Prime Minister Gaston Browne defends Government’s Strategic Jolly Beach Investment to Strengthen Social Security and Drive Long-Term Economic Growth
Prime Minister the Hon. Gaston Browne has defended his government’s bold and visionary move to safeguard the long-term sustainability of Antigua and Barbuda’s National Social Security Scheme, through the transfer and redevelopment of the Jolly Beach Hotel as part of a strategic investment initiative. This effort, spearheaded by Prime Minister the Honourable Gaston Browne, will not only enhance Social Security’s revenue base, but also restore a key national asset, create jobs, and boost tourism.
The resort—located on 27 acres of prime beachfront land and valued at EC$67 million—will be utilized to settle part of a $330 million delinquent government bond owed to the Social Security Board. The bond, issued in 2010 under a previous administration, has remained non-performing for over a decade, compromising the Scheme’s financial health and its ability to meet pension obligations.
“This is more than a real estate transaction,” said Prime Minister Browne. “It is a transformational move to repair past fiscal failures and to position our Social Security Scheme on a path of solvency and prosperity.”
A Revenue-Generating Investment Plan
In a paper written by Prime Minister Gaston Browne defending his government’s decision, it was made clear that the government’s multi-pronged investment strategy is designed to unlock revenue from both existing and new hospitality infrastructure:
- 315 rooms will be sold under the Citizenship by Investment Programme (CIP) at EC$900,000 each, netting an estimated EC$200 million after administrative costs.
- An additional 200 rooms will be constructed on 10 acres of the property, financed through an EC$75 million public investment, and sold at EC$1.3 million per unit, also projected to generate EC$200 million in net revenue.
The total expected revenue over a ten-year horizon is EC$400 million, with an average annual yield of EC$40 million. This significantly outpaces passive investment options, such as bonds or term deposits, which typically yield around 2%—or just EC$2.8 million annually on a comparable EC$142 million investment.
Even under more conservative projections, with revenues discounted by 50%, the investment would still produce an annual return of EC$20 million, or EC$17.2 million more than the passive strategy, wrote Prime Minister Browne.
“This is the kind of smart, forward-thinking investment that ensures Social Security isn’t just surviving—but thriving,” the Prime Minister stated.
Operational Sustainability and Risk Protection
The plan provides a layered structure of financial stability:
- Hotel operations, currently generating EC$4 million in annual profits, are expected to grow to EC$10 million post-development.
- Maintenance and upkeep will be funded by monthly homeowners’ fees of EC$1,000 per unit, projected to bring in EC$6 million annually.
- Should the Social Security Board face any operational or financial challenges, the Government has committed to covering any shortfall, making the investment secure and de-risked.
Building a Balanced, Diversified Pension Fund
Prime Minister Browne wrote that the investment is part of a broader strategy to diversify the Social Security Fund’s portfolio—a standard practice in modern pension management that balances liquidity, risk, and long-term growth.
Historically, the Antigua and Barbuda Social Security Scheme has relied almost exclusively on fixed deposits, earning low returns and ultimately contributing to its declared insolvency in 2010. In contrast, many global pension funds invest in real estate, infrastructure, and other long-term illiquid assets to hedge against inflation and ensure steady returns.
“A sustainable pension system requires more than just savings accounts,” said Prime Minister Browne. “It requires strategic asset allocation and proactive investment to meet future obligations.”
Correcting the Failures of the Past
The Prime Minister did not shy away from highlighting the mismanagement and neglect that led to the Scheme’s financial deterioration. Between the 1990s and 2014, successive governments failed to:
- Repay loans from the Social Security Fund;
- Make parametric reforms such as adjusting retirement age or contributions;
- Invest Social Security funds for growth.
“Instead of acting on the 2010 actuarial findings of insolvency, then-Finance Minister Harold Lovell chose inaction,” Browne noted. “That failure forced pensioners to line up in the early morning hours, only to leave without their payments.”
By contrast, the Gaston Browne administration has since:
- Implemented necessary parametric reforms in 2016;
- Injected over EC$200 million into the Scheme over the past decade;
- Committed a further EC$90 million in upcoming support, bringing total contributions to EC$300 million—a sharp contrast to the EC$65 million paid during the UPP’s entire 10-year term.
Governance, Transparency, and Risk Management
To safeguard this major investment, the Government and the Social Security Board will implement robust governance protocols, including:
- Enhanced Investment Committee oversight with qualified financial professionals;
- Parliamentary reporting every six months;
- Annual professional audits and public disclosure;
- Caps on investment exposure based on risk profile;
- Liquidity buffers to meet near-term obligations;
- Stress testing and independent valuation of assets.
New regulations are also being developed to ensure compliance with best practices in pension fund management and public finance, Prime Minister Browne pointed out.
Broader Economic Impact
Beyond strengthening pensions, the Jolly Beach investment will drive wide-ranging national benefits:
- Hundreds of jobs in construction and hospitality;
- Significant foreign exchange inflows;
- Increased tax revenues from property, VAT, and income;
- Greater entrepreneurial opportunities through support services;
- Enhanced national pride and ownership of a key hospitality asset;
- Expanded airlift from international carriers to meet demand.
“This is more than a hotel project—it’s an engine of economic transformation,” Browne added.
A Vision for the Future
Prime Minister Browne described the investment as a critical pillar in the Government’s broader vision to build a resilient, inclusive, and economically independent Antigua and Barbuda.
“We are charting a new course—where public assets work for the public good, and where we move beyond dependency and despair into ownership, growth, and prosperity,” he said.
