Antiguar.s under 16 years and diplomats, 10 per cent of cost of ticket. Law 4/78 people traveling to seek medical treat- ment. 3.8 Telecommanications Telephone calls outside Antigua. 25 per cent of cost of telephone call. tax Law 7/74 3.9 Cruise passenger tax Visiting cruise passengers None US$2 per passenger. 3.10 Entertainment tax Sliding scale on price of tickets None 15-35 per cent of cost of ticket. Law Cap. 264 - 59 - ANNEX D Antigua and Barbuda: Tax Su.m.ary, December 1981 (Continued) (All amounts in EasL Caribbean dollars) T'ax Natare of Tax Exemptions and Deductions Rates 3.11 Insurance premium levy Levied am ins .rance policies 3 per cent of value of premium Law 6/77 other than vehicle insurance 3.12 Casino tax $200,000 or 7-1/2 per cent of gross Law 10/63 amended 1969 Casino aperators revs vie, whichever is bigher. Taxes on International Trade 4.1 Taxes on imports Since 1974 Antigua b.s used the Livc -iols, Ilk, maet, fish, eggs, The rates for Commonwealth countries Brussels customs classification. fertilizers, and most agricultural and vary from 5 to 20 per cent. In genoral imports from within industrial machinery. Also, imports The rates for goods imported from non- CARICOM and the ECCM are exempt exempt under industrial incentives legis- Commonwealth countries vary from 10-40 per from duty providing they satisfy lation; and those exempt under Hotel Aids cent. area origin requirements. Imports Ordinance. Diplomatic personnel. There are, however, higher rates on rum entering from outside CARICOM are and firearms; 70 per cent. subject to common external tariff but Antigua and other LDC members of CARICOM have been given until 1983 to adjust their rates to the common rates. Imports from Commonwealth coun- tries have reduced preferential tariffs treatment. 4.2 Import surcharge Levied on goods not subject to None 3 per cent of c.i.f. value. consumption tax 4.3 Export taxes Levied on lobsters, fish, and Lobsters $0.50 per pound cotton. Fish $0.10 per pound Cotton $0.04 per pound. 4.4 Foreign currency levy Tax on sales and purchases of None 1 per cent. Law 10/76 foreign exchange by commercial banks payable by the customers. Other Taxes 5.1 Stamp duties Ad valorem and specific duties Agreements whereof the subject matter is Representative rates Law Cap.270 amended 1977 on a range of specified instru- of the value of $25 or less Subject matter value nents including receipts, certi- $25-200 - $2 ficates, and other legal docu- $201-500 - $5 ments 5501-1,000 - $10 51,001-2,500 - $15 $2,501 and above - $25 Licenses 6.1 Bank license License fee for commercial Antigua Development Bank Antigua Commercial Bank $10,000; banks Savings Bank other conmercial banks $20,000. - 60 - ANNEX D Antigun and Barbuda: Tax Sunmary, December 1981 (Concluded) (All amounts in Efast Caribbean dollars) Tax Nature of Tax Exempti-s and Dedalctions Rates 6.2 Bottle license $1,200 per ye-r. 6.3 Liquor license Licenses to sell liquor None Licenses range from $120 to $200 per yeair depending on the location of the establishment. 6.4 Beer selling None From $15 to $100 depending on location. 6.5 Hotel license None From $2,000 to $6,000 per year depending on number of bedrooms. 6.6 importers None $1,200 per year. 6.7 Tavern, club None $600 to $1,000 per year, depending on location 6.8 Motor cars Depending em car weight None From $50 to $200 Commercial vehicles Depending on car weight None From $120 to $300. 6.9 Other licenses None Drivers licenses $15 to $25. 5.10 Trade licenses Wide variety of wholesale buyers None Wholesale: $500-l,000 depending on location. Law: Cap.273 and retail operations Retail: from$120 to $800 per year depending em location of establishment. $60 for Barbuda. Fees 7.1 Passport fees None $20. 7.2 Citisenship None CARICOM members $300. NRomembers $l,OO0. 7.3 Motor vehicle fees None Motorcycle $30; motorcycle with sidecar $35; automobiles of less than 2,100 lbs. $70; automobiles of more than 2,100 lbs. and less than 3,100 lbs. $120; more than 3,100 lbs. $200. Taxis $50; self-drive $150. 7.4 Other fees None Driver examination $15; motor vehicle registration, police reports, visitors' permit to drive $30; registration of change of ownership $10; duplicate license, examination of vehicles $10. - 61 - ANTIGUA AND BARBUDA GOVERNMENT'S PROJECT LIST 1. This annex contains a list of major ongoing projects, a list of projects for which external finance will be sought during the period 1982-1985 and individual project descriptions. Each list contains the name of the project, the executing agency, the lender/donor if any, the total cost, the external financing obtained or required and the counterpart contribution required. The individual profiles contain additional information which should be of interest to potential donoes or lenders, including technical assistance requirements and the present status of the project. 2. Data for these projects, which will be presented to the meeting of the Caribbean Group for Cooperation in Economic Development scheduled for June 15-18, 1982, were provided by the Government of Antigua and Barbuda or estimated by the mission to the country during January 1982. - 62 - ANTIGUA AND BARBUDA: MAJOR ON-GOING PROJECTS AND SOURCES OF FINANCING (US$'000) External Amortization Grace Total Financing Interest Period Period Counterpart Financing Cost Secured Source (Y) (years) (years) Amount 2 Directly Productive Projects Sugarcane Project 7417 5785 CDB 4 15 5 1632 22 Fisheries Development 5278 4767 CDB 4 15 5 329 9 Farm Improvement Credit II 190 190 CDB 4 15 5 - - Agricultural Production Credit 192 192 CDB 4 15 5 - - Global Line of Credit 800 800 CDB 4 15 5 Handicraft Center 180 180 USAID Grant - - Small Indastry Credit II 215 215 CDB 4 15 5 Small Business Development 104 104 CIDA Grant - - - - Electricity Generating Equipment 800 7840 T&T/ 1.5/8 8,9 - 160 2 Commercial above LIBDR, 7.3/4 Water Distribution System II 3700 3700 T&T 2 Deep Bay Condominium Development I 9000 8100 Commercial 900 10 Water Project-Fort Jamds, Runway Bay, Jolly Beach 559 559 IUK Grant - - - - Creekside Dam 3556 3556 EDF Grant - - - - Airport Project 8873 8873 UK, CIDA Grant -- Economic Infrastructure Potswork Water Distribution 2001 2001 UK Grant Wind Power Project 302 272 USAID Grant Drainage of Skerrets Pasture 90 90 USAID Grant Drainage of Grays' Farm 210 200 USAID Grant Drainage of Cassada Gardens 200 200 USAID Grant - Other Projects Hotel Training School 407 370 UNDP Grant - - 37 9 Metering for Government Buildings 47 47 UK Grant - - PWD Equipment 5500 5500 UK Grant -- Third Country Training III 836 836 CIDA Grant - - Middle Income Housing 1000 1000 CDB 4 15 5 Student Loans I & II 359 359 CDB 4 15 5 Extension to St. Johns All Age School 200 200 USAID Grant -- - New Otto Primary School 300 300 USAID Grant -- Urlings School and Furniture 1290 1290 UK Grant -- School Maintenance 75 75 USAID Grant Mission Administered Funds 554 554 CIDA Grant -- - 63 - ANTIGUA AND BARBUDA: MAJOR NEW PROJECTS AND SOURCES OF FINANCING (US$' 000) Estimated Total Financing Counterpart Financing Cost Required Source Amount % Directly Productive Projects Beef Production Project 3,700 3,330 Possibly CIDA 370 10 Corn and Sorghum Project 3,000 2,400 Possibly CIDA 600 20 Communal Grazing II 185 180 Unknown 20 10 Body Ponds Farming Unit 600 420 CDB, Unknown 180 30 Mini Dams Project 500 500 UK - - Fence Post Production 300 150 Unknown 150 50 Agricultural Testing Laboratory 40 40 Unknown - - On-farm Watering Scheme 110 88 Unknown 22 20 Orange Valley Pineapple Scheme III 400 360 CDB 40 10 Industrial Estates III 4,000 2,800 CDB 1,200 30 Clay Bricks and Tile Production 1,500 1,050 CDB 450 30 Agro-processing 100 100 Unknown - - Chemical Lime Factory 2,500 1,750 CDB, Unknown 750 30 Airport Runway Overlay 1,850 1,517 CDB 333 18 Airport Navigation Equipment 650 585 Unknown 65 10 Holiday Village Complex 18,000 16,200 Unknown 1,800 10 Dry Hill Hotel 38,400 34,560 Commercial Bank 3,840 10 Deep Bay Hotel 40,000 36,000 Unknown 4,000 10 Deep Bay Condominium Development 80,000 72,000 Commercial Bank 8,000 10 Ffryes Hill Hotel 18,000 16,200 Unknown 1,800 10 Fort James Hotel & Leisure Centre 15,000 13,500 Unknown 1,500 10 Electricity Distribution-Upgrading 1,862 1,562 CDB 300 16 Creekside Treatment Plant 2,556 3,556 UK - - Economic Infrastructure Rehabilitation of Industrial Development Beard 500 400 Unkno.. 100 20 Old Road/Falmouth Road Project 1,970 1,920 UR - - Main Road Rehabilitation 3,700 3,330 Unknown 370 10 Radar Cables-Meteorological Station 111 111 Unknown - - Telephone Expansion II 2,037 2,037 CIDA Microwave Link 21 21 CIDA - - Groundwater Development Project 852 750 UNDP,UK,CIDA 102 12 Port Cargo Handling Equipment /7-8 l/ Possibly CmDA - - Deep Water Harbor Expansion 26,600 26,600 Commercial Bank - - Water Distribution II 1,185 1,185 Unknown - - Miscellaneous Equipment for Water and Sewerage 370 370 Unknown - - Water Pipelines Replacement 15,000 13,500 Unknown 1,500 10 Rehabilitation of Municipal Wells 280 196 Unknown 84 30 Pargan /biister Station 260 260 Unknown - - Management and Maintenance Unit 555 444 Unknown il 20 Other Low Cost Housing - Barbuda 1,481 889 Unknown 592 40 Secondary School - Bolans 740 592 Unknown 148 20 Infant School - St. John's 2.2 170 Unknown 42 20 Vocational School - All Saints 741 593 Unknown 148 20 School Bus (8) 150 150 Unknown - - All Age Primary School - St.John's 425 345 Unknown 85 20 Library/Museum/Archives - St. John's 370 296 Unknown 74 20 Expansion of Engineers Department - State College 200 140 Unknown 60 30 Equipment for Laboratories - State College 150 150 Unknown - - Refurbishing of Existing Schools 370 148 Unknown 222 60 Community Centers 100 80 Unknown 20 20 Miscellaneous Equipment for Water & Sewerage 370 370 Unknown - - St. John's Water-Borne Sewerage System 10,000 9,000 Unknown 1,000 10 Mental Hospital - Improvement 38 38 Unknown - - Holberten Hospital - Improvement 1,591 1,273 Unknown 318 20 Fiennes Institute 38 38 Unknown - - Central Board of Health - Equipment 355 355 Unknown Transport - Medical Division 167 167 Unknown - - Barbuda Development 3,400 2,380 CDB 1,020 30 Construction of Government Offices 1,680 1,344 Unknown 336 20 Construction of Public Works Warehouse 370 296 Unknown 74 20 Fire Stations - Construction 260 208 Unknown 52 20 New Prison - Construction 740 592 Unknown 148 20 Fire Service - Cooledge 260 208 Unknown 52 20 Patrol Boats 150 150 Unknown - - Page 1 of 10 ANTIGUA - ON-GOING AND REQUESTED TECHNICAL ASSISTANCE ON-GOING MINISTRY ' tG3NCY START FINISH. COST % US 70,000 -er perscn per vear) (t) Foreign Affairs, Economic Head of Plan-ning UN ?3 3/82 % US 253,-3133 Develonment, Tourism I Energy. Head oZ Hotel UN 8/79 6/82 / US 193,332.2C Training School Food Preparation UN 3/81 a/82 $ US 7C,000.00 Snecialist Housa7eener UN ii/3i 2/ 2 2 US 23,333.20 C u -:-. icatior.s CFTC 6/73 12/01 $ US 244,993.60 Consultant Tourism Adviser UN, CTRC 0/8O 11/3i $ US `7,L49950 CFTC General 14anager BDD to/Q0 10/312 US lk4O00COO TOTAL $ US 1,,01k,995.L Page 2 of 10 ANTIGUA - ON-GOING AND REQUESTED TECHNICAL ASSISTANCE ON-GOING MliUISTRY POST AGENCY STP.RT FINISH COST S. Finance Inland Revenue Inland Revenue BD.D.O 4/78 4/3^ / Us 350,000 Department Advisa- Antigua Pub.lic Utilities Authnoity Cl e; Elactri- CFTC 17'/7> us2/82 / US , cal Zn.ineer Cnief h.ccountant FTC 11/7is 12/31 % US '15,63-2 I aec-. ical nsI 0 1, CFa C 6/30 6/32 $ US 140,00o Uater- Iesources UN t2/? 12/81 / US 280,000 _nginecr TOTAL $ US 1,265,3Q.3 3. lt Dieticiar ?aace Corns , Years $ US 140,000 Pro'oct Hope Private 5/30 5/Cl $ US 00,000 Foun-dations TOTAJ, us 3.00,000 Page 3 of 10 ANTIGUA - ON-GOING AND REQUESTED TECHNICAL ASSISTANCE ON-GOING MINISTRY POST AGL2NCY START FINIS! COST 40 ~Education, Sports and Pre-School Co- UNICEF 9/GC 9/AG3 $ US 210,000 Culture Ordinator S&imll Business Peac:i 9/i9 3 $ US 140,002 dvi ser/Co niomiity CGr' 2S Develcpr '- Officer Science Adv1ser Da9/ 9/23D US 15G,OOG Head oi En.inner- i.- at Anuig a B.D.Do 7D/7Ti 7/ % us 630, Ow College Lecturor, Enzgi-:.cer- ing De't. kntigua BoDo3a 10/73 US 6'2,!9S`.5 State College 14 Teachers in thc areap of Toechn4cal, Peace Theso Peace Corns Re,medial and HaVl2d- Cor's are usually hare $u lTh,eoo- ca9,. 'nChing on 2 two year assigruient I Librariar. at t-i-c Un:vors4tv $ US 70,000 Centre TOT, L $, US 1 99 Page 4 of 10 ANTIGUA - ON-GOING AND REQUESTED TECHNICAL ASSISTANCE ON-GOING M1IStII3V' F0OT iGENCY STlRT FINSI C02ST 5 Ak5ricuit-ure, 'rc's ne Irrigation Peae Duration of 2 Ycrs $ 'JS 140 us Fisherics S.,ciaist Corns i^.gricuu-.^.3t P.C. P US 1.C 00C Livcstoc" Erten- T.C. Duration e-f 2 yearz $ US 1l4.0,00O s4on Oficer c.-sP.C. i.-'30 - 193. $ )US 140,000 3o-r22 caec P.C. $ uS 140, cco ro n-omd st ,: - r t inr Goat CFTC. -- & dee7s curat:ion / US 2,,749n95 and S:l--2g 2-ner'c a Sin - CFTC - 6 t!aC3s durat-ic $ US i749,95 TOTi $ US 717,499.0 6. LogaI .ACf-irs Lcga7 D:^rn'ts3s 0BD.D. 197' 1935 / US 350,000 TOTAL % US 350,000 Page 5 of 10 ANTIGUA - ON-GOING AND REQUESTED TECHNICAL ASSISTANCE ON-GOING 1N"OS3T A,GENCY START FINISH COST 7. LtboI.r, Mou.n& & i-a'ioIrc:" ?linnar ILO 7/80 9/3? % Us 15l,6S6.67 Coo.-pr3t i-,rz icta' Costs c; On--oincn Tcchnic:2 Azi-t.ncc Po-rcmnc -. fr US e ,2,iY&Jo 00 I Page 6 of 10 ANTIGUA - ON-GOING AND REQUESTED TECHNICAL ASSISTANCE REQUESTED 2,iNISTNA' POST PERIOD COST(US% 70,000 per person per year) 1. Foreign Affairs, Economic (1) Front Desk Personal 1/82 - 6/82 US $ 35,000 Development, Tourism & Energy (2) Financial Analyst 1/82 - 6/82 US $ 35,000 (3) Engineer 1/82 - 6/82 US $ 35,000 (4) Agronomist 1/32 - 6/82 US $ 35,000 (5) Small Business 1/82. - 6/82 US $ 35,000 Adviser (6) Tourism Co-ordinator i/32 - 12/82 US $ 35,000 2. Antigua Public Utilities (1) Mechanical Zngineer 1/82 - 1/84 US 0 140,000 Authority (2) Electrical Engineer l/82 - 1/8$ US $ 140,000 3. Local Government, Consumer (1) Local Government 1/82 - 1/84 US $ 140,000 Affairs Adviser (2) Standards Adviser 1/82 - 1/84 US $ 140,000 (3) Adviser on Consumer- 1/82 - 1/84 US $ 140,000 si.on Page 7 of 10 REQUESTED ANTIGUA - ON-GOING AND REQUESTED TECHNICAL ASSISTANCE MINISTRY POST PERIOD COST(US% 70,000 per.person per year) 4. Public 'Works & Communicatioi (1) Director of Public 1/82 - 1/84 Us $ 140,000 Wforics (2) Architect 1/82 - 1/84 US $ 140,000 (3) Road Engineer 1/32 - 1/84 US $ 140,000 (4) Civil Engineer 1/82 - 1/84 US $ 140,000 (5) Structural 1/82 - 1/84 US % 140,000 Engineer 5. Legal Affairs (1) Legal Draftsman 1/32 - 1/85 US $ 210,000 (2) Court end General 1/32 - 1/85 US $ 210,0c00 Stenographers (3) Micro-fil:_ Erpert 1/82 - 1/85 US $ 210,000 6. Ministry of Labour, (;) To-wn & Countr"y 1/82 - 1/34 us X 140,000 Co-operatives & Planner Housing (2) Adviser at State 1/32 - 1/34 US $ 140,000 Insurence (3) Co-operatives Adviser 1/82 - 1/84 US X 140,000 ANTIGUA - ON-GOING AND REQUESTED TECIHNICAL ASSISTANCE Page 8 of 10 REQUESTED MINISTRY POST PzEROD COSTWUSO 70,000 per person per year) Labour Actuary 1/82 - 1/84 US 5 140,000 Manpower Planner 1/82 - 1/84 US $ 140,000 Agriculture, Lands & (1) Two Mechanical t/32 - 6/82 Us X 140,000 Fisheries Engineers (2) Sugar Technologist 1/32 - 4/82 US $ 24,ooo (3) Sugar Cane hgrono- 1/32 - 4/82 US $ 35,000 mist (4) General Agronomist 1/82 - i/84 US 5 140,000 (5) Forestry Adviser 1/32 - 6/82 US $ 35,000 (6) Tree Crops Specialist l/82 - 1/84 US $ 140,000 (7) Fisheries Technologist 1/82 - 1/84 us $ 140,000 (8) Fisheries Managewent 1/82 - 1/84 Us $ 140,000 Specialist (9) Cotton Specialist 1/82 - 1/84 US $ 140,000 (10) Animal Nutritionist 1/32 - 1/84 Us 5 140,000 Page 9 of 10 REQUESTED ANTIGUA - ON-GOING AND REQUESTED TECHNICAL ASSISTANCE MINISTRY POST PERIOD COST(US$ 70,000 per person per year) Agriculture (ll) Soil Conservationist 1/82 - 1/&4 Us $ 140,000 (12) Enthoiiologist 1/82 - l/34 Us $ 140,000 (13) Veterinary Officer 1/82 - 1/84 Us $ 140,000 Finance (1) Census Officer 1/82 - 1/83 US $ 70,000 (2) Senior Statistrician 1/32 - 1/34 US $ 140,000 (3) Inland: Revenue 1/82 - 1/34 Us $ 140,000 (4) Off-shore Banking l/32 - 1/34 Us $ 140,000 Legislator Health. (1) Medical Officer of 1/32 - 1/84 Us $ 140,000 Health (2) Health Legislator 1/82 - 1/84 US $ 140,000 (3) Pharmaist 1/82 - 1/84 Us $ 140,000 Page 10 of 10 ANTIGUA - ON-GOING AND REQUESTED TECHNICAL ASSISTANCE REQUESTED MINISTRY POST PERIOD COST(US$ 70,000 -u;er person per year) 10. Education, Sports : Culture (>) Agricultural Science 9/82 - 9/34 US $ 280,000 Teachers (2) (2) Adult Education o/82 - 9/84 US $ 70,000 Co- ordinat or (3) Technical/Craft 9/o2 - 9/33 US % 70,000 Instr-_cctors (4) Cron - Science 9/e82 - 9/33 US $ 70,000 Progranm.. Co- ordinator TOTAL COST OF FUTURE TECHNICAL ASSISTANCE REQUIREIENTS $5,593,000 - 74 - ANTIGUA 1982/85 Project List - IndiviLdual Project Description Agriculture (US$'00() I. NAME OF PROJECT: Beef Production Project II. EXECUTING GOVERNMENT AGENCY: Mlinistry of Agriculture and Supply III. TOTAL ESTIMATED COST: US$3,700 IV. EXTERNAL FINANCING REQUIRED: US$3,330 V. LENDING AGENCY: Possibly CIDA VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project consists of producing local grains for cattle feed, fencing-off farm area to con- tain the herds, constructing silos, controlling parasites, artificially inseminating to upgrade the herds, and building of slaughter facilities and an abbatoir with chilling facilities, storage, and stand-by generator. B. Justification: The project will lessen the dependency of the tourism se!ctor from meat imports. VII. COST COMPONENTS AND FINANCING: Financed by _ Total Local External Sources Sources Amount % Local Costs 370 1,665 2,035 55 Foreign Costs - 1,665 1,665 45 Total Costs - Amount 370 3,330 3,700 - % 10 90 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - 204 93 73 370 - External Sources - 1,833 833 664 3,330 - Total - 2,037 926 737 3,700 - - 75 - IX. STATUS OF PREPARATION: CIDA requested a copy of the ECCM study on beef production. