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Broken Rules and commitments; the DFID power

Reference: To be read with the Editorial
15 – 22 May 2013

  1. Introduction

 2.1 The GoM have identified an ambitious strategy to move Montserrat towards self-sufficiency and away from financial dependence on the UK. This strategy is focussed on the development of a new capital in Little Bay with a new port at Carr’s Bay to replace Plymouth as the centre for economic activity following the destruction of the former capital in the volcanic eruptions in the late 1990s

  1. The Reform Programme

3.1 GoM’s strategy for financial self-sufficiency depends not only on increased public investment but also on a radical transformation of the business environment so Montserrat becomes more attractive for private investment. GoM have set an ambitious target of having the private sector contribute more than 50% of the economy by 2020, a significant increase on the 34% in 2011. This transformation will require significant changes in three key areas:

  1. improving the business environment;
  2. developing Montserrat as a tourism destination; and

iii. strengthening GoM’s capacity to deliver reforms and key strategic investments.

The 2013/14 – 2016/17 Business Case: The MDC has the mandate to stimulate local private sector development and promote trade. It has a central role to play in delivering the Montserrat Strategic Growth Plan (SGP) and in meeting the Government of Montserrat’s commitments under the Memorandum of Understanding (MoU) signed with HMG in 2012. This involves coordinating various strands of work supported by UK funding including support for private sector development and tourism, improved access, geothermal energy and potential port and town development. The recommended support for 2013-16 follows interim funding provided by the UK during 2012-13, during which time the MDC has improved its capacity and effectiveness, evidenced by the commencement of infrastructure improvements at Little Bay and Carr’s Bay and the commencement of detailed discussions with potential investors in Montserrat.

2012 MOU – 3.3 Developing Montserrat as a tourist destination will be achieved through developing a clear tourism plan that drives economic growth and provides platform for sustained development. The 3rd Tourism Development Plan will be finalised by September and implementation started by February 2013. GoM will also take actions to improve sea and air access so it delivers secure access to the island and value for money to tax-payers. Activities include exploring private sector interest in running improved ferry and air services by September.

3.4 Strengthening GoM’s capacity will be delivered through delivery of a comprehensive package of technical assistance. GoM have also committed to establishing a geothermal unit and restructuring the Montserrat Development Corporation (MDC) by September 2012 as well as reviewing GoM’s regulatory bodies. By February 2013, GoM have implemented a number of cabinet decisions on institutional reforms as well as implemented recommendations from the policing review.

Aid to support the Strengthening the Montserrat Development Corporation to Attract Private Sector Investment 2013/14 – 2016/17.

DFID oversight

DFID’s Overseas Territories Department (OTD) is working to ensure that corporate priorities in terms of preventing and tackling corruption have clear read-across to the UKG’s approach in managing aid spending in Montserrat. The GoM has committed to continue to strengthen its procurement capacity as outlined in the DFID Fiduciary Risk Assessment (FRA) approved in early 2011. During 2011/12 GoM implemented a centralised contracts award register and began publishing details of Procurement Board decisions. Work has also been undertaken to reform the procurement framework to respond to the findings of the FRA. This is being taken forward through the implementation of more robust Procurement Regulations which were brought into force in April 2012 and which will be observed at all times by the MDC. One of the key reforms introduced is the establishment of a more transparent appeals process. OTD will continue to monitor progress alongside GoM as part of on-going monitoring of implementation of GoM’s public financial management action plan and through formal annual statements of progress against the FRA.

2013 MOU

  1. If DFID considers that
  2. a) There has been a failure to fulfil the commitments of this MOU

OR

  1. b) To fulfil the commitments made under this Arrangement by the Government of Montserrat

