No infringements on Global's contract during time in office- Hon. Fraser
Hon. Fraser, who is the Representative for the Third District, was speaking to Virgin Islands News Online regarding an article recently published on another local news site, which alleged that Global Water Associates has threatened to seek legal action to recover approximately $22.9M due to Government's failure to honour two agreements signed in 2006 with the company.
The article further stated that the two agreements were signed between the company and the National Democratic Party (NDP) administration on September 19, 2006, but were never honoured during the Virgin Islands Party (VIP) administration between 2007 and 2011 and that according to the design build agreement No. 395/2006, Global Water Associates was contracted to design, build and install a water reclamation plant at Paraquita Bay, while the second agreement No. 398/2006 required the company to manage, operate and maintain the plant.
It also alleged that despite having the Global Water Associates agreements, Hon. Julian Fraser introduced Biwater to the public in a statement in the House of Assembly and subsequently the Virgin Islands Party administration subsequently signed an agreement with Biwater on February 18, 2010.
But according to Hon. Fraser, negotiations did not take place during his time as Minister because “first of all, the East End/Long Look Sewage project had been on hold from September 2007, and still was; which was a full 15 months prior to the Biwater Negotiations. Second, the Biwater Agreement which was negotiated in December 2008 and agreed in March 2009, was not signed until Feb 2010. That's an additional 14 months, which then made the Global Contract hold 2 years and 5 month beginning Sep 2007.”
Hon. Fraser also said that Biwater, after all its difficulties with planning approvals, did not begin to utilise the site for construction until after the November 2011 elections.
“And further, considering the Biwater obligations under the Agreement, vis-a-vis the Sewage Treatment Plant, nothing was done or was about to be done on the ground, in order to trigger negotiations with Global. In other words, there was no infringements on Global's contract during my time in office.”
Under the 2006 contracts, Global Water Associates was reportedly expected to build their plant at Paraquita Bay in the very area where Biwater has currently set up its water plant.
Hon. Fraser explained that during the time of negotiations with Biwater in December 2008 when it became apparent that the ideal location for the Water Desalination Plant was in the vicinity of the proposed Sewage Treatment Plant, it was agreed that for logistical and functional reasons the Water plant be placed ahead of the sewage treatment plant, and since the only land ahead of the proposed sewage treatment plant site was agricultural land, which would have posed difficulty in acquiring, the decision was taken to locate the water plant on the government prepared site for the proposed sewage treatment plant, and prepare another site for the sewage treatment plant on non-agricultural land behind the water plant.
“During the negotiations, the Permanent Secretary at the time reminded the group of the existing contract with Global Water, our Attorneys advised of the need to negotiate, it was discussed, and we all agreed. So this was all done with the full cognizance of the contract with Global Water. This is simply a matter of record, all one has to do is check the records,” Hon. Fraser argued.
Additionally, Hon. Fraser said, it is important to note that the portion of Biwater's Agreement, which states "erection and installation of the sewage treatment plant (supplied by others) at Paraquita Bay, complete with an effluent discharge point at the site boundary", falls under the section of the Agreement that is Non-Revenue Water reduction works; meaning that this portion of work is being done at no cost to government. In this particular case, however, the government has an obligation to provide Biwater with the Plant.
“This particular provision was put in the Agreement as a safety net, intended to ensure that Government ended up with the Plant one way or the other.”
It was also alleged that Global Water Associates is claiming payment of $804,253.80 being the difference between the contractual amount of $2,680,846 and the payment by Government in the amount of $1,876,592.20 under the design and build agreement. Additionally, Global Water Associates has submitted a claim for $21,900,000.00 being the value of the management agreement. The site had also stated Global Water Associates is also seeking financial compensation of $275,000.00 for the deterioration of the equipment purchased at the commencement of the design build agreement, which continues to sit unused.
“Now, in reality government has paid Global Water free and clear the cost of the Plant and upon notification of an exorbitant and unacceptable storage fee from Global Water for the plant in a warehouse in the United States, government demanded delivery of the Plant. As far as I know, Water and Sewage was designated custodians of what of the Plant was delivered and it is in Government's possession,” Hon. Fraser revealed.
Confusion regarding Biwater to be blamed on NDP administration
“The confusion surrounding this whole Biwater Agreement lies at the feet of this NDP administration which continues to pretend that the Agreement and Biwater does not exist. This disregard for the Terms of the Agreement was highlighted in the HOA when the Minister (Hon. Mark Vanterpool) told the House that his Ministry had done no expert verification of the drawings and specifications for compliance with both the American Water Works Association, and the American Society for Testing and Materials standards as required by the Agreement. And neither did they issue any certificates of completion, nor do they make regular construction inspections, as required.”