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: Not determined. Debt Obligations: Not determined. XI. TECHNICAL ASSISTANCE REQUIRED: Master Butcher. - 76 - ANT EGUA 1982/85 Project List - Individual Project Description Agriculture (US $'000) I. NAME OF PROJECT: Corn and Sorghum Project II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture and Supply III. TOTAL ESTIMATED COST: US$3,000 IV. EXTERNAL FINANCING REQUIRED: US$2,400 V. LENDING AGENCY: CIDA VI. DESCRIPTION AND JUSTIFICATION: A. Description: To establish a 5,000-acre corn/sorghum unit. B. Justification: The project would supply corn and grain sorghum for both domestic and export uses. It would broaden the agricultural base in Antigua and enhance local food supply as well as furnish feedstuff for livestock and poultry products. VII. COST COMPONENTS AND FINANCINIG: Financed by Total Local External Sources Sources Amount % Local Costs 600 600 1,200 40 Foreign Costs - 1,800 1,800 60 Total Costs - Amount 600 2,400 3,000 - % 20 80 100 VIII. DISBURSEMENT PERIOD: Post 1.982 1983 1984 1985 Total 1985 Local Sources - 74 74 74 222 378 External Sources - 296 296 296 888 1,512 Total - 370 370 370 1,110 1,890 - 77 - IX. STATUS OF PREPARATION: Project was ongoing until mid 1979 when it was discontinued. CIDA had expressed its interests. It had requested for the FAO report on corn/sorghum production. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: Potentially self-liquidating. Debt Obligations: Not determined. XI. TECHNICAL ASSISTANCE REQUIRED: Trinidad and Tobago has been approached for technical and financial assistance. -- 78 - ANTIGUA 1982/85 Project List - I]ndividual Project Description Agriculture (U',$'000) I. NAME OF PROJECT: Body PorLds Farming Unit II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture and Supply III. TOTAL ESTIMATED COST: US$600 IV. EXTERNAL FINANCING REQUIRED: US$420 V. LENDING AGENCY: CDB VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project involves the establishment of 24 ten-acre viable farming units, with one demonstration farm. Each farming unit will undertake short term vegetable and tree crop production. B. Justification: To create a core of fulltime farmers and to diversify agricultural piroduction. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 180 336 516 86 Foreign Costs - 84 84 14 Total Costs - Amount 180 420 600 -% 30 70 100 VIII. DISBURSEMENT PERIOD: Post 1932 1983 1984 1985 Total 1985 Local Sources - - 37 37 74 148 External Sources - 37 37 74 149 Total - - 74 74 148 297 - 79 - IX. STATUS OF PREPARATION: CDB had been approached. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: Project Manager. 80 - ANT IGUA 1982/85 Project List - Individual Project Description Agriculture (US' '-000) I. NAME OF PROJECT: Orange Valley Pineapple Phase II II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture and Supply III. TOTAL E.S'T[ :l'ED COST: US$400 IV. EXTERNAL FINANCING REQUIRED: US$360 V. LENDING AGENCY: CDB VI. DESCRIPTION AND JUSTIFICAT]:ON: A. Description: The project will settle 30 farmers with the aim of establishing 155 acres of pineapple by 1983. It includes the establishment of a demonstration unit in pineapple production, planting of 70 acres of fruit trees on marginal lands and a machinery pool. B. Justification: The Antigua variety of pineapple has excellent possibilities for export. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount x Local Costs 40 320 360 90 Foreign Costs - 40 - 10 Total Costs - Amount 40 360 400 - % 10 90 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources 4 11 15 10 40 - External Sources 33 100 133 94 360 - Total 37 111 148 104 400 - - 81 - IX. STATUS OF PREPARATION: CDB is to approve this loan. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: Soil and water conservation special- ists are required for project implementation. Peace Corps specialist is providing assistance in the implementation of Phase I. - 8.2 - ANTIGUA 1982/85 Project List - Individual Project Description Agriculture (US$'000) I. NAME OF PROJECT: Fence Post Production II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture and Supply III. TOTAL ESTIMATED COST: US$300 IV. EXTERNAL FINANCING REQUIRED: US$150 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project will establish 200 acres of forest plantation over a period of 5 years in the Don Hill/Picadilly area for the production of fence posts. B. Justification: The pro,ject will substitute importation of fence posts, permitting cost savirLgs in pasture improvement programs. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 150 45 195 65 Foreign Costs - -105 104 35 Total Costs - Amount 150 150 300 -% 50 50 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - 37 37 37 111 39 External Sources - 37 37 37 111 39 Total - 74 74 74 222 78 - 83 - IX. STATUS OF PREPARATION: Preliminary costings have been made. BDD had been approached. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1980/84. Debt Obligations: Not determined. X1. TECHNICAL ASSISTANCE REQUIRED: A forestry expert will be needed for project implementation. - 84 - ANT'CGUA 1982/85 Prolect List - Individual Project Description Agriculture (US$'000) I. NAME OF PROJECT: Communal Grazing Phase II II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture and Supply III. TOTAL ESTIMATED COST: US$185 IV. EXTERNAL FINANCING REQUIRED: US$148 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project is intended to provide controlled areas for grazing where herds are located on fenced ranges of improved pasture and provided with water supply. B. Justification: As a result, there would be greater control of the quality of the herd and control of parasites and diseases. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 37 111 148 80 Foreign Costs - 37 37 20 Total Costs - Amount 37 148 185 - % 10 90 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources 15 15 7 - 37 - External Sources 59 59 30 - 148 - Total 74 74 37 - 185 - - 85 - IX. STATUS OF PREPARATION: As a result of an evaluation of Phase I, new charges have been approved by Government. UK has been approached for continuation of funding. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: Project to be self-liquidating. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: Technical assistance is required for project implementation. Regional livestock advisor is providing technical assistance in the implementation of Phase I. - 86 -- ANTIGUA 1982/85 Project List - Individual Project Description Agriculture (US$'OOCI) I. NAME OF PROJECT: Mini Dam Project II. EXECUTING GOVERNMENT AGENCY: Ministry of Agriculture and Supply III. TOTAL ESTIMATED COST: US$500 IV. EXTERNAL FINANCING REQUIRED: US$500 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project involves the purchase of medium-sized track layers and auxillary equipment, to be operated by a special unit within the ministry, to construct mini earthen dams for purpose of enabling irrigation and stock watering facilities to be developed. It is expected to construct 60 dams over 5 years to provide irrigation water for 100 farmers. B. Justification: The project would improve water availability, thus offsetting the loss to agricultural production caused by seasonal drought. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 250 250 50 Foreign Costs 250 250 50 Total Costs - Amount 500 500 - % 100 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - - - - - - External Sources 185 185 130 - 555 - Total 185 185 130 - 555 - - 87 - IX. STATUS OF PREPARATION: UK has been approached, and list of required equipment had been submitted. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1980/84. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: BDD is providing technical assistance. - 88 - ANTIGUA 1982/85 Project List - Individual Project Description Industry (US$s'000) I. NAME OF PROJECT: Industrial Estates III II. EXECUTING GOVERNMENT AGENCY: Antigua-Barbuda Development Bank, Ministry of Economic Development and Tourism III. TOTAL ESTIMATED COST: US$4,000 IV. EXTERNAL FINANCING REQUIRED: US$2,800 V. LENDING AGENCY: Possibly CDB VI. DESCRIPTION AND JUSTIFICATION: A. Description: Construct:ion of 200,000 square feet of factory shells. B. Justification: To promote industrial enterprise and generate employment both directly and indirectly. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 1,200 800 2,000 50 Foreign Costs - 2,000 2,000 50 Total Costs - Amount 1,200 2,800 4,000 -% 30 60 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - - 167 166 333 867 External Sources - - 333 334 667 2,133 Total - - 500 500 1,000 3,000 - 89 - IX. STATUS OF PREPARATION: CDB had been approached. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: None during 1980/83. XI. TECHNICAL ASSISTANCE REQUIRED: None. - 90 - ANTIGUA 1982/85 Project List - Individual Project Description Industry (US$'000) I. NAME OF PROJECT: Chemical Lime Factory II. EXECUTING GOVERNMENT AGENCY: Ministry of Economic Development and Tourism III. TOTAL ESTIMATED COST: US$2,500 IV. EXTERNAL FINANCING REQUIRED: US$1,750 V. LENDING AGENCY: CDB, Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: Establishment of a chemica:L lime industry producing high quality burnt lime at a rate of 5,000 metric tons per year. B. Justification: Lime can possibly be used with pumice to produce a cement mixture which is important in the construction industry. VII. COST COMPONENTS AND FINANCING: Financed by Total Local Externa:L Sources Sources Amount % Local Costs 750 250 1,000 40 Foreign Costs - 1,500 1,500 60 Total Costs - Amount 750 1,750 2,500 -% 30 70 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - - - 67 67 683 External Sources - - 155 155 1,595 Total - - - 222 222 2,278 - 91 - IX. STATUS OF PREPARATION: This project requires further examination. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None XI. TECHNICAL ASSISTANCE REQUIRED: Yes - 92, - ANTIGUA 1982/85 Project List - IndiLvidual Project Description Industry (US$"000) I. NAME OF PROJECT: Clay Bricks and Tile Production II. EXECUTING GOVERNMENT AGENCY: Ministry of Economic Development and Tourism III. TOTAL ESTIMATED COST: US$1,500 IV. EXTERNAL FINANCING REQUIRED: US$1,050 V. LENDING AGENCY: CDB VI. DESCRIPTION AND JUSTIFICATION: A. Description: Establishment and construction of a clay brick floor, wall and roof tile plant. Clay material has been found in sizeable quantities in Jolly Hill Salt Pond and Blubber Bay open pit. B. Justification: The abovre materials can be a substitute to the imported construction materials. VII. COST COMPONENTS AND FINANCIN(,: Financed by Total Local External Sources Sources Amount % Local Costs 450 300 750 50 Foreign Costs - 750 750 50 Total Costs - Amount 450 1,050 1,500 - % 30 70 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - - - 150 150 300 External Sources - - 148 150 298 752 Total - - 148 300 448 1,052 - 93 - IX. STATUS OF PREPARATION: The project needs further study. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1982-85. XI. TECHNICAL ASSISTANCE REQUIRED: All phases of the project. - 94 - ANT IUA 1982/85 Project List - Individual Project Description Indus try (US$"000) I. NAME OF PROJECT: Rehabilitation of Industrial Development Board II. EXECUTING GOVERNMENT AGENCY:: Industrial Development Board III. TOTAL ESTIMATED COST: US$50)0 IV. EXTERNAL FINANCING REQUIRED: US$400 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: Rehabilitation of IDB's Edible Oil Factory VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 100 - 100 20 Foreign Costs - 400 400 80 Total Costs - Amount 100 400 500 - % 20 80 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - 52 48 - 100 - External Sources - 207 193 - 400 - Total - 259 241 - 500 - - 95 - IX. STATUS OF PREPARATION: Concept has been identified X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1982-85 XI. TECHNICAL ASSISTANCE REQUIRED: Yes - 96 - ANTIGUA 1982/85 ProJect List - Individual Project DescrLption Transportation (US$'000) I. NAME OF PROJECT: Airport Runway Overlay II. EXECUTING GOVERNMENT AGENCY: Ministry of Public Works, Communications and Public Utilities III. TOTAL ESTIMATED COST: US$1,850 IV. EXTERNAL FINANCING REQUIRED: US$1,517 V. LENDING AGENCY: CDB VI. DESCRIPTION AND JUSTIFICATION: A. Description: The main, runway at Coolidge Airport is in urgent need of an overlay due to severe stress cracking thought to be caused by a combination of heavy use, excess stress, oxidation, dry climate, materials used, and the recent earthquake. The project would put a 4-inch overlay in the runway center, taper off to the sidies of the existing paved areas, and pave an additional 1,500 ft. at the approach end for a total of 8,000 ft. of asphalt concrete. B. Justification: The present state of the runway poses safety hazards particularly during the tourist season when 747s arrive at the airport regularly. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 333 407 740 40 Foreign Costs - 1,110 1,110 60 Total Costs - Amount - 1,517 1,850 - % 18 82 100 - 97 - VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources 37 222 74 - 333 - External Sources 148 889 480 - 1,517 - Total 185 1,111 554 - 1,850 IX. STATUS OF PREPARATION: Project had been identified. CIDA and CDB have been approached for funding and technical assistance in preparation. X. PROJECT IMPLICATIONS: 1983 1984 Operating and Maintenance Costs: 15 16 Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: Technical assistance is required to advise on paving. - 98 - ANTIGU.A 1982/85 ProJect List - Individual Project Description Transportation (US$'000) I. NAME OF PROJECT: Airport Navigation Equipment II. EXECUTING GOVERNMENT AGENCY: Ministry of Public Works, Communications, and Public Utilities III. TOTAL ESTIMATED COST: US$650 IV. EXTERNAL FINANCING REQUIRED: US$585 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project consists of the piurchase and installation of new VOR-DME equipment to replace the existing decrepit equipment; new ILS/MLS equipment; and paving a narrow road for access to VOR and radar site. B. Justification: New navigational equipment is necessary to avoid increased safety hazards given the high volume of jet traffic and to comply with international regulations. