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DFID and SHG Discuss Infrastructure, Tourism and Private Sector Development

14 September 2009

Press Release

DFID and SHG Discuss Infrastructure, Tourism and Private Sector Development

Advisers from the UK on three key parts of St Helena’s economy visited St Helena from 5-12 September.

Visiting were: Nigel Kirby, DFID infrastructure adviser; Catherine Leech, tourism adviser; Kato Kimbugwe, DFID private sector adviser, along with Phil Mason, Head of Overseas Territories Department, DFID.

The team wound up their visit on 11 September with an informal discussion with Councillors on their findings. This included an outline of how the St Helena Government and DFID can continue to take forward developments that will benefit the island.

The News on Infrastructure

The purpose of Nigel Kirby and Phil Mason visiting was to agree with SHG Departments project management arrangements for getting priority projects in the island Infrastructure Plan started. These projects will begin to improve areas of infrastructure that St Helena needs now, with or without air access. The projects concentrate in particular on replacement and enhancement of generating capacity in the power station, improvements to water supply provision and to the maintenance of roads across the island. SHG currently has £1.56m available from DFID to begin these works (with more available in later years in accordance with agreed budgetary aid arrangements). In addition, a further £2.25m is currently available specifically for rockfall protection. This money is outside of the normal budgetary aid.

SHG and DFID were pleased that they were able to agree new arrangements to manage projects under the Infrastructure Plan. These aim to reduce delays in implementation so that St Helena can move forward more quickly. The arrangements give SHG more flexibility to manage projects, and more responsibility for ensuring progress.

While on the Island, DFID also announced they were prepared to take forward as soon as possible preparatory work for the redevelopment of the Bulk Fuel Installation to improve St Helena’s fuel handling for its immediate needs regardless of future access arrangements. The design will enable later expansion as and when decisions are made on the airport. However, the good news is that regardless of the decision, DFID is keen to make the necessary improvements so that the fuel farm can handle the needs of the Island.

Similarly, DFID indicated they were also willing to examine the feasibility of proceeding at an early stage with wharf development in Rupert’s Bay regardless of the airport decision since this will have major benefits in terms for cargo handling. Before any firm commitment can be made, SHG and DFID will need to assess the costs and benefits under the different access scenarios, and will start looking at this immediately.

The News on Tourism

Catherine Leech, a tourism professional with 27 years' experience in the public and private sectors of the travel industry, will be advising on how St Helena could benefit from tourism development in the current circumstances, in particular how to increase sea-borne tourism, through the RMS, cruise ships and yachting . She will also look further ahead and advise on the potential for tourism under air access.

In addition to experiencing for herself the wide range of sights and activities on St Helena, she met with a number of private and public sector individuals and organisations involved in tourism. She commented: "I am in awe of just how special St Helena is. It is without doubt a rare and precious jewel which has the potential to become a successful niche tourism destination, and so contribute to a more sustainable economy for St Helena and enhance the lives of Saints.”

The News on Private Sector Development

Kato Kimbugwe was making his first visit to the island as DFID’s new private sector adviser. He gained first-hand appreciation of the concerns of the private sector and the difficulties being faced, not all of which were linked to the airport ‘pause’. Discussions have highlighted the fact that there is scope for progress, in tourism and other sectors not entirely dependent on air access, such as construction, fishing and agriculture. DFID will now work together with SHG, SHDA and the Chamber of Commerce to produce an agreed set of actions to try to overcome key obstacles.

The team had very busy programmes and managed to meet a wide range of people and organisations with views on these issues. All the team wish to express their deep appreciation to everyone they met for the time they gave. Phil Mason said: “We know these are difficult times for St Helena, as they are for people in the UK. Our visit has been very helpful, however, for reminding everyone that we can continue taking steps to improve conditions on the island.’

Commenting on the visit, Andrew Wells, the Governor’s Deputy, said that he was pleased that so much solid progress had been possible on a variety of issues crucial to the Island’s future. He thanked the DFID team for their willingness to engage with the people of the Island, and for showing genuine understanding of their concerns.

Department For International Development and St Helena Government 14 September 2009

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