On Tuesday night, Governor John P. de Jongh, Jr. was notified that the Office of Economic Opportunity under the V.I. Public Finance Authority had been awarded approximately $59 million in federal funding under the American Recovery and Reinvestment Act (ARRA) to design and construct an advanced broadband network for the Virgin Islands. 

The project will construct an underground fiber ring network on the islands of St. Croix and St. Thomas and an aerial network on the island of St. John. These networks will be connected through existing fiber cables to each other and further interconnected to the U.S. mainland through existing submarine fiber cables. “Over 300 miles of new fiber cables will be laid in this project,” said Office of Economic Opportunity (OEO) Director Julito A. Francis. This will truly be an advanced broadband network once the project is fully constructed, and it will maintain its edge with new technological developments due to the interconnection with the mainland,” he added.

Once the local match of in-kind and cash are added, the project will total over $120 million in economic development in the territory over this next three years. The project will create over 200 jobs during its implementation phase and will help spur economic development in the territory for generations to come, by attracting businesses—and creating jobs—in the high technology and financial sectors that depend heavily on reliable advanced high speed telecommunications to interconnect their offices worldwide. It will also be a boon to the Virgin Islanders who want to start a home-based Internet business or simply want to connect to the World Wide Web at high data rates.

In addition, the project will further advance initiatives in education, healthcare, public safety, and emergency first responders by interconnecting all of these offices with fiber cables and data rates that are at least 1,000 times faster than speeds currently available in the Virgin Islands. The network, once completed, will provide wholesale advanced telecommunications services to local private telecommunications providers and spur competition in the local telecommunications sector, leading to lower prices for higher data rates and improved services.

The Virgin Islands Water and Power Authority is a partner with the Office of Economic Opportunity in this effort and will provide in-kind contributions of conduit and pole space for the expeditious laying of the fiber network, which truly made the project “shovel ready” in the NTIA review. In exchange for its in-kind contributions, WAPA will receive access to fiber strands that will assist it in completing its smart-grid initiative as well as share in the wholesale revenues generated by the new broadband entity. “This is truly a win-win for WAPA to participate as a partner in this project, as it will allow the authority to diversify its revenue base as well as improve WAPA’s network serviceability and reliability to its customers, said Executive Director Hugo Hodge, Jr. 

De Jongh said Wednesday that the ARRA award will be officially presented within the next few weeks by a representative of the Department of Commerce’s National Telecommunications and Information Association (NTIA) under its Broadband Technologies Opportunity Program (BTOP). “In winning this award, the Virgin Islands’ project was successful against thousands of other proposals submitted to the NTIA for funding under the ARRA. By the end of September 2010, the NTIA is expected to award $7 billion in funding to only the best projects submitted for the states and U.S. territories.”

The governor said today that this award will now begin the process of implementing the territory’s telecommunications strategy that his administration envisioned over 15 months ago when a business round table was first held on St. Croix with all telecommunications providers and formed the broadband alliance of private sector businesses and public agencies. He congratulated all persons involved on the vision, the hard work, and now the execution in winning this highly competitive award in particular the OEO under the leadership of Julito Francis. “The success of your efforts will benefit all Virgin Islanders and will truly be a game-changer. On behalf of our community—great job and well done,” deJongh said in an email to all persons involved in the territory’s successful application for this grant.

This grant is one of four other ARRA grants totaling over $68 million for which the OEO has submitted applications to the NTIA for funding. The other three will cover interrelated projects, including: (i) State Broadband Data Development grant, which the OEO has already been awarded, for mapping of the existing telecommunications infrastructure and capabilities in the territory, and two projects for which OEO has pending applications before NTIA for (ii) the development of public computer centers that will provide access primarily to the underserved, under-educated, and the elderly population, and (iii) the development of a sustainable broadband adoption program that will provide education and training about the capabilities of broadband for everyday use and economic development for business creation to the underserved, under-educated, and the elderly population. “All together, these projects and programs will represent over $140 million of economic development for the territory for the next three years and generate new revenues for the Virgin Islands at a time when we ensure both economic diversification and job opportunities,” de Jongh said.

Governor de Jongh recently executed four Memoranda of Agreement to utilize over $9 million in American Recovery and Reinvestment Act of 2009 or ARRA funding for energy efficiency initiatives in the government.

In announcing the Memoranda of Agreement:

“The execution of the agreements between the Virgin Islands Energy Office and the Department of Public Works, Water and Power Authority, Port Authority and Waste Management Authority are part of our overall strategy to reduce energy use. They are also part of our efforts to improve our approach to managing government affairs by achieving energy efficiency in government buildings and facilities, consistency and management of our street lighting, and implementing a gas-treatment system at one of our landfills. The availability and access to ARRA funding has enabled us to be creative and to implement programs that will have a direct impact on government costs and our approach to energy conservation.”

