Lead Editor–Politics
The Water and Sewerage Authority (WASA) is facing a $287 million reduction in its budgeted expenditure for fiscal 2027, including a $233 million cut in personnel funding, but Public Utilities Minister Barry Padarath is assuring employees that there are no plans to reduce the authority’s established workforce.
Padarath says he has already discussed the reduced personnel allocation with the Minister of Finance and expects additional funding to be provided during the financial year.
The changes are outlined in the Draft Estimates of Revenue and Expenditure of Statutory Boards and Similar Bodies for 2027, which place WASA’s total expenditure at approximately $3 billion, down from a revised $3.29 billion in 2026.
Among the most significant reductions is the allocation for personnel, which falls from a revised $602.8 million in 2026 to $369.5 million in 2027. That represents a decrease of $233.3 million, or 38.7 per cent.
The category covers salaries, wages, overtime, allowances and employer contributions. Within it, salaries and cost-of-living allowances fall from $197.1 million to $143.6 million, while wages and COLA decline from $234.8 million to $133.7 million.
Combined overtime provisions for monthly paid officers and daily-rated workers also fall sharply, from $72 million to $33.3 million.
However, when compared with the original 2026 personnel allocation of $441.1 million, rather than the revised estimate, the reduction is approximately 16.2 per cent.
Questioned about the substantial decrease and whether it signalled possible job losses, Padarath yesterday ruled out any reduction in WASA’s established staffing complement.
“I confirmed with the Minister of Finance that it is anticipated that we will supplement this vote. However, there is no plan to reduce staff from WASA’s establishment,” he said.
The budget estimates also reveal a significant reduction in funding for contract employment, which is recorded separately under goods and services.
That allocation falls from $444.3 million in the revised 2026 estimates to $346.5 million in 2027, a decrease of $97.8 million, or 22 per cent.
Padarath explained that WASA periodically engages workers on a short-term basis to undertake specific projects, but expects to rely less on such employment in the coming financial year. He said this was because of work already completed through short-term employment arrangements during the previous financial year.
“So it is not a matter of reducing staffing. This is in the area of short-term employment,” he said.
Padarath added that should additional funding become necessary, the Government could supplement the allocation during the mid-year review.
“There is no anticipation of any reduction of staffing in terms of the established complement of staff at WASA,” he maintained.
Water trucking
gets $30M increase
Despite the reduction in overall expenditure, WASA is budgeting significantly more for water trucking in fiscal 2027.
The allocation increases from $52.6 million in both the original and revised 2026 estimates to $82.7 million in 2027. That represents an increase of $30.1 million, or approximately 57 per cent.
The new provision also exceeds the $54.4 million recorded as actual expenditure on water trucking in 2025.
Explaining the increase, Padarath said the Government is expanding its network of water storage tank farms, particularly in rural communities that have historically experienced unreliable supplies.
He said several tank farm projects have already been established or are under construction in southern constituencies, with the programme being extended to communities along the east coast, including Mayaro, Cumuto/Manzanilla and Toco/Sangre Grande.
According to the minister, water trucking will be required to service these facilities until planned desalination plants become operational.
“For far too long, these constituencies and communities have been underserved and under-resourced,” Padarath said.
He explained that the expansion of the tank farm programme necessitated additional funding for trucking services, accounting for the $82.7 million provision.
However, Padarath did not provide a timeline for when the desalination plants would become operational or when reliance on water trucking could be reduced.
More funding for infrastructure repairs
Another notable increase is reflected in the allocation for “other contracted services,” which rises from a revised $143.6 million in 2026 to $270 million in 2027. That represents an increase of $126.4 million, or approximately 88 per cent.
Against the original 2026 provision of $157.6 million, the increase is approximately 71 per cent.
Padarath said the additional funding would support pipeline maintenance, critical repairs and the replacement of ageing infrastructure.
He indicated that the new financial year would see increased construction activity as WASA undertakes work to improve its distribution network and support new desalination facilities.
“In this financial year you will see a lot of construction, a lot of changing out of old dilapidated infrastructure, as well as new infrastructure to support the desalination plants,” he said.
The minister explained that some of those activities would be financed under the other contracted services allocation. However, he did not provide a breakdown of how the $270 million would be distributed among the various projects and services.
Vehicle and equipment rentals slashed
Meanwhile, one of the sharpest reductions in WASA’s expenditure estimates is in the allocation for renting or leasing vehicles and equipment.
That provision falls from $100 million in 2026 to just $100,000 in 2027, representing a reduction of $99.9 million, or 99.9 per cent.
The decrease is particularly significant, given that actual expenditure under the same heading amounted to $138.5 million in 2025.
Padarath attributed the reduction to WASA’s decision to purchase vehicles and equipment that it previously relied on renting.
“In the last financial year, WASA invested in purchasing a number of vehicles as well as pieces of equipment that they use quite regularly,” he explained.
He said those acquisitions were expected to reduce the authority’s dependence on rentals during the new financial year.
Padarath did not specify how many vehicles or pieces of equipment were purchased, their acquisition costs or the savings expected from the move.
Despite the substantial movements across individual categories, WASA’s overall goods and services allocation remains relatively stable, falling from approximately $1.297 billion in the revised 2026 estimates to $1.289 billion in 2027.
