Walters demands accountability over $160m IDB water loan

Opposition lawmaker Ryan Walters has called for “radical transparency” in the management of a new $160m (US$80m) water infrastructure loan, warning that Barbadians must be clearly told how the debt will be repaid and how past investments in the sector have been used.

The investment, backed by an initial US$80 million draw-down from a broader US$200 million facility from the Inter-American Development Bank (IDB), is earmarked for the rehabilitation of ageing water mains and the modernisation of the Barbados Water Authority (BWA).

While acknowledging the dire state of the island’s water security, Senator Walters, the Democratic Labour Party shadow minister on finance and economic affairs, warned that the “investment” label should not obscure the reality of the repayment burden.

“The scale of what is being proposed here cannot be ignored but neither can the responsibility that comes with it,” Senator Walters said, noting that the country is currently grappling with water loss rates as high as 40 to 50 per cent.

“There is no question that the rehabilitation of our water infrastructure is both necessary and urgent…. However, while the importance of the project is clear, the financing behind it deserves equal attention and transparency.”

With the IDB loan structured over a 25-year term and a 5.5-year grace period, Walters expressed concern over what happens when the principal repayments commence. He questioned whether the government plans to meet these obligations through increased water rates for households or through new taxation measures.

“These are not small sums, and while they are framed as ‘investments’, they remain loans that must be repaid by the people of Barbados,” Senator Walters cautioned. “The question then becomes: how will these repayments be financed given the amount of debt the country is and will be servicing at that time?”

A central theme of the senator’s critique involves the lack of progress reports on previous funding.

He added: “We must have a clear status update on those previous projects; how those funds were utilised, how many mains were replaced across Barbados and which communities benefitted. Are we now borrowing again to fix issues that should have been addressed under previous programmes?”

Senator Walters emphasised that without a measurable account of how past disbursements were used, the public’s confidence in new borrowing remains fragile. He insisted that the government must provide a “visible, incremental” timeline of improvements so that citizens do not have to wait years to see the benefits of this fresh debt.

Beyond the balance sheets, the opposition legislator is pushing for a guarantee that Barbadian construction and engineering firms will see a piece of the public contract pie. He questioned whether the administration would lean heavily on international firms or prioritise Barbadian professionals.

“This project presents an opportunity not only to fix infrastructure but to build local capacity and create economic participation for Barbadian professionals and businesses,” he said. “That opportunity must not be missed.”

Senator Walters said that if the government maintains that “water is transparent”, then the implementation and monitoring of this loan must reflect that same clarity.

He maintained that while the DLP supported the need for infrastructure development, “good governance demands that alongside bold investment must come clear communication”. (RR)