Barbados signed two major loan agreements with the Saudi Fund for Development (SFD) on Wednesday, totalling US$92.7 million (BDS$ 185.4 million) to support the construction of two new polyclinics, upgrades to seven others, and the launch of a long-awaited urban renewal programme.
The signing at Government Headquarters, which came as the Senate debated resolutions to approve the loans, marked what Prime Minister Mia Mottley and SFD CEO Sultan Al-Marshad called a historic step in Barbados-Saudi cooperation.
“This is a very important moment for us,” said Mottley. “With these two loans, the Government of Barbados can deliver credible, ready assistance to two key sectors – healthcare and urban infrastructure.”
The first loan, worth US$58.5 million (BDS$117 million), will fund new polyclinics in Warrens (Eunice Gibson Polyclinic) and Oistins (Randall Phillips Polyclinic), alongside major refurbishments at seven existing health centres, including the Winston Scott and Branford Taitt Polyclinics and the David Thompson Health Complex.
Mottley emphasised the expanded facilities will bring critical services closer to residents, noting both Warrens and Oistins have outgrown their current capacity.
“Randall Phillips can become a larger satellite facility, possibly with overnight beds and emergency capacity for asthma and other things,” she said.
Upgrades are expected at the Winston Scott Polyclinic, the Maurice Byer Polyclinic, the St Philip Polyclinic, Frederick Miller Polyclinic, Edgar Cochrane Polyclinic, Branford Taitt Polyclinic, and the St John Polyclinic.
The second loan of US$34.2 million (BDS$68.4 million) will finance phase one of an urban renewal initiative, starting with Chapman Lane in Bridgetown. The project targets housing, water, and infrastructure upgrades in inner-city areas.
“There is no place in the 21st century for pit toilets,” Mottley said. “This loan will help us within the urban corridor, allowing the government then to focus its own resources or look for alternative funding to deal with rural communities where they still exist.”
Defending the borrowing, she added, “Be assured, this is responsible borrowing for the development of our people.”
SFD CEO Sultan Al-Marshad hailed the agreements as pivotal, saying they marked the beginning of the Fund’s first development partnership with “this esteemed nation”.
“This is a key milestone in building a lasting partnership for sustainable development,” he said.
Earlier this month, Minister in the Ministry of Finance Ryan Straughn detailed the urban project’s scope in Parliament, noting it revives a cancelled $80 million Inter-American Development Bank agreement.
Upgrades will include sewage connections, climate-resilient home retrofits, water storage tanks with battery backups and the eradication of pit toilets in the project zone.
Both loans are to be repaid over 20 years, with a five-year grace period and an interest rate of 3.5 per cent per annum.
They also include natural disaster clauses.
(SM)
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