Press Release

Grenada pursues road rehabilitation with help of US$5 million OPEC Fund loan

134/2005 December 21, Vienna, Austria
Press inquiries:

The OPEC Fund for International Development has signed a US$5 million loan agreement with Grenada to help finance rehabilitation of key feeder roads in the island’s six parishes. Once completed, the improved roads will enable the population to enjoy facilitated access to marketplaces, agricultural areas and social services.

Grenada is a small independent country consisting of three islands: Carriacou, Petit Martinique and, the largest, Grenada. As Grenada Island is made up of some 440 km² of mountainous, volcanic terrain, its 1,040 km-long road network is confined to the flatter coastal areas, and comprises a main road that encircles the island, with a series of secondary stretches that branch out to surrounding villages. Although some sections have been upgraded, many have deteriorated from the combination of natural erosion and the regular occurrence of tropical storms. The situation was made worse after Hurricane Ivan struck the island in 2004, damaging some 400 km of feeder roads and a number of bridges. Many roads have been washed away and others are still inaccessible, imposing hardships on agricultural communities as farmers are unable to reach their fields.

Under the project, 46 feeder roads of a combined length of 83.49 km will be rebuilt and rehabilitated. Roads will be selected based upon their access to key agricultural areas. Bridges and sea walls will also be repaired and drainage works upgraded/installed to help prevent future flooding. The installation of safety works such as lane markings and traffic signs is also envisaged.

The newly repaired roads will enable produce to be transported more safely and efficiently, thereby boosting income generation. It is also anticipated that tourism, another economically vital sector for Grenada, will enjoy increased growth.

The OPEC Fund has approved 10 earlier loans to Grenada, comprising six for balance of payments support, and four others that supported projects in the education and transportation sectors.

Today’s agreement was signed in Vienna by HE Ms. Joan-Marie Coutain, Ambassador of Grenada to the European Union, and by HE Mr. Jamal Nasser Lootah, Chairman of the Governing Board of the OPEC Fund.