The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Cabinet minister yesterday said it was “manifestly in the national interest” to complete a much-criticised waste water treatment plant project plagued by a 91 percent cost overrun.

Alfred Sears, minister of works and public utilities, told the House of Assembly that the total investment required to complete the Gladstone Road-based facility, which featured prominently in a probe into the Water & Sewerage Corporation under the former Minnis administration, was presently “unknown”.

Acknowledging the past problems by asserting that “we are not looking back, we are looking forward”, he disclosed that the Water & Sewerage Corporation had on January 20, 2022, issued a letter of acceptance to US-based Hatch Ltd, an engineering consulting company, to conduct a “detailed assessment” on the funding and other requirements to complete the project.

Hatch stands to potentially receive further work as project manager and construction supervisor when physical work begins at Gladstone Road, and Mr Sears said: “The total cost of completing this project in its entirety is unknown, but as soon as it can be determined the Board at the Water & Sewerage Corporation and the Government will pursue the most cost-effective way to complete this project.”

Mr Sears said the Gladstone Road waste water treatment plant will create a “central sewerage system” in western New Providence that better protects the environment, as it will treat and recycle used water from the $4.2bn Baha Mar resort complex that is currently being pumped into a well 400-600 feet below ground level.

This means dirty, polluted waste water is going into the salt water beneath New Providence instead of being treated, recycled and sent back to Baha Mar to irrigate its gold course and other amenities. As a result, Mr Sears said the Water & Sewerage Corporation is missing out on a potential new revenue stream generated by supplying treated water to the Cable Beach resort.

“The plant was intended to be an income generating facility,” the minister said. “This facility, when I went and saw it, I must confess that I was astounded because it is just sitting on Gladstone Road. You go on Gladstone Road on a daily basis, and you would not be aware this facility is there.”

He added that it was “in the national interest” for the plant to be completed, and become fully operational, because apart from Baha Mar it is also designed to provide communities such as Lake Cunningham, Skyline Drive, Munnings Drive and the Carmichael Road and Gladstone Road areas with a central sewerage system.

“That will be done in an environmentally sound manner, and have tremendous benefits,” Mr Sears said. “Treated water for irrigation will eliminate disease-causing bacteria. Through this recycling process we will save water, minimise waste and protect the environment while generating an additional stream of revenue. We are going to move this project forward.

“This facility was intended to receive the waste waster which is being received now from Baha Mar and being pumped into a well 400 feet to 600 below.. That waste was supposed to be treated, introducing a new revenue stream for the Water & Sewerage Corporation - reused water.”

Mr Sears said the treated, recycled water would have been resupplied to Baha Mar so it could water its lawns and golf course. “Currently the golf course at Baha Mar is being watered using potable water that could be supplied to Bahamian domestic consumers,” he added.

“That water is being used to water the golf course. We have an opportunity to take all this water, treat it and sell it as reused water for non-domestic purposes. The turbines have been sitting, never used, and the waste is being pumped down below our island. This is a serious environmental impact.”

Mr Sears said the Gladstone Road waste water treatment plant had initially been financed with $10m from the National Insurance Board (NIB), with that sum increasing subsequently to $15m. However, he made no mention of the findings from the EY (Ernst & Young) accounting firm’s probe that were revealed under the Minnis administration.

The forensic audit cited the plant as an example of how politically-motivated interference and mismanagement had cost the Water & Sewerage Corporation and Bahamian taxpayers millions of dollars.

Despite a 91 per cent overrun on the original $9.6m budget, which had cost the Corporation some $18.3m by March 2018, the EY report said further capital expenditure was required to complete the still-unfinished facility.

Besides the capital loss on the wastewater plant’s construction, every day it remains unfinished costs the Water & Sewerage Corporation significant revenue and operating losses. This is because the Corporation is having to pay a non-completion ‘penalty’ to Baha Mar by supplying it with heavily discounted water to irrigate the Cable Beach development.

“The Gladstone Road Waste Water Treatment Plant is capable of receiving waste water from Baha Mar, but is non-operational in the sense that the waste water is not being treated and returned for irrigation,” the EY report said. “Instead, the waste water is simply disposed of in the well.

“Because the Gladstone Road Waste Water Treatment Plant is non-operational, Water & Sewerage Corporation is currently providing Baha Mar with potable water at a substantial discount for irrigation purposes, further increasing the losses to the Corporation.

“As a result of the substantial budget overruns and inoperable facility, Water & Sewerage Corporation management believes that the facility will result in substantial losses to the Corporation, both with respect to the recovery of capital as well as operationally going forward.”

EY said Water & Sewerage Corporation management took “little to no responsibility” for the Gladstone Road project, blaming the shortcomings and mismanagement on third-party engineers and consultants hired to oversee it on their behalf.