by Nisha Paul

• EC$161 million from supplementary appropriation for design-finance-build arrangements
• DFB model necessary to move major road projects forward
• Supplementary Appropriation Bill scheduled to move to Upper House on Thursday

Prime Minister Dickon Mitchell is defending the government’s newly introduced Design-Finance-Build (DFB) model, arguing that the approach is necessary to move major road projects forward amid limited local capacity to finance and execute large infrastructure works.

Mitchell, who is responsible for Infrastructure, made the case during a recent sitting of the House of Representatives as Parliament debated an EC$310.9 million supplementary appropriation, with about 70% of the capital expenditure earmarked for road infrastructure. Of the allocation, EC$161 million is set aside for design-finance-build arrangements.

The prime minister explained that the appropriation is intended to provide the legal and financial cover for contracts being entered into in 2026, even though the projects are not expected to be completed until at least the first quarter of 2027.

Under the DFB, contractors arrange financing for the projects and undertake the construction, with the government repaying them according to the terms of the contracts.

But the arrangement came under scrutiny from Opposition MP Dr Keith Mitchell, who questioned whether the model could limit opportunities for local contractors and undermine the country’s public procurement requirements. “It appears to be an arrangement that excludes local contractors, subcontractors and persons with skills from significant opportunities,” he argued.

The Opposition MP also questioned what he described as repeated contracts going to the same companies and called for greater transparency about how contractors are selected. He urged the government to explain the criteria being used and demonstrate that the process complies fully with the Public Procurement Act.

Prime Minister Mitchell rejected the suggestion that procurement rules were being bypassed. He described the allegation as “outrageous” and “an affront to our public officers,” arguing that it effectively suggested that officials at the Central Procurement Unit and Ministry of Finance would breach the law. Mitchell said the government had already tested the local market, pointing to a 2025 invitation for companies to submit expressions of interest to design, finance and build major road projects. “We only received 5 responses, and there was none from a local contractor.” He said that response highlighted what he described as a “capacity deficit” in Grenada’s construction sector, particularly the limited number of companies capable of financing and executing major road projects.

The defense of the new financing model comes as several major infrastructure projects face delays.

The parliamentary debate also brought renewed attention to the Consolidated Contractors Company Caribbean Inc. (CCCCI) and its role as the country’s sole provider of asphalt and aggregates for road construction and paving, with aggregate supplied from the Mount Hartman Quarry operated by the company.

Mitchell cited the True Blue Road, Woburn/Cliff Road and Concord water pipe-laying projects among works that have failed to meet their original completion schedules. He said the Concord project, funded through the United Kingdom Caribbean Infrastructure Fund (UKCIF), had already received several extensions and could leave the government facing a potential EC$12.5 million funding shortfall if the financing deadline expires before the project is completed.

The prime minister blamed delays in part on CCCCI’s performance.

So, the “project did not finish on time, extension of time was granted to June, extension of was granted to September and now the founders are saying come September if the projects are not finished, we would not extend the funding. Therefore, Mr Speaker, we are facing a potential shortfall of EC$12.5 million dollars that the government itself would have to pay,” he said, noting that “These projects were all awarded to CCCI.”

Mitchell also argued that CCCCI’s predecessor, the Consolidated Contractors Company, had effectively dominated major road construction in Grenada for more than 2 decades, limiting opportunities for both local and foreign contractors. He criticised the company over what he described as difficulties in getting aggregates to projects on time, saying the company had been given an opportunity to demonstrate that it could deliver while holding what he described as a “monopoly.”

“…You could never get the aggregates on time, (and there are) all kinds of concerns (and) they had the monopoly. They had the opportunity to demonstrate to the people of Grenada that they could continue the monopoly by delivering,” the prime minister quipped.

However, in a statement issued by the CCCCI in April this year, the company claimed to have “always provided asphalt in accordance with its contractual obligations regarding time, quantity, and cost, whether to the Government of Grenada, subcontractors, agents, or other third-party contractors.”

The Opposition, meanwhile, is questioning not only contractor selection but also why additional parliamentary approval is needed for the design-finance-build commitments.

PM Mitchell explained that because the contracts are being entered into in 2026, government needs the supplementary appropriation to provide legal authority for the full value of those contracts, even though construction and completion will extend into 2027… ”to ensure that we have the legal cover for the quantum of the contract for the year in which they are contracted.”

With road infrastructure accounting for the bulk of the capital spending in the supplementary appropriation, the parliamentary debate has put the government’s new financing model, procurement process and the role of major contractors firmly under scrutiny.

The Supplementary Appropriation Bill is scheduled to move to the Upper House on Thursday, 9 September.

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