WILLEMSTAD – The Netherlands is providing Curaçao with a new XCG 80.8 million loan to finance a series of investments, including road infrastructure, government digitalization, a telecommunications submarine cable and equipment for the Coast Guard.
The financing is disclosed in the Netherlands’ proposed 2027 budget for Kingdom Relations, which was submitted to the Dutch Parliament this week.
According to the budget, the loan amounts to approximately €39.6 million and is being provided under the so-called “lopende inschrijving,” or standing subscription mechanism, established under the Kingdom Act on Financial Supervision.
The Dutch government lists several projects for which Curaçao intends to use the money. They include improvements in digitalization, renovation of the city hall, maintenance and management of road infrastructure, investment in a telecommunications submarine cable and the purchase of equipment for the Coast Guard.
The budget makes clear that the XCG 80.8 million is a loan rather than a grant. The financing therefore increases the amount Curaçao owes, although borrowing through the Kingdom financial framework generally takes place under conditions different from those available commercially.
The investment is one of the most significant Curaçao-specific financial items appearing in the new Kingdom Relations budget.
Under the Kingdom Act on Financial Supervision, the Netherlands plays an important role in the financing arrangements available to Curaçao and Sint Maarten. The Dutch Minister of the Interior and Kingdom Relations also processes advice from the College financieel toezicht Curaçao en Sint Maarten, or Cft, for consideration by the Kingdom Council of Ministers.
The new financing comes as Curaçao faces considerable investment needs, particularly in public infrastructure.
The Dutch budget does not provide a breakdown showing exactly how much of the XCG 80.8 million will be allocated to each individual project.