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The Cook Islands Government has taken onboard public concerns about the construction and loan for the multi-purpose indoor sports stadium to host the 2009 MIni South Pacific Games in Rarotonga.
According to a press release from the office of the Deputy Prime Minister and Minister for Finance Sir Terepai Maoate, Cabinet has agreed to postpone the construction of the complex and for both the Cook Islands Sports and National Olympic Committee (CISNOC) and the Cook Islands Investment Corporation to come up with a more detailed, alternative and affordable plan.
CIIC is to provide a NZ$13 million proposal including the indoor sports stadium, relocation of the Ministry of Education building and upgrading of existing sports facilities around Rarotonga.
Cabinet has aslo requested CIIC to come up with two new plans by a New Zealand company of NZ$16 million and NZ$26 million respectively for the indoor stadium alone.
The Ministry of Finance restimate that according to a concept floor plan, the indoor stadium would cost about $12,000 while the total Games project would be in the vicinity of $25 million.
Meawhile the Chinese Government has advised the Cook Islands that there is insuffcient time to process grant funds for the project and get the indoor stadium and other amenities completed in time for the Games.
China also offered a soft loan at 2% interest, including a five year grace period, which is against local banks' interest rate of 10% for a commercial loan.
China said the Cook Islands, should it accept their offer will have twenty years to repay the loan which is currently still available should Government wish to take it.
Government was also able to negotiate with China that approximately 45% of the total $13 million loan would be spent on local contractors hired to relocate and construct the new Ministry of Education building and other relevant projects.
According to the press release Government has not yet committed to the loan in terms of formalising a contract and signing it.
Before that can happen, the amount needs to be appropriated in a supplementary budget, which will then follow debate in Parliament.
What has been signed now is an Memorandum of Understanding (MOU) for the loan.
Source: Govmedia and Office of the DPM |
