Over 20 capital projects ready to go for 2021 |17 February 2021
More than 20 capital projects will be undertaken during 2021 even as the country tackles a never-before-seen health and economic crisis.
The sum for capital investment for this year totals R1.9 billion which will be funded through the domestic budget, external debts, donations and grants.
The total budget allocation for capital projects for 2021 represents an increase of 58% compared to the capital investment budgeted for 2020, the Minister for Finance, Economic Planning & Trade, Naadir Hassan, noted in the budget address yesterday.
“This increase is due to a number of large capital projects, especially in the health and education sectors, that are expected to be financed during this year, through financial donations and external debts,” explained Minister Hassan.
The total budget for capital expenditure that is being financed by donations and external debts have increased on average by more than 100%, compared to the 2020 budget.
The budget allocation that is receiving domestic financing has decreased by 6% compared to the 2020 budget.
This decrease is due to the fact that Government is financing only projects that are already in the implementation stage.
The minister underscored that capital projects will need to be better managed since there have been too many instances of abuse in the past such as contractors that receive a project under very low prices but then receive additional payments in the form of “cost overrun”.
Minister Hassan further noted that the new government will not tolerate any of its officials who make deals with contractors for their personal gain and warned against such practices.
Similarly, he noted that contractors that continuously fail to deliver or meet the standards set by the government will stop being considered in the tender process.
Projects being financed through domestic budget are:
- Continuation of the ‘24/24’ housing construction project that fall within the programme, with an allocation of R120 million
- Continuation of the construction project of a new block at Belonie Secondary School with an allocation of R10 million
- Continuation of the construction of the Anse Royale kindergarten with an allocation of R9.7 million
- Continuation of the construction project for a new police station on La Digue with an allocation of R6.7 million
- Continuation of the third phase of the Pasquere road on Praslin with an allocation of R5 million
- Construction of the new vehicle testing station on Praslin with an allocation of R2 million
- A total of R21.3 million has been allocated for different projects in the agricultural sector, including a sum of R5.4 million to continue the construction project of a research facility at Anse Boileau
- A number of projects that are targeted for the economic infrastructure which includes the second phase of the industrial zone project in zone 20, and the development of Zil Eve, with a total allocation of R36.8 million.
Projects being financed through external debts, these include:
- Reconstruction of the La Rosière School with an allocation of R38 million
- Construction of a new facility for the Seychelles Institute of Agriculture and Horticulture with an allocation of R25.9 million
- Continuation of the Health Information System with an allocation of R76.6 million
- Construction of the new jetty for the Coastguards, with an allocation of R21.2 million
- Acquisition of new equipment for different primary schools and kindergartens, with an allocation of R22.9 million
- A total of R83.9 million to finance projects which are already being implemented in the Blue Economy sector.
Projects being financed through external donations:
- Continuation of the construction of the ‘SBC House’ building, with an allocation of R36.4 million, financed by the Chinese Government
- Construction of the new Police Headquarters with an allocation of R84.9 million, financed by the Indian Government
- Construction of the new La Digue hospital with an allocation of R73.7 million, financed by the Government of the UAE
- Construction of a new building for the office of the Attorney General with an allocation of R110.2 million, financed by the Indian Government
- Construction of the new Baie Lazare clinic with an allocation of R44.2 million
- Construction of a new Isolation Centre with an allocation of R39.8 million
- Acquisition of a new patrol boat for the Defence Forces with an allocation of R340 million, financed by the Indian Government
- Construction of a new rehabilitation centre for drug addicts, with an allocation of R34.5 million financed by the Government of the UAE.
Additionally, SPTC will gain R63.5 million for the acquisition of 55 new buses in 2021 which will be financed via a loan from the Indian government and R14.5 million from the government for its other capital projects.
The Property Management Company (PMC) is to receive R52.8 million for the repayments of its loans towards Nouvobanq and the Seychelles Pension Fund and another R10 million for renovation works on housing projects.
R40 million has also been budgeted for capital projects being implemented by the Public Utilities Corporation (PUC).
Elsie Pointe