The Department of Public Works will install traffic signal LED bulbs, LED street light bulbs, solar lights in bus shelters, and solar lights on the Christiansted Boardwalk. These projects will cost $964,955 and save the Virgin Islands government about 820,060kWhs per year. LED or light emitting diodes use half the power that compact fluorescent bulbs utilize and have twice the lifecycle. 

The Virgin Islands Water and Power Authority will purchase and install a street light management system and replace high-pressure sodium street light fixtures with LED fixtures. This project will utilize $2.5 million of ARRA funds. It is estimated that this project will save WAPA 700,000 kWhs per year.

The Virgin Islands Waste Management Authority will install a landfill, gas-to-energy, gas-treatment system at the Bovoni Landfill on St. Thomas at an estimated cost of about $3 million. The work will include the installation of generating equipment to use the landfill gas to produce electricity at the Bovoni Landfill. The gas for the generators will be collected with a gas collection system already in progress prior to the grant award. This project is estimated to produce 1.5 million kWhs per year.

In the fourth project, the Virgin Islands Port Authority will receive $2.9 million to purchase and install a 335 kW PV solar system at the Cyril E. King Airport on St. Thomas. This is expected to produce 485,925 kWhs per year for Port Authority use. At the current electric rate this will save the Port Authority $170,073 annually.

Overall, the savings anticipated from these projects will be about $2.1 million per year. “This is a significant milestone in our efforts to achieve the objectives of our comprehensive energy strategy. These government agencies are leading by example as we begin to reduce energy costs and promote clean energy use,” said Bevan R. Smith, Jr., Director of the Energy Office.

Smith said it is also the office’s objective to increase efficiency of energy use and production and increase fuel diversity and reliability, therefore, by this summer the central government and large commercial ratepayers will benefit from a long-term, self-sustaining energy demand reduction plan to decrease electricity and water consumption by 46 million kWh and 230 million gallons by 2013. This plan is expected to reduce utility costs in the Virgin Islands at current prices by almost $20 million annually beginning in 2013. 

Flanked by Deputy School Superintendent Joseph Sibilly and Acting School Lunch Director Esther Lynch-Isaak, Governor de Jongh on Tuesday toured the kitchen of the Lockhart Elementary School on St. Thomas to see firsthand how the school’s $200,000 in federal stimulus monies was put to use. The school’s kitchen serves as a satellite feeding center for other schools in the district. 

Governor John P. de Jongh, Jr. inspects new tipping skillet at Lockhart Elementary School kitchen. The skillet and other much-needed equipment was purchased with federal stimulus dollars awarded the territory under the American Recovery and Reinvestment Act, ARRA. To the governor’s right is Acting School Lunch Director, Esther Lynch-Isaak.

With the stimulus funds, the Virgin Islands government was able to purchase six large pieces of equipment, including a much needed tipping skillet and a double convection oven for Lockhart Elementary. At the present time, the school is also working on a solar hot water project that should be finished by the end of this month.

Listen to the Governor's Remarks .mp3 (2MB)

The Governor said that the $200,000 provided by the American Recovery and Reinvestment Act was split equally between the two districts, with the funds going toward needed equipment at some of the bigger kitchens. These include the kitchens at Charlotte Amalie High School, Lockhart and the E. Benjamin Oliver elementary schools on St. Thomas. The governor also noted that another round of funding is expected shortly for school kitchens, this time coming from the Public Finance Authority. 

During Tuesday’s tour, Sibilly informed the governor that renovations are substantially completed at other schools in the district including Ulla F. Muller Elementary and Addelita Cancryn Junior High School. Renovations are planned at Julius Sprauve School on St. John, along with Joseph Gomez Elementary on St. Thomas.

In a discussion with reporters after the school tour, de Jongh said that revamping the schools' recreational facilities, such as basketball courts, are also on the priority list as the government continues to make use of federal economic stimulus funds.

This morning, Governor de Jongh joined the V.I. Resource Conservation and Development Council at groundbreaking ceremonies for stimulus grant-funded restoration activities in the Coral Bay, St. John watershed. The Governor said the event kicked-off planned storm water management construction projects to be implemented in Coral Bay with $1.4 million in NOAA-ARRA Coastal Habitat Restoration grant funds received by the council through the American Recovery and Reinvestment Act. A total of $2.78 million was awarded for Territory-wide projects, including for construction work in Fish Bay and on St. Croix’s East End Bay. The combined projects will keep approximately 100 tons of sediment out of Virgin Islands coastal waters.