OR

  1. c) If any changes occur which in the opinion of DFID impair significantly the development value of the project/programme, then DFID may take any of the following actions
  • signal a possible future response
  • change the way DFID delivers aid
  • delay all or part of a specific aid disbursement to the Partner Government
  • reduce, suspend or stop aid under this Arrangement or terminate this Arrangement under paragraph 18 of this MOU.
  1. Only in exceptional circumstances will DFID interrupt planned disbursements of aid within the Government of Montserrat’s financial year.
  2. MoU REFORMS:
    2.1 an ambitious strategy to move Montserrat towards self-suffi ciency and away from financial dependence on the UK- is focussed on the development of a new capital in Little Bay with a new port at Carr’s Bay to replace Plymouth as the centre for economic activity
  3. 3. The Reform Programme
    3.1 GoM’s strategy for fi nancial self-suffi ciency depends not only on increased public investment but also on a radical transformation of the business environment so Montserrat becomes more attractive for private investment. GoM have set an ambitious target of having the private sector contribute more than 50% of the economy by 2020, a significant increase on the 34% in 2011. This transformation will require significant changes in three key areas:
    i. improving the business environment;
    ii. developing Montserrat as a tourism destination; andThe 2013/14 – 2016/17 Business Case: The MDC has the mandate to stimulate local private sector development and promote trade. It has a central role to play in delivering the Montserrat Strategic Growth Plan (SGP) and in meeting the Government of Montserrat’s commitments under the Memorandum of Understanding (MoU) signed with HMG in 2012. This involves coordinating various strands of work supported by UK funding including support for private sector development and tourism, improved access, geothermal energy and potential port and town development. The recommended support for 2013-16 follows interim funding provided by the UK during 2012-13, during which time the MDC has improved its capacity and effectiveness, evidenced by the commencement of infrastructure improvements at Little Bay and Carr’s Bay and the commencement of detailed discussions with potential investors in Montserrat.

    2012 MOU – 3.3 Developing Montserrat as a tourist destination will be achieved through developing a clear tourism plan that drives economic growth and provides platform for sustained development. The 3rd Tourism Development Plan will be fi nalised by September and implementation started by February 2013. GoM will also take actions to improve sea and air access so it delivers secure access to the island and value for money to tax-payers. Activities include exploring private sector interest in running improved ferry and air services by September.

    3.4 Strengthening GoM’s capacity will be delivered through delivery of a comprehensive package of technical assistance. GoM have also committed to establishing a geothermal unit and restructuring the Montserrat Development Corporation (MDC) by September 2012 as well as reviewing GoM’s regulatory bodies. By February 2013, GoM have implemented a number of cabinet decisions on institutional reforms as well as implemented recommendations from the policing review.

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Reference: To be read with the Editorial
15 – 22 May 2013

  1. Introduction

 2.1 The GoM have identified an ambitious strategy to move Montserrat towards self-sufficiency and away from financial dependence on the UK. This strategy is focussed on the development of a new capital in Little Bay with a new port at Carr’s Bay to replace Plymouth as the centre for economic activity following the destruction of the former capital in the volcanic eruptions in the late 1990s

  1. The Reform Programme

3.1 GoM’s strategy for financial self-sufficiency depends not only on increased public investment but also on a radical transformation of the business environment so Montserrat becomes more attractive for private investment. GoM have set an ambitious target of having the private sector contribute more than 50% of the economy by 2020, a significant increase on the 34% in 2011. This transformation will require significant changes in three key areas:

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  1. improving the business environment;
  2. developing Montserrat as a tourism destination; and

iii. strengthening GoM’s capacity to deliver reforms and key strategic investments.

The 2013/14 – 2016/17 Business Case: The MDC has the mandate to stimulate local private sector development and promote trade. It has a central role to play in delivering the Montserrat Strategic Growth Plan (SGP) and in meeting the Government of Montserrat’s commitments under the Memorandum of Understanding (MoU) signed with HMG in 2012. This involves coordinating various strands of work supported by UK funding including support for private sector development and tourism, improved access, geothermal energy and potential port and town development. The recommended support for 2013-16 follows interim funding provided by the UK during 2012-13, during which time the MDC has improved its capacity and effectiveness, evidenced by the commencement of infrastructure improvements at Little Bay and Carr’s Bay and the commencement of detailed discussions with potential investors in Montserrat.

2012 MOU – 3.3 Developing Montserrat as a tourist destination will be achieved through developing a clear tourism plan that drives economic growth and provides platform for sustained development. The 3rd Tourism Development Plan will be finalised by September and implementation started by February 2013. GoM will also take actions to improve sea and air access so it delivers secure access to the island and value for money to tax-payers. Activities include exploring private sector interest in running improved ferry and air services by September.

