economic memorandum on antigua and barbuda€¦ · economic memorandum on antigua and barbuda april...

Report No. 3821-CRG

Economic MemorandumonAntigua and BarbudaApril 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 recipientsonly in Ihe performance of their official duties. Its contents may not otherwisebe disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS

Currency Unit East Caribbean Dollar

Since its creation in 1965, the East Caribbean dollar was tied to sterlingat the rate of 1,.00 = EC$4.8. In July 1976 the link with sterling wasbroken and the East Caribbean dollar was aligned with the US dollar atthe 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 missionto Antigua and Barbuda during January 1982. The missionconsisted of: Mr. Edison Zayas (IMF) - Chief of Mission;Mr. Carlos Elbirt (IBRD); Mr. Paolo Lucani (FAO); Mr. DerickLatibeaudiere (CDB); Mr. Davison Budhoo (IMF); Ms. TheresaJones (IBRD); Mr. Emmy Ndungutse (IBRD); Mr. Federico Rubli-Kaiser (IMF); Mr. Luis Valdivieso (IMF); and Ms. DoloresVelasco (IBRD). Chapters I-IV and most of the statisticaltables were prepared by the Staff of the IMF. Thecontribution by IBRD includes Chapters V-VIII and theSummary and Conclusions.

This document has a restricted distribution and may be used by recipients only in the performance oftheir 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.......- ..... 1B. Output by Sector ................................... 4C. Energy Sector Developments ......... . ...................... 7D. Population, Employment, Wages, and Industrial Relations 8E. Price Trends .............. .................. 0* ........................... 11

II. THE PUBLIC SECTOR.. . .... .. .. o 12

A. Structure of the Public Sector ............ ...-..... 12B. Overall Public Sector Trends ................................ 12C. Central Government Operations .............................. 12D. Rest of the Public Sector.... ...................... oo ....... 19

lII. THE FINANCIAL SECTOR... ................................................. 20

A. Characteristics and Overall Trends ...... .... .....ooooooo 20B. The East Caribbean Currency Authority- .................. 20C. Operations of the Commercial Banks .................... 22D. Other Financial Intermediaries .........0 ...... .......0 24

IV. THE EXTERNAL SECTOR..o..o.o... o ... o ........... ......... . ..... 26

A. The Balance of Payments ....................... o......... 26B. Merchandise Exports ....... ....... .............. . . ........ 28

C. Merchandise Imports ... .. .. . . ... . ... ......... .o. 29

D. Tourism..... . . ......... .................... 30

E. Other Current Transactions and Transfers . ....... . .. 30F. Official Capital and Other Capital Transactions ........... * 31G. External Public Debt ........................o..................o ..... 31H. 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 annualrate of almost 8% during 1977-79. The growth rate slackenedto 6% in 1980 and to about 4% in 1981. This decline isassociated with a drop in tourism, the major activity.After a steady improvement until 1980, public financesdeteriorated in 1981. Public sector savings decreased from4% of GDP in 1980 to 2.4% of GDP in 1981 as large increasesin current expenditures took place. Inflation deceleratedto 11.5% in 1981 from 19% in 1980. The current accountdeficit of the balance of payments widened in 1981 andreached 44% of GDP. This was the result of big increases inimports of food and capital goods, and the slow down intourist earnings. The country enjoys a good investmentclimate but its infrastructure needs to be upgraded andexpanded. The Government has recognized that the prevailingsystem of short-term land leasing offers little incentive toon-farm investment and is contemplating measures to rectifyit. There is a need to spell out the conditions under whichconcessions will be granted for industrial development. TheGovernment is reputedly engaged in expanding its share inthe hotel industry. Given the limited managerial andfinancial resources of the public sector, this is a doubtfuldirection to pursue at this time. Caution needs to beexercised in relation to further assumption of externalindebtedness on commercial terms and borrowing should be forthe highest priority projects.

COUNTRY DATA - ANTIGUA AND BARBUDA

Area and populationArea (total) 170 square milesAntigua (108 square miles)Barbuda (62 square miles)

Population (mid-1981 proj.) 76,138Annual 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 8Manufacturing 9Construction 8Tourism 12Other 64

Ratios to GDP (proj. 1981)Exports of goods and nonfactor services 46.7Imports of goods and nonfactor services 120.0Central government revenues 23.1Central government expenditures 36.6External public and government-guaranteed debt (end of year) 45.8Gross domestic savings -17.3Gross domestic investment 56.0Money 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 2.9Real GDP (at factor cost) 7.9 8.3 6.2 3.8GDP at current prices 14.1 23.5 25.9 17.6Domestic expenditure (at currentprices) 12.8 41.3 43.3 24.4Investment (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 13.0Consumer prices (annual averages) 6.2 16.2 19.2 11.5

Central government revenues 28.4 13.8 34.6 23.6Central government expenditures 30.8 -20.6 65.4 21.4

Money and quasi-money 1/ 12.8 2.0 11.3 17.9Money 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 26.6Credit 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., inU.S. dollars) 90.9 -19.1 171.6 21.3

Merchandise imports (c.i.f., inU.S. dollars) 14.3 57.9 54.6 23.3

Travel receipts (gross, inU.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 90.5Expenditures 77.8 61.8 102.2 124.1Current account surplus ordeficit (-) -0.2 -3.5 -3.3 -9.4

Overall surplus or deficit (-) -30.0 -7.4 -29.0 -33.6External financing (net) 28.6 2.4 27.4 21.9Internal financing (net) andresidual 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 33.6Merchandise imports (c.i.f.) -46.3 -73.1 -113.0 -139.3Travel (net) 27.1 35.4 38.8 42.1Other services and transfers (net) 4.4 4.2 6.9 7.5Balance on current and

transfer accounts -2.2 -23.3 -39.6 -56.1Official capital (net) 10.5 1.4 8.8 16.1Commercial banks (net) -1.7 2.4 -0.3 2.0Private capital (net) and errorsand omissions -6.9 19.6 29.4 37.6

Change in official net reserves(increase -) 0.3 -0.1 1.7 0.4

IMF dataMembership February 25, 1982Status 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. Thedecline in the rate of growth was associated with a drop in the number ofstayover tourists which represents the largest single economic activity inthe country. This decline is largely attributable to the recession in themajor 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, asa 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 expansionin credit to both the public and the private sectors. On the other hand,liabilities to the private sector increased by only 22%. This situationled to a deterioration in the foreign position of the commercial banks andto a tightening of liquidity in the banking system which, in turn, led toan upward adjustment in interest rates by 1 to 2%.

iv. Increases in prices slowed down from 19% in 1980 to 11.5% in198L. This development appears to be mainly a result of a decrease in therate of inflation in the major trading countries and partially of moderatewage settlements within the economy.

v. The current account deficit of the balance of payments widenedsharply in 1981 and reached US$56 million, or 44% of GDP. This was theresult of the big increase in the food import bill, the substantialincrease in imports of capital goods, particularly for the rehabilitationand expansion of the oil refinery, and the slowdown in tourist earnings.On the capital account, inflows to the public and private sectors grewsubstantially in 1981.

vi. Antigua and Barbuda enjoys a good investment climate, relativelytranquil industrial relations and the advantage of its proximity to majorexport markets. The economic infrastructure of the country, however, doesnot meet all the requirements to further develop the economy. The Govern-ment and the external community need to concentrate their efforts onupgrading and expanding the infrastructure, a pre-requisite to attractfurther private investments in agriculture, tourism and manufacture.

vii. The prevailing system of short-term land leasing offers littleincentive to on-farm investment. The Government has articulated a new landtenure policy which envisages long-term leasing and sale of viable acreagesof land to farmers. Farm mechanization, needed in view of the shortage oflabor, is being adversely affected by price ceilings on mechanizedservices, provided by specialized firms mostly to small- and medium-size

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farms. There is an urgent need to strengthen the government agencies thatprovide extension and marketing services to farmers. It is also advisablethat the Central Marketing Corporation discontinue alL operations which canbe better performed by the private sector. In particular, it should divestitself of trading and importing functions which entail losses andconstitute an unnecessary burden for public finances.

viii. There is an urgent need to spell out clearly the conditions underwhich concessions will be granted for industrial development. Control ofimports needs to be used with caution. Encouragement should be given toefficient import substitution and export promotion ventures and undueprotection to local industries to t:he detriment of the consumers should beavoided to the extent possible.

ix. The need to further develop the infrastructure, mainly energy,water, telephones and roads, should be tackled before any major expansionin the tourist industry. The Government has taken active steps tostrengthen the Tourist Board so that it can play a more aggressive role inthe promotion of non-seasonal (summer) tourism.

x. The maintenance of a realistic exchange rate should be consideredas an essential element of any effective program directed towardsstimulating exports of goods and services. The need to monitor closely thecompetitiveness of the country's exports has become increasingly importantrecently owing to the appreciation of the US$. Since the EC$ is pegged tothe US$, it has appreciated considerably against pound sterling during thepast year. This developmient has rendered tourist services more expensivefor 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 promotenon-seasonal tourism and to improve operations of the two government-ownedhotels, the government might well consider allocating its limitedmanagerial and financial resources to resolving the existing problems inthe sector rather than getting involved in an area where the private sectorcould be induced to invest, provided the needed infrastructure is in placeand there is sufficient demand. Anry serious difficulties in the executionor management of the new hotel projects is likely to have a long-lastingnegative impact on public finances and indirectly on private sectorconfidence. Moreover, contracting external debts for these projects willseriously impair the government's ability to borrow abroad for essentialinfrastructural projects.

xii. Total disbursements on public sector investment programs amountedto 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, representedalmost 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 progresswas also made in road maintenance. In relation to new construction, it isrecommended that fixed cost contracts with proper bidding procedures beintroduced.

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xiii. Antigua and Barbuda is currently receiving technical assistancein every sector of the economy, about US$2 million per year. Theseprograms have had a positive impact on the development of the country andshould continue. However, there is a need to prioritize the sectors inwhich further technical assistance will be required and to carefully planthe involvement of local personnel so as to maximize the contribution ofthese programs to the economy.

xiv. Disbursements on the public investment program for the period1982-85 are estimated at EC$239 million. The bulk of the disbursementswould take place on infrastructure, namely transportation, energy, andwater. The disbursements do not include the new hotels/condominiumspreviously mentioned because neither information on their disbursements norontheir feasibility was available to the mission. Because EC$52 million isrequired 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$63million or 21.6% of the total financial requirements; (ii) external grantsand loans, EC$222.4 million or 76.4%; and (iii) commercial banks and otherdomestic sources, EC$5.6 million or 2% of the total. Since externalsources 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 wouldtakeplace if public savings reach the projected levels and the need to borrowfrom the domestic banking system would decline progressively with theresult that indebtedness to the banks would be curtailed toward the end ofthe 1982-85 period.

xv. The external public and publicly guaranteed debt of Antigua andBarbuda amounts to US$58 million or 46% of GDP. The debt servicerepresented around 4% of foreign exchange earnings in 1981. However, thisis projected to sharply increase in the coming years because several largeloans become payable. This situation dictates prompt adoption of policiesto raise public sector savings and foreign exchange earnings. Although theservice on existing external debt will be burdensome with the adoption ofsuch policies it should prove manageable. Nevertheless, caution needs tobe exercised in relation to the further assumption of any substantialexternal loans on commercial terms. Moreover, such borrowing should be forthe highest priority projects. Given the high level of public indebtednessand the large amount of additional external capital required to implementthe public sector investment program, the country will have to rely, to alarge 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! adecline in economic activity in 1976 affected nearly all sectors oT theeconomy but more so manufacturing, tourism, and tourist-related activi-ties. Output recovered in 1977-79 and real GDP at factor cost expanded atan average annual rate of almost 8% (Table 1). But in 1980 the growth rateslackened to 6% and slowed further to about 4% in 1981 as recessionaryconditions in the major industrial countries led to a leveling off oftourism, Antigua's principal economic activity.

2. During 1977 and 1978 total domestic expenditure grew by anaverage of about 16% a year, compared with an average annual increase ofnominal GDP of 19%. As a result, the resource gap in 1978 (deficit ongoods and nonfactor services in the balance of payments) as a percentage ofGDP fell slightly 26% from 27% in 1977. In 1979 gross domestic expenditurerose strongly and the resource gap widened to 44% of GDP. In 1980 and 1981this rising trend was maintained; in the latter year the resource gapreached 73% of GDP, as both consumption and domestic investment continuedto increase, well in excess of the growth in exports of goods and nonfactorservices (Table 2). In 1980 and 1981 gross domestic expenditure rose by32% and 19%, repectively.

3. A breakdown of aggregate consumption shows a slight fall in theratio of private consumption to GDP in 1978 (to 81.2%) followed by a sharprise in 1979 (to 102.4%), a further rise in 1980 to (105.5%), and a smallfall in 1981 (to 104.2%). By contrast, public sector consumption fell inboth 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 theratio had reached 13.1%. Gross domestic investment as a percentage of GDPremained relatively stable at around 34% up to 1979, but rose sharply to48% and 56% in 1980 and 1981, respectively. These increases reflect strongprivate investment growth; in 1981 such growth was due in large part to therefurbishing of the oil refinery. Foreign savings in 1977 and 1978financed 80% and 73%, respectively, of gross domestic investment, withdomestic savings financing the remainder (Statistical Appendix Table 2.2).But in 1979 gross national savings turned highly negative (minus 10.5% ofGDP as against 9.6% positive in 1978) and this trend of dissavings worsenedin 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 heavydissavings by the private sector to maintain rising levels of privateconsumption. By contrast, the consolidated public sector showed positivesavings averaging around 3% of GDP in each of the years 1979 to 1981.

1/ Official national accounts for 1976-80 were prepared by the ECCMSecretariat with UNDP assistance. IMF staff revised the 1980 data andprepared estimates for 1981.

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Table 1. Antigua and Barlbuda: Selected GDP Indicators

Est.1977 1978 1979 1980 1981


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 11.9.6 140.4 158.6GDP 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.

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Table 2. Antigua and Barbuda: Summary of National Accounts

1977 1978 1979 1980 1981


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 24.4Consumption 19.0 10.6 51.0 31.9 19.1Consolidated 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 37.2Consolidated 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 -28.8Consolidated public sector -148.9 334.8 -25.9 70.6 -30.2Private sector 111.3 -7.5 -349.2 -84.8 -16.8

External savings (resource gap) 21.8 8.2 110.7 83.3 35.2Exports of goods and nonfactor

services 32.2 25.2 22.6 23.3 10.1Imports 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 127.1 125.7 143.8 163.8 173.3Consumption 93.2 90.4 110.5 115.8 117.3Consolidated 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 56.0Consoliated 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 -17.3Consolidated public sector -1.4 2.9 3.0 4.0 2.4Private sector 8.3 6.7 -13.5 -19.8 -19.7

'External savings (resource gap) 27.1 25.7 43.8 63.8 73.3Exports of goods and nonfactorservices 46.7 51.2 50.9 49.9 46.7

Imports of goods and nonfactorservices 73.7 76.9 94.7 113.6 120.0

Sources: Statistical Appendix Tables 2.1 and 2.2.

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B. Output by Sector

Agriculture, Livestock, and Fisheries

4. Agriculture, once the key sector of the economy, had beendeclining continuously since the 1960s in relative importance. This demisewas due mainly to the abandonment of sugar and the top priority given totourism as the mainstay of the economy. Over the period 1976-78agriculture 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-yearperiod and declined further in 1981 to 7.6% (Table 3). From a real annualgrowth rate of 9% for 1978 the sector experienced in 1979 negative growthof over 4% followed by practically no growth whatsoever over the last twoyears (Statistical Appendix Table 2.4).

5. Privately-owned agricultural, estates producing basic crops wereacquired by the Government over a period of years. At present, theGovernment owns about 60% of the total. agricultural lands; it is estimatedthat about 50% is either abandoned or undercultivated. In 1978 a publicproject for re-establishing the sugar industry was initiated in order tosatisfy domestic sugar requirements arid provide molasses for the productionof rum. An old sugar factory--the only one in the island--was replaced bya smaller unit with an estimated production capacity of 25 tons per hourand a daily intake of some 480 tons of cane. The project, however, has runinto severe technical and managerial dLifficulties. Assuming that these canbe overcome, it is estimated that its demand for cane would require thecultivation of 2,600 acres. During 1S981 almost 500 acres were cultivated,but because of a serious canecutters' shortage only around 130 acres wereharvested, resulting in heavy financiaLl losses. Cotton lint production,once an important crop in Antigua, has declined dramatically in the lastthree years from previous levels (Statistical Appendix Table 7.1). This isexplained mostly by unfavorable weather, labor shortage, and high levels ofinfestation which have reduced the yields per acre. Only 350 acres weredevoted to cotton production in 1980 and 1981. In 1975 a 3,000-acrecornsorghum scheme was established but. because of high investment costs andheavy operating losses the scheme has been abandoned. A new 500 acrespilot scheme is now under consideration.

6. The production of fruits and vegetables in Antigua has shown widevariation (Statistical Appendix Table 7.1) due to the vagaries of theweather and an underlying disinterest of a significant proportion of smallfarmers to cultivate if eaployment becomes available in the service sectorof the economy. In an average year Antigua can produce about two thirds ofits requirements of fruits and vegetables. The main crops are avocados,pineapples, mangoes, bananas, cucumbers, yams, and sweet potatoes. TheCentral Marketing Corporation (CMC) is the governmental agency in charge ofmarketing cash crops. It buys the product from farmers and sells it eitherdirectly to the hotels or through its own retail store. The CMC alsoimports rice (bulk and packed) and sugar (white and brown) in competitionwith other private traders and has thEt exclusive right to import cabbage,tomatoes, and carrots. It is also responsible for importing anddistributing fertilizers, seeds, and pesticides.

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Table 3. Antigua and Barbuda: Sectorial Contribution to GDPat Factor Cost

Est.1976 1977 1978 1979 1980 1981


Real GDP at factor cost -9.0 7.2 7.9 8.3 6.2 3.8Agriculture, 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 8.2Construction 1.1 -2.7 -3.7 9.7 13.3 9.0Hotels and restaurants -5.4 18.0 12.6 16.5 6.6 2.5

(As per cent of total)

Total 100.0 100.0 100.0 100.0 100.0 100.0Agirculture, 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 9.2Construction 8.3 7.5 6.7 6.8 7.3 7.6Hotels and restaurants 9.7 10.6 11.1 11.9 12.0 11.8others 67.7 67.5 66.8 65.5 64.0 63.8

Source: Statistical Appendix Table 2.4.

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7. Livestock production has declined somewhat over the last threeyears; in 1981 the cattle population was around 16,000. Cattle are raisedfor both meat and milk production, but the latter has declined from anaverage of over 9,000 liters per year to about 6,000 liters in 1977-78 toan average of under 6,000 liters over the last three years. Otherlivestock includes 15,000 to 17,000 head of sheep and goats. The existingnumber of pigs and poultry, raised mainly in backyard units, is very small.

8. Fish catches fell by 25% in 1979 from the level attained in1978. In the two subsequent years fish landings have remained stagnant duein part to an inability to replace equipment because of lack of adequatecredit facilities for the small fisherman, and the continuing, relativelylow price at which fish is marketed. Lobster catches, too, over the lasttwo years have dropped off significantly from levels previously attained,principally because of indiscriminate overexploitation of the banks in theearly and mid-1970s.

Manufacturing

9. Manufacturing contributed 4.5% to GDP at factor cost in 1976; itis estimated that by 1981 the contribution of the sector to GDP doubled.Manufacturing consists mainly of import substitution industries--consumergoods, building materials, motor vehicle assembly, and tire retreading.Over the last three years, however, export-oriented manufacturingindustries such as textiles and garments, rum, and mattresses have beengrowing in importance. These industries, mainly foreign owned, areattracted by cheap labor, a pleasant climate, a relatively stable politicalenvironment, extensive tax holidays, duty-free importation of inputs andequipment, subsidized rent of factory shells, and, occassionally, a subsidyto pay for the training of local personnel for a period of up to sixmonths. There is no foreign investmoent code or similar regulationaffecting foreign investment. Applications for investment are routedthrough the Trade Commissioner.

10. In terms of real growth, the manufacturing sector has registeredincreases averaging 28% annually over the period 1977 to 1980. These largegrowth rates mirrored intensified activity in the export-orientedindustrial subsector. Garment manufacturing, in particular--a newindustry--has been performing well. It is estimated that real growth ofthe manufacturing sector in 1981 decelerated to about 8% due to weak demandfrom export markets. The growth of the manufacturing sector hascontributed to job creation and employment in manufacturing has increasedfrom 6.7% of total employment in 197b to 7.4% in 1981.

Construction

11. After declining on average for three years, construction activityexpanded 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

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two years the sector's activities have been dominated by the constructionof one hotel and extension of another and by some public projectsincluding a new airport terminal and the new parliament building. The 1981growth rate was also influenced by activities related to the refurbishingof the oil refinery and some public and private housing and condominiumconstruction.

Tourism

12. Tourism is the country's principal economic activity and it isestimated that in 1981 about one quarter of the total labor force wasemployed directly or indirectly by the tourist industry. The contributionof this activity to overall output, as proxied by the hotels andrestaurants component of GDP at factor cost, was 9.7% in 1976 and increasedto almost 12% of GDP in 1981.

