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| Montserrat aid programme comes under fire from UK watchdog | Montserrat aid programme comes under fire from UK watchdog |
| (about 11 hours later) | |
| The UK's aid watchdog has criticised an £8.8m investment by the Department for International Development (DfID) in a new airport on Montserrat, the Caribbean island devastated by a volcanic eruption in 1997. | The UK's aid watchdog has criticised an £8.8m investment by the Department for International Development (DfID) in a new airport on Montserrat, the Caribbean island devastated by a volcanic eruption in 1997. |
| The finding from the Independent Commission for Aid Impact (Icai), published on Tuesday, comes in an analysis of DfID's programmes in Montserrat (pdf), whose 5,000 islanders depend heavily on UK aid. Icai gives an overall amber-red rating (red is the worst) to DfID's programme for Montserrat, one of 14 British overseas territories. | |
| Icai says the aid programme has had some positive outcomes, but DfID does not yet have a firm view on what Montserrat's reasonable needs are, or what self-sufficiency means for the island, how best to improve it strategically over the long-term or what is affordable to UK and Montserrat taxpayers. | Icai says the aid programme has had some positive outcomes, but DfID does not yet have a firm view on what Montserrat's reasonable needs are, or what self-sufficiency means for the island, how best to improve it strategically over the long-term or what is affordable to UK and Montserrat taxpayers. |
| The island received £324m between 1997-98 and 2011-12, half of the total given to overseas territories in this period. DfID expects to provide more than £34m each year from 2012-13 to 2014-15 to help Montserrat achieve self-sufficiency, particularly through tourism. But under Icai's traffic-light system, the programme performs relatively poorly against the watchdog's criteria for effectiveness and value for money, and significant improvements should be made. | The island received £324m between 1997-98 and 2011-12, half of the total given to overseas territories in this period. DfID expects to provide more than £34m each year from 2012-13 to 2014-15 to help Montserrat achieve self-sufficiency, particularly through tourism. But under Icai's traffic-light system, the programme performs relatively poorly against the watchdog's criteria for effectiveness and value for money, and significant improvements should be made. |
| Montserrat has suffered from major natural disasters. In 1989, Hurricane Hugo left more than 90% of the population homeless. Infrastructure repairs were almost finished when the Soufrière Hills volcano began erupting in 1995. By 1997, eruptions had destroyed the capital, Plymouth. Before the disaster, the island's population was about 13,000. It has since dropped to 4,922. | Montserrat has suffered from major natural disasters. In 1989, Hurricane Hugo left more than 90% of the population homeless. Infrastructure repairs were almost finished when the Soufrière Hills volcano began erupting in 1995. By 1997, eruptions had destroyed the capital, Plymouth. Before the disaster, the island's population was about 13,000. It has since dropped to 4,922. |
| Montserrat, formerly self-sufficient, has become heavily dependent on British financial support. Tourism revenues dropped from £5.9m in 2000 to £3.3m in 2011. While the UK has worked closely and successfully with the island to help it move from the immediate post-disaster emergency to normality, Icai says DfID has not put adequate effort into managing the expectations of residents about the level of future funding. | Montserrat, formerly self-sufficient, has become heavily dependent on British financial support. Tourism revenues dropped from £5.9m in 2000 to £3.3m in 2011. While the UK has worked closely and successfully with the island to help it move from the immediate post-disaster emergency to normality, Icai says DfID has not put adequate effort into managing the expectations of residents about the level of future funding. |
| "Rather than making difficult strategic choices to prioritise some projects and not support others, DfID has made poor decisions on a project-by-project basis and has not demonstrated a capacity for joined-up thinking across projects," the report says. | "Rather than making difficult strategic choices to prioritise some projects and not support others, DfID has made poor decisions on a project-by-project basis and has not demonstrated a capacity for joined-up thinking across projects," the report says. |
| Icai is particularly critical of the airport at Gerald's Park, which has turned out to a be a white elephant. The airport opened in 2005 to replace the one destroyed in the volcanic eruption. The watchdog says the business case for the airport was not evaluated adequately, and DfID's forecasts about traffic levels were overoptimistic, as tourist numbers have continued to fall. | Icai is particularly critical of the airport at Gerald's Park, which has turned out to a be a white elephant. The airport opened in 2005 to replace the one destroyed in the volcanic eruption. The watchdog says the business case for the airport was not evaluated adequately, and DfID's forecasts about traffic levels were overoptimistic, as tourist numbers have continued to fall. |