3.4 Strengthening GoM’s capacity will be delivered through delivery of a comprehensive package of technical assistance. GoM have also committed to establishing a geothermal unit and restructuring the Montserrat Development Corporation (MDC) by September 2012 as well as reviewing GoM’s regulatory bodies. By February 2013, GoM have implemented a number of cabinet decisions on institutional reforms as well as implemented recommendations from the policing review.

Aid to support the Strengthening the Montserrat Development Corporation to Attract Private Sector Investment 2013/14 – 2016/17.

DFID oversight

DFID’s Overseas Territories Department (OTD) is working to ensure that corporate priorities in terms of preventing and tackling corruption have clear read-across to the UKG’s approach in managing aid spending in Montserrat. The GoM has committed to continue to strengthen its procurement capacity as outlined in the DFID Fiduciary Risk Assessment (FRA) approved in early 2011. During 2011/12 GoM implemented a centralised contracts award register and began publishing details of Procurement Board decisions. Work has also been undertaken to reform the procurement framework to respond to the findings of the FRA. This is being taken forward through the implementation of more robust Procurement Regulations which were brought into force in April 2012 and which will be observed at all times by the MDC. One of the key reforms introduced is the establishment of a more transparent appeals process. OTD will continue to monitor progress alongside GoM as part of on-going monitoring of implementation of GoM’s public financial management action plan and through formal annual statements of progress against the FRA.

2013 MOU

  1. If DFID considers that
  2. a) There has been a failure to fulfil the commitments of this MOU

OR

  1. b) To fulfil the commitments made under this Arrangement by the Government of Montserrat

OR

  1. c) If any changes occur which in the opinion of DFID impair significantly the development value of the project/programme, then DFID may take any of the following actions
  1. Only in exceptional circumstances will DFID interrupt planned disbursements of aid within the Government of Montserrat’s financial year.
  2. MoU REFORMS:
    2.1 an ambitious strategy to move Montserrat towards self-suffi ciency and away from financial dependence on the UK- is focussed on the development of a new capital in Little Bay with a new port at Carr’s Bay to replace Plymouth as the centre for economic activity
  3. 3. The Reform Programme
    3.1 GoM’s strategy for fi nancial self-suffi ciency depends not only on increased public investment but also on a radical transformation of the business environment so Montserrat becomes more attractive for private investment. GoM have set an ambitious target of having the private sector contribute more than 50% of the economy by 2020, a significant increase on the 34% in 2011. This transformation will require significant changes in three key areas:
    i. improving the business environment;
    ii. developing Montserrat as a tourism destination; andThe 2013/14 – 2016/17 Business Case: The MDC has the mandate to stimulate local private sector development and promote trade. It has a central role to play in delivering the Montserrat Strategic Growth Plan (SGP) and in meeting the Government of Montserrat’s commitments under the Memorandum of Understanding (MoU) signed with HMG in 2012. This involves coordinating various strands of work supported by UK funding including support for private sector development and tourism, improved access, geothermal energy and potential port and town development. The recommended support for 2013-16 follows interim funding provided by the UK during 2012-13, during which time the MDC has improved its capacity and effectiveness, evidenced by the commencement of infrastructure improvements at Little Bay and Carr’s Bay and the commencement of detailed discussions with potential investors in Montserrat.

    2012 MOU – 3.3 Developing Montserrat as a tourist destination will be achieved through developing a clear tourism plan that drives economic growth and provides platform for sustained development. The 3rd Tourism Development Plan will be fi nalised by September and implementation started by February 2013. GoM will also take actions to improve sea and air access so it delivers secure access to the island and value for money to tax-payers. Activities include exploring private sector interest in running improved ferry and air services by September.

    3.4 Strengthening GoM’s capacity will be delivered through delivery of a comprehensive package of technical assistance. GoM have also committed to establishing a geothermal unit and restructuring the Montserrat Development Corporation (MDC) by September 2012 as well as reviewing GoM’s regulatory bodies. By February 2013, GoM have implemented a number of cabinet decisions on institutional reforms as well as implemented recommendations from the policing review.