The controversial Biwater contract is being reviewed by Government. Photo: VINO

Minister for Communication and Works, Mark Vanterpool

This was revealed by Minister for Communications and Works Hon. Mark Vanterpool on Monday January 16, 2012 during the radio programme NDP Radio.

The Minister also said that he was unable to make any further statements but that the public would be updated after the review process.

“We are generally reviewing, at the Ministry of Communications and Works, all water and sewerage contracts and can’t make any further statements until the review is completed... Yes at the right time and for openness we will make statements accordingly, but at the moment we are just reviewing contracts.”

One of the major contracts under review is the much debated BiWater contract, which was inked by the previous administration of Ralph T. O’Neal.

BiWater (BVI) Ltd is expected to rehabilitate the existing sewerage pumping station at the Roundabout in Road Town, replace the sewers connecting the station to the sewer system and outfall with some 6,000 feet of 12-inch mains and construct sewage treatment plants at Burt Point and Paraquita Bay, sufficient to treat the sewage to World Health Organization standards, before discharging to the sea.

The contract also indicates the establishment of a 2.3 million gallon per day desalination plant which will be handed over, free of charge, in good working condition to Government at the end of a 16-year period.

Meanwhile, Premier Dr. D. Orlando Smith in his budget address on Tuesday January 17, 2012 said “Our philosophy, Madam Speaker, is that development projects must be justified in the budget and must be subjected to yearly justification process.”

The Premier also said that in the coming weeks and months, the Ministry of Finance will be looking at further cost cutting measures by “examining the budget line by line, reviewing respective government contracts and the likes to determine what additional savings can be ”.

The intention, Dr. Smith said, was to improve the standard of living and financial situation of the country and at the same time not put the burden on citizens.

A recent decision by Cabinet to increase its reserve fund has led to a cut of more than 13 million dollars for expenditure in the public service, which is reflected in a 50 percent reduction in employees’ performance increments and seven percent of operational expenditure in government departments.

According to Financial Secretary Neil Smith, the increment of three percent of employees’ salary will now be reduced to 1.5 percent while the operational expenditure of running the various government departments will be cut by seven percent or equivalent to some $11.8 million. He said the accumulated cut will amount to $13.3 million.

Smith said those monies will be put into the reserve fund, which will be built to enable the country to run without revenues for three months in a worst case scenario.

He further related Government’s commitment not to lay off workers as he said the choice was either to decrease the size of the civil service or make expenditure cuts with the existing institution.