Dredging Project For Charlotte Amalie Harbor One Step Closer as Lawmakers Approve $17 Million Appropriation
Vital Funding to Enhance USVI's Cruise Ship Capacity and Tourism Competitiveness
2023-11-09 18:51:25 - VI News Staff
The spat between the V.I. Port Authority and the West Indian Company seems to be over, as lawmakers this week approved the appropriation of $17 million for the dredging of the Charlotte Amalie harbor.
Bill 35-0191, sponsored by Senate President Novelle Francis Jr., came before the Committee on Budget, Appropriations and Finance on Tuesday. “It takes ongoing investment for the Virgin Islands to remain competitive [as a] tourist destination,” Mr. Francis said. “Cruise ships are getting bigger and bigger, and in order for the territory to safely receive these vessels and capture the revenue from larger ships and port calls, we must be able to receive the ships.” Warning of the territory losing its competitive edge to other Caribbean destinations which have already embarked on similar projects, Mr. Francis said that critical investments were needed to enhance and protect the USVI’s tourism product.
The measure provides for up to $17 million to be taken in the current fiscal year's budget from excess funds contained in the gross receipts tax debt service reserve fund. Director of Finance and Administration at the Public Finance Authority, Nathan Simmons, explained that last year, the PFA was informed by Bank of New York Mellon that the reserve fund contained an excess of almost $17.5 million. In July 2022, the PFA Board of Directors authorized the use of $17 million from that amount to fund the harbor dredging project, signaling their support for the venture.
Anthony Ottley, president and CEO of WICO, testified in favor of the proposed legislation. “All of our cruise partners agree and they support the necessity of this project,” he said, adding that the primary motive for WICO’s support is safety. “Anyone observing a ship's maneuvering in the harbor will sometimes see some plumes start up from the sea floor by the ship's propulsion system and linger in the turning basin and areas of the channel for more than an hour,” he said, explaining to lawmakers that this is the result of silt and other material building up over time.