13. Tourist infrastructure in Antigua is well developed and includesrecreational spots, historical sites, and two casinos. The island isserved by eight major airlines and numerous charters. Currently, there are34 hotel establishments with a capacity of 3,642 beds, 32 cottages andapartments, and 20 guest houses. Tourism in Barbuda, however, is confinedto one luxury hotel with 64 beds. In the past, the tourist sector,stimulated by investment incentives, was developed largely by foreigncapital. The recent downturn in tourism, as a consequence of recessionaryconditions in the major industrial countries, the loss of some degree ofcompetitiveness with respect to the Dutch and French Caribbean islands, andinsufficient promotional activities abroad, resulted in financialdifficulties in the hotel sector. The number of stayover visitors (by airand by sea arrivals) peaked in 1979 at 99,536 and decreased thereafter to94,724 in 1981.2/ This fall reflected a more than 2% decline ofvisitors by air as compared with the previous year. However, the totalnumber of visitors increased by 1.5% because cruiseship passenger visitorsgrew by almost 6% relative to 1980. The share of US visitors--Antigua'sprincipal tourist market--has been decreasing steadily since 1977, from 42%of the total to 34% in 1981. United Kingdom and European tourists haveshown mixed shares during the last five years and in 1981 these visitorsaccounted for 21% of the total. Tourism volume represented by the numberof tourist days3/ increased by 33% in 1978, 30% in 1979, 3% in 1980, anddeclined by 2% Tn 1981.

C. Energy Sector Developments

14. Antigua and Barbuda has one of the highest per capita energyconsumption in the East Caribbean, and utilizes about 1,000 barrels ofpetroleum 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 slowgrowth in tourist expenditures in spite of a relatively much faster growthin the total number of visitors consequent on a rising trend in cruiseshipvisitors over the 1979-81 period.3/ Calculated as follows: total number of air and sea visitors multipliedby average length of stay plus number of cruiseship visitors.

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resources and consequently depends entirely on petroleum imports to meetits demand (Statistical Appendix Table 3.5). Operating a relatively largeairport, Antigua and Barbuda also faces a significant re-export demand ofjet fuel which amounts roughly to another 1,000 barrels daily. Reflectingthe above, total imports of petroleum products increased in 1980 and 1981by 38% and 22%, respectively.

15. Retail prices of petroleum products are considered among thelowest in the region (Statistical Appendix Table 8.3). For example, animperial gallon of gasoline retailed at EC$4.96 in 1981 (US$1.53 per USgallon). This reflected an approximate increase of 5%; in price from theprevious year. The price of gasoline was changed only once in 1981,and,that other petroleum products registered only slight price increasesduring that year (Table 4).

16. An oil refinery operated :in Antigua from 1966 until 1974; theshutdown was due to the instability of oil markets which followed the1973-75 petroleum crisis. In 1980 the Government reached agreement withNational Petroleum Ltd.4/--a Geneva-base company--to refurbish andreinitiate refining operations. The upgrading of plant and equipment atthe refinery was completed during 1981, the company started refiningoperations in April 1982. It is hoped that the OECS area will be suppliedwith oil from this refinary.5/ It is proposed that the islands ship theirrequired crude from Mexico and Venezuela (although Antigua has notnegotiated any special pricing arrangements from these oil producers) tothe Antiguan refinery which will process the crude at a fee, and guaranteea stable supply at competitive prices for its clientele. The capacity ofthe refinery is 18,000 barrels per day.

17. Electricity services are provided by the Antigua Public UtilitiesAuthority. Total electricity generation in 1981 amounted to 54 millionkwh, a 2% rise from the previous year. The last increase in electricityrates 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 verylimited. However, estimates made by the Statistics Division of theMinistry of Finance show the population growing at an annual average netrate of 1.3% over the last six years (Table 5). Total population in

4/ National Petroleum Ltd. owns 90%, of the shares while the AntiguanGovernment owns 10% with an option to acquire another 15%.5/ The Barbados refinery is incapable of meeting all the demand ofBarbados, much less of the region and the transshipment terminal in St.Lucia and refinery in St. Croix owned by Hess Co., are aimed at supplyingthe 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.

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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 growthrate 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 isestimated 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, bankingand other services provided employment for 50% of the labor force. TheGovernment has tackled the unemployment problem by increasing jobopportunities in the economy as a whole, but the labour force has beengrowing faster than the overall popu:Lation. Consequently, new jobopportunities have contained the unemployment level at 20% without reducingit.

Wages and Labor Relations

19. Wage contracts are customarily set for three years withcumulative increases provided for each year. A comprehensive wage index is

not available. However, scattered information from the LaborCommissioner's office for recent wage settlements in unionized industriesas well as wage awards in the public sector can be considered as indicativeof general wage trends in the country. The data indicate that wagesettlements in the unionized industries in 1980 averaged around 20% for thefirst 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 andthird years, respectively. Public sector settlements have been slightlyhigher than those in the private sect:or. In 1978, the civil servantsreceived a wage reward of 40 to 60%. After three years, they were granteda 30% increase in salaries and wages in September 1981. The rest of thepublic sector geared its wage award to that of the civil servants ratherthan to that of the private sector. In 1981, the Government introduced aminimum legal wage. About 50% of the employed labour force is unionized.The largest unions are the Antigua Trades and Labour Union (AT&LU) and theAntigua Workers Union (AWU); other irmportant unions are the Public ServiceAssociation, the Antigua Union of Teachers and the Employers Federation.

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20. Labor relations in Antigua and Barbuda are governed by the LaborCode of 1975 that lays down employment standards and stabilizes proceduresfor solving industrial disputes. Under the code the Labor Commissioneracts as a conciliator when there are deadlocks in labor negotiations.Either party can demand his intervention. If the differences cannot besettled through intervention of the Labor Commissioner, the Minister ofLabor is obliged to step in to help settle the dispute. In the event thatthe 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 andBarbuda, domestic price trends are influenced to a large extent byinternational price developments. The present cost of living indexconsisting of seven categories was adopted in 1976. (The prior index hadconsisted of five categories.) The average annual inflation rate, asmeasured by changes in the cost of living index, was about 12% for theperiod 1977 to 1979, and accelerated to over 19% in 1980, mainly reflectinghigher import prices of food and increases in domestic prices of housingand utilities (other than electricity). In 1981 the rate of inflationdecelerated to 11.5%, closer to the international inflation rate asreflected by the rates of Antigua's principal trading partners (StatisticalAppendix Table 8.1).

22. A new price control system to be monitored by the Division ofPrices and Consumer Affairs will become effective in April of this year.Basically, the new scheme follows that of Barbados and St. Lucia. Itestablishes 18 basic and essential categories of imported consumer goodsthat bear a maximum legal selling price. It is intended that the system isaimed at monitoring prices rather than restraining imports, that it willnot distort local productive capacity, and that it does not represent anydisincentive to local producers.

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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 MedicalBenefits Scheme, the Port Authority, the Public Utilities Authority, theCentral Marketing Corporation, and the Industrial Development Board.In addition, there exists a number of unconsolidated public sector entitiesdirectly involved in production and in the provision of services.Noteworthy among these are the Sugar Industry Corporation, the CentralHousing and Planning Authority, the Antigua Isle Company (for management ofthe government-owned Halcyon Cove Hotel) and the Antigua and BarbudaDevelopment Corporation (for management of the government-owned HalcyonReef Hotel). There is also a state-owned radio and television station, anda state-owned insurance company. A local Government authority serves theisland of Barbuda.

B. Overall Public Sector Trends

24. In 1978 the overall deficit of the public sector doubled, torepresent 17% of GDP, but fell sharply in 1979 to under 1% of GDP (Table6). Over the last two years there has been a steady deterioration in theoverall balance (deficit of 5% of GDP in 1980 and 11% in 1981). The sizeand variability of the deficit reflects to a large extent the erraticbehavior of capital expenditures over the period. During the last twoyears, 1980 and 1981, the rapid growth in the deficit was also associatedwith a relatively fast rise in central government current expenditures, andthe leveling off of foreign grants and surpluses of state enterprises.

C. Central Government Operations

25. Central government operations, which account for some two thirdsof the financial operations of the consolidated public sector, showed asharp 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 insize 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 incapital outlays. Capital outlays in tuarn are associated with theavailability of capital grants and external loans. In 19I80 and 1981renewed investment in hotel construction accounted for over one third oftotal capital expenditures in those years.

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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 81.8 105.5 132.4Central Government 33.0 43.7 49.2 62.0 78.2Rest of public sector 21.7 26.2 32.6 43.5 54.2

Total current expenditure 57.0 64.5 75.1 94.0 124.4Central Government T97 T WZ7 52.7 7 87.6Rest 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 37.3Foreign assets (increase -) -0.1 0.1 -0.3 -0.5 -0.1Net borrowing from ECCA 0.2 0.5 -- 3.1 0.7Other net foreign borrowing 10.3 32.8 3.4 22.1 42.3Net local bank borrowing 9.2 3.3 4.2 -5.6 -4.7Other net domestic borrowing -5.4 -6.0 -6.0 -4.9 -0.9


Current balance -1.4 2.9 2.9 4.0 2.4Overall balance -8.7 -16.6 -0.6 -4.9 -11.0

Sources: Statistical Appendix Table 5.1.

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Table 7. Antigua and Barbuda: Central Government Operations

Prel. Proj.1977 1978 1979 1980 1981 1982


Total revenue 37.2 47.8 54.4 73.2 90.5 105.5Current revenue 3'3.0 43.7 49.2 62.0 78.2 92.5Capital revenue (domestic) -- 0.1 0.1 0.2 2.5 2.5Foreign capital grants 4.2 4.0 5.1 11.0 9.8 10.5

Total expenditure 59.5 77.8 61.8 102.2 124.1 222.8Current expenditure 3T8.9 TT. 37T Z5T T7.T 113.1Capital expenditure 12.1 31.2 8.3 35.7 36.0 109.2Net 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 33.6 117.3Net foreign borrowing T13. 28.1 2.4 24.3 21.2 93.7Foreign assets (increase -) -0.1 0.1 -0.3 -0.5 -0.1 -0.1Net 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 ) 23.7Other net domestic borrowing 7.2 3.3 3.0 1.6 5.0 )

Discrepancy -3.5 -6.7 -3.0 0.2 1.1


Total revenue 22.9 25.8 23.8 25.4 26.7 26.7Current 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 53.0Of which: capital 77T4 16.8W 3.6 12.4 1.6 26-Yu

expenditureCurrent balance -3.6 -- -1.5 -1.1 -2.8 -5.2Overall deficit -13.7 -16.2 -3.2 -10.1 -9.9 -28.0

Sources: Ministry of Finance; and IMF staff estimates.

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26. Foreign borrowing has traditionally been the major source offinancing for the central government deficits. Apart from 1979--when allhotel construction activities were interrupted and capital outlays, (nearlyalways wholly financed externally) plummetted to almost one quarter oftheir 1977 level--net foreign financing has consistently covered at least60% of the overall deficit; in 1978 and 1980, in fact, that proportion wasconsiderably higher (94% and 84% respectively). About 90% of all foreignfinancing, apart from hotel construction, is provided on concessionaryterms by regional institutions and bilateral aid agencies, mostly EDF?CIDA, USAID, and the Caribbean Development Bank. However, in 1978 and in1980 and 1981 foreign commercial bank borrowing for hotel constructionemerged as a major financing item; in 1978 such "hard term" financingcomprised 72% of all net foreign disbursements. Comparable figures forforeign 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 todomestic 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 theoverall central government deficit. Dependence on the Social SecurityScheme was also quite considerable, particularly in 1977 when it outpacednet banking system credit, and in 1979 and 1981 when it contributed 30% and10%, respectively (Table 7 and Statistical Appendix Table 5.9). ECCAfinancing of the deficit was either nonexistent or negligible in everyyear, except 1980 (11% of deficit). Recourse to other domestic sources offinancing, 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 asource of revenue; in 1981 such taxes represented 62% of total currentrevenue as against a contribution of only 15% by income and property taxesand 23% by nontax revenue (Table 8). Indirect taxes, boosted by increasesin consumption taxes in 1978 and 1980 and by fairly regular adjustments intaxes levied-on the tourist sector, grew at an average rate of 24% between1977 and 1981. As a percentage of GDP, total tax revenue grew slowlybetween 1977 and 1981 from 15.5% to 17.8% (Table 8). This ratio representsthe lowest tax burden of any of the newly independent East CaribbeanStates. 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 taxrevenue in 1981, with import duties (29% of tax revenue in 1981) comprisingthe most important single source, closely followed by consumption tax(25%). However, with the partial implementation of a Common ExternalTariff for the Less Developed Countries, including Antigua and Barbuda, ofthe CARICOM area, and with a strong growth in exemptions from import duties

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Table 8: Antigua and Barbuda: Selected Central GovernmentRevenue and Expenditure Items

Prel.Budget1977 1978 1979 1980 1981 1982

(As a percentage of total current revenue)

Direct taxation 14.2 10.1 10.0 10.8 14.6Indirect taxation 62.1 58.6 62.2 65.8 62.4Nontax revenue 23.7 31.3 27.8 23.4 23.0

(As a percentage of total tax revenue)

TaxesIncome taxes 17.1 13.3 12.1 13.1 17.3 14.0Property taxes 1.6 1.3 1.7 :L.1 2.2 1.8Consumption tax 25.0 22.3 31.0 24.4 25.1 24.8Import duties 32.1 36.0 34.6 34.3 28.9 26.8Foreign currency levy 7.1 7.3 6.5 6.3 6.6 4.8Hotel and guest taxes 7.1 9.0 9.0 8.2 7.1 9.4Stamp duties 3.2 3.3 3.4 3.8 3.5 2.5Other 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 categoriesPersonal emoluments 57.8 68.5 61.8 51.0 47.8 49.7Other goods and services 16.9 14.3 14.2 24.5 30.0 27.1Transfers to: rest of

public sector 2.5 1.4 2.3 0.3 1.7 5.0interest 10.8 8.9 12.1 12.6 9.7 7.5international

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 17.8Of 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.

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under the Fiscal Incentives and Hotel Incentives Laws, the growth incollections from import duties moderated significantly in 1981 (growth incollections of only 7% in 1981 as against 33% in 1980).

30. To help meet the resulting revenue shortfall, consumption taxeson a wide range of articles were increased at the end of 1980; revenue fromthe latter grew by 30% in 1981 after stagnating in both 1979 and 1980. Asignificant recent revenue development is the growth in collections ofhotel and guest taxes over the 1977-81 period. Although the rates on thesetaxes have remained unchanged since 1977, their yields have increasedalmost fourfold to represent in 1981 over 9% of total tax revenue. Theseenhanced yields are totally a function of the growth of the tourist tradein Antigua and Barbuda.

Expenditures

31. Between 1977 and 1980 total expenditures grew at an averageannual rate of around 20%, and rose further in 1981 by 21%. The growth inexpenditures was somewhat erratic, mainly because of intensified, butintermittent, hotel construction undertaken by the Ministry of EconomicDevelopment and Tourism over the 1978-81 period. Total expenditures rosein 1978 by 31% but fell by over 20% in 1979 as all hotel constructionactivity ceased in that year. In 1980, however, there was an escalation of65% in total expenditures to reflect the rapid resumption of hotelconstruction by the Central Government. Thirty percent of the increase intotal expenditures in 1980, and 50% in 1981 are accounted for by the growthof hotel construction. Total expenditures have doubled over the last twoyears from EC$62 million in 1979 to EC$124 million in 1981, or from 27% ofGDP to almost 37%.

32. Over the years 1978 to 1981 current expenditures grew at aprogressively accelerating pace, from 13% in 1978 to 34% in 1981. Wagesand salaries, which account for over 50% of current expenditures, rosestrongly (at an annual average rate of 17% during 1977-81) to reflect theGovernment's policy of easing unemployment through expansion of the publicservice,6 / and to mirror, too, two major wage awards to civil servants--thefirst in7 1978, and ranging from a 40% to a 60% increase and the second inlate 1981, and equivalent to an average of 30% of existing wages andsalaries. There has also been a rapid rise in expenditures in goods andservices; such outlays grew more than fourfold between 1978 and 1981, torepresent in the latter year 8% of GDP as against only 3% in 1978.Interest payments doubled between 1977 and 1980, but remained constant in1981. Public sector transfers, while remaining unimportant in their impacton total current expenditures, escalated sevenfold in 1981, reflecting

6/ Elements of "make work" programs are incorporated in varying degrees inthree special components of personal emolument charges, viz., in the wagebill of nonestablished workers, the labor crash program, and therecruitment of young people through an ongoing manpower training program.

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mainly the need for the Government to subsidize the sugar factory and toprovide funds to both the two major publicly owned hotels to help meetcertain wages and salary obligations. Over the two-year period 1979-81international transfers have increased by 169%. This escalation relatesmostly to the establishment of diplomatic and trade representation officesoverseas in anticipation of, and consequent on, the attainment of politicalindependence.

33. Capital expenditures have shown a very erratic rate of growthover the five-year period, with an increase of 158% in 1978, giving way toa 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 ofgrants and concessional financing for infrastructural development, (b) theavailability of foreign commercial financing for hotel construction, and(c) the availability of domestic credit, in 1979-81 around EC$5 million ayear, for counterpart financing. Over the period infrastructural develop-ment has remained the most--and hotel construction the least--stableelement of capital expenditures. With the recent agreement with externalfinanciers for construction of an EC$250 million hotel and condominiumcomplex, hotel construction related expenditures have begun to outweighdisproportionately infrastructural development outlays within the overallstructure of investment expenditures.

The Budget for 1982

34. The budget estimates for 1982 and their revisions project anunprecedented growth in capital expenditures from EC$36 million to EC$109million, or from 11% of GDP to 26% of estimated GDP. EC$82 million ofcapital expenditures, or 75% of the projected total, is for hotelconstruction to be financed externally on commercial terms. An overalldeficit of EC$117.3 million, or 28% of estimated GDP, is projected asagai-nst a current account deficit equivalent to 5% of estimated GDP.

35. On current account, an estimated 18% increase in current revenueis predicated on the inclusion of incorporated businesses into the companytax net, adjustment of various fees and licenses, and tighter taxadministration especially in relation to consumption and import taxes.Current expenditures are budgeted to rise by 29%, from EC$88 million toEC$113 million. The substantial rise in current expenditures reflectsmainly a 34% growth in personal emoluments (which account for half of totalcurrent expenditures) and an almost fourfold rise in the value of currenttransfers to the rest of the public sector. The much more rapid rise incurrent expenditures than in current revenue results in a projected currentaccount deficit of EC$21 million, as against EC$9 milliLon in 1981. Withcapital expenditures projected to rise to EC$109 million (74% of whichwould be related to hotel construction) from EC$23 mil:Lion in 1981, theoverall deficit escalates to EC$117 million, or about 28% of estimated GDP.

36. To a much greater extent than in 1981 the cenitral governmentdeficit, excluding hotel construction, may have to be financed fromdomestic sources. Projected firm net foreign loans from internationali-nstitutions and bilateral agencies amount to less than EC$10 million. On

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present assumptions this will leave a fiscal gap of about EC$24 million tobe financed internally, or from as yet unidentified foreign sources. Thehighest levels of domestic financing of the central government overalldeficit ever achieved occurred in 1977 and 1981 when domestic financingfrom 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 relativelyfast rate of increase in recent years from EC$10.3 million in 1979 toEC$17.4 million in 1981 (Statistical Appendix Table 5.7). Most of thesavings generated in the public sector originate in the Social SecuritySystem and the Public Utilities Authority (water, electricity, andtelephone). The accumulation of significant arrears in payment by theCentral Government on behalf of civil servants and nonestablished workersrestricts the viability of that scheme, and hampers its ability to build upand diversify its investments along appropriate actuarial lines. ThePublic Utilities Authority has maintained adequate charges and in 1980rates were increased on all its services to reflect increasing operatingcosts. The financial position of the Central Marketing Corporation and theIndustrial Development Board has deteriorated, and the Central Governmenthas been obliged to make relatively heavy transfers, some of themunrecorded in the accounts of the Central Government and regarded as "belowthe line" to both enterprises in 1980 and 1981. The only major investmentin the consolidated rest of the public sector over the last three yearsoccurred in 1981 with the purchase and installation of two new electricitygenerators 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.

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III. THE FINANCIAL SECTOR

A. Characteristics and Overall Trends

38. Antigua and Barbuda has no central bank and is a member of theEast Caribbean Currency Authority (ECCA) which was established in 1965.7/Commercial banking in Antigua and Barbuda is conducted by the branches offive foreign banks and two local conmercial banks--the Antigua CommercialBank established in 1969 and the newly formed Bank of Akntigua which is notas yet fully operational. Three of the five foreign commercial banks inAntigua manage pools of ftnds from their branches throughout the ECCAarea. Other financial institutions operating in the country include theAntigua and Barbuda Development Bank. and a number of insurance companiesfor which information is not available.

39. Antigua and Barbuda has no comprehensive banking law to governthe operations of the commercial banks. However, in April 1977 theGovernment imposed a 5% noninterest bearing requirement on all depositswith the foreign commercial banks to be held with the Treasury. Insurancecompanies, which are branches of foreign firms, have aLso been requiredsince that time to hold 2% of all premiums collected iin Antigua and Barbudawith the Treasury. Antigua and Barbuda plans to operate offshore bankingactivities in the near future and legislation has been drafted for thispurpose.

B. The East Caribbean Currency Authority

Background

40. The East Caribben Currency Authority (ECCA) was established inJanuary 1965 replacing the British Caribbean Currency Board. ECCA has beenendowed with powers which are less restrictive than those of a currencyboard 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 commoncurrency, the East Caribbean dollar, issued by ECCA. Since July 1976 theEast Caribbean dollar has been pegged to the US dollar at the rate ofEC$2.70 per US dollar. ECCA is required by statute to maintain a foreignexchange cover equivalent to not less than 60% of the value of its currencyin circulation and other demand liabilities. ECCA has certain otherattributes of a central bank, such as authority to deal with internationalinstitutions joined by any of its member governments, to maintain accountswith central banks, to offer rediscount facilities, to accept deposits fromcommercial banks and member governments, and to purchase securities issuedby member governments.

7/ Besides Antigua and Barbuda, the other members of the ECCA currencyarea are Dominica, Grenada, Montserrat, St. Kitts-Nevis, St. Lucia, andSt. Vincent and the Grenadines.

