The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE Government is aiming to reduce the Water & Sewerage Corporation’s (WSC) arrears with BISX-listed Consolidated Water, its main supplier, to just under 90 days, after approving a $20 million subsidy for the 2014/2015 fiscal year.

Deputy Prime Minister Philip Davis said the Water & Sewerage Corporation (WSC) had received $39 million in total subsidies for the 2013-2014 fiscal year, with the majority of that sum allocated to pay for reversde osmosis water purchases, and the remainder for debt servicing.

“Based on this level of subsidy, it is expected that arrears to Consolidated Water, the largest diesel water supplier, will be reduced to just under 90 days. A subsidy of $20 million is allocated for the 2014-2015 Budget,” said Mr Davis.
 “Work continues on the Galdstone Road water treatment plant, with completion scheduled to coincide with the opening of Baha Mar. As previously reported, WSC received a $10 million NIB loan for construction of a one million imperial gallons per day wastewater treatment plant servicing Baha Mar and surrounding developments.
 “As part of the Government’s plans for development in the Family Islands, the Corporation will address water supply and infrastructure issues in south Andros, Mayaguana, Long Island, North Eleuthera and Cat Island.”
 Mr Davis said that as part of WSC’s non-revenue water (NRW) reduction efforts, the Corporation has not experienced any challenges with meeting water demands for more than six months.

“Additionally, WSC has been able on occasion to reduce water production at the desalination plants due to the reduction in NRW. In just over 18 months, Miya Bahamas haas reduced this by over one million gallons per day,” Mr Davis said.

“The financial benefits of this programme are expected to be realised in the upcoming year. The preparation of a wastewater master plan for New Providence is also underway, and $15 million worth of rehabilitation work is expected to be tendered within the next six-eight months.”
 As for Bahamasair, Mr Davis said the projected loss for the fiscal year which ends on June 30 is $15.6 million.

“Bahamasair’s recent performance data clearly indicates that the airline is making progress towards becoming less of a burden to the Bahamian taxpayers. As recent as fiscal year 2011-2012, Bahamsair’s net loss was $26.6 million,” Mr Davis said.

“The projected loss for this fiscal year, which ends June 30, is $15.6 million. Bahamasair’s budgeted deficit for the fiscal year 2014-2015 is $16.6 million, including a recently-introduced Business License fee of $1.2 million.

“The fact that theGovernment has reduced Bahamasair’s subsidy from $18.6 this year to $15 million next demonstrates confidence in the performance of the administration and operations of the airline.”

Mr Davis said customer complaints has been trending down for the past three years, and show a 6.7 per cent decrease year-over-year.

He added that despite what were “modest improvements”, Bahamasair is still a long way from profitability.