Dionne Rose, Parliamentary Reporter

The Government will be bringing legislation to Parliament which will formalise how the PetroCaribe funds should be used, said Minister of Finance and Planning, Dr. Omar Davies.

Dr. Davies made the announcement in Parliament on Tuesday while seeking the approval of the House for a Government guarantee for a US$5 million (J$330 million) loan for the Development Bank of Jamaica so that small and medium -size businesses can access funding.

"I want to indicate to this House that the facility is being formalised through legislation, which I will be bringing to this House. Cabinet on Monday approved the final piece of legislation. There are certain amendments and as soon as those are completed we will bring them," he said.

Earlier on, Opposition Spokesman on Finance, Audley Shaw, had raised concerns about the announcement of Prime Minister Portia Simpson Miller's $635 million massive six-month clean-up and beautification programme islandwide, which will provide jobs for some 12,000 persons. The programme is to be funded by the PetroCaribe Fund.

Minister mum on information

He said that despite an undertaking by Dr. Davies that he would be using the PetroCaribe funds to substitute expensive debts, the Minister of Finance is yet to divulge information on how much money has been used for this purpose.

"I am saying to you, Mr. Speaker, we need money for sustainable projects because it can't be that you are finding money for crash programme for areas of activities that ought normally to be carried out by the various Parks and Markets and the National Solid Waste Management Authority," Shaw said.

In response, Dr. Davies said that he had on previous occasions said what the PetroCaribe funding would be used for. One such project he said, was the liquified natural gas initiative. He noted that the funds were also being used as a replacement for high cost borrowing.

Meanwhile, the House gave approval for the Development Bank to disburse proceeds of the loan to small and medium size entities engaged in agriculture, agro processing, manufacturing, mining and quarrying.

It is a concessionary loan for seven and a half years, inclusive of a two-year moratorium on repayment. The loan is being made available through the Oil Producing and Exporting Countries (OPEC).