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External 'Sources Sources Amount % Local Costs 65 - 65 10 Foreign Costs - 585 585 90 Total Costs - Amount 65 585 650 -% 10 90 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources 33 32 - - 65 - External Sources 292 293 - - 585 - Total 325 325 - - 650 - - 99 - IX. STATUS OF PREPARATION: Project had been identified. 1X. PROJECT IMPLICATIONS: 1982 1983 Operating and Maintenance Costs: 13 15 Debt Obligations: Not determined. XI. TECHNICAL ASSISTANCE REQUIRED: Technical assistance is required for project preparation. - 100 - ANTIGUA 1982/85 Project List - Individual Project Description Power (US$' 000) I. NAME OF PROJECT: Electricit:y Distribution Upgrading II. EXECUTING GOVERNMENT AGENCY: Antigua Public Utilities Authority III. TOTAL ESTIMATED COST: US$1,862 IV. EXTERNAL FINANCING REQUIRED: US$1,562 V. LENDING AGENCY: CDB VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project would improve the electrical distribution system by the provision of new higher voltage feeders, voltage regulation, switching and power factor correction. B. Justification: Self-explanatory. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 300 - 300 16 Foreign Costs - 1,562 1,562 84 Total Costs - Amount 300 - 1,862 - % 16 84 100 VIII. DISBURSEMENT PERIOD: Post [1982 1983 1984 1985 Total 1985 Local Sources 150 150 - - 300 - External Sources 1,562 - - - 1,562 - Total 1,712 150 - - 1,862 - - 101 - IX. STATUS OF PREPARATION: Project had been identified by a CFTC team. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: Not determined. XI. TECHNICAL ASSISTANCE REQUIRED: Technical assistance is required at all stages of the project. - 102 -- ANTIGIJA 1982/85 Project List - Individual Project Description Water Supply and Sewerage (US $'O0(O) I. NAME OF PROJECT: Creekside Treatment Plant II. EXECUTING GOVERNMENT AGENCY: Antigua Public Utilities Authority III. TOTAL ESTIMATED COST: US$3,556 a/ IV. EXTERNAL FINANCING REQUIRED: US$3,556 a/ V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project consists of construction of a dam in West Center of Antigua for the purpose of supplying drinking water. The second phase entails construction of a treatment plant plus piping for additional water supply. B. Justification: The project will supplement the domestic water supply and greatly benefit irrigation. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs Foreign Costs - 3,556 3,556 100 Total Costs - Amount - 3,556 3,556 -% 100 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - - - - - - External Sources 1,778 1,778 - - 3,556 Total 1,778 1,778 - - 3,556 a/ Total cost of project, Phase I and II, is now estimated at US$7.7 million, including US$1.8 million for purchase of land. Cost of Phase II is likely to be much higher than indicated above. - 103 - IX. STATUS OF PREPARATION: Actual implementation of Phase I had been delayed due to change in specifications. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. XI. TECHNICAL ASSISTANCE REQUIRED: EDF is providing the required technical assistance. -104 - ANTIGIA 1982/85 Prolect List - Individual Pro_ject Description Transporl:ation (US$'O()O) I. NAME OF PROJECT: Old Road to Falmouth Road II. EXECUTING GOVERNMENT AGENCY: Ministry of Public W'orks, Communications and Public Utilities III. TOTAL ESTIMATED COST: US$1,920 IV. EXTERNAL FINANCING REQUIRED: US$1,920 V. LENDING AGENCY: UK VI. DESCRIPTION AND JUSTIFICATION.: A. Description: The project involves construction of a four-mile road which will be closer to the sea and more direct than the existing road between Old Road and Falmouth. B. Justification: The project aims to revitalize the cotton industry in the area. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 768 768 40 Foreign Costs - 1,152 1,152 60 Total Costs - Amount - 1,920 1,920 -% 100 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - - - - - External Sources 430 480 480 480 1,920 Total 480 480 480 480 1,920 - 105 - IX. STATUS OF PREPARATION: The engineering feasibility study has been completed. BDD had been approached for funding. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1980/84. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: An engineer and technician will be required for technical assistance if the project is implemented by force account. - 106 - ANTIGUA 1982/85 Project List - Individual Project Description Transport.ation (US$'0C0) I. NAME OF PROJECT: Main Road Rehabilitation II. EXECUTING GOVERNMENT AGENCY: Ministry of Public Works, Communications and Public Utilities III. TOTAL ESTIMATED COST: US$3,700 IV. EXTERNAL FINANCING REQUIRED: US$3,330 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project consists of resurfacing of 45 miles of roads. B. Justification: To prevent deterioration of roads and to improve surface and drainage. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 370 1,115 1,485 40 Foreign Costs - 2,215 2,215 60 Total Costs - Amount 370 3,330 3,700 -Yz 10 90 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - 11 37 74 122 248 External Sources - 100 333 667 1,100 2,230 Total - 111 370 741 1,222 2,478 - 107 - IX. STATUS OF PREPARATION: Priority roads have been identified. Roads have deteriorated substantially since project was identified. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1980/84. Debt Obligations: Not determined. XI. TECHNICAL ASSISTANCE REQUIRED: A road engineer/project manager is required for project implementation. - 108 - ANTIGUJA 1982/85 Project List - Individual Project Description Porit (US$'000) I. NAME OF PROJECT: Deep Water Harbour Expansion II. EXECUTING GOVERNMENT AGENCY: Antigua Deep Water Port III. TOTAL ESTIMATED COST: US$26,600 IV. EXTERNAL FINANCING REQUIRED: US$26,600 V. LENDING AGENCY: Commercial Bank VI. DESCRIPTION AND JUSTIFICATION: 1. Description: Expansion of the existing deep water harbour. 2. Justification: To cope w:Lth the increasing cruise ship arrivals ,and for export and import of goods. VII. COST COMPONENTS AND FINANCING: -Financed by Total Local External Sources Sources Amount % Local Costs - - - Foreign Costs - 26,600 26,600 100 Total Costs - Amount - 26,600 26,600 -% - 100 100 VIII. DISBURSEMENT PERIOD: Post 19B2 1983 1984 1985 Total 1985 Local Sources - - - - - External Sources 1,330 7,980 7,980 310 26,600 - Total 1,330 7,980 7,980 9,310 26,600 - - 109 - IX. STATUS OF PREPARATION: A feasibility study by Stanley Concultants is available. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1982-85. Xl.. TECHNICAL ASSISTANCE REQUIRED: None. - 110 - ANTIGUA 1982/85 Project List - Individual Project Description Communication (US$'000) I. NAME OF PROJECT: Telephone Expansion II II. EXECUTING GOVERNMENT AGENCY: Antigua Public UtilLities Authority III. TOTAL ESTIMATED COST: US$2,037 IV. EXTERNAL FINANCING REQUIRED: US$2,037 V. LENDING AGENCY: CIDA VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project would complete expansion of the telephone system capacity, now restricted to the northern part of the country, to the whole country. B. Justification: The project would provide supportin infrastruc- ture for tourist and industriLal installations. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - 102 102 5 Foreign Costs - 1,935 1,935 95 Total Costs - Amount - 2,037 2,037 -% - 100 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - - - - - - External Sources 204 1,222 611 - 2,037 - Total 204 1,222 611 - 2,037 - - ill - IX. STATUS OF PREPARATION: The project is similar to the ongoing project extending telephone service throughout the northern region. CIDA was approached. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: Techincal assistance is required at all stages. - 112 -- ANTIGUA 1982/85 Project List - Individual Projiect Description Water and Sewerage (US$'C00) I. NAME OF PROJECT: Water Distribution System II II. EXECUTING GOVERNMENT AGENCY: Antigua Public Utilities Authority III. TOTAL ESTIMATED COST: US$1,185 IV. EXTERNAL FINANCING REQUIRED: US$1,185 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: This phase provides extension to existing systems for Collins/Freetown and rural areas (pipelines extension and storage expansic,n). VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount _ Local Costs Foreign Costs 1,185 1,185 100 Total Costs - Amount - 1,185 1,185 -% 100 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - - - - - - External Sources - - 592 593 1,185 Total - - 592 593 1,185 - 113 - IX. STATUS OF PREPARATION: No donor has been cited. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None for 1980/84. XI. TECHNICAL ASSISTANCE REQUIRED: UNDP is providing the required technical assistance. - 114 - ANTIGUA 1982/85 Project List - Individual Project Description Water and Sewerage (US$'C00) I. NAME OF PROJECT: Miscellaneous Equipment for Water and Sewerage II. EXECUTING GOVERNMENT AGENCY: Antigua Public Utilities Authority III. TOTAL ESTIMATED COST: US$370 IV. EXTERNAL FINANCING REQUIRED: US$370 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATIONi: A. Description: This is equipment for drilling and transport for the water projects. The following equip- ment is necessary: a Hymec, eight 5-ton trucks and a truck with lifting device. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs - - - Foreign Costs 370 370 100 Total Costs - Amount - 370 370 -% 100 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - - - - - - External Sources - - 370 - 370 Total - 370 370 - 115 - IX. STATUS OF PREPARATION: No donor had been cited. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: Yes. XI. TECHNICAL ASSISTANCE REQUIRED: None. - 116 - ANTIGUA 1982/85 Prolect List - Individual Project Description Water and Sewerage (US$'000) I. NAME OF PROJECT: Groundwater Development Project II. EXECUTING GOVERNMENT AGENCY: Antigua Public Util:Lties Authority III. TOTAL ESTIMATED COST: US$852 a/ IV. EXTERNAL FINANCING REQUIRED: US$750 V. LENDING AGENCY: UNDP, UK VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project includes: (a) inventory data for water resources; (b) water secured from selected coastal aquifers; (c) replacement of the desalting facility at Crabs; and (d) supplemental irrigation on 500 acres. B. Justification: To help the country overcome its current problems in irrigation. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount Z Local Costs 102 - 102 12 Foreign Costs - 750 750 88 Total Costs - Amount 102 750 852 -% 12 88 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - 10 41 51 102 - External Sources - 75 300 375 750 Total - 85 341 426 852 a/ Includes EC$256,000 UK grant of drilling equipment. - 117 - IX. STATUS OF PREPARATION: This project will likely start in late 1983. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: Not known. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: Water resources engineer, hydro- geologist, and a mechanical engineer. - 118 -- ANTIGUA 1982/85 Project List - Individual Project Descr:Lption Transportation (US$'OOO) I. NAME OF PROJECT: Port-Cargo Handling Equipment II. EXECUTING GOVERNMENT AGENCY: Antigua Port Authority III. TOTAL ESTIMATED COST: US$778 IV. EXTERNAL FINANCING REQUIRED: US$778 V. LENDING AGENCY: Possibly CIDA VI. DESCRIPTION AND JUSTIFICATION: A. Description: The project consists of procurement of 20 ft. container handling equipment, including a hydraulic lift and a crane (both used). B. Justification: The port currently receives 100 containers per month LO-LO and 50/month RO-RO. Handling of LO-LO cargo is inefficient, and the existing crane has been damaged. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount _ Local Costs - 78 78 10 Foreign Costs - 700 700 90 Total Costs - Amount - 778 778 -% - 100 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - - - - - - External Sources - 778 - - 778 Total - 778 - - 778 - 119 - IX. STATUS OF PREPARATION: Equipment requirements have been identified. X. PROJECT IMPLICATIONS: 1982 1983 1984 Operating and Maintenance Costs: 5 6 6 Debt Obligations: Not determined. XI. TECHNICAL ASSISTANCE REQUIRED: Technical assistance is required for training in operation and maintenance. - 120 - ANTIGIJA 1982/85 Prolect List - Individual Project Description Housiing (US$'0oo) I. NAME OF PROJECT: Low Cost Housing - Barbuda II. EXECUTING GOVERNMENT AGENCY: Central Housing and Planning Authority III. TOTAL ESTIMATED COST: US$1,431 IV. EXTERNAL FINANCING REQUIRED: US$889 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION:: A. Description: The project will be phased over 5 years. twenty unlits are expected to be constructed in the first year and a total of 180 units are to be constructed by the end of the fifth year. B. Justification: To instil:ute a program for the construction of low-cost housing in Barbuda to meet increase demand for housing. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 592 - 592 40 Foreign Costs - 889 889 60 Total Costs - Amount 592 889 1,481 - % 40 60 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - 66 131 133 330 262 External Sources 99 198 200 497 392 Total 165 329 333 827 654 - 121 - IX. STATUS OF PREPARATION: No donor had been identified. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: None. - 122 - ANTIGUA 1982/85 Project List - Individual Project Description Education (US$'000) I. NAME OF PROJECT: Secondary Schools - Construction II. EXECUTING GOVERNMENT AGENCY: Ministry of Education and Culture III. TOTAL ESTIMATED COST: US$740 IV. EXTERNAL FINANCING REQUIRED: US$592 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: Building a secondary school in the Bolans area. B. Justification: To accommodate increased popu:Lation in secondary schools. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 148 - 148 20 Foreign Costs - 592 592 80 Total Costs - Amount 148 592 740 -% 20 80 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - 29 44 75 148 - External Sources - 119 178 295 592 - Total - 148 222 370 925 - - 123 - IX. STATUS OF PREPARATION: The project has been identified. No identified donor. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1982/84. Debt Obligations: None. XI TECHNICAL ASSISTANCE REQUIRED: None. - 124 - ANTIGUA 1982/85 ProJect List - Individual Project Descr:iption Education (US$'000) I. NAME OF PROJECT: Infant School - St. John's II. EXECUTING GOVERNMENT AGENCY: Ministry of Education and Culture III. TOTAL ESTIMATED COST: US$212 IV. EXTERNAL FINANCING REQUIRED: US$170 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: Construction of an infants school in St. John's. B. Justification: To give the proper base to chLldren going into government primary schools. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 42 - 42 20 Foreign Costs - 170 170 80 Total Costs - Amount 42 170 212 -% 20 80 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 [985 Total 1985 Local Sources - - 15 27 42 - External Sources - - 59 111 170 - Total - - 74 138 212 - - 125 - IX. STATUS OF PREPARATION: The project had been identified. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1982/84. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: None. - 126 - ANT:IGUA 1982/85 Project List - Individual Project Description Education (US$'000) I. NAME OF PROJECT: Library/Museum/Archives - St. John's II. EXECUTING GOVERNMENT AGENCY: Ministry of Education and Culture III. TOTAL ESTIMATED COST: US$370 IV. EXTERNAL FINANCING REQUIRED:: US$296 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: To improve the library service and to establish a library/ museum/archives. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 74 - 74 20 Foreign Costs - 296 296 80 Total Costs - Amount 74 296 370 -% 20 80 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985. Local Sources - - - 32 22 52 External Sources - - - 89 89 207 Total - - - 111 111 259 - 127 - IX. STATUS OF PREPARATION: The project has been identified. