Caption: Prime Minister Kamla Persad-Bissessar with THA Chief Secretary Farley Augustus and Energy Minister Dr Roodal Moonilal
SCARBOROUGH, Tobago (CMC) – The Trinidad and Tobago government has signalled its intention to sell off a number of state-owned enterprises (SOEs) as it turned the sod on the construction of a TT$500 million, 200-room Marriott resort in Tobago.
Prime Minister Kamla Persad-Bissessar, addressing the ceremony for the four-star hotel, which will also include villas, townhouses and a range of recreational amenities, said the SOEs to be divested include National Quarries Limited, the Trinidad Hilton, the Magdalena Grand Beach and Golf Resort and the La Brea Industrial Development Company Ltd (LABIDCO).
“The government is running National Quarries into the ground. They prepare aggregate. It costs them $350 and then they sell it for $150. Does that make any sense?” she said, adding that investors should consider acquiring LABIDCO as part of the divestment drive.
“Any person interested, we want to divest LABIDCO. Talk to your friends and families. A government cannot succeed by spending all the money, creating businesses, creating entities and running them into the dust,” she said.
Persad-Bissessar said the state has a poor track record of operating commercial enterprises and that her administration had taken the decision to divest its hotel assets.
“The business of government is not in running hotels, and this is where private-sector investment is vital. Why is a government running a hotel?” she asked, adding that expressions of interest will soon be invited for the divestment of both the Magdalena Grand Beach and Golf Resort and the Trinidad Hilton.
She said private-sector projects are critical to stimulating economic activity and creating development opportunities.
The Prime Minister was critical of the performance of several SOEs, telling the ceremony that government resources are often not managed efficiently.
“Most things that the government invests in, they bust. True or not true?” she asked, adding: “Why is the government running a hotel and running it into the dust?” The comment referred to the Magdalena hotel, which recently furloughed more than 50 workers for at least one month, citing low occupancy levels and reduced business activity.
The Marriott resort, being developed by the Trinidad-based Superior Hotels, is expected to be completed by 2029.
Tobago’s Chief Secretary Farley Augustine commended Superior Hotels for taking into account the recommendations of the Tobago House of Assembly (THA), as well as concerns raised by stakeholders during the planning process.
He assured the public that a beach access pathway would be maintained, there would be no construction on the beach itself and environmentally responsible practices would be observed throughout the project.
“This has to complement the new airport terminal that opened on Tuesday. Thank you very much for choosing Tobago, and we hope your investment will bring returns,” Augustine said.
Superior Hotels chairman John Aboud said the company would adhere to all conditions outlined by the Environmental Management Authority (EMA) in its Certificate of Environmental Clearance (CEC).
He added that IDB Invest, the private-sector arm of the Inter-American Development Bank (IDB), has expressed strong interest in participating in the project.