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42. Practically the only lending activity undertaken by ECCA withinthe region consists of loans to member governments. This activity issubject to several constraints under the Articles of Agreement of ECCA:(i) total credit to member governments cannot exceed 40% of currency incirculation and other demand liabilities; moreover, holdings of securitiesother than Treasury bills may not exceed 15% of demand liabilities; and(ii) holdings of Treasury bills of any government cannot exceed 10% of thatgovernment's current revenue in any fiscal year. The maximum access ofeach member government to ECCA resources is usually calculated once a year(in March) by distributing ECCAs maximum loanable funds (i.e., 40% ofcurrency in circulation and other demand liabilities as noted above) inproportion to the estimated current revenues of the member governments.The Board of Directors is empowered to make decisions regarding thegranting of credits subject to the above specified limits. ECCA has beendesignated by two member countries as fiscal agency for dealings with theFund 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 millionin 1977 to EC$167 million in 1979, while the commercial banks' net claimson 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 inreserves in 1979 was also partly a result of large transfers of insurance

Table 9 . Antigua and Barbuda: Summary Accounts of the EastCaribbean Currency Authority


December- 31 Sept.1976 1977 1978 1979 1980 1980 1981

Net internationalreserves 157.2 117.8 139.1 167.4 145.2 151.2 168.0

Net position withbanks 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 21.7Net claims onGovernment 24.5 26.0 28.7 33.5 40.3 38.2 41.9Of which: Antiguaand Barbuda 5.7 5.8 6.3 6.3 9.4 7.2 9.6Treasury bills 1.8 1.8 2.3 2.3 5.4 3.2 5.6Debentures 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 97.7Of which: Antigua and

Barbuda 9.2 10.0 15.1 16.0 15.3 14.4 13.4


- 22 -

payments and foreign assistance for damage done by Hurricane David tocertain islands, combined with a slower growth in bank credit because ofthe interruption of economic activity caused by the hurricane.

44. During 1980, ECCA's net foreign assets declined to EC$145 millionwhile the net position of area banks with ECCA declined to EC$62 million.The principal factors in this development were the damage to exports causedby Hurricane Allen, and the downturn in tourism and increased exports offoreign exchange from the region, arising from a sharp rise in foreigninterest rates relative to rates in the region. With the objective ofreducing the interest differential, in November 1980 ECCA raised theinterest rate paid on 24-hour call money from 6% to 10% per annum and onthree-month deposits from 7.75% to 12.5% per annum. These upwardadjustments--and a recovery in agricultural exports--account in part forthe 16% increase in ECCA's net foreign assets to EC$168 million during thefirst nine months of 1981.

45. The net credit extended by ECCA to member governments hasexpanded 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. In1979 no borrowing from ECCA was undertaken and in 1980 the Governmentborrowed EC$3.1 million. As of December 1980, ECCA holdings of Antigua andBarbuda Treasury bills and debentures amounted to EC$9.4 million which morethan exhausted the country's legal maximum access to ECCA resources of EC$9million as of that date. As of October 1981, the outstanding amountincreased 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 liquiditysqueeze, with total net domestic credit in relation to liabilities toprivate sector at the beginning of the period expanding by almost 7% whilethe liabilities to the private sector grew only by 1% (Table 10). As aresult, the foreign reserve position of commercial banks deterioratedsubstantially. By contrast, net domestic credit in 1980 expanded at aslower pace than the growth in banking system liabilities and there was aslight improvement of the banks' foreign reserve position. Most of thetotal credit in 1980 was directed to the private sector (an increase of15%)9/; net credit to the Central Government increased only marginally.The heavy growth in private credit reflected a sharp upward trend inpersonal loans and advances for housing and consumer durables. Thesesectors increased their share of total private sector loans and advancesfrom 32% in 1979 to 46% in 1980.

8/ Prior to January 1979, the commercial banks' monthly reports to ECCAwere highly aggregated, which precludes a detailed analysis of theirunderlying operations. Since that time, the reports include details of themain components of the banks' balance sheet.9/ Percentage changes in bank credits referred to in this section areexpressed in relation to banks' liabilities to the private sector at thebeginning of the period.

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Table 10. Antigua and Barbuda: Summary Accountsof the Commercial Banks 1/

December 311977 1978 1979 1980 1981 2/


Net foreign assets -18.3 -13.8 -20.2 -19.3 -24.6Assets 12.1 28.8 26.3 20.6 29.5Liabilities -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) 105.7 108.3 114.8 126.7 156.5Net credit to CentralGovernment 28.3 33.0 38.3 38.6 44.3Of which: loansand advances 14.5 18.4 24.2 24.0 25.4

Credit to private sector 3/ 80.8 85.7 78.0 92.6 115.8Net unclassified assets -3.4 -10.4 -1.5 -4.5 -3.6

Liabilities to privatesector 89.4 97.0 98.3 111.9 136.6

Demand deposits 4/ 20.4 15.5 17.4 21.2 23.8Savings deposits 41.3 43.5 37.7 51.8 61.1Time deposits 27.7 38.0 43.2 38.9 51.7

(Percentage change)

Domestic credit 5/ -2.9 2.9 6.7 12.1 26.6Net credit to Central

Government 5/ 5.5 5.3 5.5 0.3 5.1Credit to private sector 5/ 4.4 1.2 -7.9 14.9 20.7Liabilities to privatesector -5.5 8.5 1.3 13.8 22.1


1/ Since January 1979 the reporting forms from ECCA changed theirformat allowing for a major breakdown. In order to show a consistentseries, the following assumptions for estimating 1976-78 data were made:Foreign currency holdings: 35 per cent of total cash holding aspublished in ECCA Bulletin.

ECCA currency holdings: the remainder of total holding.Claims on ECCA: 51 per cent of total local assets as published inECCA Bulletin.

Claims on banks in ECCA area: the remainder of local assets.Nonresident deposits: difference between corresponding deposit dataas published in ECCA Bulletin and those shown in Antigua quota paper.

2/ Preliminary consolidation using the November balance sheet of onebank (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 increasedby 27%, while liabilities to the private sector increased only by 22%.This situation led to a deterioration in the foreign position of banks andresulted in generalized tightening oi- the liquidity position of the bankingsystem. Pressures for an upward adjustment of interest rates on depositsbecame irresistable, and in early 1982 deposit rates were increased by anaverage of 1% concomitant with an increase in the prime rate of 1-1/2%.

48. Despite these developments,, interest rates on deposits continueto be negative in real terms (Table 11). Between 1977-1980 nominal rateson saving deposits were 2.5 to 3%, while rates on time deposits up to 12months ranged from 4 to 7.5%. The upward adjustment in rates, made in thepast year, raised time deposit rates to 5.5-8.5% depending on the term, butthese rates were still well below existing or expected rates of

inflation.l1/ There has been a significant decline of the ratio of totalprivate sector liabilities to the banking system as a percentage of GDPfrom 1977 to 1980 (from 55 to 39%). In 1981 the ratio increased onlyslightly to 40%.

49. The prime rate and other lending rates have shown some increasesin recent years reaching 11% in December 1981 from a level of 8.6% inDecember 1979. The range of other lending rates increased from 8% in 1979to 17% in 1981 (Statistical Appendix Table 48).

D. Other Financial Intermediaries

50. A number of foreign insurance companies operate in Antigua andBarbuda, but there is no information available about their operations. Onother financial intermediaries, the ALntigua and Barbuda Development Bank(ABDB) was formed in 1974 to channel and dispose of the funds lent by theCaribbean Development Bank. Over the last several years the ABDB hasconcentrated its operations on the financing of housing projects andagricultural schemes as the Agricultural Production Credit (APC). APCloans are either short or medium term. Short-term loans are repayablewithin 18 months; medium-term loans within five years. The purposes forwhich the loan may be used include laLnd preparation, fertilizers,irrigation, equipment, and disease control. In some instances minorcredits may be granted for industrial, development, mainly small-scaleindustries, such as handicrafts related to tourism.

10/ Interbank Ltd., a small subsidiary of a European bank, operates atinternational rates. In December 1981 the saving rate at this bank was15.6% and the range on time deposits was 15.6-20.5%. This bank is not amember of the clearing arrangements cf ECCA.

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Table 11. Antigua and Barbuda: Selected Interest Rates andFinancial Indicators

Average Three-Month Ratio of Total Liabili-Time Deposit Rate ties to Private SectorNominal Real- to GDP at MarketRate 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.

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IV. THE EXTERNAL SECTOR

A. The Balancie of Payments 11/

51. Antigua and Barbuda's membiership in the East Caribbean CurrencyAuthority tends to limit the country's flexibility in using monetary andexchange rate policies to adjust for internal and external economicimbalances. This structure in turn lhas served importantly to reinforce thelink between fiscal policy and the balance of payments. With theGovernment's holdings of foreign assets being very small---and kept mostly

as working balances against external liabilitiesl2/--the only buffer to theautomatic adjustment of the country's imports to a drop in foreign exchangeearnings is the private sector's (maLnly commercial banks) willingness toincrease its net foreign exchange liabilities and the Government's capacityto borrow abroad. 13/

52. The deficit of balance of payments on current account declinedfrom US$9.6 million in 1977 to US$2.2 million in 1978. In 1979 the deficitballooned 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, afterexperiencing a fall from 16% in 1977 to 3.2% in 1978, widened to 27.4% in1979 and to 44.5% in 1981. The main underlying factors behind thisworsening position were burgeoning food and fuel import bills and a sharpincrease in imports associated with substantial foreign investment flows,particularly for the rehabilitation and expansion of the West Indies OilRefinery. From 1979 a contributory i-actor was the decline in exportreceipts. In 1980-81 export earnings increased once again, but the growthin travel receipts slowed markedly.

II/ Antigua and Barbuda does not prepare an official set of balance ofpayments statistics. Official trade data are available, but the latestavailable figures are for 1978. The trade data used in this sectionconsists of a preliminary compilation of the customs' invoices prepared bythe ECCM Secretariat and are subject to revision. The estimates for othercategories of transactions were made by the staff on the basis ofinformation obtained from a variety of sources. The balance of paymentsstatistics herein presented, therefore, should be regarded merely as beingindicative of trends.12/ Holdings of foreign assets of the Government as of December 1981amounted to about US$0.7 million.13/ The Government's capacity to borrow abroad for balance of paymentspurposes from regional and multilateral institutions before joining theFund consisted of placing Treasury bills and debentures with ECCA. As ofNovember 1981 the cumulative borrowing position with ECCA amounted toEC$5.6 million in Treasury bills and EC$4 million in debentures. In bothinstruments Antigua and Barbuda has exhausted its maximum access to ECCAresources.

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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 -56.1Trade balance -33.9 -33.7 -62.9 -85.3 -105.7Exports, 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 39.5Travel receipts (net) (22.6) (27.1) (35.4) (38.8) (42.1)Interest payments on publicdebt (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 6.5Official transfers 1.6 1.5 1.9 4.1 3.6

Capital account 9.5 1.9 23.4 37.9 55.7Official capital 3/ 6.4 10T5 f.4 8.8 16.1Central 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 2.0Foreign private investmentand 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 0.4Net ECCA borrowing 0.2 0.2 -- 1.5 0.3Government foreign assets(increase -) -0.1 0.1 -0.1 0.2 0.1


Current account -16.0 -3.2 -27.4 -37.0 -44.5Trade balance (-56.5) (-48.8) (-74.0) (-79.7) (-83.9)Services balance andprivate transfers (37.8) (43.4) (44.4) (38.9) (36.5)

Capital account 15.8 2.8 27.5 35.4 44.2Overall balance -0.2 -0.4 0.1 -1.6 -0.3

Sources: Ministry of Finance (Statistics Division); Department ofTourism; Post Office; Commercial banks; ECCA; ECCM Secretariat; andIMF 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.

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53. On capital account, capital inflows rose sharply over thefour-year period 1977-80 to reach US$;38.7 million; it is estimated that for1981 the corresponding figure was US$55.9 million. Official capitalinflows, which declined from US$6.4 million in 1977 to about US$1.4 millionin 1979, have since resumed growth toa reach US$16.1 milLion in 1981.Private nonbank capital flows and errors and omissions, which were negativeat about US$7 million in 1978, turned, positive in 1979 and grew fromUS$19.6 million in that year to an estimated US$37.8 million in 1981.Net foreign borrowing by commercial banks displayed considerableyear-to-year changes.

54. The overall balance of payments was in near equilibrium over the1977-79 period. The largest deficit recorded was US$0.3 million or lessthan one half of 1% of GDP in 1978. For 1980 the overall deficit increasedto about US$0.9 million, or almost 1% of GDP. In 1981 the overall deficitis estimated at US$0.2 million, or 0.2% of GDP.

B. Merchandise Exports

55. Domestic export value almost doubled in 1978, but fell slightlyin 1979 before increasing almost threefold in 1980. For 1981 domesticexports are expected to decline slightly from US$9.3 mi]l:Lon to US$9.1million. Domestic export growth had been propelled in part by theoutstanding developments in exports of manufactured goods; these increasedfrom US$1 million to US$2.1 million between 1977 and 1979 and acceleratedfurther in 1980 to US$5.5 million (Statistical Appendix Table 3.2) asseveral new establishments began operations. In 1981, manufactured exportsare estimated to have risen by a further 15% to represent 69% of totaldomestic exports, as against 59% in 1980. Exports of beverages andtobacco, which in 1980 represented only 5% of total domestic exports, haveremained unchanged since 1977. Exports of food and live! animals to otherCommonwealth Caribbean countries, partly under the CARICOM AgriculturalMarketing Protocol, peaked in 1980 at US$1.4 million (15% of total domesticexports), but is expected to drop drastically in 1981 as major hotelsbecame more inclined to use local food. Notwithstanding the recent growthin domestic exports--domestic export earnings rose from an average 10.6% ofgross tourism receipts over the period 1977-79, to an average 20.8% in thelast two years--Antigua and Barbuda's foreign exchange earning ability isstill determined mainly by developments of the tourist sector.

56. In the last five years Antigua and Barbuda has strengthened itsrole as an important entrepot in the Eastern Caribbean. At least threemajor wholesalers have established their warehouses in the country andengaged in regional distributive trades. As a result, re-exports havegrown consistently at an average annual rate of 51.9% over the period1977-81 to reach about US$24.5 million in 1981. Major re-exports include

- 29 -

machinery and transportation equipment and manufactured goods; togetherthese account for over 95% of all re-exports.14/

57. Antigua and Barbuda's major export trading partners havetraditionally been the Commonwealth Caribbean, which accounted for 75% oftotal domestic exports in 1981, compared with 62.3% the year before. TheUnited States' and Canada's share in exports has declined over the last twoyears to a combined ratio of 13.1% of domestic exports in 1981 after havingreached as high a ratio as 26.2% in 1979. The United Kingdom's share intotal exports, however, has displayed a steady increase from zero in 1977to 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 during1979-80 to reach US$113 million or 105% of GDP in 1980. In 1981 the valueof imports is estimated at US$139 million, indicating moderation in therate of growth, from 55% in 1980 to 23% in 1981. However, as a proportionof GDP, total imports continued to rise, and reached 110% in 1981.

59. The accelerating growth in imports can be traced to theburgeoning food import bill closely associated to developments in thetourism industry, to a continuing growth in domestic fuel consumption; andto the relatively large import component of the investment projects of bothpublic and private sectors. Large infrastructure projects and constructionof new and expansion of existing tourist developments traditionally haveutilized foreign suppliers and construction contractors and have notcreated significant domestic value added. The structure of imports hasdisplayed an asymmetric concentration in food, fuel, and investment goodswhich together has accounted on average for about 80% of imports in thelast five years. Fuel imports which had averaged about 15% of totalimports over the period 1977-80 declined to about 12% of total imports in1981. Chemical goods, particularly fertilizers, have continued to loserelative importance closely in line with sluggish developments in theagricultural sector (Statistical Appendix Table 3.3).

60. The United States' share in imports has increased from an averageof 33% in 1976-80 to almost 53% in 1981. Conversely, both the UnitedKingdom and Canada have seen their shares declining, in both cases by abouttwo thirds between 1977 and 1981. In 1981 the United Kingdom accounted for12% of total imports, and Canada just over one half of that amount. Theimport share of CARICOM countries has remained relatively stable at about13% with Trinidad and Tobago being the major supplier (Statistical AppendixTable 3.4).

14/ Jet fuel re-exports, which are not included in officially recordedimports and have no domestic value-added content, grew at an average ofabout 44% between 1977 and 1980 to reach US$15.9 million in the latteryear, but fell to US$9 million in 1981.

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D. Tourism

61. Tourism, the main foreign exchange earning activity in Antiguaand 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 explainedby the depressed world demand for tourism, particularly due to recession inthe United States, the country's major market, and the lack of promotion innontraditional markets. Another factor that conceivab:Ly may have impededthe growth in tourism, particularly from Europe, is the increasing erosionin competitiveness arising from the recent appreciation of the EastCaribbean dollar in relation to currencies other than the US dollar.

62. In spite of an increasing number of carriers and the introductionof wide-bodied airplanes, the number of stopover visitors arriving by airdeclined by almost 2% in 1981 as against stagnation in 1980 and relativelyrapid growth of about 13% per year from 1977 to 1979. In 1981 the numberof stayover visitors by sea declined even further than those coming by air.

63. Visitors from the United States accounted on average for about45% of total visitors in 1977-81. However, the number of visitors fromEurope, and particularly from the United Kingdom, almost doubled in thelast five years and represented almost 21% of total tourist arrivals in1981. The flow of visitors from the Caribbean countries remained constantin 1981 at about 21,000 persons or 23% of total arrivals. There areindications that the expenditure patterns of visitors may have changed asthe most recent additions to accommodations have been of the condominiumtime-sharing type which are somewhat cheaper than traditional hotels andinvolve less domestic value added.

E. Other Current Transactions and Transfers

64. The most noteworthy development in other current transactionsconsists of the rapidly growing burden of interest payments on the publicdebt. These payments, which amounted to about US$0.5 million per annumduring 1977-78, jumped to US$1.8 million in 1979-80 and are estimated tohave grown to US$2 million in 1981. The growth of interest payments as asignificant foreign exchange charge 'has been accompanied by the emergenceof external arrears on such payments. Identified interest payments arrearsinclude an amount of US$0.4 million to the Eximbank and a somewhat largeramount to a consortium of banks involved in financing a government hotelexpansion program. Antigua and Barbiuda's share of ECCA profits has grownsteadily since 1977 to reach US$1 million in 1981. On the debit side ofthe 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 the1977-79 period, increased to about US$4.9 million in 1980 from US$4.1million in 1979 and are estimated to have increased by an additional US$2.1million in 1981. The increase mirrors a rise in the value of personalremittances from abroad channeled through the commercial banking system.

- 31 -

Transfers through the post office have remained constant (at around US$0.5million) over the last three years, as have sales of stamps for philatelicpurposes (US$0.3 million per annum since 1979). Official transfers whichremained relatively stable between 1977-79 at under US$2 million, reachedUS$4.1 million in 1980, but declined to US$3.6 million in 1981. Main donorcountries in 1981 were Canada and the United Kingdom; together theseaccounted 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$39million in 1980 and are estimated to have increased to US$56 million in1981. The composition of capital inflows has changed significantly overthe 1977-81 period with negative private foreign investment and errors andomissions in 1978 giving way to an unprecedented inflow of US$37.8 millionin 1981. Net official inflows have grown less dramatically from US$6.4million in 1977 to US$16.1 million in 1981, after experiencing considerablefluctuation in the intervening years. Net inflows into domestic commercialbanks have been insignificant over the five-year period, inflows in someyears 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 branchesof foreign commercial banks) has increased at an annual rate of almost 30%over the five-year period 1977-81. Following a relative slowdown in debtcontracting 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% in1981 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 in1978 and in 1981. In the latter year the level of outstanding debt wasabove 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 foreignloans over the five-year period; drawings by the rest of the public sectorwere mostly confined to four operations, viz., Eximbank loans to the PublicUtilities Authority in 1977 (drawings of US$1.5 million), in 1979 (drawingsof US$0.7 million), and in 1981 (drawings of US$0.5 million), and acommercial loan of US$7.9 million to the Public Utilities Authority in 1981for the purchase of generators. As against a gross drawing of US$10.3million by the rest of the public sector between 1977 and 1981, the CentralGovernment utilized US$33 million in foreign loans. Of these, only US$11.6million, or 35% of total drawings, were on concessionary terms, and grantedby official bilateral agencies such as CIDA, USAID, and the BritishDevelopment Division, and by regional and multilateral institutions such asthe Caribbean Development Bank and EDF. The remainder, representing 65% oftotal 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 atend of period 20,803 31,314 32,755 41,591 57,695

Outstanding debt atbeginning of period 14,361 20,803 31,314 32,755 41,591

Net drawings 6,478 10,511 1,441 8,946 16,953Drawings (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 114Interest 555 465 1,737 1,825 2,002

(In per cent)

Debt outstanding/GDP 34.7 45.4 38.5 38.9 45.8Net drawings/GDP 10.8 15.2 1.7 8.4 13.5Debt service/exportsand tourism 4/ 2.3 4.7 5.3 5.8 3.8

Average interest rate 5/ 3.9 2.2 5.5 5.6 4.8Debt outstanding growthrate 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 offoreign 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 operationswere confined mainly to three years--1978 4Sisbursements of US$10.4million), 1980 (disbursements of US$6.3 million) and 1981 (disbursements ofUS$5.3 million)--and were mostly for the purpose of hotel construction(expansion of Halcyon Cove Hotel during 1977-80, and startup of operationsin 1981 for construction of the Deep Bay Hotel-Condominium Complex). Allin all, the Central Government's outstanding debt increased, as aproportion of total public debt outstanding, from 28% at the beginning of1977 to 64% at the end of 1981. Two thirds of that increase representedthe growth of commercial loan obligations for hotel expansion andconstruction (Statistical Appendix Tables 4.1 and 4.2).

