The Virgin Islands Public Finance Authority on Thursday, June 15, closed on the $100 million line of credit that the 35th Legislature approved for the Government of the Virgin Islands (GVI) and made its first draw against the loan for $45 million to repay advance funds utilized from the General Fund.
The $100 million line of credit is with First Bank of Puerto Rico, and it will be used to further the Territory’s disaster recovery efforts.
The $45 million advance funds from the General Fund were paid by the GVI on behalf of the V.I. Water and Power Authority to VITOL as payment toward WAPA acquiring some of the supplier’s liquid propane gas (LPG) assets.
WAPA is in the process of applying for federal funding that will reimburse the line of credit by August.
“I want to thank the 35th Legislature for approving this line of credit,” Governor Albert Bryan Jr. said. “With the acquisition of the LPG assets, WAPA will have more control of the fuel supply and management of fuel costs, which will eliminate substantial debt so the utility can better focus on executing its strategic priorities.”
During testimony before the Senate on April 5, 2023, the Governor’s financial team explained that the line of credit will be used to fund disaster recovery projects pending reimbursements from the Territory’s federal partners.
Similarly, WAPA, with the assistance and support of the GVI, is in the process of applying to the U.S. Department of Housing and Urban Development (HUD) for federal funding that would provide reimbursement by August for the $45 million draw on the line of credit used to acquire VITOL’s LPG assets.
The Bryan-Roach Administration is investing in the Territory’s people, infrastructure and future through transparency, stabilizing the economy, restoring trust in the government and ensuring that recovery projects are completed as quickly as possible. Visit transparency.vi.gov