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: None. - 128 - ANTI[GUA 1982/85 Project List - Individual Project Description Education (US$ -000) I. NAME OF PROJECT: VocationaL School - All Saints II. EXECUTING GOVERNMENT AGENCY,: Ministry of Education and Culture III. TOTAL ESTIMATED COST: US$741 IV. EXTERNAL FINANCING REQUIRED:: US$593 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: To establish a vocational school in the All Saints/Liberta area. B. Justification: There i.s a need to extend the facilities for the teaLching of trades, etc., as the present facilities are inadequate. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 148 - 148 20 Foreign Costs - 593 593 80 Total Costs - Amount 148 593 741 -% 20 80 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - - 29 59 88 60 External Sources - - 119 237 356 237 Total - - 148 296 444 297 - 129 - IX. STATUS OF PREPARATION: Project has been identified. X.. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: None. XI., TECHNICAL ASSISTANCE REQUIRED: None. - 130 - ANTIGUA 1982/85 Project List - Individual Project Description Education (US$'000) I. NAME OF PROJECT: Expansion of Engineering Department - State College II. EXECUTING GOVERNMENT AGENCY: Ministry of Education and Culture III. TOTAL ESTIMATED COST: US$200 IV. EXTERNAL FINANCING REQUIRED: US$140 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: To expand the engineering department of the State College to accommodate more students and to acquire adequate equipment for the physics and chemistry laboratories. B. Justification: Self-explanatory. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 60 - 60 30 Foreign Costs - 140 140 70 Total Costs - Amount 60 140 200 -% 30 70 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - - - 22 22 38 External Sources 52 52 88 Total 4- - 74 74 126 - 131 - IX. STATUS OF PREPARATION: Project has been identified. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: None. XI., TECHNICAL ASSISTANCE REQUIRED: None. - 132 - ANTIGUA 1982/85 ProJect List - Individual Project Description Education (US$'000) I. NAME OF PROJECT: Refurbishing of Existing Schools II. EXECUTING GOVERNMENT AGENCY: Ministry of Education and Culture III. TOTAL ESTIMATED COST: US$370 IV. EXTERNAL FINANCING REQUIRED: US$148 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: There is an urgent need for the refurbishing of seven schools which were built by the British government. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 222 - 222 60 Foreign Costs - 148 148 40 Total Costs - Amount 222 148 370 -% 60 40 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - - 89 111 200 22 External Sources - - 59 74 133 15 Total - - 148 185 333 37 - 133 - IX. STATUS OF PREPARATION: Project has been identified. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None during 1983/84. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: None. - 134 -- ANTIG'UA 1982/85 Prolect List - Individual Project Description Education (US$'ODO) I. NAME OF PROJECT: Community Centers II. EXECUTING GOVERNMENT AGENCY: Ministry of Education and Culture III. TOTAL ESTIMATED COST: US$100 IV. EXTERNAL FINANCING REQUIRED: US$80 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: Construction of three (3) commnunity centers in different areas. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 20 - 20 20 Foreign Costs - 80 80 80 Total Costs - Amount 20 80 100 -% 20 80 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1943 1985 Total 1985 Local Sources - - - 37 37 37 External Sources - - 148 148 148 Total - - - 185 185 185 - 135 - IX. STATUS OF PREPARATION: Project has been identified. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: None. - 136 - ANTIG1UA 1982/85 Project List - Ind:ividual Project Description Education (US$'000) I. NAME OF PROJECT: Improvement of Holberton Hospital II. EXECUTING GOVERNMENT AGENCY: Ministry of Health and Information III. TOTAL ESTIMATED COST: US$1,591 IV. EXTERNAL FINANCING REQUIRED: US$1,273 V. LENDING AGENCY: Unknown VI. DESCRIPTION AND JUSTIFICATION: A. Description: To improve the existing facilities at Holberton Hospital. B. Justification: To widen the range of medical. services to be given to the public. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 318 - 318 20 Foreign Costs - 1,273 1,273 80 Total Costs - Amount 318 1,273 1,591 -% 20 80 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - - - 74 74 244 External Sources - - - 296 296 977 Total - - - 370 370 1,221 - 137 - IX. STATUS OF PREPARATION: Project has been identified. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: Pathologist, dentist, physio therapist and occupational therapist. - 138 - ANTIGIJA 1982/85 Project List - Individual Project Description Miscellaneous (US$ 'o(o) I. NAME OF PROJECT: Barbuda Development II. EXECUTING GOVERNMENT AGENCY: Ministry of Barbuda Affairs III. TOTAL ESTIMATED COST: US$3,400 IV. EXTERNAL FINANCING REQUIRED: US$2,380 V. LENDING AGENCY: CDB VI. DESCRIPTION AND JUSTIFICATION: The project involves coconut expansion, control of livestock parasites, tree crop investigation, development of vegetables and root crops, road development, school extension construction of staff quarters, construction of police station, heavy road equipment and agricultural machinery, electricity and telephone. VII. COST COMPONENTS AND FINANCING: Financed by Total Local External Sources Sources Amount % Local Costs 1,020 - 1,020 20 Foreign Costs - 2,380 2,380 80 Total Costs - Amount 1,020 2,380 3,400 - % 20 80 100 VIII. DISBURSEMENT PERIOD: Post 1982 1983 1984 1985 Total 1985 Local Sources - - 20 65 85 935 External Sources - - 150 490 640 1,740 Total - - 170 555 725 2,675 - 139 - IX. STATUS OF PREPARATION: Project components have been identified. X. PROJECT IMPLICATIONS: Operating and Maintenance Costs: None. Debt Obligations: None. XI. TECHNICAL ASSISTANCE REQUIRED: None. - 140 - STATISTICAL APPENDIX Table of Contents Table Number Page I. POPULATION AND LABOR FORCE 1.1 Population Trends 142 1.2 Labor Force Statistics 143 1.3 Employed Labor Force by Sector 144 1.4 Social Security Scheme 145 1.5 Hourly Wage Rates and Selected Occupations 146 II. NATIONAL ACCOUNTS 2.1 National Accounts 147 2.2 Saving and Investment 148 2.3 GDP Deflators 149 2.4 GDP at Factor Cost at Constant Prices (1977) 150 2.5 Actual and Projected Sources and Uses of Resources, 151 1981-85 III. BALANCE OF PAYMENTS 3.1 Balance of Payments 152 3.2 Value of Exports of S.I.T.C. Section 153 3.3 Value of Imports by S.I.T.C. Section 154 3.4 Direction of Trade 155 3.5 Volume of Imports of Petroleum Products 156 3.6 Effective Exchange Rate 157 3.7 Estimated and Projected Balance of Payments, 1981-85 158 IV. EXTERNAL DEBT 4.1 Structure of External Debt 159 4.2 External Debt Operations 161 V. PUBLIC SECTOR FINANCES 5.1 Public Sector Operations 165 5.2 Central Government Current Expenditure 166 5.3 Central Government's Foreign Assets 167 5.4 Distribution of Bonded Debt 168 5.5 Selected Central Government Revenue and Expenditure Items 169 5.6 Central Government Current Expenditure 170 5.7 Consolidated Operations of t.he Public Sector 171 5.8 Central Government Revenue 176 5.9 Central Government Operations 177 5.10 Estimated and Projected Financing of Public Sector Investment, 1981-85 178 5.11 Public Sector Investment Program (1982-85) Sectoral Composition 179 5.12 Public Sector Investment Program, 1982-85 180 - 141 - Table Number PaRe VI. MONEY AND BANKING 6.1 East Caribbean Currency Authority 182 6.2 Commercial Banks 183 6.3 Distribution of Commercial Bank Loans and Advances 184 Lo the Private Sector 6.4 Approximate Commercial Bank's Interest Rate Ranges 185 6.5 Antigua and Barbuda Development Bank 186 VII. AGRICULTURE, TOURISM AND OTHER SECTORS 7.1 Production of Selected Agricultural Products 187 7.2 Selected Industrial Production 188 7.3 Selected Tourism Statistics 189 7.4 Electricity Generation 190 VIII. PRICES 8.1 Cost of Living Index 191 8.2 Electricity Rates 192 8.3 Retail Prices of Petroleum Products 193 Table 1.1: ANTIGUA AND BARBUDA - POPULATION TRENDS Est. 1977 1978 1979 1980 1981 Total midyear population 72,451 73,245 74,260 75,235 76,138 Crude birth rate (per thousand) 19.9 18.3 18.8 16.0 16.4 Crude death rate (per thousand) 6.8 5.5 6.3 5.1 5.2 Rate of natural increase (per thousand) 13.1 2.8 12.5 10.9 11.2 Total births 1;429 1,3142 1,397 1,201 1,249 Total deaths 489 402 469 387 393 Natural population increase 940 940 928 814 856 Net population increase, midyear to midyear 1,031 890 1,020 975 903 Net population increase, as per cent of total 1.4 1.2 1.3 1.2 1.2 Source: Ministry of Finance (Statistics Division). Table 1.2: ANTIGUA AND BARBUDA - LABOR FORCE STATISTICS Es t. 1977 1978 1979 1980 1981 Population, 16 years and over 46,379 47,854 49,329 50,643 52,162 Labor force 25,422 26,767 27,592 28,378 29,211 Employed (20,233) (21,306) (22,028) (22,491) (23,222) Unemployed (5,189) (5,461) (5,564) (5,887) (5,988) Labor force as a per cent of population, 16 years and over 54.8 55.9 55.9 56.0 56.0 Employed as a per. cent of labor force 79.59 79.60 79.83 79.26 79.50 Unemployed as a per cent of labor force 20.41 20.40 20.17 20.74 20.50 Sources: Ministry of Finance (Statistics Division); and Fund staff estimates. Table 1.3: ANTIGUA AND BARBUDA - EMPLOYED LABOR FORCE BY SECTOR Est. 1977 1978 1979 1980 1981 Total 20,233 21,306 22,028 22,491 23,222 Agriculture, livestock, and fishing 2,366 2,099 2,092 2,092 2,090 Mining and quarrying 26 71 75 68 60 Manufacturing 1,355 1,447 1,539 1,619 1,718 Electricity, gas, and water 392 392 319 337 340 Construction 2,044 2,369 2,476 2,564 2,577 Distributive trade, including hotels and restaurants 3,866 4,571 4,867 5,038 5,201 Transport, storage, and communications 2,294 2,427 2,596 2,564 2,575 Finance, banking, and business serviceRs 864 694 7?4 765 778 Other services 7,026 7,231 7,322 7,444 7,883 (As per cent of total) Total 100.0 100.0 100.0 100.0 100.0 Agriculture, livestock, and fishing 11.7 9.9 9.5 9.3 9.0 Mining and quarrying 0.1 0.3 0.3 0.3 0.3 Manufacturing 6.7 6.8 7.0 7.2 7.4 Electricity, gas, and water 1.9 1.8 1.5 1.5 1.5 Cons truct ion 10.1 11.1 112 11 4 11.1 Distributive trade, including hotels and restaurants 19.1 21.5 22.1 22.4 22.4 Transport, storage, and communications 11.3 11.4 11.8 11.4 11.1 Finance, banking, and business services 4.3 3.3 3.4 3.4 3.4 Other services 34.7 33.9 33.2 33.1 33.8 Sources: Labor Department, Ministry of Labor, Housing, Insurance and Cooperatives; and Fund staff estimates. Table 1.4: ANTIGUA AND BARBUDA - SOCIAL SECURITY SCHEME Est. 1977 1978 1979 1980 1981 Numbers at beginning of year 17,979 20,084 21,228 23,220 25,175 Numbers existing 195 1,375 253 385 256 New registrants 2,300 2,519 2,245 2,340 2,546 Numbers at end of year 20,084 21,228 23,220 25,175 27,465 Sources: Ministry of Finance (Statistics Division); and Social Security Scheme. - 146 - Table 1.5: ANTIGUA AND BARBUDA - HOURLY WAGE RATES AND SELECTED OCCUPATIONS (in East Caribbean dollars) Est. 1977 1978 1979 1980 1981 Occupation: Grade A Carpenters ) max. 4.L0 4.10 ... 4.50 4.70 Steel benders ) min. 2.82 2.82 2.55 2.55 2.70 Electricians ) Grade B Tin smiths Painters ) max. 3.76 3.76 ... 3.42 3.66 Welders ) min. 2.35 2.55 2.35 2.35 2.59 Fabricators ) Laborers ) max. .,. 2.40 ... 3.41 3.65 ) min. 1.63 1.63 1.68 1.68 1.85 Laborers ) max. .,.. 2.54 ... 3.59 3.84 Foremen ) min. 2.40 2.40 2.19 2.19 2.41 Drivers of heavy-duty ) max. .. 4.21 ... 5.47 5.85 equipment ) min. 3.90 3.90 4.21 4.21 4.40 Timekeepers ) max. .. ... ... 3.40 3.60 ) min. 1.90 ... 2.04 2.40 2.64 Legal minimum wage range, all categories ... ... 1.12-3.15 1.25-3.50 Sources: Ministry of Finance (Statistics Division); and Ministry of Labor. - 147 - Table 2.1: ANTIGUA AND BARBUDA - NATIONAL ACCOUNTS (EC$ million) Est. 1977 1978 1979 1980 1981 Consumption expenditure 151.4 167.6 253.1 333.7 397.5 Private sector 133.9 150.5 234.5 303.9 353.0 Consolidated public sector 17.5 17.1 18.6 29.8 44.5 Gross domestic investment 55.1 65.4 76.2 138.3 189.8 Private sector 38.6 47.8 55.6 114.1 145.4 Consolidated public sector 16.5 17.6 20.6 24.2 44.4 Gross domestic expenditure 206.5 233.0 329.3 472.0 587.3 Exports of goods and non- factor services 75.9 95.0 116.5 143.7 158.2 Imports of goods and non- - factor services -119.9 -142.6 -216.8 -327.5 -406.6 GDP at market prices 162.5 185.4 229.0 288.2 338.9 Minus: indirect taxes net of subsidies (20.5) (25.6) (30.6) (40.8) (48.8) GDP at factor cost 142.0 159.8 198.4 247.4 290.1 Sources: Ministry of Economic Development; Ministry of Finance; and F-und staff estimates. - 148 - Table 2.2: ANTIGUA AND BARBUDA - SAVING AND INVESTMENT Est. 19377 1978 1979 1980 1981 (In millions of East Caribbean dollars) Gross domestic investment 55.1 65.4 76.2 138.3 189.8 Consolidated public sector 16.5 17.6 20.6 24.2 4 Private sector 38.6 47.8 55.6 114.1 145.4 Gross national savings 11.1 17.8 -24.1 -45.5 -58.6 Consolidated public sector -2.3 5.4 6.8 11.6 8.1 Private sector 13.4 12.4 -30.9 -57.1 -66.7 External savings (resource gap)l/ 44.0 47.6 100.3 183.8 248.4 (As percentage of GDP at market prices) Gross domestic investment 33.9 35.3 33.3 48.0 56.0 Consolidated public sector 10.2 9.5 9.0 8.4 13.1 Private sector 2:3.8 25.8 24.3 39.6 42.9 Gross national savings 6.8 9.6 -10.5 -15.8 -17.3 Consolidated public sector -:L.4 2.9 3.0 4. .4 Private sector 3.3 6.7 -13.5 -19.8 -19.7 External savings 27.1 25.7 43.8 63.8 73.3 Sources: Ministry of Econcoic Development; Ministry, of Finance; and Fund staff estimates. 1/ Defined as the deficit in the goods and nonfactor services account of the balance of payments with inverse sign. Table 2.3: ANTIGUA AND BARBUDA - GDP DEFLATORS Weight 1977 1978 1979 1980 1981 (1977 = 100) Consumption 1/ 87.6 100.0 106.2 123.4 147.1 164.0 Investment 27 18.2 100.0 108.1 127.1 153.2 169.3 Exports of goods and nonfactor services (GNS)3/ 54.7 100.0 106.2 123.4 147.1 164.0 Imports of goods and nonfactor services (GNS)4/ -60.5 100.0 109.9 130.8 159.4 174.5 (Weighted Index) Consumption 87.6 93.0 108.1 128.9 143.7 Investment 18.2 19.7 23.1 27.9 30.8 Exports of GNS 54.7 58.1 67.5 80.5 89.7 Imports of GNS -60.5 -66.5 -79.1 -96.4 -105.6 GDP deflator 100.0 104.3 119.6 140.4 158.6 Percentage change 14.8 4.3 14.7 17.4 13.0 Source: Fund staff estimates. 1/ Deflated by retail price index. 2/ Deflated by retail price index 50 per cent and by partner countries' export prices 50 per cent. 3/ Deflated by retail price index. 4?