The Senate on Wednesday passed two resolutions to approve the borrowing of US$92.7 million from the Saudi Fund for Development to improve housing and healthcare in Barbados, but not before concerns were raised about the country’s deepening debt.
Outlined the scope of the two projects–US$34.2m ($68.4m) for urban renewal and US$58.5m ($117m) to go towards modernising the island’s healthcare system–Minister of Energy and Business Senator Lisa Cummins described the first as “a renewal project for the City of Bridgetown” and the other as part of the government’s broader health agenda aimed at reducing disease, disability, and mortality rates.
The first portion of the loan will directly benefit residents in densely populated, under-resourced Bridgetown districts such as Chapman Lane and surrounding areas bounded by President Kennedy Road, Westbury Road, Baxter’s Road, Tudor Street, Princess Alice Highway, and Prescott Boulevard.
Residents in these areas can expect wide-ranging infrastructure upgrades, including the installation of new sewage tanks and full connection to the Bridgetown sewage treatment plant, hurricane-resistant retrofitting of homes and other climate adaptation measures, upgraded roadways—including resurfacing of degraded asphalt—enhanced street lighting, improved access for emergency vehicles, flood protection systems and water distribution upgrades, natural gas network extensions, along with pavement works and energy-efficient solutions, such as renewable energy projects and the relocation of overhead utility lines (water, electricity, sewage) underground to improve resilience against climate threats.
“This is a renewal project for the City of Bridgetown – for the communities that live in the Bridgetown area – and are deserving of being treated as though they have access to the same kinds of facilities that everyone else does,” Senator Cummins declared.
The second portion of the loan will go towards modernising the island’s healthcare system, beginning with the construction of two state-of-the-art polyclinics and upgrades at seven existing ones.
However, Opposition Senator Andre Worrell told the Senate that repeated foreign borrowing leaves critical sectors stagnating and risks undermining economic stability.
He said the country’s growing debt burden, coupled with what he described as weakening output in key industries, makes continued foreign borrowing risky and unjustified.
“Every time the prime minister leaves this country, she returns with news of another loan,” he said. “We cannot support yet another foreign borrowing by this government.”
Senator Worrell said Barbadians are growing frustrated at rising debt levels, charging that they have not been seeing the corresponding improvements on the ground.
But, he acknowledged the country’s strained healthcare system and what he said was a housing crisis, expressing hope that the funds would be used to address long-standing gaps.
“I’m hoping that out of these funds we will see a significant improvement in the quality of healthcare delivery, especially at our polyclinics,” he said, urging the government to ensure clinics are equipped with diagnostic tools such as X-rays and ultrasound machines, so patients diverted from the Queen Elizabeth Hospital are not simply sent back.
He also called for increased staffing and shorter waiting times.
“Don’t push people to the polyclinic, and then tell them to go back to the QEH for basic tests. That defeats the purpose,” he said.
Turning to housing, Worrell said some Barbadians now pay over $300 per week to rent a room with shared facilities.
He argued that the government has failed to invest in significant rental housing projects to ease the burden.
“We cannot see where the money being borrowed is going. If people saw the performance, they would not be concerned about the borrowing—but they don’t,” he said.
The terms of the loan include a 3.5 per cent interest rate over 20 years, with a five-year grace period.
Worrell acknowledged the terms were favourable but questioned why the funds were sourced externally rather than through the domestic market, especially given concerns about foreign exchange.
“We are increasing our external debt, which must be repaid in foreign exchange. That puts pressure on reserves,” he said, referencing the latest Central Bank report.
He noted that the country’s external debt servicing ratio had surged from 3.5 per cent in 2019 to 34.9 per cent in 2025, and that interest payments had nearly tripled to $749.9 million.
“The only foreign exchange earning capacity that seems to be growing is this government’s ability to borrow . . . .That’s not sustainable,” Worrell said.
He added that with agriculture, manufacturing, tourism and even construction showing declines, the government was failing to build a resilient economy to support its borrowing.
“We need to see proper delivery, proper outcomes. Otherwise, we are just taking on more debt with no real plan to repay it,” he said. (SM/SB)
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