The Government of Antigua and Barbuda has received parliamentary approval to accept a loan of XCD$11.7 million (USD$4.4M) from the Caribbean Development Bank (CDB) to address incomplete roadworks and infrastructure defects under the United Kingdom’s Caribbean Infrastructure Partnership Fund (UKCIF) project. The resolution to approve the loan agreement was moved in the House of Representatives on Thursday and received unanimous support.

The funds, applied for on November 7, 2024, will address uncompleted works and substandard sections of Friars Hill Road and Sir George Walter Highway. These projects were originally funded by a XCD$37.3 million (USD$14.9M) grant from the UK government but stalled due to issues with the contractor, Bahamas Hot Mix (BHM). The company failed to deliver the project as agreed and is currently in arbitration with the government over disputed claims.

Prime Minister Gaston Browne, who presented the resolution, highlighted the challenges with BHM’s performance, including defective road surfaces and persistent potholes that have required ongoing patchwork repairs, particularly in the Woods area. “Unfortunately, they did not complete the contract, and parts of the work were substandard,” Browne said.

Browne also pointed to systemic issues with some contractors bidding low to win projects and later demanding additional compensation through arbitration. He called for stricter oversight of contract management and urged regional governments and institutions like the CDB to address loopholes that enable such practices by “unscrupulous contractors. “This issue is not unique to Antigua and Barbuda. Across the Caribbean, contractors play these games, bid low, and exploit contracts through arbitration,” he said.

Despite the arbitration proceedings, the government is moving forward with the remaining funds to complete the roadworks. The loan will be used on a rolling basis to finalize sidewalks, curbs, and drains on Friars Hill Road and Sir George Walter Highway.

The government expressed confidence in securing a favourable arbitration outcome and assured citizens that the necessary infrastructure improvements will proceed without further delays. Bad road networks have been among the major complaints of residents this year.

The Ministry of Works accounts for most government spending, with over XCD $267 million in the 2025 budget.