/ Deflated by partner countries' export prices (including oil). - 150 - Table 2.4:: ANTIGUA AND BARBUDA - GDP AT FACTOR COST AT CONSTANT PRICES (1977) Est. 1977 1978 1979 1980 1981 (In millions of East Caribbean dollars) GDP at factor cost 142.0 153.2 165.9 176.2 182.9 Agriculture, livestock, forestry, and fishing 13.1 14.3 13.7 13.7 13.8 Mining and quarrying 1.1 1.3 1.5 1.6 1.6 Manufacturing 7.4 9.4 12.5 15.6 16.9 Construction 10.7 10.3 11.3 12.8 13.9 Electricity and water 1.8 2.3 2.7 2.4 2.5 Transport and communi- cations 23.3 26.9 30.7 31.1 31.5 Trade 16.9 18.7 20.7 21.0 21.3 Hotels and restaurants 15.1 17.0 19.8 21.1 21.6 Banking 10.1 10.3 10.3 10.4 10.5 Real estate 18.8 19.3 19.6 19.4 19.8 Government services 23.4 22.3 22.3 26.6 28.5 Other services 6.6 7.6 7.7 8.0 8.7 Less: Imputed banking service charges -6.3 -6.4 -6.9 -7.4 -7.8 (Annual percentage change) GDP at factor cost 7.2 7.9 8.3 6.2 3.8 Agriculture, livestock, forestry, and fishing 0.8 9.2 -4.2 -- 1.0 Mining and quarrying *-8.3 18.2 15.4 6.7 2.0 Manufacturing 25.4 27.0 33.0 25.0 8.2 Construction -2.7 -3.7 9.7 13.3 9.0 Electricity and water -5.9 27.8 17.4 -11.1 2.0 Transport and communi- cations 14.2 15.5 14.1 1.3 1.3 Trade 5.0 10.7 10.7 1.5 1.5 Hotels and restaurants 18.0 12.6 16.5 6.6 2.5 Banking -4.7 2.0 -- 1.0 1.0 Real estate 2.7 2.7 1.6 -1.0 2.0 Government services 17.0 -4.7 -- 19.3 8.0 Other services *-2.9 15.2 1.3 3.9 8.8 Less: Imputed banking service charges 16.7 1.6 7.8 7.3 5.4 Sources: Ministry of Finance (Statistics Division); ECCM Secretariat; and Fund staff estimates. - 151 - Table 2.5: ANTIGUA AND BARBUDA - ACTUAL AND PROJECTED SOURCES AND USES OF RESOURCES, 1981-85 (EC$ million - 1977 prices) Estimated Projected 1981 1982 1983 1984 1985 Gross Domestic Product 213.7 224.4 235.6 247.4 259.8 Imports (including NFS1/ 233.0 244.0 256.0 263.0 263.2 Exports (including NFS)- 96.5 101.0 106.0 112.0 114.0 Consunmption 242.4 243.0 252.0 260.0 264.0 Public 27.0 27.0 28.0 30.0 31.0 Private 215.4 216.0 224.0 230.0 233.0 Invest:ment 107.8 124.4 133.6 138.4 140.0 Gross Domestic Savings -28.7 -18.6 -16.4 -12.6 -4.2 Public 4.0 2.0 4.0 5.0 6.0 Private -32.7 -20.6 -20.4 -17.6 -10.2 Memorandum Items Investment Financing 107.8 124.4 133.6 138.4 140.0 Domestic Savings -28.7 -18.6 -16.4 -12.6 -4.2 Resource Gap 136.5 143.0 150.0 151.0 144.2 (As Per Cent of GDP in Constant Prices) Gross Domestic Product 100.0 100.0 100.0 100.0 100.0 Imports (including NFS) 109.0 108.7 108.6 106.3 101.3 Exports (including NFS) 45.1 45.0 45.0 45.3 45.8 Consumption 113.3 108.3 107.0 105.1 101.6 Public 12.7 12.0 11.9 12.1 11.9 Private 100.8 96.3 95.1 93.0 89.7 Investment 50.4 55.4 56.7 55.9 53.9 Gross Domestic Savings -13.5 -8.3 -7.0 -5.1 -1.6 Public 1.8 0.8 1.7 2.0 2.3 Private -15.3 -9.1 -8.7 -7.1 -3.9 Memorandum Items Investment Financing 50.4 55.4 56.7 55.9 53.9 Domestic Savings -13.5 -8.3 -7.0 -5.1 -1.6 Resource Gap 63.9 63.7 63.7 61.0 55.5 1/ Excludes the operations of the oil refinery Source: Mission estimates - 152 - Table 3.1: ANTIGUA AND BARBUDA - BALANCE OF PAYMENTS (US$ million) 1977 1978 1'379 1980 1981 Current account -9.6 -2.2 --23.3 -39.6 -56.1 Trade balance -33. - T -= -85.3 -105.7 Exports, f.o.b. (6.6) (12.6) (10.2) (27.7) (33.6) Of which: re-exports /4.6/ /7.9/ /7.2/ /18.4/ /24.5/1/ Imports, c.i.f. (-40.5) (-46.3) (-73.1)(-113.0)(-139.3)2/ Services balance 21.5 26.3 33.6 36.7 39.5 Travel receipts (net) (22.6) (27.1) (35.4) (38.8) (42.1) Receipts /24.7/ /29.5/ /38.7/ /42.5/ /46.4/ Payments /-2.1/ /-2.4/ /-3.3/ /-3.7/ /-4.3/ Interest payments on public debt (net) (-0.5) (-0.5) (-1.7) (-1.8) (-2.0) Central government /-0.1/ /-0.3/ /-1.5/ /-1.7/ /-1.9/ Rest official /-0.4/ /-0.2/ 1-0.2/ /-0.1/ /-0.1/ ECCA profits (net) (0.3) (0.1) (0.5) (0.7) (1.0) Other services (net) (-0.9) (-0.4) (-0.6) (-1.0) (-1.6) Private transfers (net) 1.2 3.7 4.1 4.9 6.5 Post office postal and money orders (0.3) (0.2) (0.6) (0.5) (0.5) Receipts (paid) /0.4/ /0.4/ /0.4/ /0.4/ /0.4/ Payments (issued) /-0.1/ /-0.2/ /-0.1/ /-0.2/ /-0.2/ Stamp sales (net receipts) / / / .../ /0.3/ /0.3/ /0.3/ Commercial banks foreign exchange operations (0.9) (3.5) (3.5) (4.4) (6.0) Receipts (purchases) / / ./ ...! /.../ /.../ /11.2/ Payments (sales) /--- / 1... ... .. /5.2/ Official transfers 1.6 1.5 1.9 4.1 3.6 Capital account 9.5 1.9 23.4 37.9 55.7 Official capital 3/ 6.4 10.5 1.4 8.8 16.1 Central Government (4.9) (10.4) (0.9) (9.0) (7.8) Rest official 3/ (1.5) (0.1) (C.5) (-0.2) (8.3) Commercial banks 1.0 -1.7 2.4 -0.3 2.0 Foreign private investment and errors and omissions 2.1 -6.9 19.6 28.8 37.6 Overall balance -0.1 -0.3 0.1 -1.7 -0.4 Financing 0.1 0.3 -0.1 1.7 0.4 Net ECCA borrowing 0.2 1.5 0.3 Government foreign assets (increase -) -0.1 0.1 0.1 0.2 0.1 Sources: Ministry of Finance, Statistics Division; Department of Tourism; Post Office; Commercial banks; ECCA; ECCM Secretariat; and Fund staff esti- mates. 1/ Includes re-exports of goods other than jet fuel. 2/ Includes US$30 million imported equipment for rehabilitating the oil refinery. Does not include imports of jet fuel. 3/ Includes disbursements of governument guaranteed loans outside the con- solidated public sector. - 153 - Table 3.2: ANTIGUA AND BARBUDA - VALUE OF EXPORTS OF S.I.T.C. SECTION (US$ million) 1977 1978 1979 1980 1981 1/ Total exports 6.6 12.6 10.2 27.7 33.6 Total domestic exports 2.0 4.7 3.0 9.3 9.1 Food and live animals 0-.1 01.4 UT. Beverages and tobacco 0.6 0.6 -- 0.5 0.7 Crude materials, inedible, except fuel 0.2 0.3 0.1 -- Chemicals -- 0.4 -- 0.2 0.6 Manufactured goods 1.0 2.9 .2.1 5.5 6.3 Of which: goods classified chiefly by material (--) (0.7) (0.4) (0.8) (1.6) miscellaneous articles (1.0) (2.2) (1.7) (4.7) (4.7) Machinery and transport equipment 0.1 0.2 0.7 1.6 1.2 Miiscellaneous transactions and commodities Total re-exports 4.6 7.9 7.2 18.4 24.5 Food and live animals -- 0.1 0.1 1.2 0.2 Beverages and tobacco -- -- -- 0.2 -- Chemicals 0.2 0.1 -- 0.3 0.9 Manufactured goods 0.9 5.0 5.2 11.3 13.7 Of which: manufactured goods clas- sified chiefly by material (0.5) (0.8) (0.6) (1.1) (0.9) miscellaneous manufac- tured articles (0.4) (4.2) (4.6) (10.2) (12.8) Machinery and transport equipment 2.9 2.4 1.9 5.4 9.7 Miscellaneous transactions and commodities 0.6 0.3 -- -- -- Source: Ministry of Finance (Statistics Division). 1/ Projected on the basis of preliminary data for January-May 1981. - 154 - Table 3.3: ANTIGUA AND BARBUDA - VALUE OF IMPORTS BY S.I.T.C. SECTION (US?' million) 1977 1978 1979 1980 1981 1/ Total 40.5 46.3 73.1 113.0 139.3 Food and live animals 9.4 11.6 26.1 33.4 47.9 Beverages and tobacco 1.1 1.4 2.3 3.4 4.4 Crude materials inedible, except fuel 0.2 0.8 1.1 2.2 3.4 Mineral fuel lubricants and related material 2/ 6.5 6.9 11.0 17.4 17.4 Animal and vegetable oils and fats 0.3 0.2 0.1 0.1 0.3 Chemicals 3.5 3.2 3.1 7.9 6.3 Manufactured goods 9.8 12.5 15.8 27.8 30.9 Of which: goods classified chiefly by material (6.7) (9.0) (7.9) (18.2) (22.1) miscellaneous articles (3.1) (3.5) (7.9) (9.6) (8.8) Machinery and transport equip- ment 9.6 9.5 13.6 20.8 28.6 Miscellaneous transactions and comnmdities (n.e.s.) 0.1 0.2 -- -_ 0.1 Source: Ministry of Finance, Statistics Division. 1/ Projected on the basis of preliminary data for January-May 1981. 2/ Fuel import figures are those reported by the West Indies Oil Com- pany only. They do not include jet fuel imports which are re-exported. - 155 - Table 3.4: ANTIGUA AND BARBUDA - DIRECTION OF TRADE (In per cent) 1977 1978 1979 1980 1981 1/ Domestic exports, f.o.b. 100.0 100.0 100.0 100.0 100.0 United Kingdom -- 0.7 2.5 3.5 5.2 Canada -- -- 8.7 3.1 3.9 United States 1.8 0.7 17.5 11.2 9.2 West Indies 66.0 88.2 61.2 62.3 75.0 Barbados (9.4) (7.8) (2.5) (9.4) (7.8) Guyana (1.8) (0.7) (1.2) (0.4) (--) Jamaica (9.4) (2.3) (7.5) (8.0) (10.5) Trinidad and Tobago (20.7) (45.3) (46.2). (31.8) (39.4) Other (24.5) (32.0) (3.7) (12.5) (17.1) Rest of the world 32.0 10.1 10.0 19.7 6.5 l'otal imports, c.i.f. 100.0 100.0 100.0 100.0 100.0 United Kingdom 29.2 28.0 12.9 21.8 -171.9 Canada 18.4 9.3 25.5 7.6 6.5 UJnited States 26.3 31.2 38.4 35.9 52.8 West Indies 13.5 13.8 11.5 15.5 11.2 Barbados (1.7) (2.0) (1.9) (4.5) (1.6) Guyana (2.0) (1.4) (0.9) (0.8) (1.5) Jamaica (2.3) (3.0) (1.6) (2.1) (1.6) Trinidad and Tobago (6-4) (3.7) (4.6) (4.6) (4.0) Other (0.9) (3.5) (2.4) (3.4) (2.2) Rest of the world 12.3 16.8 11.4 18.9 17.5 Source: Ministry of Finance, Statistics Division. 1/ Based on January-May 1981 preliminary trade data. - 156 - Table 3.5: ANTIGUA AND BARBUDA - VOLUME OF IMPORTS OF PETROLEUM PRODUCTS (In thousands of barrels) Est. 1977 1978 1979 1980 1981 Total 259.4 325.7 336.3 465.2 569.0 Gasoline 1/ 93.2 118.0 126.5 175.3 230.0 Kerosene 9.2 7.9 12.9 39.7 42.0 Diesel 153.0 194.0 191.3 229.8 275.0 LPG 4.0 5.8 5.6 20.4 22.0 Sources: Ministry of Economic Development, Tourism and Energy; and West Indies Oil Co. 1/ Includes re-exports of jet fuel. - 157 - Table 3.6: ANTIGUA AND BARBUDA - EFFECTIVE EXCHANGE RATE (December 1976-100) Change in Trade- and Change in Trade-Weighted Tourism-Weighted End of Units per ECS Effective Exchange Rate 1/ Effective Exchange Rate 1/ Period SDR U.S. Pound Nominal Real Nominal Real 1976 March 0.345 0.399 0.208 5.52 -1.24 6.39 -0.56 June 0.324 0.371 0.208 -1.97 -5.25 -1.69 -5.23 September 0.320 0.370 0.221 0.85 -1.32 -0.72 -1.36 December 0.31.9 0.370 0.218 -- -- -- -- 1977 March 0.320 0.370 0.215 -0.36 -1.10 -0.18 -0.69 June 0.318 0.370 0.215 -0.43 0.02 -0.25 0.66 September 0.318 0.370 0.212 -0.74 0.96 -0.48 1.75 December 0.305 0.370 0.194 -2.52 -0.39 -2.00 1.01 1978 March 0.299 0.370 0.199 -3.39 -5.58 -2.71 -3.96 June 0.299 0.370 0.199 -2.32 -6.66 -1.82 -5.44 September 0.289 0.370 0.188 ' -4.02 -3.97 -3.12 -2.02 December 0.284 0.370 0.182 -4.54 -4.54 -3.56 -2.42 1979 March 0.288 0.370 0.179 -5.32 -5.67 -4.21 -3.28 June 0.287 0.370 0.171 -6.16 -3.62 -4.84 -0.66 September 0.281 0.370 0.168 -7.50 -2.31 -5.98 1.63 December 0.281 0.370 0.167 -7.70 -4.04 -6.18 -0.17 1980 March 0.296 0.370 0.171 -7.41 -4.07 -5.83 0.05 June 0.280 0.370 0.157 -9.25 -5.33 -7.39 -0.19 September 0.282 0.370 0.155 -9.86 -3.15 -7.77 2.57 December 0.290 0.370 0.155 -8.57 -1.03 -6.48 4.49 1981 March 0.302 0.370 0.160 -6.95 1.20 -5.13 6.17 June 0.322 0.370 0.178 -3.15 8.63 -1.87 10.31 1/ The minus (-) sign represents per cent depreciation while the plus (I) sign not showing rep- resents per cent appreciation. - 158 - Table 3.7: ANTIGUA AND BARBUDA - ESTIMATED AND PROJECTED BALANCE OF PAYMENTS, 1981-85 'US$ million) Estimated Projected 1981 19382 1983 1984 1985 Exports of Goods and NFS-/ 75.7 81.0 85.0 91.0 96.0 Imports of Goods and NFS-/ 143.6 150.0 158.0 166.0 170.0 Resource Balance -67.9 -69.0 -73-0 -75.0 -74.0 Net Factor Service Payments 0.7 -1.0 -2.0 -4.0 -6.0 Transfers (net) 11.1 12.0 13.0 14.0 14.0 Current Account Balance -56.1 -58.0 -62.0 -65.0 -66.0 Private Capital 39.6 39.2 41.3 52.5 55.3 Public Capital (Grant and Loans - Net) 16.1 18.8 20.7 12.8 10.7 Change in International Reserves -0.4 - - - - 1/ Excludes operations of the oil refinery Source: Ministry of Finance, Statistics Division, mission estimates. - 159 - Table 4.1: ANTICUA AND BARSUDA - STRUCTURE OF EXTERNAL DEBT 1/ Repay- Interest Curre Year of Authorized aent Rate of Re Contract Amount Period Per Cent men Central government loans Caribbean Development Bank (US$ '000) Bousing rehabilitation (Cent. housing)2/ (1/SFR-OR-A) 1975 213 1976-86 4.725 US$,L, Small scale sugar industry (2/SFR-OR-A) 1979 2,984 1980-94 4 US$,L, Livestock development (2/SFR-A) 1973 86 1978-93 4 US$ Cargo facillty-Coolldge Airport (3/SFR-A) 1976 184 1980-95 4 CanS Student loans for higher education (4/SFR-A)(ABDB)2/ 1974 37 1981-91 4 L Student loans for higher education (F/SFR-A)(ABDB)2/ 1977 43 1981-91 4 Industrial Estates (factory buildings) (5/SFR-A)(ABDB)2/ 1974 197 1981-96 4 Can$ Chapa - UWCH (Casada Gardens)(7/SFR-A) 1975 11 4 US$ Chapa - UWCH (parhams, etc.)(10/SFR-A) 1976- 560 1978-98 4 US$ Industrial Estates second loan (12/SFR-A)(ABDB)2/ 1977 1,122 1982-97 4 US$;L; Student loans second loan Bs (13/SFR-A)(A8DB)2/ 1977 265 1983-93 4 E Fort James tourism project (14/SFR-A) 1977 191 ... 4 US$ Feeder roads (17/SFR-A) 1979 766 ... 4 US$ Fisheries development (18/SFR-A) 1980 3,271 ... 4 Canada - CIDA (Can$ '000) Telephone expansion (APUA)21 1974 6,000 1984-2024 -- CanS European Development Fund (EAU) North shore water distribution ... 495 ... I EAU Trinidad and Tobago (TT$) Farthquake damage ... 250,000 1985-2010 2.5 TT$ U.K. Government (E) Cornmeal loan 1956 20,000 1975-77 4.5 E Antigua 6 per cent stock 1975 470,000 1977-80 6 E Compensation loan 1974 2,202 1976-94 ... E Hurricane Donna 1974 11,984 1974-85 ... E Eastern Parishes electricity 1964 29,000 ... 5.125 E Airport Exchequer Loan I 1966 706,000 1974-92 6.625 Airport Exchequer Loan II 1966 20,000 1974-93 7.125 ) E Airport Exchequer Loan III 1966 10,000 1974-94 9.25 Independence celebration 1981 312 1981-82 16.0 E Purchase of equipment 1981 1,200 ... 7.25 L A.G. Zurich Bank (US$ '000) 1978 1,000 ... 8-1/2 US$ 1978 10,000 ... 1.0 over USS LIBOR Antilles International Trust Company (US$ '000) 1977 464 ... 8 EC$ Credit Suisse 1979 6,135 1981-86 6.5 Sw F Suppliers' credit (Central Marketing (US$ '000) Corporation) 1981 1,481 1981-82 25.0 US$ Suppliers' credit (Deep Bay Tourism (JUS$ '000) Project) 1981 90,000 ... ... USS - 160 - Table 4.1: ANTIGUA AND BARBUDA - STRUCTIURE OF EXTERNAL DEBT I/ (Concluded) Repay- Interest Currency Year ol Authorized ment Rate of Repay- Contract: Amount Period Per Cent ment Antigua Agricultural Development Bank (USs '000) Caribbean Development Bank Agricultural and Industrial credit I (2/OR-A)(ABDB) 1974 111 1981-96 7 ) CanS Agricultural and Industrial Credit tI ) E,'CT$ (3/OR-A)(ABDB) 1975 92 1981-96 7.5 ) Can$ Farm Improvement Credit I (1/SFR-A)(ABDB) 1974 174 1980-95 4 TT$;CatnS Farm Improvement Credit (1/SFR-A)(ABDB) 1976 22 1977-92 4 CanS Small Industry Credit I (I/SFR-A)(ABDB) 1974 67 1980-95 4. US$;TTS Small Industry Credit (CCF) (6/SFR-A)(ABDB) 1976 10 1980-95 4 US$;TT$ Small Industries Credit II (8/SFR-A)(ABDB) 1976 215 1981-96 4 DM Farm Improvement Credit II (9/SFR-A)(ABDB) 1976 191 1981-96 4 CanS Agricultural Production Credit (15/SFR-A)(ABDB) 1978 192 1983-98 4 US$ Agricultural and Industrial Credit (l6/SFR-A)(ABDB) 1978 225 1983-98 4 US$;L AIC and SIC Credit (19/SFR-A)(ABDB) 1980 525 ... 4.0 USS Mortgage finance (3/SFR-OR-A)(ABDB) 1980 1,000 ... 4.0 USS Investment in equity (20/SFR-A)(ABDB) 1980 800 ... 4.0 US$ Friends of English Harbour (USS '000) Caribbean Development Bank Frienids of English Harbor (I/OR-A)(Friends) 1974 172 1976-88 8 USS Friends of English Harbor (l/OR-A)(Friends) 1976 17 1977-89 8 US$ Friends of English Harbor (l/OR-A)(Friends) 1976 57 1977-91 10 US$ Government-guaranteed loans Antigua Public Utilities Authority (US$ '000) Eximbank Colt Industries (APUA) ... ... ... 6.5 US$ Aqua Chem (APUA) ... ... ... 8.5 US$ Capitalization of interest Stanley Consultants Incorporated Consultancy services/supplies (APUA) 1973 ,, 1974-77 7 US$ (APUA) 1973 ... 1979-B2 9 US$ Interest accruing was coni- solidated Lloyds-Merrill Blackstone Lcd. Purchase of two generators 1981 7,613 Lloyds-Merill 1981 1,142 1981-88 1-5/8 E E over LIBOR ) Blackatone 1981 6,471 1982-89 7.5 ) E Port Authority (US$ '000) Eximbank Antigua Port Authority 1971 4,500 19B1-2010 .75 US$ Until 9/15/80 then increasing to 2.5 p.a. Antigua Port Authority 1975 750 1976-80 USs Barclays Overseas Development Corp. Ltd. Antigua Port Authority - ... ... 1980-83 9 E Sources: Ministry of Finance; Treasury; and varioL.s state enterprises. I/ Excludes debts with locally-based branches of foreign banks. 2/ These loans have been on-lent by the Central Government to the institutions as shown. - 161 - Table 4.2: ANTIGUA AND BARJBUDA - EXTERNAL DEBT OPERATIONS 1/ (EC$'R00) Out- Operation i 1977 Out- __ Operations in 1978 Out- stand loltlg Draw- Anicrti- Valiua- standing Dr-iw- Aiiorti- Valua- stanling 12/31/76 ings zation tion 12!31/77 ings zation tion 12/31/78 Total debt 38,774 17,638 148 -96 56,168 31,408 3,029 84,547 Central government total 11,028 13,479 116 -96 24,295 31 000 2 907 _- 52388 Caribbean Devel(Lpment Bank 1,269 2,700 -- = 3,969 1,370 65 -- 5,7 Housing rehabilitation (Central Housing)2/ (I/SFR-OR-A) 464 ... ... ... 664 ... ... ... 633 Small scale sugar industry (2/SFR-OR-A) -- ... .. ...-- ... ... ... -- Livestock development (2/SFR-OR-A) 200 ... ... ... 240 ... ... ... 254 Cargo facility - Coolidge Airport (3/SFR-A) 467 . . * 467 ... .. ... 467 Student loans for higher education (4/SFR-A) (ABDB)2/ 97 ... ... 111 ... ... ... 116 Student loans for higher education (F/SFR-A) (ABDB)2/ -- ... ... ... 41 ... ... ... 95 Industrial estates (factory buildings) (5/SFR-A) (ABDB)2/ 38 ... ... ... 475 .,, ... ... 475 Chapa - UWCH (Casada Gardens) (7/SFR-A) 30 ... ... ... 30 ... 30 -- -- Chapa - MICH (Parhams, etc.) (10/SFR-A) -- ... ... ... 1,512 ... .. ... 1,489 Industrial estates second loan (12/SFk-A) (ABDB)2/ -- ... ... ... 429 ... ... ... 1,677 Student loans second loan (13/SFR-A) (ABDB)2/ -- ... ... ... -- ... ... ... 