Speaking at the groundbreaking, the Governor highlighted the ongoing challenges before the Territory as a result of the global recession, noting the significance of the ARRA grant award to help stimulate Virgin Islands jobs while preserving and protecting our precious natural resources"

Governor John P. de Jongh, Jr. talks with children following the groundbreaking ceremony for the Coral Bay Watershed restoration project on April 14, 2010.

“Through the implementation of targeted watershed restoration practices, the council is seeking to mitigate the damaging effects of sedimentation which has become the primary land based threat harming coastal and marine habitats in the Virgin Islands. This collaborative effort is one more example of a proactive, public/private partnership that my Administration is leading to balance development efforts with the natural environment."

“The Virgin Islands Resource Conservation and Development Council is to be commended, along with our other community partners on St. John, for their dedication in securing this important grant and working collaboratively on measured growth efforts that move the Virgin Islands forward. Along with the St. John Planner, we are working together to modernize our infrastructure, improve our local economy, and continue to build for a more prosperous future for all.”

The Governor spoke of the responsibility to pursue initiatives that create important economic development and additional employment opportunities for Virgin Islanders. 

“Although we all face challenges that affect our pocket books on a daily basis, if we work together, we can discard parochial views and move forward with needed, measured growth efforts. This project does exactly that, and I couldn’t be more pleased to herald this investment for the St. John and Virgin Islands communities.”

Some of the subproject activities will focus on eliminating or reducing the most severe sediment plumes entering Coral Bay, and will include bioretention areas and work on or adjacent to public and private roads, including King’s Hill Road, Carolina Valley, Route 108 (lower Bordeaux), Hansen Bay, Johnny Horn Trail, John’s Folly and Calabash Boom. Work is expected to be done in cooperation with homeowner’s associations, the Department of Public Works and groups of residents who maintain their local roads.

Joining the Governor at the groundbreaking ceremonies were Public Works Commissioner Darryl Smalls; Agriculture Commissioner Louis E. Petersen; Housing, Parks, and Recreation Commissioner St. Claire Williams; Leona Smith, St. John Administrator; Stuart Smith, St. John Planner; Samuel D. Rauch, Deputy Assistant Administrator for Regulatory Programs, National Oceanic and Atmospheric Administration; Sharon Coldren, President, Coral Bay Community Council; Norman Williams, Director, CZM Division, DPNR; Diane Capehart, V.I. Resource Conservation and Development Council, Inc.; William Blum, Representative of the Egbert Marsh Trust; Senator Craig W. Barshinger; and Government House Executive Staff.

The council’s subproject partners include: the Coral Bay Community Council, the NOAA Restoration Center, the Department of Planning and Natural Resources, University of San Diego, Carlos Ramos-Scharron of the University of Texas-Austin and the UVI Center for Marine and Environmental Studies. 

NOAA representative Samuel D. Rauch noted that the project stands “as a model” for other similar geographic areas throughout the nation. “Protecting the coast helps protect jobs.”

Last evening, Governor de Jongh heralded the announcement from Washington, D.C. that more than $47.5 million in State Fiscal Stabilization Funds (SFSF) were approved for the Virgin Islands.

“The monies represent the first phase of SFSF funds for the territory and will assist us in maintaining education services, keeping teachers in the classrooms and at the same time, preventing the cutting of valuable education programs,” de Jongh said, noting that the award of the monies today caps a lengthy process that has included face-to-face meetings with Education Secretary Arne Duncan in 2009.

According to de Jongh, the funding comes a time when the territory continues to grapple with a budget revenue shortfall:

“This provides the resources to assist in making the necessary improvements to our education system that we have identified during repeated discussions with White House officials and with leaders at the U.S. Departments of Interior and Education.”

A condition of the federal stimulus monies requires the V.I. government to meet certain goals and objectives including: enhancing the qualifications and effectiveness of teachers in public elementary and secondary schools; establishment of a data system in compliance with the federal America COMPETES Act; improve the quality of academic standards and assessments as well as implement enhanced standards and assessments; modernize, renovate, and repair public educational facilities that are used primarily for classroom instruction; strengthen technology infrastructure of public elementary and secondary schools, public institutions of higher education and government agencies and establishment or completion of the implementation of a credible financial management system. 

The award of SFSF funding brings the total to more than $56.4 million, the territory has received in education stimulus funds. Other components funded from the 2009 American Recovery and Reinvestment Act include: IDEA funding, school improvement grants, education technology grants, Pell grants and work study funding.