69. Antigua and Barbuda's public debt service payment ratio, whichhad increased from 2.3% of total domestic exports and tourism receipts in1977 to 5.8% in 1980, declined to 3.8% in 1981 (Table 13). However, ifarrears in interest payments and amortization are taken into account, thatratio rises to almost 7.4% in 1981. Because of insufficient data oncommercial bank operations, the average interest rate is difficult tocompute. The most conservative estimate suggests that the rate rose from3.9% in 1977 to around 5.6% in both 1979 and 1980, but declined to 4.8% in1981. As interest payments on newly contracted debt on commercial termsenter the debt servicing stream, however, the average interest rate isexpected to rise sharply.

H. Effective Exchange Rate

70. Antigua and Barbuda's currency, the East Caribbean dollar hasbeen pegged to the US dollar at a rate of EC$2.7 = US$1 since 1976.16/ Thereal trade- and tourism-weighted effective exchange rate fluctuatednarrowly around the December 1976 base value over the period March1976-June 1980, with cumulative depreciation never exceeding 5.4% andcumulative appreciation reaching no more than 1.8%. In the 12 monthssince midyear 1980, Antigua and Barbuda's currency has appreciated in realeffective terms by about 10% (Statistical Appendix Table 3.6). The realeffective exchange rate fluctuations observed during the March 1976-June1980 period reflected the combined effects of nominal depreciation of theUS dollar vis-a-vis European currencies and the high inflation of Antiguaand Barbuda in relation to that experienced by its trading partners. Therecent real effective appreciation has been caused in part by convergenceof a nominal appreciation of the US dollar with respect to other majorcurrencies and by a continuing high domestic inflation in relation to thatof the country's trading partners.

15/ All hotel construction-related commercial loans since 1977 have beencontracted at interest rates ranging from 1% to 3% above LIBOR, exclusiveof commissions and other charges. A 1981 loan to the Central MarketingCorporation carried an interest rate of 25%.16/ For further details see Appendix A on the Exchange and TradeRestrictions report.

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71. The recent appreciation of the Antigua and Barbuda's currencywhich has been particularly pronounced in relation to the Canadian dollarand Western European currencies, has already affected tourism originatingin these areas. As mentioned earlier, in 1981 the combined share oftourists from Western Europe and Canada in the total number of visitorsdeclined by 4 percentage points from 1980.

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V. DEVELOPMENT POLICY ISSUES

Introduction

72. With a good investment climate, favorable industrial relationsand the advantage of its proximity to major export markets in North andSouth America, the country has good prospects to further develop its econo-my. A major requirement for the realization of this goal is, however, theexistance of a well-organized and soundly-financed public sector, able toupgrade and expand the needed infrastructure. It appears that this is thearea in which the public sector should concentrate its limited human andfinancial resources while leaving to the private sector the undertaking ofnew investments in the productive sector, namely tourism, agriculture andmanufacture.

Agriculture

73. Manpower shortage is the main constraint to agricultural develop-ment in Antigua. The reputed high unemployment rate would tend to suggestthat there would be a strong incentive to work on the estates (sugarcane,cotton) or, seasonally, on small farms. However, the traditional aversionof young people towards agriculture and the expectations of better renume-ration in the urban service sector, has brought about a scarcity of farmlabor and very low efficiency in the fields.

74. The prevailing pattern of short-term land leasing arrangementoffers little incentive to on-farm investment. An additional shortcomingis that lending institutions are reluctant to finance farmers who cannotoffer land mortgage guarantees. The Government owns about 60% of the agri-cultural lands, including crop and grazing areas. Part of these lands areutilized by small farmers under some forms of continuing-term lease agree-ments. Provided farmers utilize their lands (generally not less than 5acres) they cannot, in principle, be deprived of their lots unless theGovernment requires those lands for public use. In that case, farmers arerelocated and compensated for the eventual crop losses. The Government hasarticulated a new land tenure policy which envisages long-term leasing andsale of viable acreages of land to farmers. This is an attempt to addressthe reluctance of lending institutions to finance farmers who were not ableto offer land mortgages as guarantees. The farmer will thus be assured ofa greater security of tenure and so have the necessary incentive forundertaking on-farm investment. The Government's new policy on land tenurewill shortly be issued in a White Paper setting out agriculturaldevelopment policy.

75. Of great importance is the land use issue. It is alleged that atleast 50% of the available agricultural lands are underutilized orcomplete-ly abandoned. The Ministry of Agriculture in a work programme for 1982 hasexpressed a need for the zoning of land for agriculture and livestockproduction. However, the Ministry will require technical assistance togive effect to a comprehensive scheme for zoning. A land allocationexercise was carried out in 1966 but it should be updated and integratedwith economic and social data so that it could form the basis of an

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agricultural development plan. Interest has been shown by someinter-national agencies in providing funds and technical assistance forsuch a study, which could be completed, in principle, in about 20 to 30man-weeks.Such a study should also include proposals for alternatives toshort- and medium-term land leasing, with provisions for land ownership andlong-term leasehold arrangements.

76. Farm machinery for land preparation is seldom available at therequired 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 sectorinvestment in farm machinery is jeopardized by Government insistence onmaintaining controlled prices for tractors and equipment services. Sincethese prices do not cover real amortization and operation and maintenancecosts, they are not considered renunerative by contractors. Moreover, theprivate tractors' fleet is now obsolete and need to be replaced. Becauseof this the only mechanized services available to farmers on contract basisare provided by the Antigua Development Corporation (ADC) with about 13 oldtractors and, sometimes, by the Sugar Corporation machinery. Some newtractors are now being acquired by the Government and will be put at thedisposal of ADC shortly. ADC should. be strengthened so that it can providemore and better services to farmers. This requires that ADC be adequatelystaffed and new machinery be provided.

77. ADC is also presently managing the Diamond Estate, which includessome 140 acres under irrigation, of which 90 are cropped. It has alsoreceived about 700 acres belonging to Blakes Estate to be used for thepilot corn/sorghum project. In the light of the new responsibilities ofADC in connection with this proposed. corn/sorghum project, it is imperativeto assess the managerial, financial, administrative and personnel capabili-ties since the project requires a relatively high degree of administrativeand technical skills.

78. The role of the Central Marketing Corporation (CMC) in agricul-tural development should be clearly defined. CMC is presently involved inthe marketing of perishables (vegetables, legumes, fruit) buying fromproducers and selling either directly to consumers or to hotels, or to theexport market (ocra and hot peppers to the UK). CMC also imports rice andsugar in competition with private traders and is responsible for importingand 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. Inthis regard, the establishment of a revolving fund should bereviewed in depth.

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Industry

79. There is a need to clearly spell out the conditions under whichdevelopment concessions will be granted. Since the manufacturing sector,mostly enclave light industry, has reached a respectable level, any futureconcession should be carefully evaluated, taking into account not only thejob creation factor but also the infrastructural needs and other strainslikely to be created by the prospective new firm. The Government iscommitted to the establishment of an Industrial Development Agency whichwill carefully vet the conditions under which concessions will be granted.

80. Control of imports needs to be used with caution and prohibitionutilized only when serious difficulties have arisen resulting in, forexample severe balance of payments problems. The aim should be to fosterefficient import substitution combined with export promotion and not togive undue protection to local industries to the detriment of theconsumers.

81. The Antigua and Barbuda Development Bank (ABDB) has improved itsfinancial and managerial situation and should continue to do so if it is toplay a role in the economic development of the country. If this improve-ment continues over the longer term, ABDB's operations will be facilitatedby increased access to funds.

Tourism

82. The need to further develop infrastructure is apparent and needsto tackled before any major expansion of the tourism sector takes place.Prompt and successful implementation of the related projects assumes acrucial importance that deserves concerted efforts by the Government andthe international community.

83. The Tourist Board needs to be strengthened so it can play anactive and more aggressive role in tourism promotion. In this connectionthe Government has appointed a Director of Tourism under technicalassistance and the officer is an expert in the marketing of tourism. It isimportant to promote non-seasonal (summer) tourist activites in order toreduce seasonal unemployment and at the same time increase capitalutilization.

84. The Government is reputedly engaged in expanding its share in thehotel industry. Since there is an urgent need to improve infrastructure,to promote non-seasonal tourism, to increase occupancy ratio and to improveoperations of the two Government-owned hotels, this is a highly doubtfuldirection to pursue at this time. The Government might allocate moreeffectively its limited human and financial resources by con-centrating onsolving the existing problems in the sector rather than getting involved inan area where the private sector could be induced to invest provided theneeded infrastructure is in place and there is suffi-cient demand. Anyserious difficulties in the execution or management of the new hotelprojects is likely to have a long-lasting negative impact on publicfinances and indirectly on private sector confidence. Moreover,undertaking external debt for these projects will seriously impair theGovernment's ability to borrow abroad for essential infrastructural pro-jects.

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Electricity

85. It is expected that the new generators purchased in 1981 willlargely solve the shortage of electricity. The gap between electricitysupply and demand has increased lately. In fact, the generating capacityincreased only marginally during 1980-81 while peak demand grew about 12%over the same period. As a result, shutdowns have been experienced andthere is limited time to carry out maintenance works on the generatingequipment.

86. The need to further strengthen, financially and managerially, theAntigua Public Utilities Authority (APUA) remains. The company deals withelectricity, water and telephone. So far only the telephone company hassome measure of autonomy, although still limited. While the accountingfunctions and responsiblities of the three companies have been separated,the water and electricity companies still share management, office buildingand technical resources. The original intention to form the electricitycompany with a foreign private consortium has been abandoned and APUA hassecured a supplier credit for two diesel generating sets, offsite training,one year service contract and rehabilitation of old engines. The completeseparation of electricity, telephone and water operations remainsdesirable.

Energy Conservation

87. The increase in import duties on cars over 2,000 cc and inlicense fees on cars over 1,600 cc, increasing in proportion to the size ofthe engine is a measure whose impact on energy conservation cannot beascertained yet since this is a recent measure. However, continued exemp-tion of Government departments from such taxes may in itself be a loopholein the policy measure and should be reconsidered.

88. Incentives to encourage hotels to utilize solar power for heatinghave been successful and should continue. However, these incentives havenot been successful in encouraging the more affluent residents andadditional measures should be contemplated.

Water

89. The current shortage of water is likely to persist until theseveral projects that the Government plans to implement and for whichadditional financing may be required are completed. Furthermore, the waterdepartment (within APUA) faces a major constraint in the shortage ofskilled manpower. The latter calls for additional tech-nical assistanceand for the implementation of intensive training courses Eor the relevantpersonnel. The following measures are also urgently needed to strengthenthe water department:

(i) installation of water meters at output points;

(ii) periodic revision of water tariffs to reflect economiccosts; and

(iii) improvement of billing and collection procedures.

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Port

90. Berthing space on the waterside remains inadequate. At thesametime, the lack of adequate unloading equipment and containers and spacefor cargo storage is causing landside congestion. Also, the need for atraining program in port operations and maintenance remains critical.According to the management of the port, at least two engineers and threetechnical supportive staff are needed to rectify the situation. Measuresto alleviate the situation such as the extension of the working time inorder to reduce the need for extra berthing facilities, should be adoptedpromptly. The projected expansion of port facilities should be carefullystudied and implemented only if they prove feasible.

Issues in Barbuda

91. The potential for developing the island of Barbuda is seriouslylimited by the size of its population, 1,200 people. Nevertheless, thereare identified activities that offer some potential, particularly inagriculture, fishing and tourism.

92. An important contribution to tourist development may emerge fromthe 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 andexploit 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 infrastructureof Barbuda is another requirement for the well being of its population. Anurgent need is the installation of telephone facilities connecting Barbudawith Antigua and, perhaps, other neighboring islands. Another infrastruc-tural need is the improve-aent of the air communications, especially theinstallation of light facilities at the Barbuda airport.

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VI. PRIVATE INVESTMENT AND EXPORT PROMOTION

Introduction

94. Under official Government policy, the private sector has a majorrole to play in the economic development of Antigua and Barbuda. Liberalfiscal incentives are granted for the establishment of new enterprises,personal income tax has been abolished, and factory bui:Ldings are providedat a subsidized rate of rental in order to reduce capital costs of prospec-tive investors. Industrial relations appear to be stable and the privatesector 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 predominatesover public in tourism, manufacturing and distribution. Although theGovernment owns three hotels (only two operating), approximately 90% of thetourism sector is under the control of the private sector, predominatelyforeign. In manufacturing, there is practically no public investment withthe exception of the oil refinery in which the Government has a minorityparticipation. A large amount of agricultural land is publically owned,mostly the sugar estates acquired by the previous Government and leasedback to small farmers.

Issues

96. There are several constrairtts to private investment. Foremostamong them are:

(a) lack of infrastructure mainly in the areas of transporta-tion, electricity, telephones, roads and water. Importinggoods is very expensive. Shipping schedules are erraticand, in certain instances, Antigua has been by-passed byshipping lines and cargo is landed in Trinidad for trans-shipment. It is not tnusual for cargo to lie in Trinidadfor several months before the goods are forwarded toAntigua. This is the case particularly in respect ofcontainerized cargo. Shortages of electricity and telephonelines as well as the bad shape of roads are negativelyaffecting tourism. Several steps need to be taken to solvethese issues. The public sector investment program recogni-zes these needs and includes on-going and new projects whichif successfully carried out, will largely solve the shortageof water, electricity and telephone lines and the poorcondition 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 isalready a serious problem. In the event of any significantexpansion in the cons1:ruction industry, for example,shortages may be expected of masons, electricians, plumbers,

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and in other related categories of workers. On themanagerial level, the situation is no different. The needoften has to be met through the recruitment of expatriatesand this is proving to be a costly and unsatisfactorysituation since it is difficult and sometimes impossible tofind local counterparts. To solve this long-term issue,additional efforts need to be undertaken through morevocational education, by training programs and by studentloans for the most needed skills.

97. The maintenance of a realistic exchange rate should be consideredas an essential element of any effective program directed towardsstimulating exports of goods and services. The need to monitor closely thecompetitiveness of the country's exports has become increasingly importantrecently owing to the appreciation of the US$. Since the EC$ is pegged tothe US$, it has appreciated considerably against pound sterling during thepast year. This development has rendered tourist services more expensivefor visitors from Europe and Canada.

Investment Opportunities

98. In examining areas for new investment and/or expansion, one facesthe small size of the domestic market and the consequent need to developdependable export markets. At present maximum advantage is not being takenof fabrics made from sea island cotton, which is extremely popular, parti-cularly with tourists. The potential for expansion is not only in thelocal printing of fabrics but also in the manufacturing of garments fromthe material, both of which could be exported and would confer significantbenefits on the economy. Given the proximity of Antigua and Barbuda to theUnited States of America, a well-conceived program for promoting export-oriented industries could be successfully implemented for labor intensiveindustries, especially if transport costs can be reduced and promotionalefforts enhanced. In this regard, the work undertaken by a privateconsultant firm financed by USAID, might have a positive impact over thenear future.

99. As discussed earlier, the underutilization of large tracts ofland as a result of withdrawal from sugar production, is another area whichneeds urgent attention. It is expected that with the implementation of thenew land-tenure policy, government-owned land will be leased on a long-termbasis to farmers to produce fruits, meats, and vegetables for the tourismindustry and raw and processed fruits for export. Adequate services shouldbe provided and proper policies pursued by the authorities to help increaseefficiency and productivity in the sector so that it stops losing manpowerto the more renumerative service sector.

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VII. PUBLIC SECTOR INVESTMENT PROGRAM

Progress and Issues in 1981

100. The performance in the imp:Lementation of the public sectorinvestment program during 1981 was mLxed. Provisional estimates of thetotal disbursements on capital projects amount to EC$57.1 million, or about16% of GDP. Disbursement of about EC$45 million had been projected for1981. Therefore the execution may be regarded as very good in relation tothe level of disbursements. However, there are some projects experiencingvery 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 practicallycompleted 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 ofproducing approximately 5,000 tons of sugar per year. The total areainvolved, at full development, would be about 2,600 acres, of which 1,200acres would be managed by the Sugar Corporation, a public enterprise, and1,400 acres cultivated by small farmers. During 1980/81, about 550 acreswere established, 450 under estate annagement and 100 acres operated bysmall farmers. However, because of shortage of labor, only 103 acres ofestate plantations and 28 acres of small farm holdings were harvestedduring 1981. Moreover, the factory machinery has had reputed mechanicalproblems accentuated by the lack of spare parts. As a result, productionin 1981 was only 37 tons of sugar. A careful assessment has been completedby Government and is now being reviewed by the CDB and European InvestmentBank.

103. Extensive repair and maintenance work was needed because of theunusually high level of rainfall throughout the year. The performance ofthe Public Works Department (PWD) in carrying out the necessary repairs andmaintenance was mixed. While the condition of roads in St. John's, thecapital, showed signs of deterioraticin, some progress was made in villageroad reconstruction and highway maintenance.

104. Implementation of scheduled new road projects was notsatisfactory. Work on the Old Road/Falmouth Road Project has not yetbegun. Meanwhile, grave doubt surrounds the implementation of the FeederRoads project because the country does not agree with the conditionestablished by the lending instituticon (CDB) that construction should bedone by contract.

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105. During 1981 the Caribbean Development Bank resumed its creditdisbursement to the Antigua and Barbuda Development Bank (ABDB). Globallydisbursements were in line with the scheduled level and in the case ofmortgage finance exceeded projections for the year. The mission's reviewof the ABDB's situation came up with the following findings:

(i) the increasing rate of loan delinquency in the AgriculturalProduction Credit (APC);

(ii) the Farm Improvement Credit (FIC) program, which isdominated by loans to the fishing sub-sector is beingseriously affected by a build-up of arrears on loans. As aresult, loans in the sub-sector have slowed downconsiderably;

(iii) the lack of credit demand in the light manufacturingsub-sector and the extremely high demand for tourismprojects; and

(iv) disbursmentsunder the mortgage finance loan scheme havemoved rapidly and ABDB thinks that it will requireadditional 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 theproject list, the total cost of ongoing technical assistance programsamounts to more than US$6 million or, about US$2 million of disbursementsper year. Since the absorptive capacity of the country in relation totechnical assistance programs is limited, areas and programs in whichtechnical assistance is requested should be clearly prioritized if ameaningful contribution is to be obtained from these programs. Whenevertechnical assistance is provided, the Government and the relevant agencyshould make efforts to guarantee that: (i) an appropriate local counterpartwill be appointed; (ii) the local counterpart will be properly trained soshe/he can eventually assume the duties and responsiblities performed bythe external technical assist-ance personnel; and (iii) a fluid andpermanent communication between the Government and the assistance personnelwill take place.

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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 ofseveral crucial issues such as: (i) l:he weak financial situation of thepublic sector; (ii) the risks and strains associated with some majorprospective investments in hotels and condominiums by the public sector;(iii) the need to improve efficiency in the execution of projects, thusavoiding excessive cost overruns; and (iv) the need to secure donor/lendercommitments for new projects with stiLll unknown sourcesof financing.

108. Public sector savings decreased in 1981 and given presentcommitments they might continue to decline. This situation should bereversed. If prompt measures are talcen, especially to cut currentexpenditures in the Central Government, public savings should increase andreach around 4% of GDP in 1985, not a very high level in view of the largerequirements for investment as well as for servicing the external debt.

109. The Government plans to construct several large hotels andcondominiums with an estimated cost of about US$200 million, or 160% ofGDP. In the case of the Deep Bay Hotel project, disbursement for US$3.6million already took place in 1981 iII connection with architecturalstudies. This project, whose cost is around US$90 million, is to befinanced by a loan from a foreign bank. There are several serious problemsthese projects raise:

(i) there are no indications that the projects have beencarefully evaluated from the point of view of their economicfeasibility;

(ii) the public sector is not equipped to adequately look afterprospective investment:s in the hotel business, includingtheir construction;

(iii) these large projects require expensive studies. The amountfor studies alone wou]d be sufficient to fund small andmedium size hotels which could operate very rapidly andwould not create major additional strains on theinfrastructure of the country;

(iv) any serious difficulties in the operations (construction,selling, administration, etc.) will have long-termrepercussions on the public finances as well as on theGovernment's creditworthiness; and

(v) given the characteristics of the projects, it does notappear that they can generate a great deal of domestic valueadded and even employment generation does not seem to be inline with the large amount of investments.

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110. The streamlining of procedures to control the execution and costsof public investment projects is highly advisable. A close monitoring ofprojects might result in avoiding excessive cost overruns such as the oneexperienced in the expansion of the Halcyon Cove Hotel. In this regard, itis recommended that fixed cost contracts with proper bidding procedures beused in new constructions.

111. A large amount of new commitments from the international communi-ty needs to be obtained. Excluding investments in new hotel/condomminiumspreviously discussed, additional commitments for about EC$100 million needto be secured. Approximately one-half of this amount may be forthcomingfrom the Independence Grant/Loan for specific projects.

112. The following analysis of the amount, composition and financingof the public sector investment program does not include the new hotels/condominiums previously discussed because no information on disbursementsfor this program was available to the mission. Therefore, the scenariodescribed in the following paragraphs would change substantially if thementioned projects are implemented and their disbursements included in theinvestment program.

113. Disbursements on the public investment program for the period1982-85 are estimated at EC$239 million. The bulk of these disbursementswould take place on infrastructure, namely transportation, energy, andwater. Because EC$52 million is required for amortization of the externaldebt, total financial requirements for the 1982-85 period are estimated atEC$291 million. These financial needs are projected to be met as follows:(i) public savings, EC$63 million or 21.6% of the total financialrequirements; (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 financemost of the requirements. A major positive development would take place ifpublic savings increase and the need to borrow from the domestic bankingsystem progressively declines and even some overall repayments take placeat the end of the 1982-85 period.

114. The external public and publicly guaranteed debt of Antigua andBarbuda amounts to US$58 million or 46% of GDP. The debt service onpresent loans represents around 7% of foreign exchange earnings but onlyabout 4% was actually serviced in 1981. However, this is projected tosharply increase in the coming years because several large loans becomepayable. This situation dictates prompt adoption of policies to raisepublic sector savings and foreign exchange earnings. Although the serviceon existing external debt will be burdensome with such policies it shouldprove manageable. Nevertheless, caution should be exercised in the furtherassumption 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 ofadditional external capital required to implement the public sectorinvestment program, the country will have to rely, to a large extent, oncapital grants and concessional loans.