68 Feeder roads (17/SFR-A) -- ... ... ... -- Fisheries development (18/SFR-A) -- ... ... ... -- ... ... Canada - CIDA relephone expansion (APUA)2/ 3,000 7,346 __ __ 10,346 1,283 __ __ 11,629 European Development Fund Yorth shore water distribution -- -- -- -- -- -- -- -- -- Trinidad and Tobago Earthquake damage 250 -- -- -- 250 -- -- -- 250 U.K. Government 4,996 -- 116 -96 4,784 142 -_ 4.642 Cornmeal loan 96 -- -- -96 -- -- -- -- -- Antigua 6 per cent stock 2,256 -- ... -- 2,256 -- -- -- 2,256 Compensation loan 10 -- 1 -- 9 -- 9 -- -- Hurricane Donna 22 -- 3 -- 19 -- 3 -- 16 Eastern Parishes electricity 16 -- 2 __ 14 __ 14 -- -_ Airport Exchequer Loan I Airport Exchequer Loan II ( 2,596 -- 110 -- 2,486 __ 116 __ 2,370 Airport Exchequer Loan III Independence celebration -- -- -- -- -- -- -- -- -- Purchase of equipment -- -- -- -- -- -- -- -- -- A. G. Zurich Bank 3/ -- 2 2,700 28,213 2,700 -- 28,213 Antille _International Trust Company -- 464 _ - 464 = = __ 464 Credit Suisse __ = __ = __ __ __ = __ Suppliers' credit (M3rketing Corporation) - -- -- -- = = = Su,pplicrs redit (Dfeep Bav project) -- -= -- -- -= = -- =- -- 162 - Table 4.2: ANTIGUA AND BARBUDA - EXTERNAL DEBT OPERATIONS 1/ (Continued) (EC$ '000) O t- _Operations in 1979 Out- Operations in 1980 _ 0t- _peratiuns in 1981 Out- standing Draw- Anorti- Valsa- standing Draw- Anorti- Valua- standing Draw- Anorti- Valoa- standing ____ - _12/31 /78 ings cLtion tion 12/31/79 ings nation tion 12/31/80 ings zation tion 12/31/i1 Total deot 84547 5_189 1,298 = 88438 27_271 ,3916 -297 112,296 46,081 308 -2,290 155,779 C-tral guvurus- nt total 5 2_! 3,401 968 = 54,821 27,271 3_00 3 8 79,097 23,552 89 -2,290 100,270 CaLibbean Dnvelopment Bank 5,274 2,341 96 7,519 7,652 105 8 15,074 1,080 70 -1,388 14696 lousing r-habilitation (Central Huusing)2/ (1/SFR-OR-A) 633 ... ... .. 656 -- 51 8 613 -- 16 -27 570 Sna1l scala sugar industry (2/SFR-OR-A) -- ... ... ... 1,436 7,085 -- -- 8,521 483 -- -1,126 7,878 Liv-stock dovelopmnot (2/SFR-OR-A) 254 ... ... ... 270 -- -- -- 270 -- 8 -- 262 Cargo facility - Coolidge Airport (3/SFR-A) 467 ... .,. ... 467 -- -- -11 456 __ 14 1 443 Studnut loons fCr higher education (4/SFR-A) (ABDB)2/ 116 ... ... ... 127 -- -- 11 138 -- 5 -33 100 Stuidnt loans for higher education (F/SFR-A) (ABDB)2/ 95 ... ... ... 108 __ __ 8 116 -- -- -27 89 Inusturial estates (foctory build- itgs) (5/SFR-A) (ABDB)2/ 475 ... ... ... 475 -- -- -8 467 -- -- -3 464 Chapa - CVCH (Casada Gardens) (7/SFR-A) -- -- -- -- -- -- -- -- -- -- -- -- -- Chlapa - UliCH (Parhbmo, etc.) (10/SFR-A) 1,489 ... ... . .. 1,512 -- 54 -- 1,458 -- 27 -- 1,431 Ind-strial estates second loan (12/SFR-A) (ABDB)2/ 1,677 ... . .. :2,238 483 -- 1 2,722 265 -- -114 2,873 Studont loana second loan (13/SFR-A) (ABDB)2/ 68 ... ... ... 230 84 __ -1 313 38 __ -60 291 Feeder roads (17/SFR-A) -- ... ... ... -- -- -- -- -- 265 -- -- 265 Fisheries de-elopment (18/SFR-A) -- ... ... ... -- -- -- -- -- 30 -- -- 30 Canada - CIDA Telephone expaosion (APUA)2/ 11,629 119 -- -- 11,748 259 __ __ 12,007 1,439 __ __ 13,446 Escopean Develop=nnt Pond No-th shoue water distribution -- -- -- -- -- 1,801 -- -- 1,801 111 __ __ 3,912 Trinidad and Tobag i.nrthquakn darrage 250 -- - -- -- 250 __ __ __ 250 __ __ __ 250 U.K. Gnoernent 4,642 = 16 __ 4,626 2,380 2,246 4,083 5 6,329 tornt.eal loan -- -- -- -- -- -- -- -- -- -- -- -- -- Antigua 6 per ceot stunk 2,256 -- -- -- 2,256 -- 2,256 -- -- -- -- -- -- Coopensation luau -- -- -- -- -- -- -- -- -- -- -- -- -- Hurricase Doosn 16 -- 16 -- -- -- -- -- -- -- -- -- -- Eantern Parishes electricity -- -- -- -- -- -- -- -- -- -- -- -- -- AirportiEchequerLoan I ( < ( ( I ( ( 1 ( ( ( ( Airport Etoheqoer Loan II ( 2,370 -- ( -- ( -- ( 2,370 ( ( 124 ( -- ( 2,246 ( -- ( -- ( -- ( 2,216 Airport Eichequer Loan III ( ( ( ( ( I 2 ( 2 ( (6 Independecnc celebration -- -- -- -- -- -- -- -- -- 843 -- __ 843 P-rchase of equipment -- -- -- -- 3,240 -- -- 3,240 A. C. urich BRnk 3/ 28,213 -- 856 -- 27,57 __ 19 _ 27,338 763 28,101 Antilles Intecratio.al Trust Caop:uny 464 = = = 464 = 464 == -- = = Crdit SCuisse = 16,870 = = 16,870 = = -702 16,168 Sb,p_ll-rs crdiLt (Marieting Corporata) = = 4,199 - = 4,199 S hpplies' credit (Deep Ban Project) 9=___ 9 450 - 163 - Table 4.2: ANTIGUA AND BARBUDA - EXTERNAL DEBT OPERATIONS 1/ (Continued) (EC$ '000) Out- Operations in 1977 Out- Operations in 1978 Out- standing Draw- Amorti- Valua- standing Draw- Amorti- Valua- standing 12/31/76 ings zation tion 12/31/77 ings zation tion 12/31/78 Antigua Agricultural Development Bank/ Friends of English Harbor 1,513 269 -- -- 1,782 134 -- -- 1,916 (Caribbean Development Bank) Agricultural and Industrial Credit I ( (2/OR-A) (ABDB) 351 ... ... 300 ... 300 Agricultural and Industrial Credit II ( (3/OR-A) (ABDB) ( ( .. ... ... 113 ... ... ... 227 Farm Improvement Credit I (1/SFR-A) (ABDB) 410 ... ... ... 440 ... .. ... 454 Farm Improvement Credit (1/SFR-A) (ABDB) 43 ... ... ... 43 ... ... ... 59 Small Industries Credit I (6/SFR-A) (ABDB) 189 ... ... ... 189 ... ... 189 Small Industries Credit (CCF) (6/SFR-A) (ABDB) 24 ... ... ... 24 ... ... ... 24 Small Industries Credit II (8/SFR-A) (ABDB) ... ... ... ... ... ... ... ... ... Farm Improvement Credit II (9/SFR-A) (ABDB), .. .... ... ... ... ... ... Agricultural Prod. Credit (15/SFR-A) (ABDB) ... ..... ... ... ... ... Agricultural and Indust. Credit (16/SFR-A) (ABDB) ... ... ... ... ... ... AIC and SIC Credit (19/SFR-A) (ABDB) (19/SFR-A) (ABDB) -- -- -- -- -- -- -- -- -- Mortgage finance (3/SFR-OR-A) (A )DB- Investment in equity (20/SFR-A) (ABDB) -- -- -- -- -- -- -- -- -- Friends of English Harbor (1/OR-A) (Friends) 464 -- __ __ 464 -- __ __ 464 Friends of English Harbor (1/OR-A) (Friends) 32 -- __ __ 46 -- __ __ 46 Friends of English Harbor (i/OR-A) (Friends) -- -- -- -- 154 -- -- __ 154 Government-guaranteed loans total 27,746 4,159 32 __ 31,873 408 122 -- 32,159 Antigua Public Utilities Authority 13,150 4,109 -- 17,259 377 -- 17,636 Eximbank 12,183 4,109 -- -- 16,292 -- = = 16,292 Colt Industries (APUA) ... ... ... ... ... ... . Aqua Chem (APUA) ... ... ... ... ...... ... Capitalization of interest Stanley Consultants lnc. Consultancy services/supplies (APIJA) 967 -- __ __ 967 377 __ __ 1,344 Lloyds-Merrill Blackstone Ltd. -- -- -- -- -- -- -- -- -- Purchase of two generators Lloyds-Merrill Blackstone Port Authority Eximbank 14,175 -- -- -- 14,175 -- -- -- 14,175 Aaitigua Port Authority 12,150 -- -- -- 12,150 -- -- -- 12,150 Antigua Port Authority 2,025 -- -- -- 2,025 -- -- 2,025 Barclays Overseas Development Corporation Ltd. 421 50 32 -- 439 31 122 __ 348 - 164 - Table 4.2; ANTIGUA AND BARBUDA - EXTERNAL DEBT OPERATIONS !/ (Concluded) (ECS'000) Out- Operations in 1979 Out- Operations in 1980 Out- Operations in 1981 Out standing Draw- Amorti- Valsa- s:tanding Draw- Amorti- Valua- standing Draw- Amorti- Valsa- standing 12/31/78 ings zation tion 1.2/31/79 ings zation tion 12/31/80 ings zation tion 12/31/81 Aotigoa Agricultural Development Bank/ Friends of English Barbor 1,916 941 -- _2 2,87 689 35 = 3,511 2,422 14 -200 5.719 (Caribbean Development Bank) Agricultural and Ind. Credit I (2/OR-A) (ABDB) 300 ... ... ... 300 -- -- -- 297 -- -- -3 294 Agricultural and Indostrial Credit II (3/OR-A) (ABDB) 227 ... ... ... 267 -- -- -- 278 -- 3 -32 243 Fare Improvement Credit I (1/SFR-A) (ABDB) 454 ... ... ... 462 -- -- -- 419 -- -- -3 416 Farn Improvement Credit (1/SFR-A) (ABDB) 59 ... ... ... 62 -- -- -- 62 -- -- -- 62 Small Indulstries Credit I (6/SFR-A) (ABDB) 189 ... .., .. 203 _- _ _ _ _ 203 -- 11 -- 192 Snail Industries Credit (CCF) (6/SFR-A) (ABDB) 24 ... ... ... 27 -_ __ __ 27 -- -- -- 27 Small Industries Credit II (8/SFR-A) (ABDB) ... ... ... .. 149 262 -- -- 410 70 -- -21 459 Farm Improvement Credit I7 (9/SFR-A) (ABDB) .. ... ... . 232 95 -- - 327 78 -- -3 402 Agric-ltsral Prod. Credit (15/SFR-A) (ABDB) ... ... ... . 35 127 __ __ 162 103 -- -- 265 Agricultural and Indust. Credit (16/SF1-A) (ABIB) ... ... ... ... 456 205 -- -- 662 -- -- -138 524 AIC and SIC Credit (19/SFR-A) (ABDB) -- -- -- -- -- -- -- -- -- 961 -- -- 961 Mortgige fis.oce (3/SFR-OR-A) (ABDB) -- -- -- -- -- -- -- -- -- 1,210 __ __ 1,210 Ivest most in equity (20/SFR-A) (ABDB) -- -- -- -- -- -- -- -- -- -- -- -- - Friends of English Harbor (i/OR-A) (Friends) 464 -- __ __ 464 -- __ __ 464 -- __ __ 464 Friends of English Harbor (I/ER-A) (Frioods) 46 -- __ __ 46 -- __ __ 46 -- __ __ 46 Friends of English Harber (I/OR-A) (Fricnds) 154 -- __ __ 154 -- __ __ 154 -_ __ -_ 154 .overrooro n-gamr.nreed loans total 32,159 1, 8 330 = 33,617 -- 113 -305 33,199 22,529 219 -- 55.509 Antig3a PFblic Utilities nut hrity 17,636 175 205 = 19,137 -- 113 -- 19,024 1.361 219 20,166 Eniobu-k 16,292 1,755 49 -- 17,998 -- -- -- 17,998 1,361 -- -- 19,359 Colt Industries (APUA) ... ... ... ... 8,621 -- -- -- 8,621 651 -- -- 9,272 Aqua Chem (APDA) ... ... ... ... 9,377 -- -- -- 9,377 710 -_ -_ 10,087 Cipitnl.of interest Sta.iiay Coa.sultants Inc. _oosulutacy services/supplies (APUA) 1,344 __ 205 -- 1,139 __ 113 -- 1,026 -- 219 807 Lloyd- :ero ill Blackstone Ltd. -- 21,168 -_ __ 21.168 Purchase of two generators Lloyds- Merrill Blockstone fort Authority E.i.hba.k 14,175 - 14,175 -- -- -- 14,175 -- -- -- 14,175 Antigua Port Authority 12,150 __ __ __ 12,150 -- __ __ 12,150 -- __ __ 12,150 Antigua Port Authority 2,025 -- -- -- 2,025 -- -- -- 2,025 -- -- - 2,025 Barclays Cverseas Devel- opFent Corp. Ltd. 348 33 76 -- 305 -- -- -305 -- -- -- -- -- Sources: 4nistry of Finance; Treasury; and various state enterprises. 1/ EIcludes debts with locally-based branches of foreign banks. 2/ These loans have bees on-lnt by the Central Covernment to the i-stitutiass as shown. 3/ Eucldeos operations with AntJgon Intorsatio.-l Bnak (AIn) amd Colonial Bosk as snffieient information is not available. Latent partial data suS- gest that thin loan may have been amortized by contracting new loans with AIB and Colonial Bank. - 165 - Table 5.1: ANTIGUA AND BARBUDA - PUBLIC SECTOR OPERATIONS Prel. 1977 1978 1979 1980 1981 (In millions of East Caribbean dollars) Total current revenue 54.7 69.9 81.8 105.5 132.4 Central Government 33.0 43.7 49.2 62.0 78.2 Rest of public sector 21.7 26.2 32.6 43.5 54.2 Total current expenditure 57.0 64.5 75.1 94.0 124.4 Central Government 38.9 43.9 52.7 65.3 87.6 Rest of public sector 18.1 20.6 22.4 28.7 36.8 Current balance -2.3 5.4 6.7 11.5 8.0 Overall balance -14.2 -30.7 -1.3 -14.2 -37.3 Financing 14.2 Foreign assets (increase -) -0.1 0.1 -0.3 -0.5 -0.1 Net borrowing from ECCA 0.2 0.5 -- 3.1 0.7 Other net foreign borrowing 10.3 32.8 3.4 22.1 42.3 Net local bank borrowing 9.2 3.3 4.2 -5.6 -4.7 Other net domestic borrowing -5.4 -6.0 -6.0 -4.9 -0.9 (As per cent of GDP) Current balance -1.4 2.9 2.9 4.0 2.4 Overall balance -8.7 -16.6 -0.6 -4.9 -11.0 Sources: Statistical Appendix Table --; and Fund staff estimates. -- 166 - Table 5.2: ANTIGUA AND BARBUDA - CENTRAL GOVERNMENT CURRENT EXPENDITURE (EC$ million) Prel. Budget 1977 1978 1979 1980 1981 1981 Current expenditure 38.9 43.9 52.7 65.3 87.6 113.1 Personal emoluments 1/ 22.5 30.1 32.6 33.3 41.9 56.2 Other goods and services 6.6 6.3 7.5 16.0 26.3 30.7 Pensions and gratuities 2.0 2.4 3.0 4e2 4.2 4.9 Interest 4.2 3.9 6.4 8.2 8.5 8.5 Public sector transfers 0.8 0.6 1.2 0.2 1.5 5.6 Antigua Public Utilities Authority (0.5) (0.5) (0.9) (--) (--) (--) Central Marketing Corporation (0.3) (0.1) (0.2) (0.1) (0.5) (3.5) Industrial Development Board (-) (- -)(Oel) (0.1) (0.1) Antigua Agricultural and Development Bank (--) (--) (0-1) (--) (--) (--) Sugar Industry Corporation (--) (--) (--) (--) (0-9) (2.0) Antigua and Barbuda Devel- opment Corporation (--) (--) (--) (--) (0-1) Antigua Isle Company (--) (--) (--) (--) (0.2) Private sector transfers 0.3 0.3 0.4 0.8 0.9 1.3 International transfers 2.5 1.2 1.6 2.6 4.3 5.9 Sources: Ministry of Finance; and Fund staff estimates. 1/ Includes wages (nonestablished), labor crash program, and man- power training. - 167 - Table 5.3: ANTIGUA AND BARBUDA - CENTRAL GOVERNMENT'S FOREIGN ASSETS (EC$ thousand) Jan. 31 1976 1977 1978 1979 1980 1981 Net foreign assets 919 980 853 1,113 1,663 1,801 Consolidated Fund (cash funds) -114 124 -70 278 378 160 Savings Bank 668 598 662 536 882 1,117 Surplus fund 346 238 239 275 335 424 Stock Transfer Stamp Duty Fund 19 20 22 24 68 100 Source: Treasury. - 168 - Table 5.4: ANTIGUA AND BARBUJDA DISTRIBUTION OFI BONDED DEBT (EC$ million) 1976 1977 1978 1979 1980 1981 Total 17,837 29,339 33,376 34,091 42,918 53,390 Treasury bills 11,450 13,580 13,377 14,414 21,469 26,835 Commercial banks 7,500 7,500 5,600 3,800 6,900 9,300 ECCA 1,800 1,800 2,300 2,300 5,000 5,700 Social Security 800 2,800 3,336 5,450 5,550 6,900 Other public sector -- 600 850 1,485 1,415 2,805 Private sector -- 287 306 367 1/ 608 334 Insurance companies 1,350 593 805 .832 1,595 1,395 Liat 180 180 130 130 Medical Benefits Scheme 271 271 Debentures 6,387 15,759 19,999 19,677 21,449 26,555 Commercial banks 1,100 1,100( 3,300 2,300 2,400 3,100 Social Security 850 4,871 6,634 6,634 6,634 8,834 Insurance companies 800 875 875 875 875 1,275 Local private sector 137 164 213 363 635 826 ECCA 3,500 3,650 3,650 3,650 4,000 4,000 Central Bank of Barbados -- -- -- - 500 Reserve require- ments -- 5,099 5,327 5,855 6,905 8,020 Sources: Ministry of Finance; ECCA; and Social Security Scheme. 1/ Excludes reserve requirements on commercial banks. - 169 - Table 5.5:ANTIGUA AND BARBUDA - SELECTED CENTRAL GOVERNMENT REVENUE AND EXPENDITURE ITEMS Prel. Budget 1977 1978 1979 1980 1981 1982 (As a percentage of total tax revenue) Traxes Income taxes 17.1 13.3 12.1 13.1 17.3 14.0 Property taxes 1.6 1.3 1.7 1.1 2.2 1.8 Consumption tax 25.0 22.3 31.0 24.4 25.1 24.8 Import duties 32.1 36.0 34.6 34.3 28.9 26.8 Foreign currency levy 7.1 7.3 6.5 6.3 6.6 4.8 Hotel and guest taxes 7.1 9.0 9.0 8.2 7.1 9.4 Stamp duties 3.2 3.3 3.4 3.8 3.5 2.5 Other 6.8 7.5 1.7 8.8 9.3 15.9 Direct taxation 18.7 14.7 13.8 14.1 18.9 15.8 Indirect taxation 81.3 85.3 86.2 85.9 81.1 84.2 (As a percentage of current expenditure) Expenditure categories Personal emoluments 57.8 68.5 61.8 51.0 47.8 49.7 Other goods and services 16.9 14.3 14.2 24.5 30.0 27.1 Transfer: to: rest of public sector 2.5 1.4 2.3 0.3 1.7 5.0 ,nterest 10.8 8.9 12.1 12.6 9.7 7.5 jnternational transfers 6.4 2.7 3.0 4.0 4.9 5.2 Source: -- 170 - Table 5.6: ANTIGUA AND BARBUDA - CENTRAL GOVERNMENT CURRENT EXPENDITURE (EC$ millions) Prel. Budget 1977 1978 1979 1980 1981 1982 Current expenditure 38.9 43.9 52.7 65.3 87.6 113.1 Personal emoluments 1/ 22.5 30.1 32.6 33.3 41.9 56.2 Other goods and services 6.6 6.3 7.5 16.0 26.3 30.7 Pensions and gratuities 2.0 2.4 3.0 4.2 4.2 4.9 Interest 4.2 3.9 6.4 8.2 8.5 8.5 Public sector transfers 0.8 0.6 1.2 0.2 1.5 5.6 Antigua Public Utilities Authority (0.5) (0.5) (0-9) (--) (--) (--) Central Marketing Corporation (0.3) (0.1) (0.2) (0.1) (0.5) (3.5) Industrial Development Board (0-) (--) (--) (0.1) (0.1) (0.1) Antigua Agricultural and Development Bank () () (0.1) (-) () () Sugar Industry Corporation (--) (--) (--) (-) (0.9) (2.0) Antigua and Barbuda Devel- opment Corporation (--) (--) (--) (---) (0.1) (--) Antigua Isle Company (--) () (-) () (0.2) () Private sector transfers 0.3 0.3 0.4 0.8 0.9 1.3 International transfers 2.5 1.2 1.6 2.6, 4.3 5.9 Sources: Ministry of Finance; and Fund staff estimates. 1/ Includes wages (nonestablished), labor crash program, and man- power training. - 171 - Table 5.7: ANTIGUA AND BARBUDA - CONSOLIDATED OPERATIONS OF THE PUBLIC SECTOR (EC$ millions) Est. Prel. 1977 1978 1979 1980 1981 I. Consolidated Public Sector Current revenue 37.3 50.5 63.6 83.1 102.6 Current expenditure 39.6 45.1 56.9 71.6 94.6 Current account surplus or deficit (-) -2.3 5.4 6.7 11.5 8.0 Capital receipts 4.2 4.1 5.2 11.2 12.3 Capital expenditures 19.5 37.8 12.6 36.2 57.1 Net lending 1.2 1.4 0.7 0.7 0.5 Overall deficit -14.2 -30.7 -1.3 -14.2 -37.3 Financing 14.2 30.7 1.3 14.2 37.3 Foreign financing (net) 10.3 32.8 3.4 22.1 42.3 ECCA 0.2 0.5 -- 3.1 0.7 Change in foreign assets (increase -) -0.1 0.1 -0.3 -0.5 -0.1 Domestic financing (net) 3.8 -2.7 -1.8 -10.5 -5.6 Banking system (9.2) (3.3) (4.2) (-5.6) (-4.7) Other domestic (-2.6) (0.5) (-4.3) (0.6) (-1.1) Residual (-2.8) (-6.5) (-1.7) (-5.5) (0.2) II. Central Government Current revenue 33.0 43.7 49.2 62.0 78.2 Tax revenue 25.1 30.0 35.5 47.5 60.2 Other 7.8 13.7 13.7 14.5 18.0 Current expenditure 38.9 43.9 52.7 65.3 87.6 Wages and salaries 7TT -I. 32.6 TF 417. Goods and services 6.6 5.4 7.5 16.0 26.3 Interest 4.2 3.9 6.4 8.2 8.5 Pensions 2.0 2.4 3.0 4.2 4.2 Transfers 3.6 2.1 3.2 3.6 6.7 Current account surplus or deficit -5.9 -0.2 -3.5 -3.3 -9.4 Capital receipts 4.2 4.1 5.2 11.2 12.3 Capital expenditure 12.1 31.2 8.3 35.7 36.0 Net lending 8.5 2.7 0.8 1.2 0.5 Overall deficit -22.3 -30.0 -7.4 -29.0 -33.6 Financing 22.3 30.0 7.4 29.0 33.6 Foreign financing (net) 3. Z8.T 2.4 2F T7 ECCA 0.2 0.5 -- 3.1 0.7 Change in foreign assets -0.1 0.1 -0.3 -0.5 -0.1 Domestic financing (net) Rest of public sector (6.6) (2.8) (2.8) (--) (4.9) Banking system (5.2) (4.7) (5.3) (0.3) (5.7) Other domestic (0.6) (0.5) (0.2) (1.6) (0.1) Residual (-3.5) (-6.7) (-3.0) (0.2) (1.1) - 172 - Table 5.7: ANTIGUA AND BARBUDA: CONSOLIDATED OPERATIONS OF THE PUBLIC SECTOR (Continued) (EC$ millions) Est. Prel. 1977 1978 1979 1980 1981 III. Rest of General Government Current revenue 5.5 6.8 13.1 14.4 17.2 Contributions 1 4 1-2. 