Government agreeing to guarantee a $230 million from First Citizens to settle outstanding debts the Urban Development Corporation of T&T (Udecott) will alleviate some of the stress contractors have been experiencing, said Mervyn Chin, newly-installed president of the T&T Contractors Association (TTCA)."Udecott is only one State enterprise owing money to contractors. We would like to see similar payments being made by ministries and State enterprises that owe money to contractors," said Chin.
He was elected president at the TTCA's annual general meeting last Saturday.Chin said since the People's Partnership Government came into power, it has been "making interim payments" to contractors who are owed money.He said the TTCA has told Government that contractors were owed $1.5 billion, and that the $500 million so far paid to roughly 400 contractors, plus the $230 million loan to Udecott, means that Government would have liquidated an estimated 40 per cent of its indebtedness to contractors.
On Thursday, Vasant Bharath, acting Finance Minister, said at the post-Cabinet press conference held at the Diplomatic Centre, St Ann's, that the loan, arranged at 5.5 per cent, will be dispursed in two parts, $100 million and $130 million.Bharath said the money will be used to "start to pay off a number of outstanding bills that have accrued and are due over the last year-and-a-half to contractors who have done work for Udecott."Bharath said payment of the outstanding debts will begin almost immediately.