Breaking

9-Year-Old Boy Dies After Being Shot in Head in Croixville Housing Community; Police Detain 15-Year-Old

Concerned Residents Clean Christiansted Town Using Their Own Tools, Money, and Some Help from the VI Fire Service

Territory May See Veterans Cemetery Through DeGazon-Sponsored Bill

Credit and Debit Cards of WAPA Customers Were Compromised Since August 30th, WAPA Says, Authority to Finally Start Issuing Notification Via Mail and Email

Sports Tourism in VI Gains Momentum as DC United Team is set to Play Exhibition Soccer Game on St. Croix

Carnival Breeze Brings 3,700 Tourists to St. Croix During Maiden Call; Senators, Tourism Officials Want to See More

Limetree Bay Willing To Provide $10 Million To Help Add Life to a Dying G.E.R.S.

American Airlines to Serve St. Croix With New Flights Next Summer

The Sudden Death of Influential Roots Reggae Visionary, Vaughn Benjamin of Midnite Band and Akae Beka, Has Rocked the Virgin Islands and Reggae Community Around the World

Arthur A. Richards K-8 School Hosts Anti-Bullying Campaign

Come Out. Hang Out. Have Fun at The Meat Up, One of St. Thomas’ Latest Hot-Spot for Good Food with Friends and Family.

UVI Board of Trustees Approves $47.1 Million Fiscal Year 2020 Budget; Sets $3 Million Fundraising Goal

Man Dies During Early Morning Car Accident on St. Croix; Driver of Car Arrested (Updated)

'You Did Everything You Could to Prevent this from Happening': An Emotional Goodbye to Young Aaron Benjamin

Back in Business: Cost U Less on St. Thomas Opened its Doors Friday to Thousands of Customers 2 Years after Irma and Maria

Bill Aimed at Regulating Credit Use by Gov't Departments and Agencies Among Others Held in Committee

Juan Luis Hospital Announces Completion and Availability of Mobile Dialysis Facilities

Tractor Trailer With Tank Carrying Thousands Of Gallons of Liquified Gas Flips Near Cool Out Bar; Driver Injured But Alive

Credit and Debit Card Hack Through WAPA Appears to be Widespread in Virgin Islands; WAPA Says Support Services Will be Made Available to Affected Customers

Facing Life in Prison Without Parole, Mother and Boyfriend Plead Not Guilty in Murder of 4-Year-Old Boy

Territory Foregoes $40 Million Loan From Limetree Bay As Company Invests Additional $400 Million In Refinery

Business / News / Virgin Islands / November 17, 2018

The territory was to receive $70 million upon closing of the oil refining deal between British Petroleum and Limetree Bay Refining, as per the government’s contract with Arc Light Partners, LLC, which owns both Limetree Bay Terminals and Lime Tree Bay Refining. Forty million dollars of the $70 million was a loan from Limetree Bay Refining to the Government of the Virgin Islands.

On Friday, however, during an interview with The Consortium’s Ernice Gilbert, Mr. Mapp said the government would no longer take the $40 million loan. Instead, it will receive $30 million, which is for the sale of property that came as part of the deal.

“I am not taking the loan,” Mr.  Mapp said. “Because the investment requirement in terms of the additional dollars needed for the rebuild of the refinery, ArcLight had asked me not to execute, or to pull the trigger on the loan side, because in addition to borrowing more money, they had to put more equity capital on the table. And so I did not have a problem giving up a $40 million loan to get a $400 million additional investment in the St. Croix economy.”

The news will be welcomed by many who saw the $40 million loan as a bad deal. The government would find itself repaying Limetree Bay from funds it would have collected from the firm, and many contended that there was no immediate need for the debt.

During the interview, the governor said officials of ArcLight had informed him that investment in the refinery had risen to $1.679 billion, hence the additional $400 million investment on St. Croix (Limetree Bay had originally projected an investment of $1.5 billion). He said the additional investment would add roughly $25 million to the Treasury, and that’s before accounting for payroll taxes.

Mr. Mapp said all final closings were in the process, and that as funds are released to ArcLight Partners by BP, the company would pay the G.V.I. the $30 million. “We expect to see those funds in the Treasury probably within the next 10 to 15 days,” he said.

The agreement between Limetree Bay Refining and British Petroleum was announced on Friday. Refining restart is expected to bring an addition of 700 permanent jobs to the already 750 employees currently working at Limetree Bay. Under the new agreement, 200,000 barrels of crude oil will be produced daily, a number that pales in comparison to HOVENSA’s heyday output of 700,000 barrels per day, but one that is significant nonetheless.

“This agreement is great news for the people of the Virgin Islands as we continue to grow and expand our economy,” the governor proclaimed in July. “The restart of the refinery will inject hundreds of millions of dollars into our economy, generate new tax revenues to our government, and create hundreds of non-refinery jobs in addition to those created at the refinery itself.”

The foregoing of the $40 million loan means Mr. Mapp will have to revise the planned use of the funds, which was detailed during the July 2 announcement of the return of oil refining on St. Croix.


Tags: , , ,



Ernice Gilbert
I wear many hats, I suppose, but the one which fits me best would be journalism, second to that would be radio personality, thirdly singer/songwriter and down the line. I've been the Editor-In-Chief at my videogames website, Gamesthirst, for over 5 years, writing over 7,000 articles and more than 2 million words. I'm also very passionate about where I live, the United States Virgin Islands, and I'm intent on making it a better place by being resourceful and keeping our leaders honest. VI Consortium was birthed out of said desire, hopefully my efforts bear fruit. Reach me at [email protected]




Previous Post

District Court Orders Halt To Collection Of Excise Tax In U.S. Virgin Islands

Next Post

A 63-Year-Old Man Drove To Sunny Isle To Meet Minor Boy For Sex. He Was Arrested By Feds In Sting Operation.





You might also like

Leave a Reply


More Story

District Court Orders Halt To Collection Of Excise Tax In U.S. Virgin Islands

District Court Judge Curtis Gomez on Thursday ordered the Government of the Virgin Islands to cease its collection of excise...

November 17, 2018