Government signed the agreement with BiWater on February 2010. Photo: GIS.

BiWater officials have remained mum on the issue and VINO’s efforts to contact the company’s Project Manager, Bernard Keeley, were unsuccessful.

Residents who opposed the company’s contract had accused the administration – the Virgin Islands Party (VIP) – for allowing BiWater to use Crown land as collateral in securing its loan.

However, Premier Ralph T O’Neal in a November 3, 2010 press statement set the record straight.

The BiWater sign erected at Paraquita Bay on Tortola. Photo: VINO.

An excerpt of the statement quoted the Premier saying, “Let me repeat that in fact the British Virgin Islands Government has no financial responsibility for BiWater. BiWater is itself responsible for its own finances…I wish to make it abundantly clear that the British Virgin Islands Government has not guaranteed BiWater financial or other obligations for any of its undertakings. Our Constitution and Financial Laws set out in detail the requirements for the Government to borrow money or to guarantee borrowing. The requirements include the passing of a Resolution by the House of Assembly. As far as I know, no resolution has been brought to the House of Assembly nor has any been passed to guarantee any loan or any financial obligation to BiWater.”

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.

The new contract is expected to substantially reduce the cost of water on Tortola and full sewage treatment for the island is also expected to be provided.