PRIVY Council Rules That The Tha Needs The Finance Minister’s Approval For Projects Using State Funds

The Privy Council has ruled that the Tobago House of Assembly cannot enter financing deals for major projects using State funds without the approval of the Finance Minister. The ruling came as the Law Lords dismissed the THA’s final appeal over a lawsuit concerning a 2011 Build, Own, Lease, Transfer (BOLT) agreement for the $142 million MILSHIRV Administration Complex in Shirvan. BOLT agreements allow a company to fund and build a facility on a client’s land, with the client repaying through a lease before taking ownership. The court found that such agreements are similar to loans and require ministerial oversight. However, the THA can enter these arrangements if funded by international grants. The ruling upholds the Court of Appeal’s 2019 decision, reversing an earlier High Court ruling. It reinforces that THA projects involving State funds must follow national financial regulations.