Finance deal murky, say senators

The government’s $600 million deal in loans and grants to upgrade Barbados’ sewage systems, including a controversial debt-for-climate swap, came under further scrutiny in the Senate on Friday.

Independent Senator Dr Crystal Drakes and Opposition Senator Ryan Walters raised concerns about transparency and accountability.

The resolution under Section 2 of the Special Loans Act is tied to the Mottley administration’s debt restructuring strategy and promises upgrades to the island’s ageing South Coast and Bridgetown sewage infrastructures.

But the two lawmakers said the deal lacked clear details about its impact on Barbadians.

Senator Drakes acknowledged the importance of the initiative but stressed the need for more comprehensive information.

“This resolution is critical to the survival of Barbadians. There’s no disputing that because of how vulnerable our water resources are to the climate crisis,” she said. “But as good as the policy innovation may be, there are more details that need to be shared.”

She pointed to the limited reach of the current sewage system, citing data that shows that both plants combined serve just three per cent of the population.

Drakes asked: “With this current upgrade and all of the efforts the government is putting into this agreement, why haven’t we heard how many more Barbadians will be served? What is the level of increase in service this upgrade will bring?”

The independent senator also called for clarity on how the upgrades would improve water supply.

“If we are moving to tertiary-level treatment, let us know how it’s going to augment the water supply. If we are not clear on how it directly impacts the water supply in real numbers, then we are getting lost in translation,” she said.

The senator also questioned whether the Barbados Water Authority (BWA) was equipped to manage the upgraded facilities, noting its existing operational challenges: “The BWA is already overstretched with regards to operational and administration management.”

Walters echoed concerns about transparency, highlighting the financial uncertainties of the transaction. “There are great unknowns about what the financial impact of this transaction will be. What is the financial impact of this restructuring on individuals who have invested?” he asked.

Senator Walters reminded the Senate of the consequences of the government’s 2018 debt restructuring, which he said significantly affected pensioners.

“In 2018, the government restructured debt. They will give you reasons, and they will defend why they did that, but the implications for pensioners in this country were significant,” he said.

While supporting the initiative in principle, the opposition lawmaker called for the government to disclose all relevant details: “This deal might not have a significant financial impact, but it probably does. And it is fair for the government to put that on the table. Let’s see the full picture,” he said.