When the grant was announced by Minister Lovell and Prime Minister Baldwin Spencer on 14 July, the money was expected to become available by the end of that month, but this has not yet come to fruition.

“The money is still committed,” said Lovell. “Obviously we had to go through a number of processes here in Antigua and in Venezuela and those processes are at a well advanced stage and we are certainly anticipating that any day now we should get the good news.”

Venezuelan President Hugo Chavez has agreed to make the capital for preliminary work at the airport available from the ALBA Fund, which was established by the government of Venezuela in relation to the PetroCaribe arrangement.

The fund was initially capitalised with US$50 million and has been set aside to help Caribbean governments carry out strategic infrastructural and social development projects.

Lovell said progress was also being made with US$20 million which the government expects to get from Venezuela to use for the further capitalisation of LIAT.

The cash injection would make the government of Antigua & Barbuda the majority shareholder in the regional airline.

“That’s taking a little longer, because that’s a little more detailed. It’s more money and that’s a loan arrangement whereas the US$7.5 million for the airport is a grant,” Lovell explained. “We are pushing for the loan-grant but those are some of the issues that require more time.

“Obviously, if we could give a timeframe we’d say tomorrow, but it all depends on having everything properly worked out with the various government departments in Venezuela and in Antigua & Barbuda. We are hopeful that it will be sooner rather than later and I can say that all parties are working diligently to ensure that it is sooner rather than later,” added Lovell.

One of the requirements of the deal is that a team from Venezuela would work with LIAT officials to review the airline’s business plan and determine how the US$20 million in capital should be used. Lovell said an initial visit by a delegation from Venezuela took place several weeks ago, but a second visit will be required before the money becomes available to the cash-strapped airline.

Source: Antigua Sun