USVI Lawmakers Back Loan Program for Contractor Bonding Costs

The 36th Legislature moved Friday to ease a significant hurdle facing local construction contractors: the expense of securing performance bonds for large-scale work.

Senator Novelle Francis Jr. introduced Bill 36-0392, which amends the Virgin Islands Code to establish the Virgin Islands Contractor Bonds Cost Revolving Loan Fund. The bill creates the framework for the assistance but does not allocate money to it; Francis indicated that separate legislation will identify funding sources.

Francis told lawmakers that local subcontractors frequently lose out on major contracts because they cannot afford bonding requirements. He expressed hope that at least $10 million could eventually be placed in the fund, though he acknowledged this would be modest against construction projects valued at hundreds of millions or billions of dollars.

"What's important here is to allow for our local subcontractors to have a seat at the table," Francis said.

Several colleagues endorsed the initiative. Senator Marvin Blyden described it as "a blockbuster bill because it actually gives contractors a skin in the game when it comes to large projects, federal and local." Senate President Milton Potter added, "It could be a game changer when it comes to local contractors and allowing them to get a piece of the pie."

The Legislature also approved several other measures during the same session. Lawmakers directed $1.8 million toward repairs and upgrades at the St. Thomas abattoir, a facility that has remained closed while the Department of Agriculture worked to restore it. The shutdown had forced the territory to send St. Thomas livestock to St. Croix for processing.

Another bill allocated $500,000 from the St. John Capital Improvements Fund for work on Rudolph A. Thomas Jr. Road and Contant Point Road. Senator Angel Bolques Jr. noted that deteriorating conditions on these routes have created hazards for drivers and raised accident risks.

The chamber also approved $2.5 million for behavioral health services and funding for pedestrian safety improvements near the former Addelita Cancryn Junior High School pedestrian bridge.

The Legislature confirmed several people nominated by the governor for board positions and approved various leases and zoning variances. All approved bills now move to Governor Albert Bryan Jr. for his review.