Above: a rendering of the new Parliament building

By the Caribbean Journal staff

The government of Australia is withdrawing from its commitment to fund the construction of the new Parliament House in Grenada.

Australia said it had already funded around $900,933 USD for the first phase of the project, including the design of the new Parliament House.

It had committed to a total of $4.6 million USD for the project, but it would not be participating in the remainder of the project.

The news was announced in a letter from Australian High Commissioner to Grenada Ross Tysoe to Grenada Foreign Minister Nickolas Steele.

As part of a policy shift by the country’s government, it will be cutting its aid budget in the Caribbean from about AUD $11.2 million to AUD $8 million.

Australia said it was shifting its aid priorities to Asia, the Indian Ocean and the Pacific regions.

“This is extremely difficult news, coming at a time when the project is weeks away from starting; and after our government had done all the due diligence on the matter to ensure that it had gotten to this stage,” Grenada’s government said in a statement.

Grenada’s government said it had already begun exploring options with “other friendly governments” to find the additional funding.

The United Arab Emirates is funding $5 million for the project.

“Government remains completely committed to building a new home for this country’s parliament. It is a commitment that has transcended Grenada’s governments,” it said.