By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
BISX-listed Consolidated Water said yesterday that it had gone “over and above” in providing the Water & Sewerage Corporation with water volumes which were 20 per cent more than what its contract required.
Rick McTaggart, Consolidated Water’s chief executive, told a conference call with Wall Street analysts that the Cayman based company’s Blue Hills reverse osmosis plant had been producing 20 per cent more water than it was contractually required, equating to more than 55 million US gallons per month.
“Our Bahamas plant continues to run very well. We have been producing 20 per cent more water than we are contractually required to produce in order to assist the corporation, our customer to meet its demand. This equates to more than 55 million US gallons per month which we have been consistently providing since the beginning of the year over and above the guarantee,” said Mr McTaggart.
The BISX-listed firm is seeking a five-year extension of the water supply agreement it currently holds with the corporation for the Windsor reverse osmosis plant. “Our water supply agreement with The Bahamas Water & Sewerage Corporation for our Windsor plant came to an end in early July and we have been asked to continue operating the plant for an additional 60 days in order to provide additional time for the corporation to make decision on a five year contract extension we submitted in October of last year,” said Mr McTaggart. EPS Consultants - an all-Bahamian investor group - has emerged as a threat to Consolidated Water’s plans, having submitted a rival proposal to the Water & Sewerage Corporation and Christie administration.
Comments
Reality_Check 10 years, 8 months ago
Consolidated Water should be paid for water production on the basis of water that ultimately flows out of the tap as this is the only water that can be metered and tied to the revenue of Water & Sewerage Corp. Paying Consolidated Water millions of dollars for millions of gallons of water that simply seeps into the ground and is lost forever is the height of pissing away money we don't have as a country. Our governments (both PLP and FNM alike) have tolerated this massive squandering of funds that manifests itself in the losses of Water & Sewerage Corp borne by Bahamian taxpayers for many years now. If Consolidated Water is unwilling or unable to help us fix our very leaky water distribution system, then we need to sign an appropriate contract with a water producer who is willing and able to do so.
The same should also apply to all of the proposals thus far put to Government by greedy investors looking to build an electrical generating plant to supply BEC with electricity. The investors behind each of the proposals received to date would love a "sweet profiteering" arrangement that leaves BEC and Bahamian taxpayers on the hook for the high cost of the country's electrical distribution system (covering many islands), BEC's unfunded pension liabilities, etc. etc. The eventual outcome of putting only the electrical generating plants in the hands of these investors, with a "sweet deal" contract on the back of an already financially troubled BEC, is all too obvious: BEC would soon go belly-up leaving Bahamian taxpayers saddled with funding its unsettled liabilities, and the less costly parts of its electrical distribution system would be picked up at a fire sale price by the private plant owners.
The arrangement between Water & Sewerage Corp and Consolidated Water is a classic example of why these types of deals fail.
The_Oracle 10 years, 8 months ago
They are paid for water produced and supplied, if the Govternment "pisses it away" it is because Government maintains (or doesn't) leaky pipes, not Consolidated. Am I, as a Food store for example, required to cook the food for you? Eat the left overs? Take back spoiled food YOU didn't use?
This is half the problem in our country, ridiculous expectations that SOMEONE should and will look after us!! Consolidated saw a business opportunity, negotiated and signed with OUR Government! If OUR Government thought Leaky pipes were an issue, it still remains THEIR issue. The Government is the squanderer, and they have no problem tolerating themselves at our expense! As for the solar projects, utility sized, $0.25/Kwh is "rape" but we loose our clothing on that price, not Government Ministers and their hacks. 0.12-18/Kwh is doable here.
Sign in to comment
Or login with:
OpenID