Prime Minister Godwin Friday says it will not be “business as usual” as the Dec. 31 expiration date on two projects worth EC$43 million, dating back to 2023, approaches without them being completed.
The projects are among several financed by the Saudi Fund under an EC$170.6 million portfolio that remains unspent, some for almost four years after the agreements were signed and 11 months after the New Democratic Party administration came to office.
He told Parliament on Thursday that he would personally monitor progress and accountability.
Friday was responding to opposition Senator Carlos James, who asked for the progress of drawdowns on the Saudi Fund loans and a “comprehensive project-by-project breakdown” of expenditure and unspent balances.
The prime minister outlined three agreements worth a combined EC$177.7 million, including EC$26.9 million for cultural and artistic hubs in Bellevue, Troumaca and Petit Bodel.
The agreement, signed on May 26, 2023, has a stated closure date of Dec. 31, 2026.
The Saudi Fund portfolio also includes EC$16.2 million for a health centre in South Rivers, also signed on May 26, 2023, with a stated closure date of Dec. 31, 2026.
The agreement allocates EC$134.6 million for the construction and rehabilitation of buildings and facilities affected by natural disasters.
This agreement, signed on April 18, 2024, has a stated closure date of Dec. 31, 2027 and covers education, housing, national security, health and sports.
“The Honourable Senator who asked the question should be familiar with it because it was signed during the time of their administration,” the prime minister said, referring to the Unity Labour Party government, which was voted out of office in November.
Friday said the government was reconsidering how it would use the cultural-hub funds and project.
“We have made alternate arrangements as to how we think the use of those funds and the nature of the project would be more effective while maintaining the same objectives,” he said, but did not specify what those alternative arrangements were.
The prime minister said the government had to accelerate the work, particularly because two agreements were due to close at the end of 2026.
“When we came into office… all we had was thought on plans and papers. Nothing had been started,” he said.
Direct payments and reported spending
Friday explained that the Saudi Fund does not transfer loan proceeds into the government’s account.
“… all payments are made using direct disbursement procedure,” he said, adding that the fund pays suppliers, contractors and consultants directly for eligible work and services.
As the executing agency, the Ministry of Finance and Economic Planning must submit withdrawal applications and supporting payment documents to the fund.
“The work has to commence; it has to be ongoing” before those funds can be used, the prime minister said in Parliament.
He reported that EC$3,394,702.04 had been expended across the portfolio and that approximately EC$170.6 million remained unspent.
He identified the unspent balances as EC$26.6 million for the cultural hub and market, EC$16 million for the South Rivers health centre and EC$128 million for the disaster-rehabilitation project.
For government-funded activities, Friday listed design and site-preparation work connected with the cultural hubs, the Calliaqua Polyclinic, as well as the South Rivers, Redemption Sharpes and Paget Farm clinics.
He said the government paid EC$2,962,410.94 for these activities and also cited EC$482,291.10 as an amount to be paid directly by the fund.
PM promises closer oversight
The prime minister said he was “not satisfied” with the state of implementation, particularly given the approaching deadlines and the limited progress on the larger project.
He said he had instructed staff in his ministry to set targets, assign responsibility and report regularly.
“These are funds that are available that need to be utilised for the objectives set out,” he said, adding that the projects were intended to create opportunities and support the country’s development.
“If we don’t execute them, there is no point in us having the resources at our disposal.”
He said he had made a similar commitment to World Bank officials about projects funded by that institution.
“I personally will take a direct interest in ensuring that there is reporting on a regular basis, that there are targets set, that people are assigned to ensure that those are done and then to account for it on a regular [basis],” he said.
In a follow-up, James asked whether the government’s position meant the cultural hubs would not be built, and whether the ministry had started seeking extensions for projects it intended to continue beyond the Dec. 31, 2026, deadline.
Friday replied, “Yes, because… we have less than three months. So yes.”