15.0 Other 1.7 2.0 2.2 Current expenditure 0.7 1.2 4.2 6.3 7.0 Wages and salaries 0.5 7 0. Other 3.7 5.6 6.1 Current account surplus 4.8 5.6 8.9 8.1 10.2 Investments (increase -) -4.8 5.6 -8.9 -8.1 -10.2 Commercial bank deposits T7 -0.- -0.3 =-F Central Government -6.0 -2.3 -3.9 -0.1 -3.6 Other loans -3.2 -1.6 -4.5 -1.1 -1.2 Amortization debts with commercial banks 0.7 -0.9 -0.4 -0.4 -0.4 IV. State. Enterprises Net operating surplus or deficit (-) -1.17 0.06 1.42 6.65 7.20 Central government transfers 0.80 0.63 1.10 0.10 0.50 Capital receipts -- -- -- Capital expenditures 7.37 6.60 4.30 0.11 23.78 Overall surplus or deficit (-) -7.74 -5.91 -1.78 6.66 -16.08 Financing Foreign financing (net) -3.03 4.65 0.95 -2.20 21.05 Domestic financing (net) 10.77 -1.26 0.83 -4.46 -4.97 Banks (0.28) (-0.62) (-0.433) (-0.63) (-0.10) Central Government (7.42) (1.36) (0.13) (0.55) (-0.10) Social Security (--) (--) (0.08) (0.09) (--) Other (:3.07) (0.52) (1.05) (-4.47) -4.77 - 173 - Table 5.7: ANTIGUA AND BARBUDA - CONSOLIDATED OPERATIONS OF THE PUBLIC SECTOR (Continued) (EC$ millions) Est. Prel. 197+ 1978 1979 1980 1981 V. Social Security System Revenue 5.5 6.8 8.3 9.6 12.1 Contributions .4 5.4 67T T. 10.1 Interest 1.1 1.4 1.6 1.8 2.0 Expenditure 0.7 1.2 1.9 2.4 2.8 Wages and salaries O. 0.3 0.4 0.56 Goods and services 0.1 0.2 0.2 0.3 0.4 Other (benefits) 0.4 0.7 1.3 1.6 1.8 Current and overall balance 4.8 5.6 6.4 7.2 9. 4 Investments (increase -) 4.8 5.6 -6.4 -7.2 -9.4 Deposits commercial banks 3.7 -0.8 0.5 -6.2 -4.8 Central Government Treasury bills -2.0 -0.5 -2.1 -0.1 -1.4 Debentures -4.0 -1.8 -- -- -2.2 Loans Broadcasting service -- -0.1 -- Isle Co. Holiday Inn -3.2 -1.0 -- Central Government "demand loans" -- -0.5 -1.8 Public Utilities Authority -- -- -- -- -- Other 0.7 -0.9 -3.0 -0.9 -1.0 VI. Medical Benefits Scheme Revenue - -- 4.8 1/ 4.8 5.0 Contributions -- -- 4.7 4.6 4.8 Other -- -- 0.1 0.2 0.2 Expenditure -- -- 2.3 3.9 4.2 Wages and salaries -- -- 0.1 0.2 0.3 Benefits -- -- 2.0 3.4 3.5 Other -- -- 0.2 0.3 0.4 Current and overall balance -- -- 2.5 0.9 0.8 Debt amortization o -- 0.4 0.4 0.4 Investments (increase -) = = -2.1 -0.5 -0.4 Deposits commercial banks -- -- -0.8 -0.3 -0.2 Other -- - -1.5 -0.2 -0.2 - 174 - Table 5.7: ANTIGUA AND BARBUDA - CONSOLIDATED OPERATIONS OF THE PUBLIC SECTOR (Continued) (EC$ millions) Est. Prel. 1977 1978 1.979 1980 1981 VII. Port Authority Operating revenue 1.99 2.57 3.29 3.94 4.61 Operating expenditure 1.99 2.67 3.16 3.47 3.59 Net operating surplus or deficit (-) -- -0.10 0.13 0.47 1.02 Capital receipts -- -- -- -- Capital expenditure -- 0.10 -- 0.10 Overall surplus or deficit (-) -- -0.20 0.13 0.47 0.92 Foreign financing (net) -0.43 -0.45 -0.45 -0.30 -2.43 Domestic 0.43 0.65 0.32 -0.17 1.51 Banks -0.06 -0.07 -O.08 -0.10 -UhTg Government -- -- -- -- -- Other 0.49 0.72 0.40 -0.07 1.67 VIII. Public Utilities Authority (ending June of each year) Operating revenue 10.93 13.33 12.73 21.70 27.12 Operating expenditure 11.73 12.63 11.53 15.10 20.24 Net operating surplus or deficit (-) -0.80 0.70 1.20 6.60 6.88 Central government transfers 0.50 0.50 0.90 -- -- Capital receipts -- -- -- -- -- Capital expenditure 7.30 6.50 4.30 0.11 23.78 Overall surplus or deficit (-) -7.60 -5.30 -2.20 6.49 -16.60 Foreign financing (net) -2.60 5.10 1.40 -1.90 23.48 Domestic 10.20 0.20 0.80 -4.59 -6.88 Banks 0.22 -0.62 -0.29 -0.46 -1.00 Government 7.30 1.30 0.10 0.50 -0.70 Social Security -- -- 0.08 0.19 0.28 Other 2.68 -0.48 0.91 -4.72 -5.46 - 175 - Table 5.7: ANTIGUA AND BARBUDA - CONSOLIDATED OPERATIONS OF THE PUBLIC SECTOR (concluded) Est. Prel. 1977 1978 1979 1980 1981 IX. Industrial Development Board (In thousands of East Caribbean dollars) Operating revenue 10 15 30 30 35 Operating expenditure 80 128 110 116 125 Transfers from Central Government 50 70 70 100 95 Current surplus or deficit (-) 20 -43 -10 14 5 Capital receipts -- -- -- Capital expenditure 66 -- -- -- -- Overall surplus or deficit (-) -46 -43 -10 14 5 Net foreign financing -- -- -- -- -- Net domestic financing 46 43 10 -14 -5 Banks 23 -32 39 40 30 Social Security -- -- -- 20 -- Other 23 75 -29 -54 -35 X. Central Marketing Corporation (year ending in August of each year) (In millions of East Caribbean dollars) Operating revenue 3.3 3.6 3.5 3.6 5.3 Operating expenditure 3.6 4.0 3.4 3.9 5.9 Net operating surplus or deficit (-) -0.3 -0.4 0.1 -0.3 -0.6 Central government transfers 0.3 0.1 0.2 0.1 0.5 Capital receipts -- -- -- -- -- Capital expenditure -- -- -- -- Overall surplus or deficit () _ -0.3 0.3 -0.2 -0.1 Net foreign borrowing _ -- -- -- -- Net domestic financing -- 0.3 -0.3 0.2 0.1 Banks o07T 0. -0.1 -0.1 0.5 Social Security -- -- -- -- -- Other -0.1 0.2 -0.2 0.3 -0.4 Sources: Ministry of Finance; Treasury; Social Security Scheme; Medical Benefits Scheme; state enterprises; statutory bodies; - 176 - Table 5.8: ANTIGUA AND B.ARBUDA - CENTRAL GOVERNMENT REVENUE (EC$ millions) Prel. Budget 1977 1978 1979 19,80 1981 1982 Domestic current revenue 33.0 43.7 49.2 62.0 78.2 92.5 Direct taxes 4.7 4.4 4.9 6.7 11.4 11.5 Income tax 4.3 4.0 T7 I=7 T T7 Of which: corporation tax (2.2)l (2.8) (3.0) (5.5) (9.6) (9.5) Property tax 0.4 0.4 0.6 0.5 1.0 1.3 Indirect taxes 20.5 25.6 30.6 40.8 48.8 61.2 Consumption taxes 1/ 677T-TT 1T.0 TT7 I TSTT T18.0 Import duties 8.1 10.8 12.3 16.3 17.4 19.5 Export duties -- -- 0.1 0.1 0.1 0.1 Hotel and guest taxes 1.8 2.7 3.2 3.9 4.3 6.8 Travel tax -- 0.2 0.6 0.7 0.7 0.8 Embarkation tax 0.5 0.6 0.7 0.7 0.7 0.8 Entertainment tax 0.1 0.1 0.1 0.1 0.1 0.2 Telecommunication tax 0.2 0.2 0.5 0.7 1.0 0.8 Stamp duties 0.8 1.0 1.2 1.8 2.1 1.8 Foreign currency levy 1.8 2.2 2.3 3.0 4.0 3.5 Insurance premium levy 0.1 0.1 0.1 0.1 0.2 0.2 Casino tax -- 0.1 0.1 0.3 Cruise-ship tax -- -- -- 0.7 0.7 Other 0.8 1.0 1.8 1.7 2.3 7.7 Nontax revenue 7.8 13.7 13.7 14.5 18.0 19.8 Currency profits 0.7 0.3 1.3 1.7 2.6 1.5 U.S. bases -- 4.1 4.1 4.1 4.1 4.2 Licenses and fees 0.8 2.0 2.0 4.0 4.0 6.9 Post Office revenue 2/ 4.1 2.7 4.8 3.5 4.8 4.8 Other 2.2 4.6 1.5 1.1 2.5 2.5 Capital receipts 4.2 4.0 5.1 11.0 12.2 Sales of government lands -- 0.1 0.1 0.2 2.5 2.5 U.K. Development Aid 3.3 2.4 2.1 1.9 2.0 CIDA grants 0.8 1.4 2.7 8.0 6.0 U.S. AID -- -- -- 0.4 1.0 Trinidad and Tobago --- -- -- Other (ILO-WHO) 0.1 0.1 0.2 0.4 0.7 Sources: Treasury; and Ministry of Finance. 1/ Includes surcharge. 2/ Includes philatelic sales. - 177 - Table 5.9: ANTIGUA AND BARBUDA - CENTRAL GOVERNMENT OPERATIONS (EC$ millions) Revised Budget Budget 1977 1978 1979 1980 1981 1982 Current revenue 33.0 43.7 49.2 62.0 78.2 92.5 Current expenditure 38.9 43.9 52.7 65.3 87.6 113.1 Current account deficit (-) -5.9 -0.2 -3.5 -3.3 -9.4 -20.6 Capital revenue (domestic) -- 0.1 0.1 0.2 2.5 2.5 Capital grants 4.2 4.0 5.1 11.0 9.8 10.5 Capital expenditure 12.1 31.2 8.3 35.7 36.0 109.2 Net lending 8.5 2.7 0.8 1.2 0.5 0.5 Overall deficit (-) -22.3 -30.0 -7.4 -29.0 -33.6 -117.3 Financing 22.3 30.0 7.4 29.0 33.6 117.3 Net foreign borrowing 13.3 28.1 2.4 24.3 21.2 93.7 Disbursements (13.4) (31.0) (3.4) (27.3) (23.6) (.--) Amortization (-0.1) (-2.9) (-1.0) (-3-0) (-2.4) (---) ECCA 0.2 0.5 -- 3.1 0.7 -0.1 Change in international reserves -0.1 0.1 -0.3 -0.5 -0.1 ) ) Commercial banks (net) 1/ 5.2 4.7 5.3 0.3 5.7 ) Social Security 6.0 2.2 2.2 0.1 3.5 ) Bonds held by private ) sector -- 0.1 0.1 0.3 0.2 ) 23.7 Treasury bills held by ) private sector 0.3 -- 0.1 0.2 -0.3 ) Rest of public sector ) Bonds(-) (- ~) () (~) Treasury bills (0.6) (0.3) (0.6) (-0.1) (1.4)) Other, including residual -3.2 -6.0 -3.0 1.6 1.3 ) Source : Ministry of Finance. 1/ Includes statutory (5 per cent) reserve requirement; debentures, Treasury bills; and other loans (zet). - 178 - Table 5.10:ANTIGUA AND BARBUDA - ESTIMATED AND PROJECTED FINANCING OF PUBLIC SECTOR INVESTMENT, 1981-85 1/ (EC$ million) Estimated Projected Total 1981 1982 1983 1984 1985 1982-85 % Uses Uses 57.1 76.1 83.6 66.3 65.0 291.0 100.0 Public Sector Capital 57.1 66.1 71.6 52.3 49.0 239.0 82.1 Expenditure External Amortization .. 10.0 12.0 14.0 16.0 52.0 17.9 Sources 57.1 76.1 83.6 66.3 65.0 291.0 100.0 Public Sector Capital Savings 8.0-3 4.0 14.0 20.0 25.0 63.0 21.6 External Financing 22 (Grants and Loans) 42.3- 61.0 68.0 48.5 44.9 222.4 76.4 Commercial Banks and Other Domestic Sources 6.8 11.1 1.6 -2.2 --4.9 5.6 2.0 I/ Excludes investment in new hotels/condominiums for which information on disbursements is not available. 2/ Net 3/ Refers to the "Consolidated Public Sector". For 1982-85, th,e Sugar Industry Corporation, the Central Housing and Planning Authority, the Antigua Isle Company and the Antigua and Barbuda Development Corporation are i'ncluded. - 179 - Table 5.11:ANTIGUA AND BARBUDA - PUBLIC SECTOR INVESTMENT PROGRAM (1982-85) SECTORAL COMPOSITION (EC$ millions) On-going New Total Projects Projectsl! EC$- Agriculture 17.3 18.0 35.3 14.8 Industry 1.5 6.4 7.9 3.3 Energy 5.9 15.5 21.4 8.9 Tourissm 14.8 - 14.8 6.2 Transportation and ConpialcaLion 5.9 77.8 83.7 35.1 lHousing 1.5 2.2 3.7 1.5 Water & Sewerage 20.1 18.4 38.5 16.1 Education 2.7 7.2 9.9 4.1 Health & Otlhers 1.8 21.7 23.5 10.0 Total Disbursements during 1981-85 71.5 167.2 238.7 100.0 1 It does not include new investments in hotels/condominiums. Table. 5.12 : ANTIGUA AND BARBUDA - PUBLIC SECTOR INVESTMENT PROGRAM 1982-85 (EC$ million) 1992 1983 1964 1985 Total External Local Total External Local Total External Local Total External Local ONGOING PROJECTS Agriculture Sugarcane Project 1,738 1,738 - 1,400 1,400 - - - Fisheries Development 2,392 1,766 626 7,285 6,982 303 4,093 4,093 - - Farm Improvement Credit It 108 108 - - - - - - - - Agricultural Production Credit 127 127 - 127 127 - Industry Global Line of Credit (FIC,SIC & AIC) 864 864 - 335 335 - - - - - Handicraft Center 270 270 - - - - - - - - Small Industry Credit IL 30 30 - - - - - - Small Business Development 39 39 - - - - - - Power Wind Power Project 660 579 81 23 23 - 24 24 Electricity Generating Equipmnent 5,219 3,599 1,620 - - - - - Tot rism Hotel Training School 284 284 - - - - - - Deep Bay Condominium Development T 1/,580 12,1510 2,430 - - - - - Transportation l PWD Equipment 3,000 3,000 - 1,320 1,320 - Airport Project 1,637 1,637 - - - - - - Housing Middle Income Houising (Mortgage Financing) 1,490 1_490 - - - - - _ _ _ Wat Drainage of Skerritts Pasture 140 140 - - - - - - - - - - Draifage of Gray's Farm 24 24 - - - - - - - - - - Potswork Water Distribution 128 128 - - - - - - - - - - Water Project-Fort James Runway Bay,Jolly Beach 350 350 - - - - - - - - - - Drainage of Cassada Gardens 540 540 - - - - - - - - - - Metering for Government Buildings 75 75 - - - - - - - - - - Creekside Dam 6,000 6,000 - 3,600 3,600 - - - - - Water Distribution Eystem I 5,072 5,072 - 5,049 5,049 - - - - - - Education Third Country Training III 198 198 - - - - - - - - - Student Loans I & II 135 135 - 135 135 - 105 105 - - - - New St. John's Primary School 454 454 - - - - - - - - - - New Otto Primary School 432 432 - - - - Urlings School 850 850 - 245 245 - School Maintenance 151 151 - - - - Others Processing Unit - Dunbars 86 86 - - - - - - - - - Mission Administered FPnds 230 230 - 230 230 - 230 230 - 230 - Subtotal 47,283 42.526 4,757 19,749 19,446 303 4,452 4,452 - 230 - 00 0 10 0 0 H H I 0 0 0 I I I 0- I I H OOHOOOOO OOH Th oo 00.000000000 000O0H0000 0Olo 00 0 00 00000000 001000000 0000000 10 ooooOOOOo 00 00H0 011.0 0000000 0000000 00 00 0 000 00.000- 00000-0 010000100 I 00000000 0 HO 00 001000000000 0 L 000000 0000. 0 000000 00 OH 00'0'0 0 000000 0 0 0 0000 00000 00000 000000000 0000000 005 0 ooOOOO 00- 00 OlO 0000000000.0-0 000-HO o00- 0205 000 00000000000 000 00000 000-000 0000 00.I00>0 0 00 00000'OH 00 001000000 00000 000000000 0 00000000 000 000000 0000 ooojo 00 0 0 0000 00000 0000 0000 0 000 000 000 000000000 0 0 OHOHO 0 olo 00000010 0000 0o0 0 000 0 0005000 000.0 0000000 10 0 15 00000 000 000000000 0 H 000-000 0 0 0000 0000-00 00000 00000000000000 0 I 0000 0000 00000 o.00 000 000000 0 100-00 HO0 HO 10000 00000 0011000.Ioooo 0 00- 0 00 0 0000-0 oO0-Oo 00 a 00000. 0 0000- 000 000.00 000 OH 0 .0.00 00 0 0 0 0 0000000010 00000000 H 01000000000. 0 00000 000 HO 0o000' 0 O 000000 00 0 OOOOoO I 000o.0O 0 0 0 oo.00 00.0 000 0000 o000 0 0 0 0000 0 0 000000 000 0000000 00 000000 H 010 00 00100 0000.0 I 000 0 H 000 00001 oo001..0 00 00000000 000 0 00.000 0-0000000.0 000000 0.000 000000 00 0000-00.0 0.0 50 00000- 0 0 000 0 00 000 0 00000 OOOOoO 000000 00 0000 0 0 000 0 00 00100 0 000 000101 0 00 00- 00 000 0 0 0 0 0 0000 05000 000- 00 0000000 00 00 0 0 0 0 0 0 O 00 0 000 000000 0 00000 00 00 0 0 0 0 0 0 0 0 0 00000 0 0 0 0- 0000 00 00 0 0 0 0 0 0 0 0 00 00000 010 - 0 000. 0 0 0000000 00 0000 0 010 0 ooo00 0 0 0 0 0 0 0 000 00 0 0000 0 0 000 0 0 0 0 0 0 00. 000 0 0000 0 000 0 0 0 0 0 00 0000000 0 0 0 0 0 0 0 0 0 0 0. 0 000 0 0 0 0 H 0 0 0 0000 0 0 0 0 .0 0 0 0 00 000 0 0 0 0 1111111 1111 IIIIIIl0II 11110111 01 Is, 0lI.101l 11111 10101011 0 0 0 0 00 0000 0 00 0 00 r 0 0 0 0 0 000 00 0 0 0 1111111 11111 1111111. II 11111111 II I II 0111111 1111111 0 000 0 0 0 010 0 00 0 00 00 H 00 10100101 1100 I II0IIIIII0 11010111 0000110 10000 01011 001000000 0 0 0 0 00 0 00 0 0 00 0 0000 0 0 0000 00000000 H 00 0 0 00 0 0 0 0 000 0 00000 0 0 000 000000 0 0 0 0 0 0 0 SI 0 I IIOIIIIIIo 111010111 00' 0 I 10 I 0000 01011 0010000 0.0 0 00 H 0 0 00 00 0 00000 0 o 00 000000 5 000 00 .0 0 00 00 H IIIIIIIlII.Il 111111111 I I 01 01111 ll"I 10.0 5 101111011100100 01001101 01 0 10100 01000001000000 0 :0 0 HOoOOoo 0 H 00 00 H 00 0 0 0 0 0.0 0 000 00 0000000 O 00000000 H H HO 00 0 000 0 0 0 00 00 0 0000 00 000000 0 0 0 0 0 00 000000 '00 10111 10111 00100 0,0001101 01 0 I I 0 I HI OH 0I000 0''IHOO 00 0 00000000 0 0 00 00 0 oH 0 0 0 0 00 0 0000 00 000000 0 000000.0 0 0 00 000 0 000 0 0 0 0 00 0 000 Co 0000000 0 000 11111 110111 I H 0111111 0 11110101 01110 I sI 00 0 ooOHOO 0 00 00 0 0 0 0 0 0 0 0 0 0000 0 OHOOoH H 0000 00 00 0 0 00 H 00 00 0 0 00000 00 0 0 0 0 0 00 0 0 1101010 111100010000100 1..01OIsllOI s''I .0 I II 10011010100011010100 0 0 0 0 0 00 0000.0 0.0 0000 0 0 10 0 00 H 00 0 H 0 00 0 0 0 0 00 00 0000 00 0000 0 00 0 0 0 00 00 00 0 H HO 0 1101010 11110001000150100 000001010 HI 0 I I I 10110 101 00 011010100 0 0 0 0 0 00 0.0000 0.0 000000 0 0 0 0 00 0 0 H 00 0 0 0 0 0 000 0000 00 0000 0 0 0 00 0 0 00 0 00 0 00 11010 11110 HOCO 00 0 0 0 00 000o 000 0 0 0 00 0 HO 0 0 0 000 - 182 - Table 6.1: ANTICUA AND BARBUDA - EAST CARIBBEAN CURRE7xCY AUTHORITl (In millions of East Caribbean dollars) December 31 __ _ Sptember 1976 1977 1978 1979 1980 1980 1981 Net international reserves 157.2 117.8 139.1 167.4 145.2 151.5 168.0 Assets 171Y7 144. 175.T2 210T 6 T 207. 