We got another loan! Adds another US$100 million dollars for our children to pay

Break out the champagne again, friends

They say this new US$70 million Inter-American Development Bank loan (plus interest) will enable Barbados to cut our energy costs by $600 million over the 20 year term. Wonderful.

Of course, the projected savings are based upon the “fact” that Bajans will cut electricity consumption by 19 percent within the next 17 years – and the “fact” that by the time those 17 years pass, almost 30 percent of our energy will come from “renewable sources such as photovoltaic, solar water heating, wind, biomass cogeneration, and waste-to-energy projects…”

As per usual, the loan has no performance monitoring built into it. That means that our glorious leaders will (as per usual) be able to “temporarily” divert loan monies to other uses at their discretion when the solar projects are “held up” for a while. This has happened before – the West Coast sewer project has been “held up” for a decade now so the government is using the gazillion dollar loan on other things…

… Like tossing the money into general revenues where it disappears faster than Noel Lynch when asked how he became a millionaire on a politician’s salary. Gone!

What is the money supposed to be used for WHAT? !!!

Wake up children… the press release gives the impression that the loan will be used to purchase windmills, power generators and build waste-to power plants etc etc etc.

That’s what the press release implies. HOWEVER if you read the actual project notes you’ll see that this batch of money will go to…

“(i) support the formulation of policy and legislation that will contribute to the promotion of Renewable Energy (RE), Energy Efficiency (EE), Energy Conservation (EC), and rational and efficient use of fossil fuels, and as a consequence, promote the mitigation of Greenhouse Gas (GHG) emissions as well as initiatives for adaptation to climate change in the energy sector; and

(ii) support institutional strengthening, public education and awareness and capacity building to promote sustainable energy and EC initiatives.”

Read it again.

And again.

Now… can you see what is happening my friends?

The only tangible item you’ll see for this money is when the Ministry of the Environment hands out more colouring books to the children.

At the end of spending this money, what will we have to show ourselves and our children when they ask?

What does Barbados have to show for the billions in loans?

How much do we owe in overall debt? When is the debt due? How much is the interest per year to service our existing debt? What did we achieve for the debt?

Pretty simple questions, but try to get a straight answer. There were rumours that our Barbados governments have shown much of the normal spending as asset purchases. I guess the politicians learned that one from Leroy Parris and CLICO. You can do magic things when you simply assign whatever value you want to an asset.

Also don’t forget that we switched to an accrual system of accounting a few years ago. For the elites that was definitely a once in a lifetime opportunity and don’t you doubt that they took full advantage of manna from Heaven on that one.

The “benefits” of this latest IDB loan are as solid as a wispy cloud in the blue Caribbean sky. You can see it, but can’t touch it. And when you take your eyes off it for a moment, it’s gone.

Such are the “benefits” that Bajans will see for their US$100 million (including interest).

15 Comments

Filed under Barbados, Consumer Issues, Economy, Energy, Environment

15 responses to “We got another loan! Adds another US$100 million dollars for our children to pay

  1. Sonapanic

    Leave Darcy nah!

  2. E reader

    Lol. This article is awesome.

  3. Sunshine Sunny Shine

    Hahahaahah I love the Noel Lynch analogy. Left here snotting with water pouring out me eyes. BFP ya spot on!!!

  4. 19

    I am sure some of you know the Jamaica story. However for those who don’t, I leave with you a video on how the imf, world bank and others totally decimated Jamaica. We are headed in the same direction. Only Jesus can help us.

  5. Sunshine Sunny Shine

    @anonymous

    We have been heading down that road for a long time. We all should be happy that though our politicians are not the epitomy of integrity and transparency they did well to bring Barbados to a stage of development others like us can only dream about. To all the leaders that have led Barbados, I say thankyou: thank you for staving off what us upon us now from what could have easily been – what should be ever since.

  6. Sunshine Sunny Shine

    should be is

  7. Closed Shop

    “Our shareholders are 48 member countries, including 26 Latin American and Caribbean borrowing members, who have a majority ownership of the IDB

    “http://www.iadb.org/en/about-us/about-the-inter-american-development-bank,5995.html

    And there you have it folks!

    The owners of the IDB are member states
    and only these countries, who couldn’t get a loan at a normal bank based on zero financials, can lend to each other through the IMF, World Bank and others with their special relationships to international bankers.