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ANNEX A

Antigua and Barbuda: Exchange and Trade System

Exchange Rate System

1. The currency of Antigua and Barbuda is the East Caribbeandollar,l/ which is used by the East Caribbean Currency Authority. TheEast Caribbean dollar is pegged to the US dollar, the intervention currencyat EC$2.70 per US$1. On January 31, 1982 the buying aLnd selling rates forthe US dollar were EC$2.6882 and EC$27,169, respectively, per US$1. TheCurrency Authority also quotes daily rates for the Canadian dollar and thepound sterling. All foreign exchange purchases and sales are subject to a1% levy; the minimum levy collection is EC$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 andapplies to all currencies. Export Licensing is required for a range ofproducts particularly those subject to export duties. Import licenses areissued by the Collector of Customs of the Ministry of Finance, and theMinistry of Economic Development depending on the type of commodity.

Prescription of Currency

4. Settlements with residents of member countries of the CaribbeanCommon Market (CARICOM)2 / must be made either in the currency of theCARICOM country concerned or in East: Caribbean dollars. Settlements withresidents of other countries may be made either in any foriegn currency orin East Caribbean dollars. Settlements involving currencies from SouthAfrica are not permitted.

Nonresident Accounts

5. External accounts may be opened for nonresidents with theapproval of the Ministry of Finance and may be maintained in any currencyrequested. American servicemen and employees of the US Government andinternational agencies may operate external accounts--pursuant to severalagreements with their respective organizations. A few residents--firms andindividuals--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 theGrenadines.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 offoreign currencies and with transfers from other External Accounts but notwith payments by residents. Commercial banks report external accountsoperations to the Ministry of Finance on a quarterly basis.

Imports and Import Payments

6. All imports from South Africa are prohibited. Most goods may befreely imported under open general license (importer's license) granted bythe Ministry of Finance. Certain other commodities require individuallicenses, unless imported from CARICOM countries. Antigua currentlyfollows the new CARICOM rules of origin adopted in June 1981. Payments forauthorized imports are permitted upon application and submission ofdocumentary evidence. Authority is delegated to commercial banks toendorse import licenses application forms after confirming sight ofdocuments.

7. Imports that are exempt from import duties include basic foodsand agricultural imports. All other exemptions for machinery, equipmentand raw materials are granted on a case by case basis and generally underthe Fiscal Incentives Law and the Hotel Incentives Act. Import dutiesrange 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 subjectto a stamp duty.

Payments of Invisibles

8. Requests from residents for foriegn exchange for travel of up toUS$750 per trip is normally granted on application by the Ministry ofFinance; sums on excess of this amount are decided on a case by casebasis. CARICOM travelers checks (which are denominated in Trinidad andTobago 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 nolimits on the amount of local currency that may be taken out of thecountry. Profits may be remitted in full subject to confirmation by theCommission of Inland Revenue of registration for corporate income taxpuLrposes. Student remittances are usually exempted from the foreignexchange levy on application.

Exports and Export Proceeds

9. For certain commodities, no licenses are required for the exportof goods to any destination. No surrender of export proceeds is requiredand re-exports do not produce any tax as they take place within the bondedarea.

Proceeds from Invisibles

10. Travelers to Antigua and Barbuda may bring in freely notes andcoins 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 toUS$1,000 without restriction and with no levy. For over US$1,000 Ministryof Finance approval must be sought. Levy exemptions for transfersespecially 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 investmentunder the Fiscal Incentives Act and the Hotel Incentives Act. Largetransfers abroad for investment purposes can be phased over time by theFinancial 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 theCaribbean Common Market. The new system's basic criterion relates to thedegree of processing to which the imported input has been exposed insteadof the value-added criterion used before. The system eliminates the BasicMaterials List and is facilitated b;y the introduction of the use of theCustoms Cooperation Council Nomenclature.

July 1981

14. Temporary ban on imports of tomatoes.

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ANNEX B

Antigua and Barbuda: Structure of Public Sector

General Government

Central Government

1. Central Government expenditures are made from the ConsolidatedFund for the ten Ministries of the Government including the Ministry ofEconomic Development that coordinates all ongoing Central Government hotelconstruction, and supervises management of two publicly owned hotels--theHalcyon Reef Hotel (through the Antiguan Isle Company) and the Halcyon BayHotel (through the Antigua and Barbuda Development Corporation). TheTreasury keeps monthly records of actual expenditures incurred by spendingagencies, and has sole responsibility for expenditure administration andcontrol through the Office of the Budget Director and the AccountantGeneral. The Treasury also maintains sinking funds against bonded debt andsuch funds are fed from budget outlays. The resources from the sinkingfunds are invested by ECCA. The Ministry of Finance has responsibility forcontracting all debts of the Central Government and of guaranteeing thefinancial obligations of public sector enterprises. It is charged with thetask of monitoring and documenting the public debt, and of meeting CentralGovernment debt obligations as they became due. The Established CivilService comprises 2,658 persons, 684 of which are employed by the Ministryof 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 allemployed persons 16-60 years of age, including self-employed persons on avoluntary basis. Draft legislation is presently being considered toincorporate self-employed persons in the scheme on a more formal basis.There are at present 37,000 employees and dependents and 3,000 registeredemployers covered by the scheme. Benefits include sickness, maternitybenefits 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 debtinstruments of government statutory bodies, and in time deposits atcommercial banks. The system, which employs 55 persons, does not invest innonfinancial 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 deductfrom the wages of each employee 2-1/2% of gross earnings. The employercontributes an equal amount on behalf of each employee. Medical benefits

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cover the supply of medical or surgical care and services, and includehospitalization, drugs, laboratory tests, and X-ray services. The schemecovers insured persons; persons who suffer from hypertension, diabetes,certified lunacy, cardio vascular disease, leprosy, glaucoma, sicklecellanemia, and cancer; persons under 16 years of age; and persons renderedincapable of work by virtue of age. The scheme's portfolio of investiblefunds is negligible at the present t:Lme. Established staff numbers 45.

Local Government

4. There is only one local government authority; it serves thesister island of Barbuda. This authority, established in 1981 to supersedethe Central Government Ministry of Barbuda Affairs, is responsible forcentral government revenue collections in Barbuda and for administering awide range of government programs and services in sectors as diverse asagriculture, forestry and fisheries, public health, road construction andmaintenance, hotel development, and public utilities. One major issue tobe resolved between the Central Government and the Barbuda Local GovernmentCouncil is the legal status of publicly owned lands in Barbuda. At presentthe Council is seeking more autonomy in the administration of Barbudaaffairs.

Antigua and Barbuda Broadcasting Corporation (ABS)

5. The Government owns the Antigua and Barbuda BroadcastingTelevision and Radio stations. Both are commercially-oriented enterprises,but are at present heavily subsidized by the Central Government. The radiostation employs 27, and the television 29 persons.

Central Housing and Planning

6. The Central Housing and Planning Authority was established bylegislation in the 1940s primarily for the purpose of carrying out underthe provisions of the ordinance, an island-wide low income housing scheme.The program has received substantial assistance both from the BritishGovernment in the form of grants and loans, and from private estate ownersin the form of housing sites. In recent years the Housing and PlanningAuthority has tapped resources of the Caribbean Development Bank and of theSocial Security Scheme for its housing and rehousing programs. Financialdata 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 agriculturaloutlet, established by Act of Parliament in 1952. It buys and markets theproduce of Antiguan farmers, and in relation to this function has alwaysreceived annual subsidies from the Central Government. In recent years ithas started importation of agricultural inputs such as fertilizers andpesticides. The corporation is at a present undergoing considerablefinancial difficulties following incurrence of an external debt ofapproximately EC$4 million in 1980 relating to the import, for domesticresale, of television sets and other items, incuding hams and frozenturkeys, not easily traded in Antigua and Barbuda. The corporation is runby a General Manager, and employs 58 persons.

- 51 - ANNEX B

Antigua Public Utilities Authority

8. Antigua Public Utilities Authority is a statutory bodyestablished by law to manage the three public utilities, viz., electricity,water, and telephone. It employs 410 persons. It has fixed assets of overEC$50 million with an annual revenue stream that in 1981 exceeded EC$21million. In recent times the Authority has been plagued by the problem oflarge outstanding dues by consumers, including the Central Government andother public sector bodies. With the installation in early 1982 of a newpower plant, inclusive of three generators with a combined capacity of 19.5megawatts, the problem of power shortage in Antigua is expected to beeliminated for several years to come. The latest tariff rates werepromulgated in May 1979 (electricity), July 1980 (telephones), and December1980 (water).

The Port Authority

9. The Port Authority was established as a department of theGovernment in 1968 by Act of Parliament, but in 1973 became a full fledgedstatutory body. The Authority operates the Port of St. John's, isresponsible for all cargo handling and distribution, and receives incomefrom berthing fees, wharfing fees, and lighting dues. It manages asubsidiary company--Terminal Operating Company--and has a monthly-paid,established staff of 20 under an Executive Chairman. It employs, inaddition, about 40 longshoremen and 15 maintenance personnel. Early in1981 the Port Authority was authorized by Cabinet to effect a 10% increasein t:onnage dues which constitutes about 75% of the total revenues of theAuthority. Over the last several years the Authority has consistentlyachieved a modest surplus on current account. Plans are under way toexpand the facilities of the Port Authority as present berthing space iscongested and somewhat inadequate to cope with the growing volume ofmaritime traffic at the port.

The Industrial Development Board

10. The Industrial Development Board was established by Act ofPar]Liament in 1952 and charged with the task of promoting and facilitatingthe growth of industry. At present, however, its functions relate solelyto coordination of the production and sale of copra meal, edible oil,cotton seed, cotton meal, and cotton seed hull. To this end it operates afactory that produces ediole oil and animal feed, and gins locally-producedcotton. It also manages a small plant that manufactures ceramics. TheBoard, which from its inception has been subsidized by the CentralGovernment, consists of 15 members appointed by the latter. It employs anadministrative 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 ontransfers of properties to be paid by seller.Previously there was a 2.5 per cent tax paidby buyer.

2. Introduction of landholding tax on undevel-oped land held by nonbelongers. First year5 per cent, increasing by 5 per cent eachadditional year.

3. Increase in gasoline consumption tax.

4. Increase in hotel occupancy tax from EC$2.50to EC$L0.00 per night.

5. Increase in embarkation tax from EC$3 to EC$5for CARICOM citizens and from EC$5 to EC$8for alL others.

6. Introduction of a 1 per cent entertainmenttax.

7. Introduction of a customs surcharge of 3 percent.

8. Introduction of a tax of 3 per cent on valueof insurance premiums.

9. Introduction of reserve requirements on banksat 7 per cent of deposit liabilities.

10. Increase in reserve requirements on insurancecompanies from EC$50,000 to EC$100,000.

March 1978 1. Reduction on consumption tax on alcohol andcigarettes from 10 per cent to 7 per cent.

2. Increase in consumption tax on gasoline fromEC$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 of10 per cent of value of ticket.

5. Increase in entertainment duty.

6. Increase in telecommunications tax from 5 percent 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: forvehicles 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 those16 years of age and under.

4. Increases in consumption duty rates as fol-lows:

(a) For all articles not specified in aseparate schedule a rate increase from 10 percent to 15 per cent;

(b) lWine, spirits, and cigarettes increasefrom 7 per cent to 10 per cent;

(c) Ethylalcohol, rum, vodka, and vinegarincrease from 12 per cent to 15 per cent;

(d) Items for commerce and industry remainat 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 to30 per cent; from 3,001 cc. and more increasefrom 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$15to EC$100 depending on location of establish-ment;

(b) Retail license: St. John: from EC$96to EC$200; outside St. John: from EC$60 toEC$100; Barbuda: from EC$24 to EC$30;

(c) Trade license wholesale increase fromEC$500 to EC$1,000;

(d) Hotels: 20 rooms or less: from EC$72to EC$500; 21 to 50 rooms: from EC$72 toEC$1,000; over 50 rooms: from EC$72 toEC$1,500;

(e) Importers: increase from EC$24 toEC$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 toEC$250;

(i) Other license increases: Driverlicense, motor vehicle registration, change ofregistration, 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 Areagoods from duty.

2. Introduction of a separate and higher rateof tax for beer and ale from non-CARICOMcountries of $12.50 per liquid gallon. Theoriginal rate of $2.50 per gallon appliesto 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 onLaw Cap.

2 66 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 asnonresidents 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) Individualsto 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 5opment Bank and Government Savings Bank, and 1,001 - 2,000 7-1/2 to 10income derived from any allowance to public 2,001 - 4,000 10 to 20officers, allowances to the Chief Justice of 4,001 - 7,500 25 to 30the West Indies snd scholarships and other 7,501 - 20,000 35 to 45educattanat .alloances. Income derived from 20,001 - 30,000 50 co 55investment.: an Government's Treasury bills Over 30,000 55and develapyent bonds.

(b) Companies 40Liability to income tax. Non- Deductions include normal operating costs, in-resident individuals are taxed terest, rart of land and industrial buildingon income from any source with- depreciation, provoun losses not already off-in Antigua. Income tam is set against income, income coming under thelevied on the income of any Hotels Aid Ordinace Act 1952, the Fiscalcompany registered in Astigua lncentives Ordinance 1976. Contributions toand on the income of foreign charitable, religious, education, and scienti-companies which is generated fic institutions. Dividends are taxable inin Antigu-. the shareholder's hands.

Assessable income is defined as Personal reliefs.(a) earnings in money or kind lone.from employment; (b) profitsfrom trade; (a) dividends, in-

terest, and discounts; (d) pen-sions and annuities; (e) pro-perty income; (f) undistributedprofits of a company controlledby no more than S persons maybe deemed income of the share-holders and taxes as such pro-viding it could be distributedwithout detriment to the com-pany's existing business. Sub-sequent distribution of suchincome 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 companiesannuities payable to and credited at source against thenonresidents recipients' liabilities for the

relevant year of assessment.

1.3 Nonresident withholding Paynents made to a nonresident in None Individual - 20 per centon account the form of a dividend, interest Companies - 40 per cent

on discounts, rental, lease, pre- Any other income - 25 per centmiun on incOme, royalties, manage-ment fees, comission, annuitiesor any other payment of an incomenature are subject to withholdingon 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 assessedLaws: 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 one17: 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 perowned 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 liquidand 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 $0.02applicable 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, opticalinstruments, 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, preciousstones, 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-operatedmachines for games of skill, vehicleswith engine capacity of iore than 2,000 cc.-50 per cent.All goads not included in any of abosepay 15 per cent.

3.2 Consumption tax on fuel Specific Name EC$0.67 per gallon of motor spiritsEC$0.43 per gallon of gas oil, diesel oilEC$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 gallonrum than corsumption tax

3.4 Hotel accommodation tax Paid by hotel proprietor. Hters; from $2.50 per person per nightLaw 14/62 amended to $10.

3.5 Guest hotel tax Payable by guest on hotel rooms, None 5 per centLaw 14/62 food and drink charges

3.6 Embarkation tax Passengers eb-arking aL an air- Enbrkkatien: $5.00 per person travelingport 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 premiumLaw 6/77 other than vehicle insurance

3.12 Casino tax $200,000 or 7-1/2 per cent of grossLaw 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 countriesBrussels 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 perfrom 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 rumentering from outside CARICOM are and firearms; 70 per cent.subject to common external tariffbut Antigua and other LDC membersof CARICOM have been given until1983 to adjust their rates to thecommon rates.Imports from Commonwealth coun-tries have reduced preferentialtariffs 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 poundcotton. 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 ratesLaw 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 - $2ficates, and other legal docu- $201-500 - $5ments 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 peryeair depending on the location of theestablishment.

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 dependingon number of bedrooms.

6.6 importers None $1,200 per year.

6.7 Tavern, club None $600 to $1,000 per year, depending onlocation

6.8 Motor cars Depending em car weight None From $50 to $200Commercial 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 than3,100 lbs. $200. Taxis $50; self-drive$150.

7.4 Other fees None Driver examination $15; motor vehicleregistration, police reports, visitors'permit to drive $30; registration ofchange of ownership $10; duplicatelicense, examination of vehicles $10.

- 61 -

ANTIGUA AND BARBUDA

GOVERNMENT'S PROJECT LIST

1. This annex contains a list of major ongoing projects, a list ofprojects for which external finance will be sought during the period1982-1985 and individual project descriptions. Each list contains the nameof the project, the executing agency, the lender/donor if any, the totalcost, the external financing obtained or required and the counterpartcontribution required. The individual profiles contain additionalinformation which should be of interest to potential donoes or lenders,including technical assistance requirements and the present status of theproject.

2. Data for these projects, which will be presented to the meetingof the Caribbean Group for Cooperation in Economic Development scheduledfor June 15-18, 1982, were provided by the Government of Antigua andBarbuda 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 GraceTotal Financing Interest Period Period Counterpart FinancingCost Secured Source (Y) (years) (years) Amount 2

Directly Productive Projects

Sugarcane Project 7417 5785 CDB 4 15 5 1632 22Fisheries Development 5278 4767 CDB 4 15 5 329 9Farm 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 5Handicraft Center 180 180 USAID Grant - -

Small Indastry Credit II 215 215 CDB 4 15 5Small Business Development 104 104 CIDA Grant - - - -

Electricity Generating Equipment 800 7840 T&T/ 1.5/8 8,9 - 160 2Commercial above

LIBDR,7.3/4

Water Distribution System II 3700 3700 T&T 2Deep Bay Condominium Development I 9000 8100 Commercial 900 10Water 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 GrantWind Power Project 302 272 USAID GrantDrainage of Skerrets Pasture 90 90 USAID GrantDrainage of Grays' Farm 210 200 USAID GrantDrainage of Cassada Gardens 200 200 USAID Grant -

Other Projects

Hotel Training School 407 370 UNDP Grant - - 37 9Metering 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 5Student Loans I & II 359 359 CDB 4 15 5Extension 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 GrantMission Administered Funds 554 554 CIDA Grant --

- 63 -

ANTIGUA AND BARBUDA: MAJOR NEW PROJECTS AND SOURCES OF FINANCING

(US$' 000)

EstimatedTotal Financing Counterpart FinancingCost Required Source Amount %

Directly Productive Projects

Beef Production Project 3,700 3,330 Possibly CIDA 370 10Corn and Sorghum Project 3,000 2,400 Possibly CIDA 600 20Communal Grazing II 185 180 Unknown 20 10Body Ponds Farming Unit 600 420 CDB, Unknown 180 30Mini Dams Project 500 500 UK - -Fence Post Production 300 150 Unknown 150 50Agricultural Testing Laboratory 40 40 Unknown - -On-farm Watering Scheme 110 88 Unknown 22 20Orange Valley Pineapple Scheme III 400 360 CDB 40 10Industrial Estates III 4,000 2,800 CDB 1,200 30Clay Bricks and Tile Production 1,500 1,050 CDB 450 30Agro-processing 100 100 Unknown - -Chemical Lime Factory 2,500 1,750 CDB, Unknown 750 30Airport Runway Overlay 1,850 1,517 CDB 333 18Airport Navigation Equipment 650 585 Unknown 65 10Holiday Village Complex 18,000 16,200 Unknown 1,800 10Dry Hill Hotel 38,400 34,560 Commercial Bank 3,840 10Deep Bay Hotel 40,000 36,000 Unknown 4,000 10Deep Bay Condominium Development 80,000 72,000 Commercial Bank 8,000 10Ffryes Hill Hotel 18,000 16,200 Unknown 1,800 10Fort James Hotel & Leisure Centre 15,000 13,500 Unknown 1,500 10Electricity Distribution-Upgrading 1,862 1,562 CDB 300 16Creekside Treatment Plant 2,556 3,556 UK - -

Economic Infrastructure

Rehabilitation of IndustrialDevelopment 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 10Radar Cables-Meteorological Station 111 111 Unknown - -Telephone Expansion II 2,037 2,037 CIDAMicrowave Link 21 21 CIDA - -Groundwater Development Project 852 750 UNDP,UK,CIDA 102 12Port 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 10Rehabilitation of Municipal Wells 280 196 Unknown 84 30Pargan /biister Station 260 260 Unknown - -Management and Maintenance Unit 555 444 Unknown il 20

Other

Low Cost Housing - Barbuda 1,481 889 Unknown 592 40Secondary School - Bolans 740 592 Unknown 148 20Infant School - St. John's 2.2 170 Unknown 42 20Vocational School - All Saints 741 593 Unknown 148 20School Bus (8) 150 150 Unknown - -All Age Primary School - St.John's 425 345 Unknown 85 20Library/Museum/Archives - St. John's 370 296 Unknown 74 20Expansion of Engineers Department -

State College 200 140 Unknown 60 30Equipment for Laboratories -

State College 150 150 Unknown - -Refurbishing of Existing Schools 370 148 Unknown 222 60Community Centers 100 80 Unknown 20 20Miscellaneous Equipment for Water &

Sewerage 370 370 Unknown - -St. John's Water-Borne Sewerage

System 10,000 9,000 Unknown 1,000 10Mental Hospital - Improvement 38 38 Unknown - -Holberten Hospital - Improvement 1,591 1,273 Unknown 318 20Fiennes Institute 38 38 Unknown - -Central Board of Health - Equipment 355 355 UnknownTransport - Medical Division 167 167 Unknown - -Barbuda Development 3,400 2,380 CDB 1,020 30Construction of Government Offices 1,680 1,344 Unknown 336 20Construction of Public Works

Warehouse 370 296 Unknown 74 20

Fire Stations - Construction 260 208 Unknown 52 20New Prison - Construction 740 592 Unknown 148 20Fire Service - Cooledge 260 208 Unknown 52 20Patrol Boats 150 150 Unknown - -

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,-3133Develonment, 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 244,993.60Consultant