1O7 Current assets and zDney at call (156.3) (111.0) (117.6) (139.3) (93.9) (126.1) (127.7) Regular notes in process of redemption (1.7) (4.4) (1.7) (5.7) (6.2) (11.0) (1.4) Other securities (12.7) (28.8) (56.9) (65.6) :112.2) (70.6) (78.5) Liabilities -13.5 -26.4 -37.1 -43.2 -67.1 -56.2 -39.6 Balance due to banks abroad 1/ (-13.5) (-26.4) (-37.1) (-43.2) (-67.1) (-56.2) (-39.6) Net position with banks in ECCA area --111.0 -65.9 -75.7 -89.2 -61.6 -87.8 -92.0 Assets 5.3 4.5 2.8 8.7 6.5 4.9 5.2 Bankers' balances 2/ (3.2) (2.6) (0.8) (6.5) (4.2) (2.6) (2.8) Balances with banks in area 3/ (2.1) (1.9) (2.0) (2.2) (2.3) (2.3) (2.4) Liabilities -116.3 -70.4 -78.5 -97.9 -68.1 -92.7 -97.2 Currency notes and coins -9.6 -14.0 -17.7 -24.0 -26.5 -25.9 -16.8 Antigua and Barbuda (1.8) (2.0) (2.5) (3.8) (4.5) (2.2) (3.5) Other (7.8) (12.0) (15.2) (20.2) (22.0) (23.7) (13.3) Deposits -106.7, -56.4 -60.8 -73.9 -41.6 -66.8 -80.4 Demand (-5.3) (-3.7) (-7.1) (-7.9) (-12.9) (-15.2) (-36.6) Fixed (-101.4) (-52.7) (-53.7) (-66.0) (-28.7) (-51.6) (-43.8) Net dorestic assets 11.2 12.9 12.6 13.3 13.9 12.8 21.7 Centi4al Government (met) 5 T67 7 33 .5 41.9 Antigua Treasury bills (1.8) (1.8) (2.3) (2.3) (5.4) (3.2) (5.6) Other Treasury bills (9.2) (9.9) (10.6) (17.1) (17.9) (18.0) (17.3) Antigua debentures (3.9) (4.0) (4.0) (4.0) (4.0) (4.0) (4.O) Other debentures (9.6) (10.3) (11.8) (10.1) (13.0) (13.0) (15.0) Liabilities to nonmonetary international organizations -1.4 -0.4 -0.4 -0.4 -7.7 -0.3 -2.8 Net unclassified assets -11.9 -12.7 -15.7 -19.8 -18. 7 -25.1 -17.4 Assets (0.6) (1.6) (2.7) (1.9) (4.0) (6.2) (8.0) Liabilities (--12.5) (-14.3) (-18.4) (-21.7) (--22.7) (-31.3) (-25.4) Currency in circulation 57.4 64.8 76.0 91.5 97.5 76.5 97.7 In Antigua and Barbuda 10.T l.U 15.14 7 Y4zw -s Estimate of notes and coins issued (11.0) (12.0) (17.6) (19.8) (19.8) (16.6) (16.9) Less: commercial banks' cash holdings (:-1.8) (-2.0) (-2.5) (-3.8) (-4.5) (-2.2) (-3.5) In other ECCA countries 44.9 52.2 58.3 72.9 79.6 59.5 81.7 Estimate of notes and coins issued (52.7) (64.2) (73.5) (93.1) (101.6) (83.2) (95.0) Less: comamrcial banks' cash holdings (-7.3) (-12.0) (-15.2) (-20.2) (22.0) (-23.7) (-13.3) Coins in former meaber countries 3.3 2.6 2.6 2.6 2.6 2.6 2.6 Source: East Caribbean Currency Authority. 1/ "Abroad' meaning outside ECCA area. V Foreign currency loans to area commercial banks. 3/ Domestic currency loans to area commercial banks. - 183 - Table 6.2: ANTIGUA AND BARBUIDA - COM2ERCIAL BANKS I/ (In millions of East Caribbean dollars) December 1976 1977 1978 1979 1980 1981 2/ Net foreign assets -15.6 -18.3 -13.8 -20.2 -19.3 -24.6 Assets n93 l2. 2 . 20.6 2 Foreign currency holdings (0.9) (1.1) (1.4) (1.9) (2.5) (1.3) Claims on ECCA (18.0) (4.4) (10.0) (11.1) (8.5) (5.9) Clatms on FCCA area banks (17.3) (4.1) (9.5) (4.0) (0.2) (3.4) Claims on banks abroad (2.3) (2.5) (7.9) (7.9) (5.9) (14.4) Other (--) (--) (--) (1.4) (3.5) (4.5) Liabilities -54.1 -30.4 -42.6 -46.5 -39.9 -54.1 Balance due to ECCA (--) (-) (-) (-) (--) (--) Balance due to ECCA area banks (-15.9) (-6.9) (-8.3) (-14.0) (-4.8) (-11.3) Balance due to banks abroad (-25.4) (-11.8) (-18.5) (-12.0) (-11.3) (-9.3) Nonresident deposits (-12.8) (-11.7) (-15.8) (-20.5) (-23.8) (-33.5) Demand /1.6/ /2.2/ /3.0/ /4.9/ /5.0/ /11.3/ Savings /3.5/ /3.4/ /3.9/ /5.9/ /6.2/ /10.5/ Time /7.7/ /6.1/ /8.9/ /9.71 /12.6/ /11.7/ ECCA currency holdings 1. 2.0 2.5 3.8 4.5 4.8 Net domestic assets 108.4 105.7 108.3 114.8 126.7 156.5 Net credit to Central Government T .1 28.T 30 T3 38.63 44 .3 Treasury bills (7.5) (7.5) (5.6) (3.8) (6.9) (9.3) Debentures (1.1) (1.1) (3.3) (2.3) (2.4) (3.1) Loans and advances includinig overdraft (14.5) (14.5) (18.4) (24.2) (24.0) (25.4) Government deposits (-) (_-) (_-) (--) (-0.6) (-1.6) (-1.1) Statutory requirement 3/ (--) (5.2) (5.7) (8.6) (6.9) (7.6) Net credit to other public sector 1.0 1.3 2.7 -4.0 -4.5 -0.1 Credit (1.0) (1.3) (2.7) (6.0) (6.2) (8.7) Deposit (-) (--) (--) (--) (-10.0) (-10.7) (-8.8) Net credit to nonbamk financial intermediaries -- -- -- -4.0 -5.6 -5.2 Creditt() (~) () (1-4) (1.8) (2.3) Deposit (-) (--) (--) (--) (-5.4) (-7.4) (-7.5) Credit to private sector 75.5 79.5 83.0 86.0 102.7 121.1 Interbank float ... ... ... 1.2 2.7 1.9 Claims (---) (---) (---) (5.4) (8.1) (7.5) Liabilities (---) (---) ( --) (-4.2) (-5.4) (-5.6) Net unclassified assets 8.8 -3.4 -10.4 -2.7 -7.2 -5.5 Assets (. ..) (...) (..) (9.7) (17.3) (26.3) Liabilities G...) ..) ( ..) (-12.4) (-24.5) (-31.8) Liabilities to private sector 4/ 94.6 89.4 97.0 98.3 111.9 136.6 Demand deposits 20.4 157 T17.4Z 21.T 2 TT Savings deposits 36.6 41.3 43.5 37.7 51.8 61.1 Time deposits 43.8 27.7 38.0 43.2 38.9 51.7 Sources: Commercial banks; ECCA; and Fund staff estimates. 1/ ' Since January 1979 the reporting forms from ECCA changed their format allowing for a major breakdown. In order to show a consistent series, the following assumptions for estimating 1976-78 data were made: Foreign currency holdings: 35 per cent of total cash holding as published in ECCA Bulletin. ECCA currency holdings: the remainder of total holding. Claims on ECCA: 51 per cent of total local assets as published in ECCA Bulletin. Claims on banks in ECCA area: the remainder of local assets. Nonresident deposits: difference between corresponding deposit data as publichsed in ECCA Bulletin and those shown in Ant igua quota paper. 2/ Preliminary consolidation using the November balance sheet of one bank (Interbank, Ltd.) T/ Banks classify this item as follows: Royal Bank - other assets; Nova Scotia - Treasury bills; Barclays - Claims on ECCA; CIBC - other assets. Adjustments were made accordingly. I-.terbank is not con- sidered since its statutory requirement is negligible. 4/ Deposits of other public entities and financial institutions are excluded. - 184 - Table 6.3: ANTIGUA AND BARBUDA - DISTRIBUTION OF COMMERCIAL BANK LOANS AND ADVANCES TO THE PRIVATE SECTOR December Sept. Sept. 1977 19713 1979 1980 1980 1981 (In millions of EaSt Caribbean dollars) Total 76.6 90.0 86.4 107.3 99.3 119.8 Agriculture 1.0 1)3 1.8 3.7 1.2 1.5 Manufacturing 8.6 12.7 10.7 6.8 7.2 7.8 Distributive trades 29.5 16.3 11.4 23.1 22.4 25.8 Tourism 6.1 7.9 6.7 3.6 3.5 4.1 Transport 2.5 3.9 4.1 3.6 3.4 4.6 Building, con- struction 6.7 8.3 5.9 5.0 4.5 8.6 Personal 21.2 2-.0 27.9 49.7 44.2 56.1 Other advances 1.0 13.1 17.9 11.8 12.9 11.3 (As per cent of total) Total 100.0 1001. 100.0 100.0 100.0 100.0 Agriculture 1.3 2.0 .2.1 3.5 1.2 1.3 Manufacturing 11.2 14.1 12.4 6.3 7.3 6.5 Distributive trades 38.5 18.1 13.2 21.5 22.6 21.5 Tourism 8.0 S8. .8 3.4 3.5 3.4 Transport 3.3 4.3 . 4.8 3.4 3.4 3.8 Building, con- struction 8e8 9.2 6,8 4e7 4.5 7.2 Personal 27.7 26.? 32,3 46.3 44.5 46.8 Other advances 1.2 16e8 20.6 10.9 13.0 9.4 Source: East Caribbean Currency Authority. Table 6.4: ANTIGUA AND BARBUDA - APPROXIMATE COMMERCIAL BANKS' INTEREST RATE RANGES 1/ DJ ec ember February 1977 1978 1979 1980 1981 1982 Savings deposits 2.5-3.0 2.5-3.0 2.5-3.0 2.5-3.0 2.5-3.0 3.0-3.5 Time deposits Up to 3 mornths - 4.0-5.5 5.5-6.5 6.0-7.0 3 to 6 rmonths 3.5-5.0 4.5-5.5 5.5-7.0 4.5-6.5 6.5-7.5 7.0-8.0 6 to 12 mornths 4.0-5.5 6.0-7.0 6.5-7.5 6.0-7.5 7.0-8.5 7.5-8.5 Over 12 months 6.5-7.0 6.5-7.5 7.0-7.5 7.5-8.5 8.0-9.0 Prime rate 8.6 8.6 9.0 9.0-11.0 12.5 Other lending rates -- -- 8.0-13.0 9.0-16.4 10.0-17.0 11.0-20.0 Un Discount loans 8.0-9.0 Sources: Commercial banks; and ECCA. 1/ Interbanik Ltd. rates are excluded because this is an international bank which operates at international rates. For example, in December 1981 the saving interest rate was 15.6 per cent, the range on time deposits was 15.6-20.5 per cent, and the lending rate was 20.8 per cent. - 186 - Table 6.5: ANTIGUA AND BARBUDA - ANTIGUA AND BARBUDA DEVELOPMENT BANK (EC$'000) December 31 1976 1977 1978 1979 1/ 1980 1/ Cash _ -- -- -- -_ Claims on commercial banks 460.1 474.9 15 174 2 Demand deposits 150.1 164.9 185 26 198 Fixed deposits 310.0 310.0 200 200 200 Domestic credit 2,114.2 3,584.4 5,162 3,067 4,255 Central government Treasury bills 686.3 688.0 688 688 688 Claims on private sector 1,721.1 2,923.5 2,359 2,738 4,157 Other assets (net) -293.2 -27.1 2,115 -359 -590 Assets (11.2) (17.6) (2,408) (165) (235) Liabilities (-304.4) (-44.7) (-293) (-524) (-825) Long-term foreign liabilities (CDB) 1,528.8 2,864.8 4,326 2,414 3,092 Capital and surplus 1,045.5 1,194.5 851 825 1,165 Source: Antigua and Barbuda Development Bank. 1/ Because of changes in the accounting system, the yetars 1979 and 1980 are distinct and not comparable to previous years ncr to each other. Table 7.1: ANTIGUA AND BARBUDA - PRODUCTION OF SELECTED AGRICULTURAL PRODUCTS Est. 1977 1978 1979 1980 1981 (In thousands of pounds) Agriculture Fruits and vegetables (by small farmers) 3,847.6 2,618.8 5,175.7 1,764.4 2,700.0 Of which: mangoes (2,572.9) (53.6) (785.3) (55.6) (.) bananas (24.4) (512.0) (335.9) (299.7) cucumbers (136.6) (111.3) (296.8) (76.6) (99.6) yams (101.6) (175.6) (239.7) (68.8) (. ..) sweet potatoes (158.5) (373.8) (614.8) (131.4) (166.9) Cotton lint 149.6 174.4 12.3 34.9 13.2 Cotton yield (lbs./acre) 170.0 199.0 68.0 334.0 166.0 (In thousands of units) I Livestock Cattle 7.8 8.0 7.3 6.1 6.0 Of which: milk yielding cattle (7.6) (8.0) (5.0) (6.0) (5.9) Milk (liters) 8.3 11.0 5.0 6.0 5.5 Sheep 9.9 9.4 8.4 8.6 8.5 Goats 7.9 8.0 6.6 6.3 6.4 Donkeys 0.6 0.7 0.5 0.4 0.5 Horses 0.1 0.1 0.1 0.1 0.1 Pigs 1.5 1.2 0.1 1.2 1.2 (In thousands of pounds) Fisheries Fish landings 3,628.6 3,313.6 2,469.4 2,444.7 2,439.4 Lobster landings 428.8 265.0 223.8 141.3 141.1 Sources: Ministry of Agriculture and Supply; and Statistical Office, Ministry of Finance. - 188 - Table 7.2: ANTIGUA AN]) BARBUDA - SELECTED INDUSTRIAL PRODUCTION 1978 1979 1980 1981 Copra meal Volume (000 lbs.) 54 73 84 68 Value (EC$ 000) 11 15 17 18 Edible oil Volume (gal. 000) 17 16 20 14 Value (EC$ 000) 164 206 261 248 Cotton seed meal Volume (000 lbs.) 27 27 30 3 Value (EC$ 000) 6 6 6 0.6 Cotton seed hull Volume (000 lbs.) 11 10 15 11 Value (EC$ 000) 1 1 1 0.7 Rum Volume (gal. 000) 203 181 128 162 Value (EC$ 000) 1,157 1,477 1,222 1,796 Garments Foundation (000 doz.) 19 128 70 80 1/ Value (EC$ 000) 1,,600 3,327 2,827 Men's garments (000 doz.) ... 120 150 180 1/ Value (EC$ '000) ... 2,400 3,000 Furniture Volume (000 pieces) ... 2 3 3 1/ Value (EC$ 000) ... 188 431 Paper products Production (000 rolls) 2,200 5,151 7,411 8,100 1/ Sales (000 rolls) 584 4,726 5,836 ... Sales (EC$ 000) 39 331 536 ... Soft drinks Volume (000 cases) 339 338 284 224 Value (EC$ 000) 2,098 2,693 3,766 2,964 Stoves (000 units) 4,450 6,583 6,207 6,300 l/ Value (EC$ 000) 3,402 4,213 5,156 Refrigerators (000 units) 3,050 4,108 3,806 ... Value (EC$ 000) 2,326 3,686 3,808 Bedding (000 units) 3 9 12 15 I/ Value (EC$ 000) 572 2,246 3,083 Sources: Ministry of Economic Development and Tourism; and IBRD. 1/ Estimated. - 189 - Table 7.3: ANTIGUA AND BARBUDA - SELECTED TOURISM STATISTICS Est. 1977 1978 1979 1980 1981 (Number of visitors) Total visitors 104,092 128,837 169,802 204,995 208,081 Cruises 35,795 51,942 70,266 107,094 113,357 Other 68,297 76,895 99,536 97,901 94,724 By air (67,412) (75,562) (86,459) (86,571) (84,724) By sea (885) (1,333) (13,077) (11,330) (10,000)1/ United States (28,958) (35,910) (43,724) (37,999) (32,162) Europe (12,063) (10,179) (21,510) (23,686) (19,772) Canada (8,468) (9,073) (8,993) (9,273) (8,198) Caribbean countries (15,708) (18,233) (21,349) (23,779) (21,492) All others (3,100) (3,500) (3,960) (3,164) (3,100) Total bed capacity 2,538 2,538 3,416 3,416 3,642 (In millions of U.S. dollars) Total expenditure 2/ 24.7 29.5 38.7 42.5 46.4 Cruise visitors 0. T 1.2 1.7 -TTT -7 Other visitors 24.0 28.3 37.0 39.4 42.5 (In days) Average length of stay of noncruise visitors 6.4 7.5 7.5 7.5 7.5 (Annual percentage change) Total visitors 16.2 23.8 31.8 20.7 1.5 Cruise 10.5 4.5 35.3 52.4 5.9 Other 19.4 12.6 29.4 -1.6 -3.3 Total expenditure 35.9 19.4 31.1 9.8 9.2 Sources: Antigua Departmerft of Tourism; and Fund staff estimates. 1/ Estimated. - 2/ Expenditure for stopover visitors = number visitor x average stay x 0.92 (: guest nights) x daily spending (estimated at US$58.3 for 1980). Guest nights = it is assu-med that 8 per cent of stopover visitors stay with relatives or fri nds, thus only 92 per cent stay in hotels or guest houses. Cruise-ship visitors' average stay is less than one day and aver- age spending for 1980 was estimated at US$28.6 of which US$16.4 went to purchase souvenirs and handicrafts and the rest for general services. The survey supporting these data was conducted from February 18, 1980 to March 18, 1980. i - 190 - Table 7.4: ANTIGUA AND BARBUDA - ELECTRICITY GENERATION (In thousands of KWH) Est. 19I77 1978 1979 1980 1981 Total 44,642 45,996 44,869 52,667 53,600 January -- -- 3,913 4,249 4,350 February -- -- 2,671 4,032 4,350 March -- -- 3,889 4,384 4,450 April -- -- 3,551 4,312 4,450 May -- -- 2,940 4,526 4,600 June -- -- 3,516 4,361 4,600 July -- -- 4,350 4,565 4,600 August -- -- 4,410 4,649 4,500 September -- -- 3,610 4,439 4,500 October -- -- 4,030 4,433 4,400 November -- -- 3,847 4,390 4,400 December -- -- 4,142 4,327 4,600 Source: Antigua Public Utilities Authority. Table 8.1: ANTIGUA AND BARBUDA - COST OF LIVING INDEX Alcoholic Hlousehold Food Beverages Clothing Operations All and and liu s- Util- and Trans- and Mis- Items Beverages Tobacco ing ities Accessories poration cellaneous Weights 1,000.0 428.8 36.0 233.2 55.5 74.7 100.0 71.7 (1969=100) Period average 1977 254.8 306.5 229.1 168.6 215.1 284.3 255.4 240.8 1978 270.5 325.5 243.3 177.2 226.9 291.9 269.4 270.1 1979 314.2 367.2 289.7 190.5 315.9 322.8 385.0 301.6 1980 374.4 431.2 339.3 230.6 448.4 365.2 454.7 360.8 1981 417.3 485.6 380.7 250.0 475.2 426.6 495.0 410.1 End of period 1977 267.1 331.3 232.4 168.6 223.2 293.8 261.9 234.7 1978 284.5 350.9 251.1 177.4 230.9 293.7 276.8 295.5 1979 339.0 390.2 317.5 207.6 368.6 349.2 410.0 338.7 1980 400.4 468.2 355.6 239.2 463.8 388.1 486.1 386.7 1981 428.5 500.5 380.7 258.0 474.7 436.9 497.9 436.5 (Percentage change) Period average 1977 13.8 13.2 8.7 1.9 33.9 17.2 30.5 15.0 1978 6.2 6.2 6.2 5.1 5.5 2.7 5.5 12.2 1979 16.2 12.8 19.1 7.5 39.2 10.6 42.9 11.7 1980 19.2 17.4 17.1 21.1 42.0 13.1 18.1 19.6 1981 11.5 12.6 12.2 8.4 6.0 16.8 8.9 13.7 End of period 1977 11.1 15.1 3.3 -- 38.0 13.2 4.5 4.7 1978 6.5 5.9 8.1 5.2 3.5 -- 5.7 25.9 1979 19.2 11.2 26.4 17.0 59.6 18.9 48.1 14.6 1980 18.1 20.0 12.0 15.2 25.8 11.1 18.6 14.2 1981 7.0 6.9 7.1 7.9 2.4 12.6 2.5 12.9 Source: Ministry of Finance (Statistics Division). - 192 - Table 8.2: ANTIGUA ANI) BARBUDA - ELECTRICITY RATES (In East Caribbean dollars) 1977 1978 1979 1980 1981 Domestic tariff Average rate per KWH 0.25 0.25 0.32 0.38 0.38 Average minimum charge 3.50 3.50 6.25 9.00 9.00 Commercial tariff Average rate per KWH 0.28 0.28 0.31 0.34 0.34 Average minimum clharge 10.00 10.00 8.00 6.00 6.00 Industrial tariff Average rate per KWH 0.20 0.20 0.26 0.33 0.33 Average minimum charge 15.00 15.00 10.50 6.00 6.00 Source: Antigua Public Utility Authority. - 193 - Table 8.3: ANTIGUA AND BARBUDA - RETAIL PRICES OF PETROLEUM PRODUCTS December 1977 1978 1979 1980 1981 Gasoline (EC$ per Imperial gallon) 2.41 2.87 3.95 4.74 4.96 Kerosene (EC$ per Imperial gallon) 1.78 2.01 3.26 4.19 4.34 Diesel (EC$ per Imperial gallon) 1.94 2.34 3.42 4.27 4.65 Propane 100 lb. (EC$ per cylinder) 50.00 60.00 81.00 105.25 114.00 Propane 20 lb. (EC$ per cylinder) 14.22 14.62 18.50 20.70 22.15 Source: West Indies Oil Co. -~~~~~~~~~~~~~~~~ 6('SO f;'45' .fP,Jr P", r,olod A// A NfIC B.ggao Po", H ~s,-n.wo UPw e lI ANTIGUA '- ' 91 fd, t'.S Poiht', ,Sf 1V9n o -4IV G,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~9 t r a;r h.- 2 If JCedrr | ; tof 9 ' 't g~~~ . b. P; N< U 1 7 ! J | New Wlnthorpew DGE N > - l GrffotSf/rd /s/fznd , - o S j 8iCODRINGiON Nfa ',sho,p~~ AIRPORT t-// 1, 3Norrd F, J.. -1~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~7-35' 17 35- JOHN'S ' BARBUDA C ,aoPoio W-d ' - I \ X S T < f Po t=t } . ] r j0 X K *_2 4 2 a 4-~~~~~~~~~~~~~~V4 ,-, a ;t,n, , \/_ 9 < | F < 5 ~~~~~~~~~~~ ~~T P F T E R- !l; PsvO /,/o,,d J -= Fre n +/,f,,h . zensvrl/5o l <404nds 1 + z /bRoc.ks 5~~~~~~~~~~~~~~~~~~~~~~~ T P H I L I P N Pa,-oP,o>/ 420 / z>fSest ~tt 02 00Nwfed\ ok/sAn /' ~~~S T. M A R Y S T | ( _ \\! 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