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7 Public Bodies Told To Repay Rs 3.4 Billion Government Debt
Seven major parastatal organisations have been ordered by the Ministry of Finance to repay a combined debt exceeding Rs 3.4 billion to the State, with the deadline for full restitution set for the end of the 2026-27 financial year.
The move comes as authorities intensify efforts to address the persistent issue of public sector debt, with the latest figures showing the seven entities collectively owe Rs 3,410,016,000.
A detailed repayment plan has been established to ensure the money is returned to the government within the three financial years spanning 2024-25 to 2026-27.
The institutions involved are the Central Water Authority (CWA), the Development Bank of Mauritius Ltd (DBM), Airports of Mauritius Co. Ltd (AML), the Wastewater Management Authority (WMA), the Cargo Handling Corporation Ltd (CHCL), Airport Terminal Operations Ltd (ATOL), and Metro Express Ltd (MEL).
A senior official from the Ministry of Finance confirmed that the loans were primarily used to fund strategic infrastructure and modernisation projects.
“The State supported these organisations during critical phases, particularly for infrastructure and modernisation projects,” the official said.
“Today, the financial situation of several of them has improved, and it is therefore logical that they gradually settle their debts.”
The loans were contracted over the years to finance development projects, often when internal resources were deemed insufficient.
Debt Volume Leaders
Two institutions account for a significant portion of the debt: the Wastewater Management Authority (WMA) and the Central Water Authority (CWA).
The WMA, responsible for sewage management, has regularly secured public financing to expand and modernise its sanitation network.
The CWA’s substantial borrowings were sought to replace ageing water pipes, improve distribution, and install new infrastructure to reduce losses and enhance the network’s resilience to climate change.
Other entities, such as MEL and AML, also received government loans for major transport and airport modernisation projects.
Focus on Budgetary Discipline
The mandated repayment plan is part of a broader government effort to strengthen budgetary discipline across public institutions and lessen their financial reliance on the Treasury.
Authorities have stressed that the measure is not punitive but aims to encourage more autonomous and responsible management of public funds.
The institutions have been notified of the necessity to meet the set deadlines to prevent potential budgetary imbalances. If the calendar is adhered to, the State expects to recover the entire sum owed by 2027.
Parastatal Loans Repayment Schedule
Organisations | 2024-2025 (Rs) | 2025-2026 (Rs) | 2026-2027 (Rs) |
|---|---|---|---|
| Central Water Authority | 287,384,000 | 307,885,000 | 311,785,000 |
| Development Bank of Mauritius Ltd | 28,260,000 | 28,260,000 | 28,260,000 |
| Airports of Mauritius Co. Ltd | 58,678,000 | 49,413,000 | |
| Wastewater Management Authority | 337,325,000 | 343,435,000 | 341,407,000 |
| Cargo Handling Corporation Ltd | 78,757,000 | 78,757,000 | 78,757,000 |
| Airport Terminal Operations Ltd | 640,305,000 | ||
| Metro Express Ltd | 113,026,000 | 142,992,000 | 155,330,000 |
| Total | 903,430,000 | 1,591,047,000 | 915,539,000 |
Source: Defi Media