Tourism Adviser UN, CTRC 0/8O 11/3i $ US ` 7 ,L499 5 0CFTC

General 14anager BDD to/Q0 10/312 US lk4O00COO

TOTAL $ US 1,,01k,995.L

of 10

ANTIGUA - ON-GOING AND REQUESTED TECHNICAL ASSISTANCEON-GOING

MliUISTRY POST AGENCY STP.RT FINISH COST

S. Finance

Inland Revenue Inland Revenue BD.D.O 4/78 4/3^ / Us 350,000Department Advisa-

Antigua Pub.licUtilities 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

_nginecrTOTAL $ US 1,265,3Q.3

3. lt Dieticiar ?aace Corns , Years $ US 140,000Pro'oct Hope Private 5/30 5/Cl $ US 00,000

Foun-dations

TOTAJ, us 3.00,000

of 10


ON-GOING

MINISTRY POST AGL2NCY START FINIS! COST

40 ~Education, Sports and Pre-School Co- UNICEF 9/GC 9/AG3 $ US 210,000Culture Ordinator

S&imll Business Peac:i 9/i9 3 $ US 140,002dvi ser/Co niomiity CGr' 2SDevelcpr '- 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, OwCollege

Lecturor, Enzgi-:.cer-ing De't. kntigua BoDo3a 10/73 US 6'2,!9S`.5State College

14 Teachers in thcareap of Toechn4cal, Peace Theso Peace CornsRe,medial and HaVl2d- Cor's are usually hare $u lTh,eoo-ca9,. 'nChing on 2 two year assigruient

I Librariar. at t-i-cUn:vors4tv $ US 70,000

Centre

TOT, L $, US 1 99

of 10

ANTIGUA - ON-GOING AND REQUESTED TECHNICAL ASSISTANCEON-GOING

M1IStII3V' F0OT iGENCY STlRT FINSI C02ST

5 Ak5ricuit-ure, 'rc's ne Irrigation Peae Duration of 2 Ycrs $ 'JS 140 usFisherics S.,ciaist Corns

i^.gricuu-.^.3t P.C. P US 1.C 00C

Livcstoc" Erten- T.C. Duration e-f 2 yearz $ US 1l4.0,00Os4on O£ficer

c.-sP.C. i¶.-'30 - 193. $ )US 140,000

3o-r22 caec P.C. $ uS 140, ccoro n-omd st

,: - r t inr Goat CFTC. -- & dee7s curat:ion / US 2,,749n95and 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

of 10


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

of 10ANTIGUA - 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 $ 35,000Development, 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 $ 35,000Adviser

(6) Tourism Co-ordinator i/32 - 12/82 US $ 35,000

2. Antigua Public Utilities (1) Mechanical Zngineer 1/82 - 1/84 US 0 140,000Authority

(2) Electrical Engineer l/82 - 1/8$ US $ 140,000

3. Local Government, Consumer (1) Local Government 1/82 - 1/84 US $ 140,000Affairs Adviser

(2) Standards Adviser 1/82 - 1/84 US $ 140,000

(3) Adviser on Consumer- 1/82 - 1/84 US $ 140,000

si.on

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 $ 140,000Wforics

(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 % 140,000Engineer

5. Legal Affairs (1) Legal Draftsman 1/32 - 1/85 US $ 210,000

(2) Court end General 1/32 - 1/85 US $ 210,0c00Stenographers

(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 140,000Co-operatives & PlannerHousing

(2) Adviser at State 1/32 - 1/34 US $ 140,000Insurence

(3) Co-operatives Adviser 1/82 - 1/84 US X 140,000

ANTIGUA - ON-GOING AND REQUESTED TECIHNICAL ASSISTANCE Page 8 of 10REQUESTED

MINISTRY POST PzEROD COSTWUSO 70,000 per person per year)

Labour Actuary 1/82 - 1/84 US 5 140,000Manpower Planner 1/82 - 1/84 US $ 140,000

Agriculture, Lands & (1) Two Mechanical t/32 - 6/82 Us X 140,000Fisheries Engineers

(2) Sugar Technologist 1/32 - 4/82 US $ 24,ooo

(3) Sugar Cane hgrono- 1/32 - 4/82 US $ 35,000mist

(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

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 $ 140,000Legislator

Health. (1) Medical Officer of 1/32 - 1/84 Us $ 140,000Health

(2) Health Legislator 1/82 - 1/84 US $ 140,000

(3) Pharmaist 1/82 - 1/84 Us $ 140,000

of 10

ANTIGUA - ON-GOING AND REQUESTED TECHNICAL ASSISTANCEREQUESTED

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 % 70,000Instr-_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 grainsfor cattle feed, fencing-off farm area to con-tain the herds, constructing silos, controllingparasites, artificially inseminating to upgradethe herds, and building of slaughter facilitiesand an abbatoir with chilling facilities, storage,and stand-by generator.

B. Justification: The project will lessen the dependency of thetourism se!ctor from meat imports.

VII. COST COMPONENTS AND FINANCING:

Financed by _ TotalLocal ExternalSources Sources Amount %

Local Costs 370 1,665 2,035 55Foreign Costs - 1,665 1,665 45Total 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



V. LENDING AGENCY: CIDA


A. Description: To establish a 5,000-acre corn/sorghum unit.

B. Justification: The project would supply corn and grain sorghumfor both domestic and export uses. It wouldbroaden the agricultural base in Antiguaand enhance local food supply as well asfurnish feedstuff for livestock and poultryproducts.

VII. COST COMPONENTS AND FINANCINIG:

Financed by TotalLocal ExternalSources Sources Amount %

Local Costs 600 600 1,200 40Foreign Costs - 1,800 1,800 60Total Costs - Amount 600 2,400 3,000

- % 20 80 100

VIII. DISBURSEMENT PERIOD:

Post1.982 1983 1984 1985 Total 1985

Local Sources - 74 74 74 222 378External Sources - 296 296 296 888 1,512Total - 370 370 370 1,110 1,890

- 77 -

IX. STATUS OF PREPARATION: Project was ongoing until mid 1979 whenit was discontinued. CIDA had expressed its interests. It hadrequested for the FAO report on corn/sorghum production.


Operating and Maintenance Costs: Potentially self-liquidating.


XI. TECHNICAL ASSISTANCE REQUIRED: Trinidad and Tobago has beenapproached 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


III. TOTAL ESTIMATED COST: US$600

IV. EXTERNAL FINANCING REQUIRED: US$420

V. LENDING AGENCY: CDB


A. Description: The project involves the establishment of24 ten-acre viable farming units, with onedemonstration farm. Each farming unit willundertake short term vegetable and treecrop production.

B. Justification: To create a core of fulltime farmers and todiversify agricultural piroduction.



Local Costs 180 336 516 86Foreign Costs - 84 84 14Total Costs - Amount 180 420 600

-% 30 70 100


1932 1983 1984 1985 Total 1985

Local Sources - - 37 37 74 148External Sources - 37 37 74 149Total - - 74 74 148 297

- 79 -

IX. STATUS OF PREPARATION: CDB had been approached.


Operating and Maintenance Costs: None.

Debt Obligations: None.

XI. TECHNICAL ASSISTANCE REQUIRED: Project Manager.

80 -

ANT IGUA


Agriculture(US' '-000)

I. NAME OF PROJECT: Orange Valley Pineapple Phase II


III. TOTAL E.S'T[ :l'ED COST: US$400



VI. DESCRIPTION AND JUSTIFICAT]:ON:

A. Description: The project will settle 30 farmers with theaim of establishing 155 acres of pineappleby 1983. It includes the establishment of ademonstration unit in pineapple production,planting of 70 acres of fruit trees on marginallands and a machinery pool.

B. Justification: The Antigua variety of pineapple has excellentpossibilities for export.


Financed by TotalLocal ExternalSources Sources Amount x

Local Costs 40 320 360 90Foreign Costs - 40 - 10Total Costs - Amount 40 360 400

- % 10 90 100


Post1982 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.




XI. TECHNICAL ASSISTANCE REQUIRED: Soil and water conservation special-ists are required for project implementation. Peace Corps specialistis providing assistance in the implementation of Phase I.

- 8.2 -

ANTIGUA


Agriculture(US$'000)

I. NAME OF PROJECT: Fence Post Production




V. LENDING AGENCY: UK


A. Description: The project will establish 200 acres of forestplantation over a period of 5 years in theDon Hill/Picadilly area for the production offence posts.

B. Justification: The pro,ject will substitute importation of fenceposts, permitting cost savirLgs in pastureimprovement programs.



Local Costs 150 45 195 65Foreign Costs - -105 104 35Total Costs - Amount 150 150 300

-% 50 50 100


Post1982 1983 1984 1985 Total 1985

Local Sources - 37 37 37 111 39External Sources - 37 37 37 111 39Total - 74 74 74 222 78

- 83 -

IX. STATUS OF PREPARATION: Preliminary costings have been made.BDD had been approached.


Operating and Maintenance Costs: None during 1980/84.


X1. TECHNICAL ASSISTANCE REQUIRED: A forestry expert will be needed forproject implementation.

- 84 -

ANT'CGUA

1982/85 Prolect List - Individual Project Description

Agriculture(US$'000)

I. NAME OF PROJECT: Communal Grazing Phase II




V. LENDING AGENCY: Unknown


A. Description: The project is intended to provide controlledareas for grazing where herds are located onfenced ranges of improved pasture and providedwith water supply.

B. Justification: As a result, there would be greater controlof the quality of the herd and control ofparasites and diseases.



Local Costs 37 111 148 80Foreign Costs - 37 37 20Total Costs - Amount 37 148 185

- % 10 90 100


Post1982 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 beenapproached for continuation of funding.


Operating and Maintenance Costs: Project to be self-liquidating.


XI. TECHNICAL ASSISTANCE REQUIRED: Technical assistance is required forproject implementation. Regional livestock advisor is providingtechnical assistance in the implementation of Phase I.

- 86 --

ANTIGUA


Agriculture(US$'OOCI)

I. NAME OF PROJECT: Mini Dam Project






A. Description: The project involves the purchase of medium-sizedtrack layers and auxillary equipment, to beoperated by a special unit within the ministry,to construct mini earthen dams for purpose ofenabling irrigation and stock wateringfacilities to be developed. It is expected toconstruct 60 dams over 5 years to provideirrigation water for 100 farmers.

B. Justification: The project would improve water availability,thus offsetting the loss to agriculturalproduction caused by seasonal drought.



Local Costs 250 250 50Foreign Costs 250 250 50Total Costs - Amount 500 500

- % 100 100


Post1982 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 ofrequired equipment had been submitted.




XI. TECHNICAL ASSISTANCE REQUIRED: BDD is providing technicalassistance.

- 88 -

ANTIGUA


Industry(US$s'000)

I. NAME OF PROJECT: Industrial Estates III

II. EXECUTING GOVERNMENT AGENCY: Antigua-Barbuda Development Bank,Ministry of Economic Developmentand Tourism



V. LENDING AGENCY: Possibly CDB


A. Description: Construct:ion of 200,000 square feet offactory shells.

B. Justification: To promote industrial enterprise and generateemployment both directly and indirectly.



Local Costs 1,200 800 2,000 50Foreign Costs - 2,000 2,000 50Total Costs - Amount 1,200 2,800 4,000

-% 30 60 100


1982 1983 1984 1985 Total 1985

Local Sources - - 167 166 333 867External Sources - - 333 334 667 2,133Total - - 500 500 1,000 3,000

- 89 -

IX. STATUS OF PREPARATION: CDB had been approached.



Debt Obligations: None during 1980/83.

XI. TECHNICAL ASSISTANCE REQUIRED: None.

- 90 -

ANTIGUA


Industry(US$'000)

I. NAME OF PROJECT: Chemical Lime Factory

II. EXECUTING GOVERNMENT AGENCY: Ministry of Economic Developmentand Tourism



V. LENDING AGENCY: CDB, Unknown


A. Description: Establishment of a chemica:L lime industryproducing high quality burnt lime at a rateof 5,000 metric tons per year.

B. Justification: Lime can possibly be used with pumice toproduce a cement mixture which is importantin the construction industry.


Financed by TotalLocal Externa:LSources Sources Amount %

Local Costs 750 250 1,000 40Foreign Costs - 1,500 1,500 60Total Costs - Amount 750 1,750 2,500

-% 30 70 100


Post1982 1983 1984 1985 Total 1985

Local Sources - - - 67 67 683External Sources - - 155 155 1,595Total - - - 222 222 2,278

- 91 -

IX. STATUS OF PREPARATION: This project requires further examination.


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 Developmentand Tourism





A. Description: Establishment and construction of a clay brickfloor, wall and roof tile plant. Clay materialhas been found in sizeable quantities in JollyHill Salt Pond and Blubber Bay open pit.

B. Justification: The abovre materials can be a substitute to theimported construction materials.

VII. COST COMPONENTS AND FINANCIN(,:


Local Costs 450 300 750 50Foreign Costs - 750 750 50Total Costs - Amount 450 1,050 1,500

- % 30 70 100


Post1982 1983 1984 1985 Total 1985

Local Sources - - - 150 150 300External Sources - - 148 150 298 752Total - - 148 300 448 1,052

- 93 -

IX. STATUS OF PREPARATION: The project needs further study.


Operating and Maintenance Costs: None during 1982-85.

XI. TECHNICAL ASSISTANCE REQUIRED: All phases of the project.

- 94 -

ANT IUA


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




Rehabilitation of IDB's Edible Oil Factory



Local Costs 100 - 100 20Foreign Costs - 400 400 80Total Costs - Amount 100 400 500

- % 20 80 100


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


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, Communicationsand Public Utilities





A. Description: The main, runway at Coolidge Airport is in urgentneed of an overlay due to severe stress crackingthought to be caused by a combination of heavyuse, excess stress, oxidation, dry climate,materials used, and the recent earthquake. Theproject would put a 4-inch overlay in the runwaycenter, taper off to the sidies of the existingpaved areas, and pave an additional 1,500 ft. atthe approach end for a total of 8,000 ft. ofasphalt concrete.

B. Justification: The present state of the runway poses safetyhazards particularly during the tourist seasonwhen 747s arrive at the airport regularly.



Local Costs 333 407 740 40Foreign Costs - 1,110 1,110 60Total Costs - Amount - 1,517 1,850

- % 18 82 100

- 97 -


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 andCDB have been approached for funding and technical assistance inpreparation.

X. PROJECT IMPLICATIONS:1983 1984

Operating and Maintenance Costs: 15 16


XI. TECHNICAL ASSISTANCE REQUIRED: Technical assistance is required toadvise 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





A. Description: The project consists of the piurchase andinstallation of new VOR-DME equipment toreplace the existing decrepit equipment; newILS/MLS equipment; and paving a narrowroad for access to VOR and radar site.

B. Justification: New navigational equipment is necessary toavoid increased safety hazards given thehigh volume of jet traffic and to complywith international regulations.


Financed by TotalLocal External'Sources Sources Amount %


-% 10 90 100


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


XI. TECHNICAL ASSISTANCE REQUIRED: Technical assistance is required forproject preparation.

- 100 -

ANTIGUA


Power

(US$' 000)

I. NAME OF PROJECT: Electricit:y Distribution Upgrading

II. EXECUTING GOVERNMENT AGENCY: Antigua Public Utilities Authority





A. Description: The project would improve the electricaldistribution system by the provision of newhigher voltage feeders, voltage regulation,switching and power factor correction.

B. Justification: Self-explanatory.



Local Costs 300 - 300 16Foreign Costs - 1,562 1,562 84Total Costs - Amount 300 - 1,862

- % 16 84 100


[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 CFTCteam.




XI. TECHNICAL ASSISTANCE REQUIRED: Technical assistance is required atall stages of the project.

- 102 --

ANTIGIJA


Water Supply and Sewerage(US $'O0(O)

I. NAME OF PROJECT: Creekside Treatment Plant


III. TOTAL ESTIMATED COST: US$3,556 a/

IV. EXTERNAL FINANCING REQUIRED: US$3,556 a/



A. Description: The project consists of construction of a damin West Center of Antigua for the purpose ofsupplying drinking water. The second phaseentails construction of a treatment plant pluspiping for additional water supply.

B. Justification: The project will supplement the domestic watersupply and greatly benefit irrigation.



Local Costs Foreign Costs - 3,556 3,556 100Total Costs - Amount - 3,556 3,556

-% 100 100


1982 1983 1984 1985 Total 1985

Local Sources - - - - - -

External Sources 1,778 1,778 - - 3,556Total 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 islikely to be much higher than indicated above.

- 103 -

IX. STATUS OF PREPARATION: Actual implementation of Phase I had beendelayed due to change in specifications.



XI. TECHNICAL ASSISTANCE REQUIRED: EDF is providing the requiredtechnical 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, Communicationsand Public Utilities




VI. DESCRIPTION AND JUSTIFICATION.:

A. Description: The project involves construction of a four-mileroad which will be closer to the sea and moredirect than the existing road between Old Roadand Falmouth.

B. Justification: The project aims to revitalize the cottonindustry in the area.



Local Costs 768 768 40Foreign Costs - 1,152 1,152 60Total Costs - Amount - 1,920 1,920

-% 100 100


Post1982 1983 1984 1985 Total 1985

Local Sources - - - - -External Sources 430 480 480 480 1,920Total 480 480 480 480 1,920

- 105 -

IX. STATUS OF PREPARATION: The engineering feasibility study has beencompleted. BDD had been approached for funding.




XI. TECHNICAL ASSISTANCE REQUIRED: An engineer and technician will berequired for technical assistance if the project is implemented byforce account.

- 106 -

ANTIGUA


Transport.ation(US$'0C0)

I. NAME OF PROJECT: Main Road Rehabilitation

II. EXECUTING GOVERNMENT AGENCY: Ministry of Public Works, Communicationsand Public Utilities





A. Description: The project consists of resurfacing of45 miles of roads.

B. Justification: To prevent deterioration of roads and toimprove surface and drainage.



Local Costs 370 1,115 1,485 40Foreign Costs - 2,215 2,215 60Total Costs - Amount 370 3,330 3,700

-Yz 10 90 100


1982 1983 1984 1985 Total 1985

Local Sources - 11 37 74 122 248External Sources - 100 333 667 1,100 2,230Total - 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.




XI. TECHNICAL ASSISTANCE REQUIRED: A road engineer/project manager isrequired for project implementation.

- 108 -

ANTIGUJA


Porit(US$'000)

I. NAME OF PROJECT: Deep Water Harbour Expansion

II. EXECUTING GOVERNMENT AGENCY: Antigua Deep Water Port



V. LENDING AGENCY: Commercial Bank


1. Description: Expansion of the existing deep water harbour.

2. Justification: To cope w:Lth the increasing cruise shiparrivals ,and for export and import of goods.


-Financed by TotalLocal ExternalSources Sources Amount %

Local Costs - - -Foreign Costs - 26,600 26,600 100Total Costs - Amount - 26,600 26,600

-% - 100 100


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 Concultantsis available.


Operating and Maintenance Costs: None during 1982-85.

Xl.. TECHNICAL ASSISTANCE REQUIRED: None.

- 110 -

ANTIGUA


Communication(US$'000)

I. NAME OF PROJECT: Telephone Expansion II

II. EXECUTING GOVERNMENT AGENCY: Antigua Public UtilLities Authority



V. LENDING AGENCY: CIDA


A. Description: The project would complete expansion of thetelephone system capacity, now restricted tothe northern part of the country, to the wholecountry.

B. Justification: The project would provide supportin infrastruc-ture for tourist and industriLal installations.



Local Costs - 102 102 5Foreign Costs - 1,935 1,935 95Total Costs - Amount - 2,037 2,037

-% - 100 100


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 projectextending telephone service throughout the northern region. CIDA wasapproached.




XI. TECHNICAL ASSISTANCE REQUIRED: Techincal assistance is required atall stages.

- 112 --

ANTIGUA

1982/85 Project List - Individual Projiect Description

Water and Sewerage(US$'C00)

I. NAME OF PROJECT: Water Distribution System II






A. Description: This phase provides extension to existingsystems for Collins/Freetown and ruralareas (pipelines extension and storageexpansic,n).


Financed by TotalLocal ExternalSources Sources Amount _

Local CostsForeign Costs 1,185 1,185 100Total Costs - Amount - 1,185 1,185

-% 100 100


1982 1983 1984 1985 Total 1985


External Sources - - 592 593 1,185Total - - 592 593 1,185

- 113 -

IX. STATUS OF PREPARATION: No donor has been cited.


Operating and Maintenance Costs: None for 1980/84.

XI. TECHNICAL ASSISTANCE REQUIRED: UNDP is providing the requiredtechnical assistance.

- 114 -

ANTIGUA


Water and Sewerage(US$'C00)

I. NAME OF PROJECT: Miscellaneous Equipment for Water and Sewerage





VI. DESCRIPTION AND JUSTIFICATIONi:

A. Description: This is equipment for drilling and transportfor the water projects. The following equip-ment is necessary: a Hymec, eight 5-ton trucksand a truck with lifting device.



Local Costs - - -Foreign Costs 370 370 100Total Costs - Amount - 370 370

-% 100 100


1982 1983 1984 1985 Total 1985


External Sources - - 370 - 370Total - 370 370

- 115 -

IX. STATUS OF PREPARATION: No donor had been cited.


Operating and Maintenance Costs: Yes.


- 116 -

ANTIGUA


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/


V. LENDING AGENCY: UNDP, UK


A. Description: The project includes: (a) inventory data forwater resources; (b) water secured from selectedcoastal aquifers; (c) replacement of the desaltingfacility at Crabs; and (d) supplemental irrigationon 500 acres.

B. Justification: To help the country overcome its current problemsin irrigation.


Financed by TotalLocal ExternalSources Sources Amount Z


-% 12 88 100


1982 1983 1984 1985 Total 1985

Local Sources - 10 41 51 102 -External Sources - 75 300 375 750Total - 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.