The Governor said the Virgin Islands will receive the State Stabilization funds under two components: The Education Stabilization Fund and the Government Services Fund. The Department of Education will award 81.8 percent of the total monies under the Education Stabilization Fund and the remaining 18.2 percent under the Government Services Fund. 

“I view the awarding of these federal stimulus dollars for the Virgin Islands as an unprecedented opportunity for us as a government to undertake comprehensive educational and fiscal reforms that will result in better programs and improved educational outcomes for our children. There are several categories in which the territory will benefit," the Governor said

The lion’s share of the funding will total $9.4 million in Title I monies, $1.1 million in Education Technology State grants and almost $353,000 under the Individuals with Disabilities Education Act. 

“Title I monies are used for schools that have a high concentration of students from families who live in poverty. The monies are to be used specifically for the improvement of teaching and learning for students that are most at risk of failing to meet academic standards," he said.

Federal Funding Sought to Expand Telecom Network
Posted by Jean Greaux on April 6, 2010 at 5:53 PM AST

Yesterday, Governor de Jongh, as Chairman of the Virgin Islands Public Finance Authority, announced another significant leap forward in bringing additional small business opportunities to the Virgin Islands with the Office of Economic Opportunity’s submission of three grant applications totaling over $65.6 million in competitive funding from the U.S. Department of Commerce National Telecommunications and Information Administration’s (NTIA) Broadband Technology Opportunities Program (BTOP). The total project costs are estimated to be over $99 million.

Listen to the Governor's Announcement .mp3 (4MB)

In announcing the grant submission, the Governor said:

 “Our aim in submitting these grants is to construct a critical component of our telecommunications infrastructure that will enable other parties to expand their product offers in the territory. Another goal is to increase our attractiveness in order to achieve economic diversification while also ensuring that our residents have access to the upgraded telecommunications network and the opportunities it will provide. Additionally, this funding would provide Internet users in the Virgin Islands efficient and reliable connectivity to the World Wide Web at speeds not presently available." 

The Governor noted that the essential component of this network is the build-out of the “middle mile” as has been developed by Stratum Broadband, Inc., under the direction of the Office of Economic Opportunity with the involvement of the Virgin Islands Water & Power Authority. 

Click to Enlarge

The BTOP submissions consist of three competitive grant applications: 

$3.2 million for Public Computer Centers to place internet-enabled computers in libraries, senior citizen and community centers to be used free of charge; 

$2.6 million for Sustainable Broadband Adoption to focus on training on the use and advantages of broadband capabilities, which will done in conjunction with the University of the Virgin Islands;

$59.8 million for the Comprehensive Community Infrastructure to expand the telecommunications infrastructure with the deployment of over 250 miles of fiber cables in underground conduit, submarine and aerial. 

 Julito Francis, Director of the Office of Economic Opportunity, said:

“Our ability to design the network and respond to the BTOP grants was only made possible by the roundtable discussions and cooperation we received from private telecom, data and video service providers in the territory and involvement of public institutions over the past year. Their willingness to share with us critical information and discuss their plans was important to our ability to submit the various applications." 

He added that the new fiber-based network will bring broadband speeds that are more than 100 to 10,000 times faster than what is currently capable today in the territory:

“These new speeds will add capabilities to improve education within our schools, increase medical services in coordination with the Department of Health’s Health Information Technology (HIT) and Health Information Exchange (HIE) initiatives and enhance emergency management and public safety with improved camera surveillance and secure communications.”

In a letter of support for the application sent to Lawrence E. Strickling, Assistant Secretary for the NTIA, the  said "Our need is severe given the current antiquated and highly congested telecommunications infrastructure.” 

The governor further said that build-out of the new “middle mile” project will give private investors added incentives to increase “last mile” connections to businesses and residents since the high cost of constructing such a network will be offset by the grant funds if the administration is successful in its application bid.

 “These private investors will bring economic opportunity to the territory and ensure economic diversification and enable us to capitalize on the University of the Virgin Islands’ Research and Technology Park offerings and our economic development program through new investments and much needed higher paying jobs; typical within broadband services sector.”

Executive Director of the Water and Power Authority, Hugo Hodge, Jr. said, 

“WAPA is a strategic partner in the ‘middle mile’ broadband network development and will contribute conduit and pole space as well as dark fibers to the network. WAPA will also benefit from the fiber cable deployment with the ability to expand its smart grid network initiatives.” 

Local entrepreneurs can also offer a plethora of broadband services since the “middle mile” project will directly connect major bandwidth users such as government offices, hotels, and other businesses, Francis added. 

