Savings on water purchase will not trickle down to consumers- Hon Vanterpool
It was the Virgin Islands Party’s (VIP) time in government with Honourable Julian Fraser RA (R3) as the then Minister of Communications and Works that led the agreement with then BiWater, a company that has the capacity to produce water to supply the entire Virgin Islands (UK).
The vision of what the company could have done to the benefit of the country was not seen by naysayers who bought in to the NDP’s demonisation of the project and supported protests against the project.
However, yesterday February 14, 2017, in an about face, the very naysayers are hanging on to the hope that the same company, which has changed its name to Seven Seas Water BVI Inc, will come in as a saviour with the possibility of seeing the government saving as much as $4M annually for no less quality and quantity of water.
Gov’t expected to save $4M
Minister for Communications and Works Honourable Mark H. Vanterpool (R4) told a press conference that they have inked the MoU with the water company to review its contract with Government and are in great anticipation of a positive outcome as negotiations continue, a move that has been made possible subject to agreement with the lender, Barclays PLC and UK Export Finance (UK EF).
"Expectations for a final agreement are imminent. Once the MoU is concluded and becomes a Supplemental Agreement, the government is expected to save approximately $4M per Anum. This will bring a total savings, through our negotiations on all Water Purchase Agreements, to approximately $6 million per annum," he said.
“It has not been an easy discussion negotiation but we were obviously not comfortable with it and the parties on the other side were willing to negotiate with us…. Obviously negotiations have give and take and I will explain that when we finalise the agreement hopefully in the next couple of weeks.”
Savings will not trickle down to consumers
Meanwhile, Government has renegotiated three contracts with Aqua Design (BVI Ltd) and Ocean Conversion (OC), inking in a projected saving of $2M annually in water cost to the government.
However, with the price cuts, residents would not see their water bills cut in anyway even as they continue to be at the bitter end of continuous scant water supply and every day promises that the government is working to have the situation rectified.
“This is the effort that we have been making, so hopefully as we continue to try to reduce the price for water to the government, the price of water to consumers will not be increasing in the short future.
"I am afraid I have to say that it won't trickle down. The Government at the moment is paying and subsidising water to the consumers, effectively paying close to $20 per 1,000 gallons, the consumers have been paying on the residential basis about $12 per 1,000 gallons. So we are trying to narrow the gap between what we pay for it and what the consumers paying. This is the effort we have been making and hopefully as we continue to try to reduce the price of water to the government the price of water to consumers would not be increasing to the consumer in the short future," said Hon Vanterpool.
None-the-less the signing of three Water Purchase Agreements, will reduce the cost of water to the government by approximately 30% which approximates to some $2M annually as the rates are now lowered from an average cost of $19 per 1,000 gallons previously, to an average cost of less than $13 per 1,000 gallons.
Those three agreements signed were the renewal of production at the Capoon’s Bay Water Plant on Tortola, with Aqua Design; supplemental agreement for increased production in North Sound, Virgin Gorda with Aqua Design; and supplemental agreement with Ocean Conversion on Tortola.
Premier and Minister of Finance Dr The Honourable D. Orlando Smith (AL) and Hon Vanterpool signed on behalf of the government while Mr Robert Gorgol signed for of Aqua Design and Mr Meade W. Malone for Ocean Conversion.
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23 Responses to “Savings on water purchase will not trickle down to consumers- Hon Vanterpool”
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