Finance Minister clarifies road fund delay, says Cg 9 million secured for 2027 road projects

GREAT BAY--The Minister of Finance has sought to clarify suggestions that her ministry requested a further delay in the implementation of the Road Fund because of financial difficulties, explaining that the fund's proposed new structure could not be fully incorporated into the 2027 budget because the required legislative and regulatory framework was not yet in place.

The clarification follows remarks made by Minister of Public Housing, Spatial Planning, Environment and Infrastructure (VROMI) Patrice Gumbs during a briefing on October 21, when he announced that the government's proposed road and infrastructure investment program for 2027 was approaching a historic Cg 9 million.

In a statement issued Wednesday, the Minister of Finance welcomed the investment but said certain remarks during the VROMI briefing may have created misunderstandings about the role of the Ministry of Finance in the Road Fund's implementation.

According to the minister, the Road Fund was established under the National Ordinance Road Fund, which took effect on October 10, 2010. The legislation provides for the fund to be financed through motor vehicle tax revenues and places its administration under the responsibility of the Minister of VROMI.

In September 2024, the General Audit Chamber published its review of the allocation of motor vehicle taxes between 2022 and 2024, making recommendations concerning the Road Fund and how these revenues should be allocated.

The Finance Minister explained that in December 2025, the Minister of VROMI announced plans to establish the Road Fund as a foundation, with operations intended to begin on January 1, 2027. Under this arrangement, the foundation would receive funding through a subsidy.

However, the necessary legislative and regulatory framework to make the proposed arrangement operational had not been established when preparations for the 2027 budget were underway. Consequently, the new structure could not be fully incorporated into the budget as originally intended.

Despite this, the Ministry of Finance said it worked closely with VROMI to ensure funding would be available for road improvements in 2027, resulting in an allocation of Cg 9 million in the capital budget.

Under the phased implementation plan, an initial Cg 5 million from collected motor vehicle taxes will be allocated to the Road Fund initiative in 2027. Of that amount, Cg 1.5 million will be incorporated into operational expenditures to support the fund's implementation, while Cg 3.5 million will be used to finance capital investments in the road network.

The remaining Cg 5.5 million of the Cg 9 million capital investment program is expected to be financed through a loan that has yet to be secured.

The minister further explained that beginning in 2028, motor vehicle tax revenues are expected to be directed toward the Road Fund to support the sustainable financing of road infrastructure improvements.

The Ministry of Finance stressed that the phased approach does not represent a lack of commitment to improving the country's roads, but allows the required legal and administrative steps to proceed while investments in the road network continue.

"Our shared priority is to ensure that the people of Sint Maarten benefit from improved roads and infrastructure. The historic Cg 9 million allocation for 2027 demonstrates what can be achieved through cooperation between our ministries. We remain committed to working together to establish the necessary framework and ensure the sustainable financing of our road network for the benefit of our people, businesses, and tourism sector," the Minister of Finance stated.

The minister reiterated her commitment to supporting VROMI in establishing the necessary framework for the full implementation of the Road Fund, emphasizing that cooperation between both ministries remains essential to improving St. Maarten's road infrastructure.

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