Two leading economists in Trinidad and Tobago have thrown their support behind the government’s newly announced plan to divest key underperforming state-owned commercial assets, arguing the policy shift will strengthen public finances, unlock economic growth, and redefine the state’s core role in the national economy. Prime Minister Kamla Persad-Bissessar recently confirmed the government will launch a request for proposal process to sell off three high-profile assets: Hilton Trinidad, Tobago’s Magdalena Grand Beach and Golf Resort, and National Quarries.
Leading macroeconomist Dr Indera Sagewan framed the divestment decision as a pragmatic recognition of the state’s core mandate: to govern, regulate, and enable inclusive growth, rather than tie up public capital in inefficient, uncompetitive commercial ventures. In a written response shared with local media outlet Express, she noted that continued public operation of commercial entities, particularly in hospitality and industrial management, places an unnecessary and unsustainable strain on public coffers and taxpayers.
“Divesting these assets frees the state from the constant burden of covering operational losses and funding capital-intensive upgrades that could be better handled by private stakeholders,” Sagewan explained. “Those redirected public funds can then be channeled into high-priority social and economic infrastructure, from universal healthcare and public education to national security and foundational investment projects that benefit all citizens.”
Sagewan added that the private sector is uniquely positioned to revitalize these state assets, with the capacity to inject fresh working capital, adopt modern data-driven management frameworks, and integrate cutting-edge operational technologies that public entities often struggle to access. “Transferring these businesses to experienced private operators will unlock their true commercial potential, lift overall productivity, and drive long-term, sustainable profitability,” she said.
Specifically, she noted that handing control of Hilton Trinidad and the Magdalena Grand to specialized local or international hospitality investors will deliver a meaningful upgrade to Trinidad and Tobago’s national tourism product. Paired with the already announced $500 million new Marriott resort development at Rocky Point, Sagewan said the divestment policy creates a supportive environment for sustained job creation and meaningful economic diversification away from the country’s historical reliance on energy exports.
While Sagewan endorsed the divestment strategy’s core goals, she emphasized that robust transparency and unwavering accountability are non-negotiable to ensure the public reaps the full benefits of the sales. Without strict independent oversight, she warned, the process opens the door to opaque backroom deals and cronyism, which can result in valuable public assets being sold at below-market rates to well-connected political insiders at the public’s expense.
To guard against this erosion of public trust, Sagewan said every stage of the divestment process – from initial independent asset valuation through the final competitive bidding stage – must be open to third-party auditing, bound by strict public disclosure requirements, and documented with a clear, verifiable paper trail. She called for the implementation of an unassailable public procurement framework that eliminates corruption risks and guarantees a level playing field for all potential investors. By opening the process to open, competitive international bidding rather than relying on closed, selective direct negotiations, the government can ensure it secures full market value for assets while neutralizing risks of bribery and bid-rigging, she added.
“By stepping back from direct commercial operations that are better left to the private sector, the government is positioning Trinidad and Tobago as a modern, market-driven economy focused on building long-term global competitiveness,” Sagewan said.
Fellow economist Dr Vaalmikki Arjoon echoed Sagewan’s support, noting that private ownership will deliver more efficient and productive management of these assets, unlock untapped economic value, and strengthen strained national public finances. Arjoon argued that given the country’s ongoing fiscal constraints, continuing to pour public funds into chronically underperforming state entities makes little economic sense when competing priorities – from healthcare to education to critical infrastructure – are in urgent need of additional investment.
“The goal of divestment is not simply to generate one-time revenue from asset sales,” Arjoon explained. “It is to eliminate the recurring drain on public finances from these underperforming assets, free up limited public resources, and create greater fiscal space for the state to make productive, public-facing investments that benefit all Trinidadians and Tobagonians.”
Arjoon pointed out that private investment will not only improve asset productivity but can also expand operational capacity, create long-term sustainable jobs, boost national tax revenues, and increase foreign exchange earnings – particularly through the tourism and industrial port sectors. These long-term economic benefits, he emphasized, will deliver far more value to the national economy than the one-time proceeds from the asset sales.
National Quarries, Arjoon noted, is a particularly compelling case for divestment, given years of sustained financial instability and poor performance. Between 2020 and 2025, the state-owned entity accumulated a total of $135.8 million in losses, and received $154.57 million in taxpayer-funded government subventions between 2022 and 2025. As of 2021, its liabilities exceeded total assets by roughly $162 million, and the entity has a long history of inadequate financial reporting practices. Most notably, its production cost structure is fundamentally unsustainable: it costs approximately $397 per tonne to produce sand and gravel aggregate, but the product is sold for just $135 to $152 per tonne. Private management, Arjoon argued, can introduce stronger commercial discipline, optimize equipment utilization, improve maintenance and procurement processes, and cut excessive production costs. Eliminating the recurring annual subventions for National Quarries will free up millions in public funds for other urgent national priorities, he added.
For the La Brea Industrial Development Company (LABIDCO), Arjoon noted that its industrial estate and port facilities play a critical role in Trinidad and Tobago’s energy sector, but the asset requires major capital investments to reach its full potential. Dredging work, quayside expansion, and broader infrastructure upgrades are needed to boost the port’s capacity and position it as a more competitive multi-use facility. A specialized private investor can bring the required capital, advanced technology, global industry connections, and operational expertise to attract more port customers and expand activity. This would also reduce ongoing demands on the national energy company NGC’s budget for port infrastructure maintenance, freeing up additional public funds, Arjoon noted. For this asset, Arjoon suggested a strategic equity partnership could be a strong option, allowing NGC to retain a partial ownership stake while still leveraging private sector capabilities.
Both of the country’s flagship hospitality assets earmarked for divestment face long-standing financial challenges, Arjoon added. The Magdalena Grand has struggled for years with low occupancy rates and repeated requests for public funding to cover maintenance and upgrades, while Hilton Trinidad requires substantial capital investment in refurbishments to meet the international brand’s required quality standards. In fiscal year 2024 alone, the government spent $47.11 million on Hilton’s mandatory Property Improvement Plan, and both hotels have been supported by government-backed borrowing arrangements. Bringing in experienced private hospitality investors will shift the burden of future large capital upgrades away from taxpayers, and give the private owner incentive to modernize facilities, boost occupancy rates, and deliver higher returns.
Like Sagewan, Arjoon emphasized the critical need to ensure assets are not sold below their fair market value. He recommended that all assets undergo independent valuation that accounts for underlying land value, existing infrastructure, projected future earnings, and price signals from competitive bidding.
“The success of this divestment program should not be measured by how much upfront revenue the government raises,” Arjoon concluded. “It should be measured by how much it reduces the burden on taxpayers, strengthens public finances, and generates new private investment, quality jobs, and sustainable economic value. The core objective must be to turn chronically underperforming public assets into productive contributors to national development, rather than allowing them to remain a constant drain on our country’s scarce resources.”