Budget 2022 will kick-start Phase 2 of the government’s response to the monumental social, physical and economic impacts of the La Soufriere volcanic eruptions.
On the heels of the $118 million allocated just seven months ago, the Budget contains an additional $50 million in volcano-specific capital expenditure to take place in the coming year.
Much of the expenditure comes in the form of projects under the umbrella of a fresh initiative called “VEEP” – the Volcano Eruption Emergency Project. The VEEP is a multifaceted, multiyear $113 million package negotiated among the Government, the World Bank and the European Union.
The VEEP contains over $20 million in early recovery initiatives and further income support; and close to $85 million to fund the restoration of critical services and infrastructure, while improving the capacity to respond to future emergencies.
Starting in 2022, the VEEP will fund multiple interventions within the Ministries of Works, Agriculture, Social Development, plus NEMO and the CWSA. Among the many significant components of the VEEP are:
- $11.5 million to provide temporary cash transfers and income support to volcano-impacted persons in the Red and Orange Zones
- $11 million to assist in the recovery of the agriculture sector
- $15 million to strengthen the National Emergency Management Organisation
- $14 million to restore, upgrade and strengthen water infrastructure in the north of Saint Vincent
- $40 million to repair and restore bridges and roads, including the purchase of additional heavy equipment
- $8 million to support the Labour Intensive Temporary Employment programme, known by the acronym LITE. The LITE programme will hire local labour on a short-term basis to perform critical community works in preparation for or in response to the lingering threats of flooding, lahars, damaged roads and compromised infrastructure.
The volcano response is not limited to the VEEP.
Budget 2022 continues the work that began in the immediate aftermath of the eruptions to assess and address the destruction of homes in the Red and Orange Zones.
A total of 104 homes were completely destroyed by the volcano, with another 771 requiring moderate to extensive repairs. Analysis aided by the University of the West Indies Seismic Research Centre identified an additional 58 homes, whose proximity to river channel flood plains and other geological features rendered them unsafe for habitation in a post-eruption environment.
As such, the Budget contains $5.8 million to continue the relocation of 68 families whose houses are in areas assessed as vulnerable to lahars and flooding in the post-eruption environment.
This $5.8 million allocation will construct at least 41 houses to complement the 27 homes already under construction. Additionally, $6 million has been allocated to purchase building materials, the bulk of which will be used to repair the 771 damaged homes in the Red and Orange Zones.
The Mustique Company has agreed in principle to a further $6 million to the construction of homes and the relocation of vulnerable residents.
In 2022, more than 150 volcano-affected families will move into freshly-built homes. More than half of those families will be relocated to areas that have been scientifically assessed as safer for habitation than their current locations.
Beyond VEEP, and beyond the fresh housing initiatives for volcano-affected families, Budget 2022 also provides $17.1 million for the continued removal of volcanic ash and debris, $2.3 million to provide further meals, food and hygiene packages to volcano-affected families, and $1 million for the purchase of household appliances for residents who lost everything to the volcano.