Operating and Maintenance Costs: Not known.


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



V. LENDING AGENCY: Possibly CIDA


A. Description: The project consists of procurement of 20 ft.container handling equipment, including ahydraulic lift and a crane (both used).

B. Justification: The port currently receives 100 containersper month LO-LO and 50/month RO-RO. Handlingof LO-LO cargo is inefficient, and the existingcrane has been damaged.


Financed by TotalLocal ExternalSources Sources Amount _

Local Costs - 78 78 10Foreign Costs - 700 700 90Total Costs - Amount - 778 778

-% - 100 100


1982 1983 1984 1985 Total 1985


External Sources - 778 - - 778Total - 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


XI. TECHNICAL ASSISTANCE REQUIRED: Technical assistance is required fortraining in operation and maintenance.

- 120 -

ANTIGIJA


Housiing(US$'0oo)

I. NAME OF PROJECT: Low Cost Housing - Barbuda

II. EXECUTING GOVERNMENT AGENCY: Central Housing and Planning Authority




VI. DESCRIPTION AND JUSTIFICATION::

A. Description: The project will be phased over 5 years.twenty unlits are expected to be constructed inthe first year and a total of 180 units areto be constructed by the end of the fifth year.

B. Justification: To instil:ute a program for the constructionof low-cost housing in Barbuda to meetincrease demand for housing.



Local Costs 592 - 592 40Foreign Costs - 889 889 60Total Costs - Amount 592 889 1,481

- % 40 60 100


1982 1983 1984 1985 Total 1985

Local Sources - 66 131 133 330 262External Sources 99 198 200 497 392Total 165 329 333 827 654

- 121 -

IX. STATUS OF PREPARATION: No donor had been identified.





- 122 -

ANTIGUA


Education(US$'000)

I. NAME OF PROJECT: Secondary Schools - Construction

II. EXECUTING GOVERNMENT AGENCY: Ministry of Education and Culture





A. Description: Building a secondary school in the Bolans area.

B. Justification: To accommodate increased popu:Lation insecondary schools.




-% 20 80 100


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. Noidentified donor.




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






A. Description: Construction of an infants school in St. John's.

B. Justification: To give the proper base to chLldren going intogovernment primary schools.



Local Costs 42 - 42 20Foreign Costs - 170 170 80

Total Costs - Amount 42 170 212-% 20 80 100


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.





- 126 -

ANT:IGUA


Education(US$'000)

I. NAME OF PROJECT: Library/Museum/Archives - St. John's



IV. EXTERNAL FINANCING REQUIRED:: US$296



To improve the library service and to establish a library/museum/archives.




-% 20 80 100


1982 1983 1984 1985 Total 1985.

Local Sources - - - 32 22 52External Sources - - - 89 89 207Total - - - 111 111 259

- 127 -

IX. STATUS OF PREPARATION: The project has been identified.





- 128 -

ANTI[GUA


Education(US$ -000)

I. NAME OF PROJECT: VocationaL School - All Saints

II. EXECUTING GOVERNMENT AGENCY,: Ministry of Education and Culture


IV. EXTERNAL FINANCING REQUIRED:: US$593



A. Description: To establish a vocational school in the AllSaints/Liberta area.

B. Justification: There i.s a need to extend the facilities forthe teaLching of trades, etc., as the presentfacilities are inadequate.




-% 20 80 100


1982 1983 1984 1985 Total 1985

Local Sources - - 29 59 88 60External Sources - - 119 237 356 237Total - - 148 296 444 297

- 129 -

IX. STATUS OF PREPARATION: Project has been identified.

X.. PROJECT IMPLICATIONS:



XI., TECHNICAL ASSISTANCE REQUIRED: None.

- 130 -

ANTIGUA


Education(US$'000)

I. NAME OF PROJECT: Expansion of Engineering Department - State College






A. Description: To expand the engineering department of theState College to accommodate more studentsand to acquire adequate equipment for thephysics and chemistry laboratories.

B. Justification: Self-explanatory.




-% 30 70 100


1982 1983 1984 1985 Total 1985

Local Sources - - - 22 22 38

External Sources 52 52 88Total 4- - 74 74 126

- 131 -





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






There is an urgent need for the refurbishing of seven schoolswhich were built by the British government.




-% 60 40 100


1982 1983 1984 1985 Total 1985

Local Sources - - 89 111 200 22External Sources - - 59 74 133 15Total - - 148 185 333 37

- 133 -






- 134 --

ANTIG'UA


Education(US$'ODO)

I. NAME OF PROJECT: Community Centers






Construction of three (3) commnunity centers in different areas.




-% 20 80 100


1982 1983 1943 1985 Total 1985

Local Sources - - - 37 37 37

External Sources - - 148 148 148Total - - - 185 185 185

- 135 -






- 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





A. Description: To improve the existing facilities at HolbertonHospital.

B. Justification: To widen the range of medical. services to begiven to the public.



Local Costs 318 - 318 20Foreign Costs - 1,273 1,273 80Total Costs - Amount 318 1,273 1,591

-% 20 80 100


1982 1983 1984 1985 Total 1985

Local Sources - - - 74 74 244External Sources - - - 296 296 977Total - - - 370 370 1,221

- 137 -





XI. TECHNICAL ASSISTANCE REQUIRED: Pathologist, dentist, physio therapistand occupational therapist.

- 138 -

ANTIGIJA


Miscellaneous(US$ 'o(o)

I. NAME OF PROJECT: Barbuda Development

II. EXECUTING GOVERNMENT AGENCY: Ministry of Barbuda Affairs





The project involves coconut expansion, control of livestockparasites, tree crop investigation, development of vegetablesand root crops, road development, school extension constructionof staff quarters, construction of police station, heavy roadequipment and agricultural machinery, electricity and telephone.



Local Costs 1,020 - 1,020 20Foreign Costs - 2,380 2,380 80Total Costs - Amount 1,020 2,380 3,400

- % 20 80 100


1982 1983 1984 1985 Total 1985

Local Sources - - 20 65 85 935External Sources - - 150 490 640 1,740Total - - 170 555 725 2,675

- 139 -

IX. STATUS OF PREPARATION: Project components have been identified.





- 140 -

STATISTICAL APPENDIX

Table of Contents

Table Number Page

I. POPULATION AND LABOR FORCE

1.1 Population Trends 1421.2 Labor Force Statistics 1431.3 Employed Labor Force by Sector 1441.4 Social Security Scheme 1451.5 Hourly Wage Rates and Selected Occupations 146

II. NATIONAL ACCOUNTS

2.1 National Accounts 1472.2 Saving and Investment 1482.3 GDP Deflators 1492.4 GDP at Factor Cost at Constant Prices (1977) 1502.5 Actual and Projected Sources and Uses of Resources, 151

1981-85

III. BALANCE OF PAYMENTS

3.1 Balance of Payments 1523.2 Value of Exports of S.I.T.C. Section 1533.3 Value of Imports by S.I.T.C. Section 1543.4 Direction of Trade 1553.5 Volume of Imports of Petroleum Products 1563.6 Effective Exchange Rate 1573.7 Estimated and Projected Balance of Payments, 1981-85 158

IV. EXTERNAL DEBT

4.1 Structure of External Debt 1594.2 External Debt Operations 161

V. PUBLIC SECTOR FINANCES

5.1 Public Sector Operations 1655.2 Central Government Current Expenditure 1665.3 Central Government's Foreign Assets 1675.4 Distribution of Bonded Debt 1685.5 Selected Central Government Revenue and Expenditure Items 1695.6 Central Government Current Expenditure 1705.7 Consolidated Operations of t.he Public Sector 1715.8 Central Government Revenue 1765.9 Central Government Operations 1775.10 Estimated and Projected Financing of Public Sector

Investment, 1981-85 1785.11 Public Sector Investment Program (1982-85) Sectoral

Composition 1795.12 Public Sector Investment Program, 1982-85 180

- 141 -

Table Number PaReVI. MONEY AND BANKING

6.1 East Caribbean Currency Authority 182

6.2 Commercial Banks 183

6.3 Distribution of Commercial Bank Loans and Advances 184Lo 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 1877.2 Selected Industrial Production 188

7.3 Selected Tourism Statistics 189

7.4 Electricity Generation 190

VIII. PRICES

8.1 Cost of Living Index 1918.2 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, asper 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 ofpopulation, 16 years and over 54.8 55.9 55.9 56.0 56.0

Employed as a per. cent oflabor force 79.59 79.60 79.83 79.26 79.50

Unemployed as a per cent oflabor 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 2,090Mining 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, includinghotels 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


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 7.4Electricity, gas, and water 1.9 1.8 1.5 1.5 1.5

Cons truct ion 10.1 11.1 112 11 4 11.1Distributive trade, including

hotels and restaurants 19.1 21.5 22.1 22.4 22.4Transport, 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 ACarpenters ) max. 4.L0 4.10 ... 4.50 4.70Steel benders ) min. 2.82 2.82 2.55 2.55 2.70Electricians )

Grade BTin smithsPainters ) max. 3.76 3.76 ... 3.42 3.66Welders ) min. 2.35 2.55 2.35 2.35 2.59Fabricators )

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 3.84Foremen ) min. 2.40 2.40 2.19 2.19 2.41

Drivers ofheavy-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 minimumwage range,all categories ... ... 1.12-3.15 1.25-3.50

Sources: Ministry of Finance (Statistics Division); and Ministry ofLabor.

- 147 -

Table 2.1: ANTIGUA AND BARBUDA - NATIONAL ACCOUNTS

(EC$ million)

Est.1977 1978 1979 1980 1981

Consumption expenditure 151.4 167.6 253.1 333.7 397.5Private sector 133.9 150.5 234.5 303.9 353.0Consolidated public sector 17.5 17.1 18.6 29.8 44.5

Gross domestic investment 55.1 65.4 76.2 138.3 189.8Private sector 38.6 47.8 55.6 114.1 145.4Consolidated public sector 16.5 17.6 20.6 24.2 44.4

Gross domestic expenditure 206.5 233.0 329.3 472.0 587.3Exports 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 162.5 185.4 229.0 288.2 338.9Minus: 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; andF-und staff estimates.

- 148 -

Table 2.2: ANTIGUA AND BARBUDA - SAVING AND INVESTMENT

Est.19377 1978 1979 1980 1981


Gross domestic investment 55.1 65.4 76.2 138.3 189.8Consolidated public sector 16.5 17.6 20.6 24.2 4Private sector 38.6 47.8 55.6 114.1 145.4

Gross national savings 11.1 17.8 -24.1 -45.5 -58.6Consolidated public sector -2.3 5.4 6.8 11.6 8.1Private sector 13.4 12.4 -30.9 -57.1 -66.7

External savings (resourcegap)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 56.0Consolidated public sector 10.2 9.5 9.0 8.4 13.1Private sector 2:3.8 25.8 24.3 39.6 42.9

Gross national savings 6.8 9.6 -10.5 -15.8 -17.3Consolidated public sector -:L.4 2.9 3.0 4. .4Private 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 accountof 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/ 87.6 100.0 106.2 123.4 147.1 164.0Investment 27 18.2 100.0 108.1 127.1 153.2 169.3

Exports of goods and nonfactorservices (GNS)3/ 54.7 100.0 106.2 123.4 147.1 164.0

Imports of goods and nonfactorservices (GNS)4/ -60.5 100.0 109.9 130.8 159.4 174.5

(Weighted Index)

Consumption 87.6 93.0 108.1 128.9 143.7Investment 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 COSTAT CONSTANT PRICES (1977)

Est.1977 1978 1979 1980 1981


GDP at factor cost 142.0 153.2 165.9 176.2 182.9Agriculture, livestock,

forestry, and fishing 13.1 14.3 13.7 13.7 13.8Mining and quarrying 1.1 1.3 1.5 1.6 1.6Manufacturing 7.4 9.4 12.5 15.6 16.9Construction 10.7 10.3 11.3 12.8 13.9Electricity and water 1.8 2.3 2.7 2.4 2.5Transport and communi-cations 23.3 26.9 30.7 31.1 31.5

Trade 16.9 18.7 20.7 21.0 21.3Hotels and restaurants 15.1 17.0 19.8 21.1 21.6Banking 10.1 10.3 10.3 10.4 10.5Real estate 18.8 19.3 19.6 19.4 19.8Government services 23.4 22.3 22.3 26.6 28.5Other services 6.6 7.6 7.7 8.0 8.7

Less: Imputed bankingservice charges -6.3 -6.4 -6.9 -7.4 -7.8


GDP at factor cost 7.2 7.9 8.3 6.2 3.8Agriculture, livestock,

forestry, and fishing 0.8 9.2 -4.2 -- 1.0Mining and quarrying *-8.3 18.2 15.4 6.7 2.0Manufacturing 25.4 27.0 33.0 25.0 8.2Construction -2.7 -3.7 9.7 13.3 9.0Electricity and water -5.9 27.8 17.4 -11.1 2.0Transport and communi-

cations 14.2 15.5 14.1 1.3 1.3Trade 5.0 10.7 10.7 1.5 1.5Hotels and restaurants 18.0 12.6 16.5 6.6 2.5Banking -4.7 2.0 -- 1.0 1.0Real estate 2.7 2.7 1.6 -1.0 2.0Government services 17.0 -4.7 -- 19.3 8.0Other services *-2.9 15.2 1.3 3.9 8.8

Less: Imputed bankingservice 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 SOURCESAND USES OF RESOURCES, 1981-85

(EC$ million - 1977 prices)

Estimated Projected1981 1982 1983 1984 1985

Gross Domestic Product 213.7 224.4 235.6 247.4 259.8

Imports (including NFS1/ 233.0 244.0 256.0 263.0 263.2Exports (including NFS)- 96.5 101.0 106.0 112.0 114.0

Consunmption 242.4 243.0 252.0 260.0 264.0Public 27.0 27.0 28.0 30.0 31.0Private 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 -4.2Public 4.0 2.0 4.0 5.0 6.0Private -32.7 -20.6 -20.4 -17.6 -10.2

Memorandum Items

Investment Financing 107.8 124.4 133.6 138.4 140.0Domestic Savings -28.7 -18.6 -16.4 -12.6 -4.2Resource 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) 109.0 108.7 108.6 106.3 101.3Exports (including NFS) 45.1 45.0 45.0 45.3 45.8

Consumption 113.3 108.3 107.0 105.1 101.6Public 12.7 12.0 11.9 12.1 11.9Private 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 -1.6Public 1.8 0.8 1.7 2.0 2.3Private -15.3 -9.1 -8.7 -7.1 -3.9

Memorandum Items

Investment Financing 50.4 55.4 56.7 55.9 53.9Domestic Savings -13.5 -8.3 -7.0 -5.1 -1.6Resource 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 -56.1Trade balance -33. - T -= -85.3 -105.7Exports, 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 39.5Travel 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 publicdebt (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 6.5Post 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 foreignexchange 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 55.7Official capital 3/ 6.4 10.5 1.4 8.8 16.1Central 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 2.0Foreign private investmentand 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 0.4Net ECCA borrowing 0.2 1.5 0.3Government 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 9.1Food and live animals 0-.1 01.4 UT.Beverages and tobacco 0.6 0.6 -- 0.5 0.7Crude materials, inedible,

except fuel 0.2 0.3 0.1 --

Chemicals -- 0.4 -- 0.2 0.6Manufactured goods 1.0 2.9 .2.1 5.5 6.3

Of which: goods classified chieflyby 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 1.2Miiscellaneous transactions and

commodities

Total re-exports 4.6 7.9 7.2 18.4 24.5Food and live animals -- 0.1 0.1 1.2 0.2Beverages and tobacco -- -- -- 0.2 --

Chemicals 0.2 0.1 -- 0.3 0.9Manufactured goods 0.9 5.0 5.2 11.3 13.7

Of which: manufactured goods clas-sified chiefly bymaterial (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 9.7Miscellaneous transactions and

commodities 0.6 0.3 -- -- --


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 47.9Beverages and tobacco 1.1 1.4 2.3 3.4 4.4Crude materials inedible,

except fuel 0.2 0.8 1.1 2.2 3.4Mineral fuel lubricants and

related material 2/ 6.5 6.9 11.0 17.4 17.4Animal and vegetable oils and

fats 0.3 0.2 0.1 0.1 0.3Chemicals 3.5 3.2 3.1 7.9 6.3Manufactured goods 9.8 12.5 15.8 27.8 30.9

Of which: goods classifiedchiefly by material (6.7) (9.0) (7.9) (18.2) (22.1)

miscellaneousarticles (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 andcomnmdities (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. 100.0 100.0 100.0 100.0 100.0United Kingdom -- 0.7 2.5 3.5 5.2Canada -- -- 8.7 3.1 3.9United States 1.8 0.7 17.5 11.2 9.2West Indies 66.0 88.2 61.2 62.3 75.0Barbados (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. 100.0 100.0 100.0 100.0 100.0United Kingdom 29.2 28.0 12.9 21.8 -171.9Canada 18.4 9.3 25.5 7.6 6.5UJnited States 26.3 31.2 38.4 35.9 52.8West 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; andWest 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- andChange 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

1976March 0.345 0.399 0.208 5.52 -1.24 6.39 -0.56June 0.324 0.371 0.208 -1.97 -5.25 -1.69 -5.23September 0.320 0.370 0.221 0.85 -1.32 -0.72 -1.36December 0.31.9 0.370 0.218 -- -- -- --

1977March 0.320 0.370 0.215 -0.36 -1.10 -0.18 -0.69June 0.318 0.370 0.215 -0.43 0.02 -0.25 0.66September 0.318 0.370 0.212 -0.74 0.96 -0.48 1.75December 0.305 0.370 0.194 -2.52 -0.39 -2.00 1.01

1978March 0.299 0.370 0.199 -3.39 -5.58 -2.71 -3.96June 0.299 0.370 0.199 -2.32 -6.66 -1.82 -5.44September 0.289 0.370 0.188 ' -4.02 -3.97 -3.12 -2.02December 0.284 0.370 0.182 -4.54 -4.54 -3.56 -2.42

1979March 0.288 0.370 0.179 -5.32 -5.67 -4.21 -3.28June 0.287 0.370 0.171 -6.16 -3.62 -4.84 -0.66September 0.281 0.370 0.168 -7.50 -2.31 -5.98 1.63December 0.281 0.370 0.167 -7.70 -4.04 -6.18 -0.17

1980March 0.296 0.370 0.171 -7.41 -4.07 -5.83 0.05June 0.280 0.370 0.157 -9.25 -5.33 -7.39 -0.19September 0.282 0.370 0.155 -9.86 -3.15 -7.77 2.57December 0.290 0.370 0.155 -8.57 -1.03 -6.48 4.49

1981March 0.302 0.370 0.160 -6.95 1.20 -5.13 6.17June 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 Projected1981 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 CurreYear 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 CanSStudent loans for higher education

(4/SFR-A)(ABDB)2/ 1974 37 1981-91 4 LStudent 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 EFort 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 EAntigua 6 per cent stock 1975 470,000 1977-80 6 ECompensation loan 1974 2,202 1976-94 ... EHurricane Donna 1974 11,984 1974-85 ... EEastern Parishes electricity 1964 29,000 ... 5.125 EAirport Exchequer Loan I 1966 706,000 1974-92 6.625Airport Exchequer Loan II 1966 20,000 1974-93 7.125 ) EAirport Exchequer Loan III 1966 10,000 1974-94 9.25Independence celebration 1981 312 1981-82 16.0 EPurchase 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

LIBORAntilles 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 CurrencyYear 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 CanSSmall Industry Credit I (I/SFR-A)(ABDB) 1974 67 1980-95 4. US$;TTSSmall 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 DMFarm Improvement Credit II

(9/SFR-A)(ABDB) 1976 191 1981-96 4 CanSAgricultural 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$;LAIC and SIC Credit (19/SFR-A)(ABDB) 1980 525 ... 4.0 USSMortgage finance (3/SFR-OR-A)(ABDB) 1980 1,000 ... 4.0 USSInvestment in equity (20/SFR-A)(ABDB) 1980 800 ... 4.0 US$

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 IncorporatedConsultancy services/supplies (APUA) 1973 ,, 1974-77 7 US$

(APUA) 1973 ... 1979-B2 9 US$Interestaccruingwas coni-

solidated

Lloyds-Merrill Blackstone Lcd.Purchase of two generators 1981 7,613Lloyds-Merill 1981 1,142 1981-88 1-5/8 E E

overLIBOR )

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 thenincreasing to 2.5 p.a.

