UDeCOTT gets $230M loan to pay contractors

Acting finance Minister Vasant Bharath said on Thursday the state-owned First Citizens Bank is lending the Urban Development Corporation of Trinidad and Tobago (UDeCOTT) $230 million to pay contractors.

Bharath made the announcement at the regular post cabinet briefing. He said the government has guaranteed the loan and the funds are available immediately. The minister said the bank is lending the money at a low interest rate of 5.25 per cent over a five-year period.

"This relates to a two-part loan. One for $100 million and the second, $130,100,000 that will start to pay off a number of outstanding bills that are due and have accrued over the last year and a half to contractors who have done work for UDeCOTT," Bharath said.

He explained that the money is not for any specific contractor, adding that the money would most likely be paid on the basis of the longest outstanding debt first.

Bharath also addressed reporters in his substantive role as Minister of Agriculture and spoke about the issue of land tenure for farmers.

The minister slammed the Express newspaper for a headline, which he said was "irresponsible and reckless". He said the headline OK TO SQUAT conveyed the impression that it was OK for persons to squat on state lands, the story itself was about a plan to allow persons who have been involved in agriculture on state property to continue to farm the lands while the ministry deals with land tenure contracts.

The minister explained that he made that clear during an interview with TV6, which was the source of the information for the newspaper article.

He clarified any misconceptions by stating that many people who are engaged in agriculture today have been farming on state lands for many years and have been contributing to the efforts to feed the nation. 

Many of them have had leases, which have now expired, meaning that they cannot access incentives being offered by the government.

Bharath blamed bureaucratic delays for the situation. He said the ministry's plan is to regularise the tenure for those who qualify.

He added that in the interim while the paperwork is being completed, the eligible farmers can continue to farm the lands, provided that at least 30 per cent of the land to which they have laid claim is being used for farming.

The minister insisted that his ministry and the government of Trinidad and Tobago do not condone squatting.