The Third District Representative, known as the Liberator, concluded that most importantly, the Ministry of Communications and Works has elected to fire the Biwater Project Coordinator, a person who sat at the negotiations table with Biwater on the Agreement, and knew the terms of the Agreement inside out, and also knew the obligations of government with intimacy, and would most definitely have known when and if negotiations were to kick in.
“The Ministry even undertook to remove the technical expert appointed as Employer's Representative and replace them with the Permanent Secretary, who made no secret of their lack of familiarity with the project.”
NDP’s reckless actions created emergence of Biwater
Previously, First District Representative, Hon. Andrew A. Fahie had stated that the reckless actions by the current National Democratic Party (NDP) administration was the reason why the Biwater deal emerged in the first place and why Government is now allegedly being threatened with a lawsuit by Global Water Associates.
According to Hon. Fahie, since 2007 during the NDP's Administration to present and even during the VIP's term in office, he has been raising concerns about the two Global Water Associates contracts. He also said as recent as the last Sitting of the House of Assembly he had asked Minister for Communications and Works Hon. Mark Vanterpool about the contract but he reportedly used sections of the Standing Order to refrain from answering the questions.
“In 2007 during the then NDP's Administration, during the question & answer period of the Sitting of then LEGCO, the NDP did not admit that there were two contracts but rather only assured us that there was only one contract with Global Water Associates; however, the information now being revealed apparently differs significantly from that which we were assured.”
Hon. Fahie said the contract he was aware of regarding Global Water Associates included paying $20 per thousand gallons to refine sewage water to make it environmentally safe to throw into the sea. “Meanwhile, they hired a company that advised them (NDP Administration) to reduce the water price for the water produced by Ocean Conversion from just over $12 to $6.88 per thousand gallons. This course of action significantly contributed to the financial challenges of the local BVI investment group. In addition the contract replaced a local engineer who was working on the sewage project because, in my opinion, for political reasons.”
The First District Representative added that during the VIP's administration he stated that the two contracts by the NDP with Global Water Associates left the door wide open for Biwater. Had they (NDP) renewed Ocean Conversions contract, Hon. Fahie continued, and taken care of the local investment group, then a lot of monies that were paid out, is being paid out and will be paid out by Government would have been avoided. He opined that instead politics and self interest, rather than country, was allowed to rule from 2006. “Now we are hearing that one of the possible repercussions is that our Treasury will be called upon to pay over 21 plus million dollars to Global Water Associates, as starters.”
“These points I have been stating in the LEGCO/House of Assembly from 2007 during the NDP's Administration to present. I always said that this and other water/sewage contracts need reviewing in the best interest of the people but the NDP got a significant number of persons just to concentrate on Biwater when the truth be told that their actions created the emergence of Biwater. As I always state what my people of the 1st District tell me, when destruction is your motivation, your motivation becomes your destruction.”
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45 Responses to “No infringements on Global's contract during time in office- Hon. Fraser”
There is no indication that when Hon Frazer took office, that he himself reviewed the Global Water agreements and worked actively to honor those agreements. Just like he is now claiming that the NDP isn't actively honoring the BiWater agreement.
If Frazer and his attorneys agreed that the deal with Global had to be negotiated...then why wasn't it? Why wasn't Global allowed to forge forward to execute both agreements and then if they failed to execute what was agreed, then we could nail them to the cross! THEN we could agree there was a need to pull in another company like BiWater.
But why bring in BiWater when there was another company already agreed with and capable?
That is the question. If that is answered, then we will know where to put the blame.
By the way, who owns Global Water?
You are clearly biased and whatever Frazer says, it seems like might as well Jesus had said it.
SO while I look for plain and unbiased answers, you have fallen prey to the words of whatever Frazer says.
In my humble opinion, NDP/VIP is much of the same …..different players, but same old game, so we will keep changing them untill we get a more perfect UNION
The Contract with Biwater is totally different from that with Global Water, yet Platinum made it seem as if the VIP issued a contract to Biwater for exactly the same thing Global was contracted to do. Global is supposed to do Sewage, Biwater is for Water. The site where Biwater Plant is is Government's, not Global's. Government contracted for the preparation of that site indipendant of Global Water's contract. So where is the infringment.
Biwater did not erect the Sewage Treatment Plant during Fraser's time in office, they still havent erected it to this day. So where is the infringment? Bunch of loosers trying to score points, thats what I see here. The NDP needs to buccle down and administer the Agreement before they cause the government to loose their shirts (treasury)
You mean NDP signed a Global Water contract when we had Cavin Malone and Berger CBE?
This is sick and a misuse of my tax dollars... I feel very sad for the future generations and my children children!!!
I just want to know who owns Global Water.
Peace.
ALL OF THEM...