Antigua Port Authority 1975 750 1976-80 USsBarclays 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- stanling12/31/76 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 -- 5,7Housing 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 - CoolidgeAirport (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 - CIDArelephone expansion (APUA)2/ 3,000 7,346 __ __ 10,346 1,283 __ __ 11,629

European Development FundYorth shore water distribution -- -- -- -- -- -- -- -- --

Trinidad and TobagoEarthquake damage 250 -- -- -- 250 -- -- -- 250

U.K. Government 4,996 -- 116 -96 4,784 142 -_ 4.642Cornmeal 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 -- 16Eastern Parishes electricity 16 -- 2 __ 14 __ 14 -- -_

Airport Exchequer Loan IAirport Exchequer Loan II ( 2,596 -- 110 -- 2,486 __ 116 __ 2,370Airport Exchequer Loan IIIIndependence 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 14696lousing r-habilitation (Central

Huusing)2/ (1/SFR-OR-A) 633 ... ... .. 656 -- 51 8 613 -- 16 -27 570Sna1l scala sugar industry

(2/SFR-OR-A) -- ... ... ... 1,436 7,085 -- -- 8,521 483 -- -1,126 7,878Liv-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 -- -- 265Fisheries de-elopment (18/SFR-A) -- ... ... ... -- -- -- -- -- 30 -- -- 30

Canada - CIDATelephone expaosion (APUA)2/ 11,629 119 -- -- 11,748 259 __ __ 12,007 1,439 __ __ 13,446

Escopean Develop=nnt PondNo-th shoue water distribution -- -- -- -- -- 1,801 -- -- 1,801 111 __ __ 3,912

Trinidad and Tobagi.nrthquakn darrage 250 -- - -- -- 250 __ __ __ 250 __ __ __ 250

U.K. Gnoernent 4,642 = 16 __ 4,626 2,380 2,246 4,083 5 6,329tornt.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 ( -- ( -- ( -- ( 2,216Airport Eichequer Loan III ( ( ( ( ( I 2 ( 2 ( (6Independecnc celebration -- -- -- -- -- -- -- -- -- 843 -- __ 843P-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.alTrust Caop:uny 464 = = = 464 = 464 == -- = =

Crdit SCuisse = 16,870 = = 16,870 = = -702 16,168

Sb,p_ll-rs crdiLt (MarietingCorporata) = = 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- standing12/31/76 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 ... 300Agricultural and Industrial Credit II (

(3/OR-A) (ABDB) ( ( .. ... ... 113 ... ... ... 227Farm Improvement Credit I

(1/SFR-A) (ABDB) 410 ... ... ... 440 ... .. ... 454Farm Improvement Credit

(1/SFR-A) (ABDB) 43 ... ... ... 43 ... ... ... 59Small Industries Credit I

(6/SFR-A) (ABDB) 189 ... ... ... 189 ... ... 189Small Industries Credit (CCF)

(6/SFR-A) (ABDB) 24 ... ... ... 24 ... ... ... 24Small 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 -- __ __ 464Friends of English Harbor (1/OR-A)

(Friends) 32 -- __ __ 46 -- __ __ 46Friends 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 -- 17,636Eximbank 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 generatorsLloyds-Merrill Blackstone

Port AuthorityEximbank 14,175 -- -- -- 14,175 -- -- -- 14,175

Aaitigua Port Authority 12,150 -- -- -- 12,150 -- -- -- 12,150Antigua Port Authority 2,025 -- -- -- 2,025 -- -- 2,025

Barclays Overseas DevelopmentCorporation 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 Outstanding Draw- Amorti- Valsa- s:tanding Draw- Amorti- Valua- standing Draw- Amorti- Valsa- standing12/31/78 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 294Agricultural and Indostrial

Credit II (3/OR-A) (ABDB) 227 ... ... ... 267 -- -- -- 278 -- 3 -32 243Fare Improvement Credit I

(1/SFR-A) (ABDB) 454 ... ... ... 462 -- -- -- 419 -- -- -3 416Farn Improvement Credit

(1/SFR-A) (ABDB) 59 ... ... ... 62 -- -- -- 62 -- -- -- 62Small Indulstries Credit I

(6/SFR-A) (ABDB) 189 ... .. , .. 203 _- _ _ _ _ 203 -- 11 -- 192Snail Industries Credit (CCF)

(6/SFR-A) (ABDB) 24 ... ... ... 27 -_ __ __ 27 -- -- -- 27Small Industries Credit II

(8/SFR-A) (ABDB) ... ... ... .. 149 262 -- -- 410 70 -- -21 459Farm Improvement Credit I7

(9/SFR-A) (ABDB) .. ... ... . 232 95 -- - 327 78 -- -3 402Agric-ltsral Prod. Credit

(15/SFR-A) (ABDB) ... ... ... . 35 127 __ __ 162 103 -- -- 265Agricultural and Indust. Credit

(16/SF1-A) (ABIB) ... ... ... ... 456 205 -- -- 662 -- -- -138 524AIC and SIC Credit

(19/SFR-A) (ABDB) -- -- -- -- -- -- -- -- -- 961 -- -- 961Mortgige fis.oce

(3/SFR-OR-A) (ABDB) -- -- -- -- -- -- -- -- -- 1,210 __ __ 1,210Ivest 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

Antig3 a PFblic Utilitiesnut 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 -- -- 19,359Colt Industries (APUA) ... ... ... ... 8,621 -- -- -- 8,621 651 -- -- 9,272Aqua Chem (APDA) ... ... ... ... 9,377 -- -- -- 9,377 710 -_ -_ 10,087

Cipitnl.of interestSta.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 -_ __ 21.168Purchase of two generatorsLloyds- Merrill Blockstone

fort AuthorityE.i.hba.k 14,175 - 14,175 -- -- -- 14,175 -- -- -- 14,175

Antigua Port Authority 12,150 __ __ __ 12,150 -- __ __ 12,150 -- __ __ 12,150Antigua 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


Total current revenue 54.7 69.9 81.8 105.5 132.4Central Government 33.0 43.7 49.2 62.0 78.2Rest of public sector 21.7 26.2 32.6 43.5 54.2

Total current expenditure 57.0 64.5 75.1 94.0 124.4Central Government 38.9 43.9 52.7 65.3 87.6Rest 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 14.2Foreign assets (increase -) -0.1 0.1 -0.3 -0.5 -0.1Net borrowing from ECCA 0.2 0.5 -- 3.1 0.7Other net foreign borrowing 10.3 32.8 3.4 22.1 42.3Net local bank borrowing 9.2 3.3 4.2 -5.6 -4.7Other net domestic borrowing -5.4 -6.0 -6.0 -4.9 -0.9


Current balance -1.4 2.9 2.9 4.0 2.4Overall 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. Budget1977 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 56.2Other goods and services 6.6 6.3 7.5 16.0 26.3 30.7Pensions and gratuities 2.0 2.4 3.0 4e2 4.2 4.9Interest 4.2 3.9 6.4 8.2 8.5 8.5Public sector transfers 0.8 0.6 1.2 0.2 1.5 5.6

Antigua Public UtilitiesAuthority (0.5) (0.5) (0.9) (--) (--) (--)

Central MarketingCorporation (0.3) (0.1) (0.2) (0.1) (0.5) (3.5)

Industrial DevelopmentBoard (-) (- -)(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. 311976 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 StampDuty 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 26,835Commercial banks 7,500 7,500 5,600 3,800 6,900 9,300ECCA 1,800 1,800 2,300 2,300 5,000 5,700Social Security 800 2,800 3,336 5,450 5,550 6,900Other public

sector -- 600 850 1,485 1,415 2,805Private sector -- 287 306 367 1/ 608 334Insurance companies 1,350 593 805 .832 1,595 1,395Liat 180 180 130 130Medical BenefitsScheme 271 271

Debentures 6,387 15,759 19,999 19,677 21,449 26,555Commercial banks 1,100 1,100( 3,300 2,300 2,400 3,100Social Security 850 4,871 6,634 6,634 6,634 8,834Insurance companies 800 875 875 875 875 1,275Local private sector 137 164 213 363 635 826ECCA 3,500 3,650 3,650 3,650 4,000 4,000Central 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 REVENUEAND EXPENDITURE ITEMS

Prel. Budget1977 1978 1979 1980 1981 1982

(As a percentage of total tax revenue)

TraxesIncome taxes 17.1 13.3 12.1 13.1 17.3 14.0Property 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 24.8Import duties 32.1 36.0 34.6 34.3 28.9 26.8Foreign currency levy 7.1 7.3 6.5 6.3 6.6 4.8Hotel 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 2.5Other 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 categoriesPersonal emoluments 57.8 68.5 61.8 51.0 47.8 49.7Other goods and services 16.9 14.3 14.2 24.5 30.0 27.1Transfer: 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 7.5jnternational

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. Budget1977 1978 1979 1980 1981 1982

Current expenditure 38.9 43.9 52.7 65.3 87.6 113.1Personal emoluments 1/ 22.5 30.1 32.6 33.3 41.9 56.2Other goods and services 6.6 6.3 7.5 16.0 26.3 30.7Pensions and gratuities 2.0 2.4 3.0 4.2 4.2 4.9Interest 4.2 3.9 6.4 8.2 8.5 8.5Public sector transfers 0.8 0.6 1.2 0.2 1.5 5.6Antigua Public Utilities

Authority (0.5) (0.5) (0-9) (--) (--) (--)Central MarketingCorporation (0.3) (0.1) (0.2) (0.1) (0.5) (3.5)

Industrial DevelopmentBoard (0-) (--) (--) (0.1) (0.1) (0.1)

Antigua Agricultural andDevelopment 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 1.3International 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 83.1 102.6Current expenditure 39.6 45.1 56.9 71.6 94.6

Current account surplus ordeficit (-) -2.3 5.4 6.7 11.5 8.0

Capital receipts 4.2 4.1 5.2 11.2 12.3Capital expenditures 19.5 37.8 12.6 36.2 57.1Net 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 37.3Foreign financing (net) 10.3 32.8 3.4 22.1 42.3ECCA 0.2 0.5 -- 3.1 0.7Change in foreign assets

(increase -) -0.1 0.1 -0.3 -0.5 -0.1Domestic financing (net) 3.8 -2.7 -1.8 -10.5 -5.6Banking 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 78.2Tax revenue 25.1 30.0 35.5 47.5 60.2Other 7.8 13.7 13.7 14.5 18.0

Current expenditure 38.9 43.9 52.7 65.3 87.6Wages and salaries 7TT -I. 32.6 TF 417.Goods and services 6.6 5.4 7.5 16.0 26.3Interest 4.2 3.9 6.4 8.2 8.5Pensions 2.0 2.4 3.0 4.2 4.2Transfers 3.6 2.1 3.2 3.6 6.7

Current account surplus ordeficit -5.9 -0.2 -3.5 -3.3 -9.4

Capital receipts 4.2 4.1 5.2 11.2 12.3Capital expenditure 12.1 31.2 8.3 35.7 36.0Net 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 33.6Foreign financing (net) 3. Z8.T 2.4 2F T7ECCA 0.2 0.5 -- 3.1 0.7Change in foreign assets -0.1 0.1 -0.3 -0.5 -0.1Domestic 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 17.2Contributions 1 4 1-2. 15.0Other 1.7 2.0 2.2

Current expenditure 0.7 1.2 4.2 6.3 7.0Wages 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 -10.2Commercial bank deposits T7 -0.- -0.3 =-FCentral Government -6.0 -2.3 -3.9 -0.1 -3.6Other loans -3.2 -1.6 -4.5 -1.1 -1.2Amortization debts with

commercial banks 0.7 -0.9 -0.4 -0.4 -0.4

IV. State. Enterprises

Net operating surplus ordeficit (-) -1.17 0.06 1.42 6.65 7.20

Central government transfers 0.80 0.63 1.10 0.10 0.50Capital 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

FinancingForeign financing (net) -3.03 4.65 0.95 -2.20 21.05Domestic financing (net) 10.77 -1.26 0.83 -4.46 -4.97Banks (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 THEPUBLIC SECTOR (Continued)

(EC$ millions)

Est. Prel.197+ 1978 1979 1980 1981

V. Social Security System

Revenue 5.5 6.8 8.3 9.6 12.1Contributions .4 5.4 67T T. 10.1Interest 1.1 1.4 1.6 1.8 2.0

Expenditure 0.7 1.2 1.9 2.4 2.8Wages and salaries O. 0.3 0.4 0.56Goods and services 0.1 0.2 0.2 0.3 0.4Other (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 GovernmentTreasury bills -2.0 -0.5 -2.1 -0.1 -1.4Debentures -4.0 -1.8 -- -- -2.2

LoansBroadcasting 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 5.0Contributions -- -- 4.7 4.6 4.8Other -- -- 0.1 0.2 0.2

Expenditure -- -- 2.3 3.9 4.2Wages and salaries -- -- 0.1 0.2 0.3Benefits -- -- 2.0 3.4 3.5Other -- -- 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 THEPUBLIC 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 4.61Operating expenditure 1.99 2.67 3.16 3.47 3.59

Net operating surplusor 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 1.51Banks -0.06 -0.07 -O.08 -0.10 -UhTgGovernment -- -- -- -- --Other 0.49 0.72 0.40 -0.07 1.67

VIII. Public Utilities Authority (ending June of each year)


Net operating surplus ordeficit (-) -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 -6.88Banks 0.22 -0.62 -0.29 -0.46 -1.00Government 7.30 1.30 0.10 0.50 -0.70Social Security -- -- 0.08 0.19 0.28Other 2.68 -0.48 0.91 -4.72 -5.46

- 175 -

Table 5.7: ANTIGUA AND BARBUDA - CONSOLIDATED OPERATIONS OF THEPUBLIC 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 35Operating 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 -5Banks 23 -32 39 40 30Social Security -- -- -- 20 --Other 23 75 -29 -54 -35

X. Central Marketing Corporation (year ending in August of each year)



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 0.1Banks o07T 0. -0.1 -0.1 0.5Social 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. Budget1977 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 11.5Income tax 4.3 4.0 T7 I=7 T T7Of 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 61.2Consumption taxes 1/ 677T-TT 1T.0 TT7 I TSTT T18.0Import duties 8.1 10.8 12.3 16.3 17.4 19.5Export duties -- -- 0.1 0.1 0.1 0.1Hotel and guest taxes 1.8 2.7 3.2 3.9 4.3 6.8Travel tax -- 0.2 0.6 0.7 0.7 0.8Embarkation tax 0.5 0.6 0.7 0.7 0.7 0.8Entertainment tax 0.1 0.1 0.1 0.1 0.1 0.2Telecommunication tax 0.2 0.2 0.5 0.7 1.0 0.8Stamp duties 0.8 1.0 1.2 1.8 2.1 1.8Foreign currency levy 1.8 2.2 2.3 3.0 4.0 3.5Insurance premium levy 0.1 0.1 0.1 0.1 0.2 0.2Casino tax -- 0.1 0.1 0.3Cruise-ship tax -- -- -- 0.7 0.7Other 0.8 1.0 1.8 1.7 2.3 7.7

Nontax revenue 7.8 13.7 13.7 14.5 18.0 19.8Currency profits 0.7 0.3 1.3 1.7 2.6 1.5U.S. bases -- 4.1 4.1 4.1 4.1 4.2Licenses and fees 0.8 2.0 2.0 4.0 4.0 6.9Post Office revenue 2/ 4.1 2.7 4.8 3.5 4.8 4.8Other 2.2 4.6 1.5 1.1 2.5 2.5

Capital receipts 4.2 4.0 5.1 11.0 12.2Sales of government lands -- 0.1 0.1 0.2 2.5 2.5U.K. Development Aid 3.3 2.4 2.1 1.9 2.0CIDA grants 0.8 1.4 2.7 8.0 6.0U.S. AID -- -- -- 0.4 1.0Trinidad 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)

RevisedBudget 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 accountdeficit (-) -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 10.5Capital expenditure 12.1 31.2 8.3 35.7 36.0 109.2Net 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 33.6 117.3Net foreign borrowing 13.3 28.1 2.4 24.3 21.2 93.7Disbursements (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 -0.1Change 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 ) 23.7Treasury 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 OFPUBLIC SECTOR INVESTMENT, 1981-85 1/

(EC$ million)

Estimated Projected Total1981 1982 1983 1984 1985 1982-85 %

UsesUses 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 82.1Expenditure

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 21.6External Financing 22(Grants and Loans) 42.3- 61.0 68.0 48.5 44.9 222.4 76.4

Commercial Banks and OtherDomestic 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 disbursementsis 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 andBarbuda 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 TotalProjects 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 andConpialcaLion 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 Disbursementsduring 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 1985Total External Local Total External Local Total External Local Total External Local

ONGOING PROJECTS

AgricultureSugarcane 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 -

IndustryGlobal 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 24Electricity Generating Equipmnent 5,219 3,599 1,620 - - - - -

Tot rismHotel Training School 284 284 - - - - - -

Deep Bay Condominium Development T 1/,580 12,1510 2,430 - - - - -

Transportation lPWD Equipment 3,000 3,000 - 1,320 1,320 -Airport Project 1,637 1,637 - - - - - -

HousingMiddle Income Houising (Mortgage Financing) 1,490 1_490 - - - - - _ _ _

WatDrainage 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 - - - - - -

EducationThird 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 - - - -

OthersProcessing 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 -

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0 0 0 0 0 00

000000 '00 10111 10111 00100 0,0001101 01 0 I I 0 I HI OH 0I000 0''IHOO 000 00000000 0 0 00 00 0 oH 0 0 0 0 00 0 0000 00 0000000 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 000 ooOHOO 0 00 00 0 0 0 0 0 0 0 0 0 00000 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 100110101000110101000 0 0 0 0 00 0000.0 0.0 0000 0 0 10 0 00 H 00 0 H 0 000 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 0110101000 0 0 0 0 00 0.0000 0.0 000000 0 0 0 0 00 0 0 H 000 0 0 0 0 000 0000 00 0000 0 0 0 00 0 0 00 0 00 0 00

11010 11110 HOCO 00 0 0 000 000o 000 0 0 0 00 0 HO 0 0 0 000

- 182 -

Table 6.1: ANTICUA AND BARBUDA - EAST CARIBBEAN CURRE7xCY AUTHORITl


December 31 __ _ Sptember1976 1977 1978 1979 1980 1980 1981

Net international reserves 157.2 117.8 139.1 167.4 145.2 151.5 168.0Assets 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 -39.6Balance 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 -92.0Assets 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 -97.2Currency 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 -80.4Demand (-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 21.7Centi

4al 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 internationalorganizations -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 -17.4Assets (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 97.7In 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 81.7Estimate 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/


December1976 1977 1978 1979 1980 1981 2/

Net foreign assets -15.6 -18.3 -13.8 -20.2 -19.3 -24.6Assets 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 108.4 105.7 108.3 114.8 126.7 156.5Net 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 -0.1Credit (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 -5.2Creditt() (~) () (1-4) (1.8) (2.3)

Deposit (-) (--) (--) (--) (-5.4) (-7.4) (-7.5)Credit to private sector 75.5 79.5 83.0 86.0 102.7 121.1Interbank 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 98.3 111.9 136.6Demand deposits 20.4 157 T17.4Z 21.T 2 TTSavings deposits 36.6 41.3 43.5 37.7 51.8 61.1Time 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 BANKLOANS 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

Distributivetrades 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


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

Distributivetrades 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 depositsUp 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 11.0-20.0Un

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 311976 1977 1978 1979 1/ 1980 1/

Cash _ -- -- -- -_

Claims on commercial banks 460.1 474.9 15 174 2Demand deposits 150.1 164.9 185 26 198Fixed deposits 310.0 310.0 200 200 200

Domestic credit 2,114.2 3,584.4 5,162 3,067 4,255Central governmentTreasury bills 686.3 688.0 688 688 688

Claims on private sector 1,721.1 2,923.5 2,359 2,738 4,157Other assets (net) -293.2 -27.1 2,115 -359 -590Assets (11.2) (17.6) (2,408) (165) (235)Liabilities (-304.4) (-44.7) (-293) (-524) (-825)

Long-term foreignliabilities (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 and1980 are distinct and not comparable to previous years ncr to eachother.

Table 7.1: ANTIGUA AND BARBUDA - PRODUCTION OF SELECTED AGRICULTURAL PRODUCTS

Est.

1977 1978 1979 1980 1981

(In thousands of pounds)

AgricultureFruits 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

LivestockCattle 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)

FisheriesFish 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 mealVolume (000 lbs.) 54 73 84 68Value (EC$ 000) 11 15 17 18

Edible oilVolume (gal. 000) 17 16 20 14Value (EC$ 000) 164 206 261 248

Cotton seed mealVolume (000 lbs.) 27 27 30 3Value (EC$ 000) 6 6 6 0.6

Cotton seed hullVolume (000 lbs.) 11 10 15 11Value (EC$ 000) 1 1 1 0.7

RumVolume (gal. 000) 203 181 128 162Value (EC$ 000) 1,157 1,477 1,222 1,796

GarmentsFoundation (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

FurnitureVolume (000 pieces) ... 2 3 3 1/Value (EC$ 000) ... 188 431

Paper productsProduction (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 drinksVolume (000 cases) 339 338 284 224Value (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 70,266 107,094 113,357Other 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 46.4Cruise visitors 0. T 1.2 1.7 -TTT -7Other visitors 24.0 28.3 37.0 39.4 42.5

(In days)

Average length of stayof noncruise visitors 6.4 7.5 7.5 7.5 7.5


Total visitors 16.2 23.8 31.8 20.7 1.5Cruise 10.5 4.5 35.3 52.4 5.9Other 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 for1980). Guest nights = it is assu-med that 8 per cent of stopovervisitors stay with relatives or fri nds, thus only 92 per cent stay inhotels 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 53,600January -- -- 3,913 4,249 4,350February -- -- 2,671 4,032 4,350March -- -- 3,889 4,384 4,450April -- -- 3,551 4,312 4,450May -- -- 2,940 4,526 4,600June -- -- 3,516 4,361 4,600July -- -- 4,350 4,565 4,600August -- -- 4,410 4,649 4,500September -- -- 3,610 4,439 4,500October -- -- 4,030 4,433 4,400November -- -- 3,847 4,390 4,400December -- -- 4,142 4,327 4,600

Source: Antigua Public Utilities Authority.

Table 8.1: ANTIGUA AND BARBUDA - COST OF LIVING INDEX

Alcoholic HlouseholdFood 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 average1977 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 period1977 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 average1977 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 period1977 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 14.61980 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


- 192 -

Table 8.2: ANTIGUA ANI) BARBUDA - ELECTRICITY RATES

(In East Caribbean dollars)

1977 1978 1979 1980 1981

Domestic tariffAverage rate per KWH 0.25 0.25 0.32 0.38 0.38Average minimum charge 3.50 3.50 6.25 9.00 9.00

Commercial tariffAverage rate per KWH 0.28 0.28 0.31 0.34 0.34Average minimum clharge 10.00 10.00 8.00 6.00 6.00

Industrial tariffAverage rate per KWH 0.20 0.20 0.26 0.33 0.33Average 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 PRICESOF PETROLEUM PRODUCTS

December1977 1978 1979 1980 1981

Gasoline (EC$ perImperial gallon) 2.41 2.87 3.95 4.74 4.96

Kerosene (EC$ perImperial gallon) 1.78 2.01 3.26 4.19 4.34

Diesel (EC$ perImperial 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.

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