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'I confirm that the claim(s) at () represent a proper liability against the project(s) listed and I should be grateful if £ could be reimbursed to
The amount involved should be charged to (country) Dev Aid'.
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The above instructions relate specifically to Caribbean territories whose claims are handled on a 'reimbursement' basis. Helena and its dependencies continue to use an older pre-funding method whereby they submit quarterly claims in respect of estimated expenditure. These quarterly claims for advances should be processed as above with a careful monitoring of individual project advances to ensure that the proposed expenditure has been approved, that previous advances are properly accounted for, and that the territory does not hold an excessive balance of unspent advances (which would indicate over-issues having been made and the need for recovery action). The Desk Officer should also ensure that the quarterly advances are in accordance with the annual framework allocation. Any query arising on a claim should be taken up with the territory before payment is authorised.
24. A copy of all claims should be retained on file and a note of the payment should be passed to Mr Mayes for the records.
Processing OCT Grants and Loans and EIB Borrowings
25.
European Department ODM is directly responsible for the processing of applications to Brussels - both in connection with the European Development Fund (EDF) and the European Investment Bank (EIB). Desk Officers should remain in close touch with European Department and should attempt where possible to hasten the flow of information from the Territories to ODM. The chain of communication of dealing with these applications is attached.
Loans
26.
The raising of loans by DTs requires the Secretary of State's prior approval under Col Reg 237, except for those loans actually processed by HMG, ie. loans made under the UK aid programme and by the EDF and EIB. Normally, application is made and approval given by means of a despatch, but in exceptional circumstances, approval may be given by telegram, Applications for loans must be accompanied by full details or preferably by a draft of the loan agreement itself. Approval of loans is no formality; firstly, in the case of Caribbean dependencies, the loan must be recommended by Devdiv, and secondly, it needs to be examined in detail here by the Desk Officer in close consultation with the ODM Finance Dept and EPS before the Secretary of State's approval is given. The object of this examination, of particular importance in the case of loans for grant aided territories, is to ensure that the loan is for a reasonable purpose and that the territory has sufficient resources to service it. Approval of loans exceeding £150,000 (a departmental ceiling) must be referred by the Desk Officer to the Head of Dept for consideration and approval.
27.
In exceptional circumstances (ie. Hong Kong) the Secretary of State may by formal despatch delegate the right of approval of loans to the Governor but no such delegation exists in our territories.
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