St. Kitts and Nevis is a two-island nation in the West Indies. It is the smallest nation in the Americas, both in terms of population and area. Like many of its island neighbors in the Organization of Eastern Caribbean States (OECS), it has few natural resources and has grown heavily dependent on tourism—which accounts for more than 40 percent of GDP. But after September 11, tourism arrivals dropped off precipitously. As a result, economic growth declined substantially in 2001 and 2002. When the United States enacted mandatory security regulations for air and maritime travel, St. Kitts and Nevis found itself in need of a major overhaul of its standards before it could regain its niche as a tourist destination.
To help the islands adjust to the effects of 9/11, the World Bank supported an Emergency Recovery Project (ERP) for St Kitts and Nevis as part of a five-country emergency recovery program for the OECS. Under this umbrella program, separate loans and credits were approved for St. Kitts and Nevis, Dominica, St. Lucia, Grenada, and St. Vincent and the Grenadines. The St. Kitts and Nevis ERP financed critical energy imports, physical improvements, equipment, and training to meet the new security requirements, and technical support to prepare emergency and contingency plans at airports and seaports. The Port and Airport Authorities in St. Kitts and Nevis implemented the project with support by the regional Directorate of Civil Aviation (DCA) of the OECS.
The Emergency Recovery Project helped St Kitts and Nevis remain accessible as an international travel destination by financing critical energy imports and making the necessary investments to meet new maritime and air international security standards, protecting the islands’ tourist-based economy.
Highlights:
- In the immediate aftermath of 9/11, the project helped the country cope with revenue shortfalls by financing critical imports, particularly for energy needs, which kept electricity functioning for the local population and the tourist sector. About one-third of project financing was for low-sulfur diesel fuel for electricity generation.
- To ensure that facilities were compliant with International Civil Aviation Organization (ICAO) standards and the International Ship and Port Security (ISPS) Code, airports and seaports were outfitted with perimeter fences, an ID badge tracking system, passenger and baggage screening systems, communication equipment, and closed circuit television systems. Executives and security officers received specialized security training.
- A security pre-audit was completed in October 2005 by DCA, and an ICAO mission certified that St. Kitts and Nevis were in line with international standards in November 2005. The Port authorities have developed a Port Security Plan and all facilities have received ISPS certification.
- Since 2002, tourist arrivals have gradually increased in St. Kitts and Nevis.
Several elements were responsible for the project’s success. The common framework for all OECS countries provided for economies of scale and consistency in approach to security issues while retaining flexibility to individual country circumstance. A comprehensive capacity building program was established at the sub-regional level. The project greatly benefited from the support of the OECS Directorate of Civil Aviation, which coordinated training and institutional strengthening activities. In-depth technical reviews conducted by independent experts also proved particularly useful in providing specialized expertise on air and maritime security issues.
The Bank was quick to recognize the broader implications of 9/11 on Caribbean economies. It identified emerging needs and engaged client countries in immediate action. Because of its capacity to identify, mobilize, and approve the project in record time, the Bank emerged as a key partner in an area where it had no specific experience prior to 9/11. The project was prepared and presented to the Board in less than four months. The Bank effectively procured outside expertise to ensure that participating countries could meet evolving standards. In addition, the Bank commissioned both a mid-term and a final technical review of the project, which were conducted by consultants with expertise in the civil aviation and maritime sectors. These independent reviews helped implementing agencies address critical issues and adjust their program accordingly. The Bank was responsive to emerging needs in an evolving regulatory environment and accommodated these needs into the project when they occurred.
The Port and Airport Authorities in St. Kitts and Nevis have provided for continued budgetary and institutional support to maintain the infrastructure and security equipment. Since these authorities have a direct incentive and involvement in the maintenance of their investments, sustainability of infrastructure and equipment is likely. The requirement to pass future ICAO audits should ensure the continued maintenance of a security culture.
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