EVALUATION OF INDUSTRIAL ESTATE LOANS PROVIDED BY CARIBBEAN DEVELOPMENT BANK

Kitts, and St. Lucia. This special evaluation covers the period up to 1/80 and was conducted on a country-by-country basis by survey teams. The Caribbean Development Bank (CDB) funded 11 sub-loans which contributed to the creation of 375,257 sq. ft. of factory space in the above countries. Presently, 26 firms are established within 345,257 sq. ft. Of the total construction costs of $4.6 million, the CDB provided $4.2 million. Employment generation figures show that on the average, 172 sq. ft. per worker was attained. This figure is considered low by international standards. In all countries, government support for industrial development projects has been evident, although incentives, while attracting local and regional investors, have lacked the outreach necessary for attracting multinational firms; and programs do not provide for worker assistance in new industries. On-the-job training is the most effective means used by these governments. Promotional and assistance functions within Barbados, Belize, and St. Lucia are both directed from either an international development corp., or a development finance corp. In the other countries, these functions are divided. The authors recommend consolidating these functions into one organization for better coordination. Concerning rental rates, subsidies should be eliminated and the rates increased. Also, a uniform rental rate of $2.00 per sq. ft. for new and renewal leases and an annually revised rate review system should be instituted. With the help of USAID experience, external promotional programs can be improved by establishing specific goals. Project countries also lack the expertise for making demand projections regarding factory space. USAID technical assistance in this area is essential and projections must be made for two-year periods beyond the planning of USAID and the CDB. Recommendations are also made for the CDB and USAID regarding inventory costs, building designs, and credit.