Senior Reporter
jensen.lavende@guardian.co.tt
Public Utilities Minister Barry Padarath says the Government is working to meet the requirements for accessing an Inter-American Development Bank (IDB) loan to address the country’s water issues.
Speaking to reporters outside Parliament yesterday, Padarath said his ministry was working closely with the Ministry of Planning to secure the funding. He said the Government had inherited not only ageing infrastructure at the Water and Sewerage Authority (WASA), but also a lack of funding to improve it.
“This is a problem that has been happening for quite a while. Coming into office, we have done an assessment and audit of WASA’s facilities, inclusive of the treatment plants and the mains. A number of the main infrastructural projects will get underway post-budget, and that will include the treatment plants, mains across the length and breadth of Trinidad and Tobago. It took them quite a while to do a lot of the scoping and identify the funding.”
According to the IDB, the loan was approved by its Board of Executive Directors on December 14, 2022. It forms part of a stream of financing available to the Government to sustain investment in the water sector under the bank’s Conditional Credit Line for Investment Projects (CCLIP).
The loan agreement allows the Government to access US$315 million from the IDB over ten years through multiple loan operations. The first tranche of US$80 million has already been accessed.
“This loan was acquired at least about four to five years ago. Obviously, the loan comes with conditionalities. And, therefore, you have to be able to satisfy those conditionalities in order to access the loan. I think that has been part of the challenge with the former administration not being able to do as much as they should have done. But it really requires an aggressive approach.”
Padarath added: “We are working closer with the Ministry of Planning in particular and the Ministry of Works. You will see a number of these projects now coming on stream, inclusive of the water treatment plant, as well as mains across the country. But it will be done in a phased basis. So it will not happen all in one full swoop, but the works will occur from post-budget, in a phased basis.”
Former public utilities minister Marvin Gonzales, however, said the IDB was dragging its feet in facilitating the remainder of the loan because it was aware of the Government’s track record with loans.
“They have utilised loan resources in the past, not to improve the supply of water, but to engage in a $500 or $600 million VSEP scandal in the water sector. The Beetham Wastewater Treatment Plant, all of that were IDB resources. The IDB is aware of the UNC track record.”
Gonzales was referring to a US$246.5 million IDB loan approved in 2012/2013 for the National Wastewater Rehabilitation Programme. The programme aimed to expand wastewater treatment and support reuse initiatives. It became entangled with the cancellation of a contract between the National Gas Company (NGC) and Super Industrial Services (SIS), which remains in arbitration.
He added: “I’m not surprised and the citizens of Trinidad and Tobago are not to be surprised that they are now having difficulties because when we were in government, we had already accessed the first loan operation of $80 million and were well on the way to accessing the other loan operation.
“So don’t be surprised. What you are seeing here is the IDB now putting up its guardrails to protect its institution from a corrupt UNC government.”
