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MEMORANDUM

By Jeremy Marshall,2014-01-27 18:35
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MEMORANDUM

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    MEMORANDUM

    on

    Capital Budget 2006-2007

    CAPITAL EXPENDITURE

    The Capital Budget 2006-2007 makes provisions for a total expenditure of Rs 8 billion. The estimated balance of the Capital Fund as at the end of Financial Year 2006-2007 is given in the statement at page 1. Details of development projects included in the Capital Budget, and annotated M, are given below.

    VOTE 30 LOANS

    Deputy Prime Minister’s Office, Ministry of Finance & Economic Development

30-051.001 Loan to Development Bank Ltd (Rs 25 million)

     A Fresh Line of Credit of USD 75m/Grant USD 25m facility is under negotiation from the Government of India.

     Part of the proceeds will be made available to the Development Bank Ltd (DBM Ltd)to mount a financing facility of USD 10 m for the SME sector. The DBM Ltd will have to set up the appropriate mechanism to provide loan fund to the SMEs.

     The facility is expected to be a composite of 75% credit and 25% grant. The grant component may be structured to lower the lending rate to the SMEs.

    Ministry of Public Utilities

    Water Resources

30-093.004 Loan to CWA for Mare aux Vacoas Water Supplies (Rs 32 million)

     The project aims at satisfying water demand for industrial, commercial and domestic purposes until the year 2020 in the central region of the country by developing new water sources and increasing water treatment capacity.

     The project is financed jointly in the following proportions:

    (i) Arab Bank for Economic Development in Africa (BADEA) - 48%;

    (ii) Kuwait Fund for Arab Economic Development (KFAED) -36 %; and

    (iii) Government of Mauritius - 16 %

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    Ministry of Housing & Lands

30-191.001 Loan to National Housing Development Company Ltd (Rs 3 million)

    The project initially consisted in the construction of 5,000 very low-cost housing units of the Firinga type over a period of five years. In the Capital Budget 2006/07, a loan of Rs 3 million is earmarked for payment of retention money.

    VOTE 31 - PROJECT EXPENDITURE

    National Assembly

31-014.001 Refurbishment of Government House (Rs 25 million)

     The provision of Rs 25 million is for the refurbishment of the old Parliament Building following a fire outbreak in February, 2006.

    Police

31-022.106 Overhaul of ‘Vehicules Avant Blindés’ (VAB Vehicles) (Rs 43.5million)

    The project aims at retrofitting eleven VAB 4 x 4 vehicles acquired in 1980 with the following objectives:

    (i) extension of the vehicles longevity for an additional period of at least 15 to 20 years; (ii) reduction of operational and maintenance costs; and

    (iii) fitting the armoured vehicles with latest technologies.

    The provision of Rs 43.5 million is for meeting payment scheduled for 2006-07.

31-022.303 Purchase of Helicopters (Rs 300 million)

     A Fresh Line of Credit of USD 75m/Grant USD 25m facility is under negotiation from the Government of India.

     Part of the proceeds will be used for the purchase of a light helicopter estimated to cost around USD 10 m.

    Meteorological Services

31-024.001 Reconstruction of Government Quarters (Rs 2 million)

     The provision of Rs 2 million is for the construction of a four-bedroom house with all facilities and amenities to be used by the Director, Meteorological Services.

    Mauritius Prisons Service

31-026.003 New Prisons (Rs 10 million)

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     The provision of Rs 10 million is for consultancy services in respect of the construction of a new prison at Melrose.

    Deputy Prime Minister’s Office,

    Ministry of Public Infrastructure,

    Land Transport & Shipping

    Public Infrastructure

31-031.001 Construction of Bridges (Rs 29 million)

     The provision of Rs 29 million is for the rehabilitation of Pailles Junction Bridge.

31-031.003 Contribution to Road Development Authority (Rs 176 million)

     The provision of Rs 176 million is for the following projects:

     Rs m

    (i) South Eastern Highway 111.0

    (ii) Vandermesch Réduit Road (retention money) 2.5

    (iii) Riche Terre Link Road to Northern Motorway (retention money) 0.5

    (iv) Terre Rouge Verdun link Road (La Laura/Malenga Road) (study) 5.0

    (v) Bus Lane along M1 including signalisation of Caudan Round about 35.0

    (vi) Road Maintenance 22.0

     TOTAL 176.0

    Shipping

31-034.002 Sea Training School (Rs 6.5 million)

     The aim of the Sea Training School is, among others, to develop the potential of Mauritian Seafarers by providing quality training in the principles, procedures and techniques of basic safety training, marine engineering, navigation and other related subjects.

     The provision of Rs 6.5 million is for the purchase of Nautical equipment and Marine Engineering Training equipment for the New Maritime Training Centre.

    Deputy Prime Minister’s Office,

     Ministry of Tourism, Leisure & External Communications

    Civil Aviation

31-043.003 Improvements, Renewals and Minor Projects (Rs 30 million)

    The provision of Rs 30 million is for the maintenance/refurbishment of the 600 ft mast, at Bigara Station, which supports the antennae systems for air/ground communication between aircrafts and Air Traffic Controllers.

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    Deputy Prime Minister’s Office,

    Ministry of Finance & Economic Development

31-051.002 Obligations under Government Guarantees (Rs 30 million)

    The provision is for meeting foreign exchange losses (which the Government has agreed to bear) arising from the repayment of the following loans raised by the National Housing Development Co Ltd (NHDC) under Government guarantees:

     Loan Amount Date of Agreement

    (i) Malaysian I Loan Ringitt 71.5 m (USD 18.8 m) February 1992

    (ii) Belgian Loan BEF 380 m July 1992