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Budget Speech 2014 |11 December 2013

Government to create new agencies and invest in public infrastructure in 2014

The government will create three new agencies and continue to invest substantially in public infrastructure, Minister Pierre Laporte has announced in the 2014 budget speech he delivered in the National Assembly yesterday morning.

The Minister for Finance, Trade and investment said the three new agencies which will be created next year and their budgets are as follows:

• the Industrial Estate Authority (R3.7 million);

• the National Institute of Technology, Science and Innovation (R2.7 million);
 
• the Creative Industries and National Events Agency (CINEA) R31.4 million.

The CINEA will be a merger of several existing institutions, namely the National Arts Council, the Seychelles Heritage Foundation and the Events section of the Seychelles Tourism Board.

With regard to the Central Government's Investment Programme over the five-year period from 2012 to 2017, Minister Laporte said this is costing R8.4 billion. In 2013, R1.06 billion has been spent and this represents 12.6% of this investment plan.

“Government will provide a further R1.04 billion in 2014,” said the minister.

He said for the coming year, four key projects will be completed to improve safety and national security and these are namely:

• the Praslin and La Digue Fire stations (R31 million);

• the second phase of the Coëtivy prison (R27.6 million);

• the Young Offenders Reform Centre on Praslin (R15.9 million);

• the installation of CCTV cameras in Victoria (R10 million).

“The government will allocate R15 million in 2014 toward the digitalisation of television by the Seychelles Broadcasting Corporation (SBC) to ensure readiness for full digitalisation of services by 2015,” Minister Laporte announced.

He said the government will further allocate R6 million toward the Victoria Traffic Management Plan, and R4.5 million for the purchase of an asphalt plant.

Phase 1 of the new Seychelles Tourism Academy will be completed in the first half of 2014. The total cost of the project, including furniture and equipment, will be R87 million and this is being co-financed by the Seychelles government and the BADEA, Minister Laporte explained.

“In 2014 the government will continue a vital project in the Ministry of Health to improve its operating theatre facilities. This will cost R55 million,” Minister Laporte also announced.

He pointed out that government will allocate R13.6 million in 2014 and the balance in 2015 budget for this project.
 
Preparations for the Ile Perseverance health centre will start in 2014 and for this the government is proposing an allocation of R1.2 million as co-financing. Minister Laporte said the balance will come from loans from OPEC and BADEA.

Government is also finalising the Ile Perseverance secondary school project, which will go on tender also next year. R11 million has been allocated for the new school.
 
Meanwhile the government will shortly submit the proposed Seychelles & Horticultural Training Centre project to development partners for funding, the minister announced.
 
R3.4 million has been allocated in the 2014 budget for that.

In addition, R8 million will be spent on repairs and maintenance of the Au Cap, Pointe Larue and Anse Aux Pins primary schools, through the European Union disaster grant.

“Government will accelerate its investment in the fisheries sector in 2014. We will spend a total of R10 million on utilities for Zone 14 to make the quay operational. An additional R36 million under the Fisheries Development Fund will go towards the construction of semi-industrial long line fishing vessels and value-added fisheries facilities,” Minister Laporte explained.

He said the government expects to spend R5.9 million on Research and Fisheries Management Plans and a further R6 million for air and sea patrols and to install communication systems on board artisanal fishing vessels for improved monitoring and surveillance.

Meanwhile the government has also allocated a further R45 million in 2014 under the Contingency fund, mostly for anti-piracy patrols, the minister explained.

Government will also support the construction of semi-industrial fishing boats through a sovereign guarantee of approximately R120 million (US $10 million) to the Bank of Ceylon.

“Following the signing of a new fisheries protocol this year between Seychelles and the European Union, funding for the fisherman sectoral programme will continue,” said Minister Laporte.

He further noted that interest in aquaculture will be revived in 2014. Through a US $148,000 grant from NEPAD, he said the government will put in place the regulatory framework to guide the development of the sector.

“Once this is in place, government will call for investment,” he said.

Regarding the energy sector, Minister Laporte said government will increase its capital grants to PUC in 2014 by R25 million to R150 million. Moreover, government has provided guarantees for an additional €7 million (about R114 million) towards water projects.

Meanwhile Minister Laporte said discussions have started with development partners, as well as financial institutions, to explore alternatives to fund the development and expansion of Port Victoria, one of the largest infrastructure projects ever implemented in Seychelles.

In view of the substantial cost—the latest estimate is about R2.4 billion (€150 million)—the project will be phased over a number of years.

“This is an ambitious and costly project, but one whose implementation is necessary. However, government would be unable to fully fund it without compromising our debt objectives. As such, we will invite private sector participation to provide options for investment such as public-private partnership, Build-Operate-Transfer (BOT), among others,” Minister Laporte explained.
 
He pointed out that this project is critical for the development of Seychelles as it will support further growth of our fisheries sector, our petroleum storage and bunkering activities, and to accommodate the ever growing volume of trade through Port Victoria.

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