Governor McCleary is assuring citizens that the Biwater contract will be carefully monitored.

Mr. McCleary gave the assurance in a letter dated March 23, 2011, in which he responded to a petition that had raised concerns over the agreement, including Biwater’s ability to deliver on its proposals.

“Biwater, a company with extensive international experience in the field, is likely to deliver the facilities for which they have contracted. The Agreement will produce potable water at a rate, which appears to offer better value to the people of the Virgin Islands than other contracts in the territory. It will also address the long-standing sewerage problems of the territory.”

Mr. McCleary stated that the Government’s technical advisors Ove Arup and Partners, which he labelled as a reputable firm of engineering consultants, in their reported dated February 2009, drew attention to a number of issues that needed to be addressed in negotiations, but concluded based on visits to Biwater sites in Panama and Florida.

“Biwater clearly demonstrated their ability to organize and deliver major design and build construction projects…It is clear that Biwater are experts in their field and capable of delivering the facilities proposed for Tortola,” Mr. McCleary said.

The Biwater sign erected at Paraquita Bay.

The Governor, however, stated that the contract would need to be carefully managed to ensure that the contractor meets its obligations. He noted that given the relative complexity of the Agreement and the experience of managing other major contracts, there must be doubts about Government’s capacity to manage the contract effectively.

“I am therefore asking the Auditor General to monitor the contract carefully and provide quarterly reports to me and make necessary recommendations if she believes additional professional expertise is necessary.”

Mr. McClearly made it clear that should additional professional expertise be deemed appropriate at any stage, he would recommend accordingly to Government.

On February 18, 2010, Biwater signed a Build, Own, Operate, Transfer (BOOT) contract with Government for a sea-water desalination plant. The plant will produce 2.3 million imperial gallons of potable water per day, has a construction value of US$43 million and a subsequent 16 year operation and maintenance period.

In addition, the contract includes the design and build of two sewage treatment plants, pumping stations, extensive pipelines and reservoirs. The contract also includes the provision and installation of a water distribution leakage reduction programme complete with a tariff billing system.