HOPE restructured amid scrutiny

The government has slashed nearly $1 million from the operating costs of the controversial HOPE (Home Ownership Providing Energy) programme following significant restructuring aimed at addressing inefficiencies and public criticism, Minister of Housing Dwight Sutherland told Parliament during the Estimates debate on Tuesday.

In recent months, the project has faced intense scrutiny following Prime Minister Mia Mottley’s acknowledgment of “teething problems” and troubling revelations uncovered by the administration. Two separate investigations were authorised—one conducted at the departmental level and another led by the Auditor General.

Though Sutherland praised HOPE for enhancing housing options for Barbadians, he revealed that the entity had undergone major restructuring.

“Accepting that it is not business as usual at HOPE, this government took a hands-on approach in late 2023 and appointed a CEO from a construction and development background,” he said. “It was also recognised in early 2024 that HOPE operating costs were too high, and during the second half of 2024 after careful consultation with the HOPE board, serious reduction by the tune of $900 000 per annum. This was achieved predominantly by the relocation of our houses, and indeed the reduction of staff. With the reduction of technology and streamlined processes, operational efficiencies have increased tremendously.”

He added: “There were delays that really ought not to have happened. Indeed, the government and [the] shareholder continue to insist that we will provide the loans for the working capital through the Housing Credit Fund, [and] that there needs to be greater diligence in the allocation of houses so that stage payment would ease the burden of financing the working capital to build the houses.”

Sutherland also outlined HOPE’s current financial status, stating that the programme had borrowed $60 million to date and had begun repayments of $4 million to the Housing Credit Fund. He further noted that the installation of photovoltaic (PV) systems—intended to generate electricity for sale to The Barbados Light & Power—had faced delays due to challenges with the island’s renewable energy infrastructure and grid capacity.

He said: “HOPE has to date borrowed $60 million and has commenced its repayment to the Housing Credit Fund to the tune of $4 million. HOPE formed an SPV called HOPE PV back in 2023 to address the issue of financing and to address the issue of renewable energy infrastructure; we know that delays in PV installation stem from power grid stability requirements, necessitating additional battery storage investment.”

Sutherland framed HOPE as a revolutionary model that had been praised by entities such as the UN Green Climate Fund and the Inter-American Development Bank back in 2023. 

But Leader of the Opposition Ralph Thorne challenged the government’s handling of the HOPE programme, describing it as a failure marred by mismanagement and financial recklessness.

Thorne declared: “This government has forfeited its housing mandate to colonisation. Housing has been colonised by recklessness, incompetence and hubris. To sit here and hear all of these sweet words and these clichés about intentions… HOPE on the landscape of this country literally and figuratively has been nothing but despair for the citizens of this country.”

“I need not repeat the figure that the government misinvested—public funds from the Housing Credit Fund, $60 million—and we hear a soft and sweet voice today telling the citizens of this country that $4 million have been repaid so far.”

He continued: “If the honourable member seeks redemption, [since] he gives assurances on two occasions that allocations to this ministry will exclude HOPE; if there is any redemption, it is not reassurance to the people of this country that money belonging to taxpayers was squandered upon colonisations of housing mandate in this country.”

The opposition leader further pointed to the incomplete Vespera Gardens housing project at Greenwich, St James—the first one launched under HOPE in 2021.

He said: “The so-called university of Vespera is still not finished. No photovoltaic systems; [and] no housing complement there—they are still not completed.” (SB)