Government “red tape” in the way of BiWater Loan
The sign erected at Paraquita Bay for the BiWater project.
ROAD TOWN, Tortola, VI – The Government of the Virgin Islands has not met all its obligations to the water purchase agreement which resulted in BiWater not being able to secure their loan.
This disclosure came from Minister for Communications and Works Honourable Julian Fraser RA, speaking to a local radio station.
According to the water purchase agreement which has been criticized by activists of the opposition National Democratic Party (NDP) and Consolidated Water/Ocean Conversion (BVI) Ltd, each side had a series of obligations and conditions to be fulfilled.
However, while BiWater has completed their obligations, the Government of the Virgin Islands is yet to fulfill its side.
VINO was made to understand that outstanding items for Government includes, land accesses, Non-Belonger Landholding Licenses, and planning permission among others.
Minister Fraser also assured the public that despite the red tape and delays “water will be flowing in the lines as plan in September 2011”.
The Minister rejected the calls by the chattering class, talk show hosts and the NDP to cancel the BiWater contract.
Speaking on the same radio station, the Minister said he cannot see a reason for the contract to be canceled since “it is Government who has failed to meet certain conditions”.
The water purchase agreement with BiWater was signed in February of this year, and Government will realize a huge savings only paying $12.90 per 1000 imperial gallons for the first 12.5 years and $6.85 for the remaining 3.5 years.
Under the BiWater agreement, Road Town sewerage pumping stations will be rehabilitated and many of the sewers will be replaced. In addition, BiWater will install a new 500,000 gallon water tank at Sabbath Hill and build two modern sewage treatment plants at Burt Point and Paraquita Bay on Tortola.
The NDP and others have called for an inquiry into the water purchase agreement. BiWater, the UK water and sewage giant, has continued to do business around the world including in the USA, UK, Europe, Canada, Latin American and the Caribbean.
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