CABINET NOTES- The Cabinet continued its discussions on the government’s plan to consolidate bond obligations owed to 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.
On Wednesday, Cabinet approved an immediate allocation of $20 million 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 government also announced plans to consolidate all arrears to the Social Security Scheme, inject approximately $75 million into the Jolly Beach Resort, and issue a $450 million bond over a five-year period, at 3% initially and 5% 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. This strategy will provide Social Security with:
- Long-term capital appreciation
- Steady operational income; and
- The ability to resell rooms under the Citizenship by Investment Programme (CIP)
The Prime Minister reaffirmed the government’s commitment to:
- Sustain Social Security without raising the pension age or contribution rates
- Maximize the value of underutilized national assets
- Collaborate constructively with Social Security leadership to finalize the investment structure
The Parliament of Antigua and Barbuda will convene on Monday, 25th August, to debate the proposal for Social Security to invest in Jolly Beach Resort. Parliament will also consider amendments to the CIP legislation in response to concerns raised by the United States and the European Union.