While the initiative may face opposition from what the Prime Minister described as “risk-averse pessimists,” he reaffirmed that the Antigua and Barbuda Labour Party (ABLP) administration remains committed to delivering results, driven by competence, confidence, and a track record of success.
“We are securing the future for our pensioners, building national wealth, and creating opportunities for generations to come. The ABLP Government will deliver,” he concluded.
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When the dust is settled, it shall be read that prime minister Gaston brown defend housing for white people on the beach front dubbed as condominiums, a word that will elude the older people and semiliterate voters of ALP and the country on a whole, that condominiums is simply homes for dwelling adjoin to each other to maximize land space, so this generation of black people as those of the 19th century did produce wealth in cane and cotton labor as slaves, so to our semiliterate politicians who seeks white validation is used to extract wealth from the poor black former slaves to empower this new generation of white people, so white monopoly capital domination is perpetuated with the complicity of Gaston brown.
These white people in PLH over in barbuda and Antigua are given a hands out to develop themselves and fossilize the local black people as maids and gardeners since they are give the land resources as social and economic wealth.
What will be Gaston and these era of politicians lot who are marionette to white hegemony in the future?
Why is Namco not involved in this investment?
How much defending does this one project need?
Hey Gatson..I’m tired of calling you a fool, so here is some hint of advice to you.
If you believe that Jolly Beach is such a sure-fire investment asset, and you and your foreign affairs Minister so believe in your ” Great CIP”, then why you even need to take $75m from SS?
Why not sell your first 100 units, minus your administration fees of course, then take that remaining $75m and build your additional 200 units?
Wouldn’t that be the safest thing to do, and leave SS money alone?
But then again I don’t think you would listen to me, so why do I even bother.. 🤣.
Your current plan is very risky Gatson, given the fact that our two largest investor/tourist nations are already questioning your very shaky CIP program.
But hey, who am I to advise Gatson Browne.
@Commenting from the distance July 7, 2025 At 9:32 am
Could it be because the Prime Minister is trying to solve a cashflow issue for Social Security and not for the Treasury. Of course he can kick the can down the road and do nothing if that is what you prefer? I mean damn if you do damn if you don’t.
At least he is taking the bull by the horn and when things come to past will we give him his flowers then. The UPP authorized the investment of our Social Security monies in CLICO and no one knew about it untill CLICO went under and only then we learned that we lost $7million dollars. The also allowed the investment in a housing project in Paynters, again not by local contractors, but by a Trinidadian company. And the standard of those houses are so bad, many took Social Security to court for the bad construction. If I am correct Social Security lost money on that project. And when you compare the houses next door to the what National Housing build, it is chees to chalk. The UPP was a real inept government and the present candidantes are even worse than what we had before.
Speaking about investment…Can someone advise the general public how is it that permission was granted for work to commence on a structure that will be erected along that watercourse on factory rd. Several years ago one was done on the opposite and a stop order was given. How is it now one is being done now on the opposite side. Is it because they are from the far east?
LEARN FROM THE TEXAS EXPERIENCE!!!
When the Prime Minister at first threw out the plan and didn’t provide any details, I was one that suggested that the PM better had NAMCO take the risk and when the profits start coming in, he can then transfer to shares to Social Security. I also am aware that many investors have looked at Jolly Beach and all have come to on conclusion, break down the entire structure and start again. They were only willing to pay for the land and not the structure. Calvin Ayre has done just that. He will build his Nikki Beach Club next door. When you therefore refurbish Jolly Beach and have that facility of Calvin Next door you will get a better attraction for the Jolly Beach Hotel. It will raise the value of Jolly Beach. And what I also now agree with is that the PM is building many safe guard for the investment and giving government guarantees. So in fact it can only be a win win situation for Social Security. I will only make one suggestion to the PM. Seperate the operation from the Social Security from the Investment Arm from Social Security. And have the two operations have a seperate boards. The one operation should only be involved in the benefits and the collections of the contributions. The investment arm should be made up of renowned business men/women and finance and investment professionals. The hotel needs to be operated by a hotel manegemt group and not by the investment company. The same way you let Elite Resort run the hotel and showed you that they can fill the rooms and run it profitably. ABIB tried to run it themselves. And I had many discussions with my friend Jarvis who was the chiarman of that board.
I really think that we have a PM that is far ahead of us when it comes to Financial Planning and Engineering. He demonstrated his ability when he came in to office and bought us WIOC without borrowing a dime from the Treasury and he has continued to show his worth. God Bless you Mr. Browne and may you stay very long as our visionary Prime Minister. Taking us to higher hieghts every time.
I know this is not the area for this question, but why is it right that Antigua and Barbuda open it’s doors to free VISA entrance for Africans, but in return we as Antiguans and Barbudans have to pay for a VISA to enter African nations. I know we focus on tourism, but how is it benefitting your own citizens when money is being taken away from the economy by waiving the VISA requirements for Africans, but we have to pay for VISA to gain access to Africa. How is it that we are considered as brothers and sisters, but we are not equally welcomed. It’s like Antiguan and Barbudans have to embrace everyone and give free access to come here, but no one is rendering the same embracement to us. The reparation organizations and organization saying we should link the Caribbean to Africa, but it is only a certain amount of Caribbean countries that have free visa access to Africa. Antiguan and Barbudans have to pay at least $100 to $200 usd to purchase VISA to enter African nations, but they just easily walk into Antigua and Barbuda.