ST. JOHN’S, Antigua, CMC – The Antigua and Barbuda parliament will meet on Monday to debate a proposal by the government to allow the National Social Security Scheme (NSSS) to invest in the Jolly Beach Hotel.
A statement issued following the weekly Cabinet meeting said that the minister continued discussions on the government’s plan to consolidate bond obligations owed to the Social Security Scheme, explore strategies to leverage the Jolly Beach property as an investment vehicle, and advance a broader vision for the long-term sustainability of the pension fund.
“Cabinet approved an immediate allocation of EC$20 million (One EC dollar=US$0.37 cents) to renovate 33 rooms at Jolly Beach Resort, construct a 500-person capacity conference facility, and upgrade the hotel’s sewage system, as well as its internet and communications infrastructure.
“Upon completion of the renovations, the hotel’s total room count will increase to 351, with works expected to be finished in time for the next tourism season,” the statement said.
Last month, the government defended its decision to transfer and redevelop the Jolly Beach Hotel as part of the efforts to ensure the long-term sustainability of the NSSS.
“A sustainable pension system requires more than just savings accounts. It requires strategic asset allocation and proactive investment to meet future obligations,” said Prime Minister Gaston Browne, noting the policy decision will not only enhance the NSSS’s revenue base but also restore a key national asset, create jobs, and boost tourism.
The government stated that the resort, situated on 27 acres of prime beachfront land, is valued at EC$67 million and will be utilized to settle part of an EC$330 million delinquent government bond owed to the Social Security Board.
The bond, issued in 2010 under a previous administration, has remained non-performing for over a decade, compromising the Scheme’s financial health and its ability to meet pension obligations.
“This is more than a real estate transaction. It is a transformational move to repair past fiscal failures and to position our Social Security Scheme on a path of solvency and prosperity,” Browne said.
In defending the decision of his administration, Prime Minister Browne said that the government’s multi-pronged investment strategy is designed to unlock revenue from both existing and new hospitality infrastructure.
Under the plan, 315 rooms will be sold under the Citizenship by Investment Programme (CBI) through which foreign investors are entitled to citizenship of the country in return for making a substantial investment in its socio-economic development.
The statement said that the Cabinet had also agreed to consolidate all arrears to the NSSS, inject approximately EC$75 million into the Jolly Beach Resort, and issue an EC$450 million bond over five years, at three per cent initially and five per cent thereafter.
“These measures aim to transform Jolly Beach Hotel into a major investment prospect for Social Security. Once fully renovated and expanded, the resort will be vested in the Social Security Board, turning a previously non-performing government obligation into a revenue-generating asset.”
The statement said that this strategy will provide NSSS with long-term capital appreciation, steady operational income, and the ability to resell rooms under the CBI programme.
The government will also consider amendments to the CBI legislation during Monday’s parliamentary session in response to concerns raised by the United States and the European Union.
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