    Its a great game.

    The IDB site talks about reform but as BFP rightly points out, there are no stringent controls and accountability checks on the spending of these monies.

    They are all perpetrating the scam

  8. millertheanunnaki

    To BFP:
    Excellent piece!
    D B & Co plus CS must be in seventh heaven. Contracts to award to friends & family. I know you are not a man of numbers, only words. But please, Mr. F S, look and see what’s going on behind your financially naive back! If you don’t put a halt to this large scale rigging, Bajans would be really jackasses to be saddled with this lot of deadweight when the bell rings next time around! The players involved in the conservation and renewable energy money game are the same riggers in the marina sailing game.

  9. Newbie

    Every time I drop in on one of these post it breaks my heart to read some of the comments. Those making the comments all seem resigned to the notion that nothing can or will be done to reverse the trend of the Barbadian Government borrowing money in the name of promoting progress in Barbados and then misusing the funds for whatever they feel like. I may be the most naive person on the planet but I would like to believe that as a Nation we could effect some sort of change on this trend. Our votes are also borrowed and abused whenever election time comes around. I have tried in vain to contact the member of Parliament for my Constituency so I dare say they cannot expect me to vote for anyone at the next election. Neither party gives a damn what I think after they have gotten a vote so I may as well save myself a lot of time and energy by not leaving my home to go and vote, Maybe others should follow suit and lets see where their electioneering gets them. LOOK OUT FOR THE PERSONS that will soon be running their entire house off SOLAR ENERGY, that will justify spending some of the cash on RENEWABLE ENERGY SOURCES.

  10. Mac

    Interesting, so many loans for green energy. But as yet Mr Sinckler has yet to mention the $120 odd million dollars he borrowed last October from the IADB for “Energy Diversification” as his first act as Finance Minister. I keep waiting to hear where it is supposed to go. Any ideas anyone?

  11. Adrian Loveridge

    Would not a simple solution be to take ALL the taxes and duties off ALL energy savings devices?
    While in the UK recently I was able to buy low energy bulbs by quality manufacturers like Phillips for less than BDS$0.30 (30 cents) each.
    And I wonder if a tour of all the Government occupied buiildings and statutory
    corporations was done, how many of them would be fitted to energy saving
    fittings, bulbs etc.
    The thought of borrowing over BDS$400 million to implement an energy saving policy seems to defy logic.

  12. watcher

    It seems that it does not matter what is borrowed so long as it is all payable back in Barbados dolllars. If the monies borrowed are in US$ and are repayable in US$, that is where the problem will arise. Have a look at the foreign exchange reserves and subtract from that the monies owed in US$. If the reserves are staying about static, where are the US$ going to come from to repay these loans. Serious bumps in the road ahead. Government now borrowig from the central bank and NIS to cover its local currency obligatons. If foreign exchange reserserves significanlty decline, can devaluation be far behind?

  13. rastaman

    @watcher: Nope not far behind. Coming very soon and if you thinks things are bad now,wait and see.

  14. Mac

    Good idea Adrian. If this Government is serious about conserving energy/finances/going green etc. Where is the legislation to insist new build properties are powered by at least 50% solar power, having duty free imports of hybrid vehicles? Take for example the shoe boxes at Coverly, When it is finished there will be 1000 houses, if they provided 50% of their own power, it would be the equivalent of 500 homes off the grid and not using BL&P (could be a reason there!!) Spending $400million BDS on a waste to energy plant with it’s toxic fumes and dioxins is simply nuts. Put that together with the IADB loans Mr Sinckler has secured since last October would be enough to convert most of the houses in Barbados via a minimum of a 50% grant.

    Another huge saving would be to reduce the AC in offices and Government buildings, I never fail to be amazed at the insanity of the weather outside being near 30c and inside people are wearing jumpers and thick cardigans. Turn it down and the government could save a fortune every year,

    It’s very simple, the more houses off the grid, the less BL&P have to generate, the less oil they have to buy which saves foreign exchange.

    It might be rocket fuel they use but it’s not rocket science!

  15. Mac

    Forgot to add, import Duty on a Toyota Pruis is $50,000.00 – a huge chunk of the $120,000.00 price tag!!