Recovery in Action: One Year Later
Posted by Jean Greaux on February 17, 2010 at 5:10 PM AST

On today’s first anniversary of the American Recovery and Reinvestment Act, Governor de Jongh updated Virgin Islanders about the benefits the territory has seen from President Barack Obama’s stimulus plan.

He said that the Recovery Act has created jobs, secured public services, eased hardships, stabilized small businesses and laid a foundation for economic recovery in the Virgin Islands, as well as across the nation. 

"Members of my administration, including the V.I. Office of Economic Opportunity, have worked tirelessly over the past year to obtain and implement stimulus funding that would assist the Virgin Islands and its people in these difficult economic times. We in the territory deserve the same opportunities at prosperity as our fellow citizens across the country."

“I would like to join many other governors in acknowledging the positive effect the American Recovery and Reinvestment Act (ARRA) has had on our economy, security and livelihood."

Over the past year, the territory has received more than $156 million in formula and competitive awards. That money from the Reinvestment Act has gone to 19 different government, semi-autonomous, business and charitable organizations that met the federal requirements.

The Governor noted that the ARRA legislation has provided $45 million in direct fiscal relief to people who are struggling through veterans’ benefits, food stamp programs, small business loans and social security benefits.

“We have received more than $85 million in competitive grants that have gone towards fiscal stabilization, transportation, marine security and law enforcement. We have also used our stimulus dollars to expand clean-energy initiatives, health and human service benefits and job creation programs. Almost 200 people are employed in the territory because of the Reinvestment Act,."

Many government and private economists have attributed the creation of two million jobs across the country to the Recovery Act. It is now clear that the stimulus plan helped to cushion the greatest economic crisis since the Great Depression and has provided a foundation for economic growth in the near future. 

In the fourth quarter of 2009, the U.S. economy grew by an unprecedented 5.7 percent. Many economists attribute the growth to the stimulus spending. The Recovery Act has also provided more than 100 billion in tax relief to families and businesses, and saved several U.S. states from drastic and dangerous cutbacks in education, health care and law enforcement. 

Governor de Jongh stressed that this is only the beginning:

“The Recovery Act was designed to infuse money into the economy gradually in order to maintain a solid recovery—we will see peak spending reached during this year. The Virgin Islands will continue to benefit from this crucial piece of economic legislation, so that our territory will rise back into economic health along with the rest of the country.” To this end, Governor de Jongh stands with President Obama, who is working diligently to find more solutions in creating jobs and driving economic growth throughout our country. “President Obama says he will not be satisfied until our nation’s economy is back on a firm footing. I make the same commitment to this territory."

The Governor will continue to improve upon our partnerships with Washington, D.C. and the President’s administration to successfully implement stimulus spending and keep moving away from the near depression we were looking at exactly a year ago. In doing all this, the de Jongh Administration has sought to maintain transparency, in line with the President’s mandate for the dispersion of stimulus funds."

To learn more about how federal stimulus money is being obtained, and spent, in the Virgin Islands, visit Governorde Jongh.com/Recovery

Earlier today, Governor de Jongh joined local and federal officials for a groundbreaking ceremony for the Red Hook Sidewalk Improvement project at Ivanna Eudora Kean High School on St. Thomas. The project, funded by the American Recovery and Reinvestment Act of 2009, covers a .2 mile segment of roadway that runs from the Red Hook Marine Terminal to the Ivanna Eudora Kean High School, includes new sidewalks, crosswalks, drainage improvements, and signage in the area.

Joining the Governor for the ceremony were Public Works Commissioner Darryl Smalls and Federal Highway Administration Regional Assistant Administrator Daniel Camacho.

You can listen to their remarks from the ceremony below:

• Governor de Jongh .mp3 (3 MB)
• Commissioner Smalls .mp3 (3 MB)
• FHA Regional Assistant Administrator Camacho .mp3 (2 MB)

Virgin Islands Awarded $1.4 Million Broadband Grant
Posted by Jean Greaux on January 3, 2010 at 4:50 PM AST

Governor de Jongh said today that the Virgin Islands has been awarded approximately $1.4 million from the National Telecommunications Information Administration of the Department of Commerce under their Broadband Technologies Opportunity Program (BTOP). The monies will fund mapping of the territory’s existing broadband network and funding for planning the expansion of the territory’s telecommunications facilities. 

In announcing the grant, Governor de Jongh said:

“This competitive federal stimulus grant award will allow us to begin the process that will result in our being able to provide reliable broadband services to the territory’s residents and businesses. This is a key initiative towards bringing the critical infrastructure to further spur economic growth in the territory and enable our community to participate in communications and internet worlds without limitation."