World Bank backs St. Maarten’s local-first hiring rules for projects

GREAT BAY, St. Maarten--The World Bank has issued a written response to the Government of St. Maarten’s labor policy position for World Bank funded recovery projects, following the Government’s January 26, 2026, clarification on how “local labor” must be applied by contractors and how urgent labor needs should be managed when local expertise is unavailable.

On February 3, 2026, the World Bank confirmed its understanding of the Government’s position and agreed that contractors must first exhaust the local labor market and comply with St. Maarten’s labor and immigration rules before seeking workers from abroad. The Bank also recognized the Rapid Permit Policy as a practical tool to address urgent labor needs when local expertise is unavailable, helping to prevent delays in project execution.

Importantly, the World Bank further committed to supporting local businesses by ensuring that, where possible within procurement rules, up to 30 percent of project work is subcontracted to local contractors if no local contractor wins the initial bid. The measure is intended to secure meaningful local participation while allowing specialized skills to be accessed responsibly when required.

Minister of Public Health, Social Development and Labor Hon. Richinel S.J. Brug said the response reflects sustained efforts to protect local jobs and expand opportunities for local contractors, while ensuring that national recovery projects remain on schedule.

“Development should benefit our people first, while also allowing projects to move forward responsibly,” Minister Brug said. “This approach safeguards local employment, strengthens local businesses, and helps ensure these projects deliver lasting value for St. Maarten.”

The Ministry noted that the World Bank’s request for clarification arose in the context of ongoing recovery works, including concerns about whether sufficient local contracting staff would be available in specific trades and specialties. The World Bank also raised questions on whether certain labor-related fees could be waived, or whether definitions could be broadened to include workers from other Caribbean jurisdictions or parts of Latin America when skills are not available locally.

Minister Brug reiterated that local workers must always be given the first opportunity, and that foreign labor should only be considered after the local labor market has been properly assessed and exhausted in line with applicable rules. He emphasized that maintaining compliance is essential, even as project timelines and delivery targets remain a priority.

The Ministry will continue engagement with the National Recovery Program Bureau (NRPB) and the World Bank to ensure consistent application of these principles across projects and to support strong local participation in the recovery effort.

‍