| DfID approved the project on the basis that subsidies for helicopter and ferry services would cease. But its assumptions about the willingness of ferry passengers to transfer to an air service proved to be wrong. As a result, Montserrat subsidised the airport, an airline service and the reintroduced ferry service at a cost of £732,000 in 2011-12. Icai notes that while the Montserrat government endorsed the airport project, it had reservations. | DfID approved the project on the basis that subsidies for helicopter and ferry services would cease. But its assumptions about the willingness of ferry passengers to transfer to an air service proved to be wrong. As a result, Montserrat subsidised the airport, an airline service and the reintroduced ferry service at a cost of £732,000 in 2011-12. Icai notes that while the Montserrat government endorsed the airport project, it had reservations. |
| Icai says it does not find a compelling rationale for the project on the grounds of reasonable needs. "With Antigua only 43km away, ferry access could have been a more suitable alternative. Many islands with small populations cope well with this means of access and accept that adverse weather conditions may mean that access (whether by ferry or air) is not always possible," says the report. | Icai says it does not find a compelling rationale for the project on the grounds of reasonable needs. "With Antigua only 43km away, ferry access could have been a more suitable alternative. Many islands with small populations cope well with this means of access and accept that adverse weather conditions may mean that access (whether by ferry or air) is not always possible," says the report. |
| Icai recommends that DfID develop a more detailed understanding of self-sufficiency for the island and use this understanding with Montserrat to determine a set of realistic expectations. | Icai recommends that DfID develop a more detailed understanding of self-sufficiency for the island and use this understanding with Montserrat to determine a set of realistic expectations. |
| "Although we saw evidence of good and necessary assistance to find basic investment on Montserrat, we found that DfID needs to support the government of Montserrat to develop a long-term plan for the island to move towards economic, financially justifiable self-sufficiency," said Graham Ward, Icai's chief commissioner. | "Although we saw evidence of good and necessary assistance to find basic investment on Montserrat, we found that DfID needs to support the government of Montserrat to develop a long-term plan for the island to move towards economic, financially justifiable self-sufficiency," said Graham Ward, Icai's chief commissioner. |
| A DfID spokesman said: "Icai recognises that DfID has worked successfully with the government of Montserrat to move the island to a more stable footing following devastating natural disasters in the 1980s and 1990s. The report also finds that DfID's programmes have made a positive impact on Montserrat's recovery and helped avert a complete evacuation of the island, while ensuring value for UK taxpayers' money. | A DfID spokesman said: "Icai recognises that DfID has worked successfully with the government of Montserrat to move the island to a more stable footing following devastating natural disasters in the 1980s and 1990s. The report also finds that DfID's programmes have made a positive impact on Montserrat's recovery and helped avert a complete evacuation of the island, while ensuring value for UK taxpayers' money. |
| "We will continue to meet our legal obligations to Montserrat, including pressing the government to accept a long-term plan for the island to become as financially self-sufficient as possible." | "We will continue to meet our legal obligations to Montserrat, including pressing the government to accept a long-term plan for the island to become as financially self-sufficient as possible." |
| Last week DfID announced the conditional lifting of the suspension on Montserrat's A1 road project. Funding was stopped in April as DfID asked for an up-to-date condition survey and a rational and costed plan for all necessary improvements to allow for proper maintenance. The project began in 2011, funded by a £3.4m grant. | Last week DfID announced the conditional lifting of the suspension on Montserrat's A1 road project. Funding was stopped in April as DfID asked for an up-to-date condition survey and a rational and costed plan for all necessary improvements to allow for proper maintenance. The project began in 2011, funded by a £3.4m grant. |
| A separate Icai report, published on Tuesday, gives an overall rating of green to DfID's health programmes in Burma (pdf). Icai says DfID has demonstrated clear leadership in working well with intended beneficiaries, other donors, delivery partners and Burma's ministry of health. | |
| The UK is the largest international donor to Burma, one of the poorest states in Asia. DfID spends almost half of its Burma expenditure on health, £110m between 2010 and 2015. | The UK is the largest international donor to Burma, one of the poorest states in Asia. DfID spends almost half of its Burma expenditure on health, £110m between 2010 and 2015. |