GRENADA LOSING OUT ON EU FUNDING

Several projects earmarked for Grenada by the European Union (EU) have either been canceled or discontinued under the ruling New National Party (NNP) government of Prime Minister Dr. Keith Mitchell. The EU has made available to the local media its Annual Report for 2001 detailing the level of its co-operation with Grenada.

The document showed that a number of EU-grant aid funded projects signed for the island during the 1990-95 National Democratic Congress (NDC) administration of Prime Minister Sir Nicholas Brathwaite, floundered under the current government.

The projects affected included EU Support for the Minor Spices Industry, a Biotechnology Centre under the Ministry of Agriculture, and a modern abattoir at Mt. Hartman in St. George's.

The report obtained by GRENADA TODAY showed that the Europeans had earmarked money for Grenada to ensure that the island exported fully processed spices, rather than raw spices in order "to capitalise on value added in the Spice Industry".

The financing agreement that was signed on January 12, 1995 entailed the construction of a Spice Processing plant at Laura Lands, St. David's and the establishment of a Spice Garden. The Union made mention of a commitment of $50, 781 EUR that it made to the project, which was used by management as working capital, to purchase a vehicle,  pay utility bills, and purchase office equipment.

According to the EU, its project with Grenada closed down and the remainder of the funds transferred to the European Development Fund/PMCU project unit within the Ministry of Finance. Grenada was earmarked to receive $156, 250.00 EUR for a Biotechnology Centre but thus was canceled by the Mitchell government.

When GRENADA TODAY interviewed the then Agriculture Minister Michael Baptiste, who was the Minister of Agriculture at the time of the signing agreement, he blamed Prime Minister Mitchell for the collapse of the project.

According to Baptiste, he had identified the site for the project within his St.  Andrew South-west constituency and was moving to put in place plans for its actual construction by a builder, when the Grenadian leader moved in and blocked the project. He spoke of being accused by Dr. Mitchell of wanting to put the project in his own constituency, in order to gain political mileage for himself.

On the Mt. Hartman Abattoir, the EU said that Grenada decided to relocate the project, due to plans to construct the much-talked about Ritz Carlton hotel on the lands.

The report said: "By 1999,  there has been no decision by the Ministry of Agriculture on the exact location of the project. The project was incorporated in Carriacou Land Use.  No action was taken and the project was closed". The Mitchell government has apparently run into problems with the so-called developers of the Ritz Carlton hotel.

The 2001 EU report also indicated that Grenada did not quality for Stabex transfers for 1998 and 1999 unlike the other governments in the Windward Islands. It said that at the end of 2000, the unspent EC Stabex balances were distributed to a number of the benefiting countries.

"Grenada received EUR 290, 575 under this arrangement. An FMO (by the Grenada government) has yet to be prepared for this allocation", the report said.