Not disappointed

By Shanna Moore

Despite huge cost overruns and lengthy setbacks in the building of steel housing units for residents displaced by Hurricane Elsa in 2021, Minister of Housing Dwight Sutherland on Friday defended the project.

“Indeed, there were some errors. We are not perfect,” he told journalists in Haggatt Hall, St Michael at one of several sites expected to house 150 steel-frame units as part of a relocation exercise.

In a Special Audit Report of the project for the Acquisition and Assembly of Steel Housing Units, executed by a company called East West Building Solutions (Barbados) Inc. under the aegis of the Ministry of Housing,

The 54-page report, laid in Parliament on March 28, revealed that as at February 2024, the timeline for completion of the construction of 150 steel-framed houses, brought from China, was significantly exceeded. It said based on the information provided by the Ministry of Housing on October 26, 2023, only 22 houses were completed, and anticipated that on completion, the project “would have incurred major cost overruns with the estimated budget increasing by $23.64 to approximately $52.72 million”.

But Sutherland told reporters today that even as the project’s budget ballooned, the initiative provided invaluable training opportunities for the Barbadian workforce.

“Our main goal was to get displaced Barbadians back in their homes, resilient homes, as soon as humanly possible. In hindsight, we can accept that some of these [setbacks] should’ve been factored in… [but] I am not disappointed in this project. The reality is we have trained our local people,” he said, pointing to project securing only 15 Chinese workers as a hurdle.

The housing minister revealed that between 80 and 90 Barbadians have been equipped with the steel-frame building skills to erect 61 of the 150 steel-framed houses with the remaining 89 units to be completed within this financial year that began on April 1.

Of the remaining houses, 36 are to be located at Bullens, St James, 16 at Sargeants Village, Christ Church, 14 at River Crescent, St Philip and 23 at Todds, St George.

“These artisans have been retained by East West, together with a number of small sub-contractors whose workers now also have the skills to install this type of housing solution. This also means that these funds are being paid to Barbadians working on the project,” he added.

Addressing the delays and budget escalation, the minister blamed those on an adjustment in the scope of work and unplanned labour costs.

“Initially, infrastructural development such as roads and the installation of electricity was not included in the original cost of the project as it was expected that this work would have been executed by the National Housing Corporation from the Corporation’s budget. However, to accelerate the project by developing six sites for 113 of the houses, a change in the scope of the project saw the ministry taking over this process at an estimated cost of $5 068 051. This was not part of the original project,” he said. 

Sutherland added that the original budget omitted infrastructural costs under the assumption that 74 of the 150 houses to be built by East West, would be located on existing, fully serviced and developed house spots that would replace the houses damaged by Hurricane Elsa.

“This meant that no infrastructural development would have been required. The remaining units were to be made up of 36 quad and 40 duplex units and were to be placed on lands under the control of the NHC,” he said.

But, according to him, unforeseen legal complications necessitated new locations, leading to unanticipated expenses totalling another $4 369 586 due to increased construction material costs and additional requirements for security and sanitation.

The housing minister shared that due to the urgency of the project, labour costs also became a major impacting factor.

“Initially the decision was made to utilise Chinese labour. Firstly, Chinese costs were four times lower but, significantly, the Chinese also possessed the expertise to erect this new housing solution to the island. The ministry’s idea and intention was that during the building phase, Barbadians would train and work with the Chinese to become familiar with the building systems and techniques being used, resulting in a transfer of knowledge to Bajans,” he said revealing that this plan failed due to the inability to secure transit visas for the workers to get to Barbados.

The government, according to Sutherland, was then forced to utilise local labour, resulting in another significantly higher cost of approximately $9 732 570. 

shannamoore@barbadostoday.bb