Government has managed to plug an approximately $10 million per month leak at the Barbados Water Authority (BWA).
This is according to Government’s Chief Economic Counsellor under the Barbados Economic Recovery and Transformation (BERT) programme Dr Clyde Mascoll.
He said the efforts to mop up the multi-million-dollar loss at the state-run entity, was not due to the changes in rates and new taxes, but by renegotiating contracts.
Describing the savings as “amazing”, Mascoll, said Government was also able to clean up financial losses at the Sanitation Services Authority (SSA).
He was addressing the annual panel discussion of the CFA Society of Barbados at the Errol Barrow Centre for Creative Imagination on Wednesday night on the topic Where Global Intersects Local.
“It is not just fiscal issues, there were issues on the inside that we had to address,” he said of both entities.
Mascoll did not disclose the savings at the SSA, but said, “The water authority was, not too long ago, incurring a deficit of $10 million per month. The water authority now, is in the black. Now, that is simply amazing, and it is not the increase. It is that the Government was able to go into the water authority and take existing contracts and renegotiate them and save this country substantial amounts of money,” said Mascoll.
He did not give details regarding the renegotiation of contracts, but last December it was made public that Government was renegotiating its contract with Innotech Aquaserve Limited for the leasing arrangement involving the $40 million BWA headquarters.
BWA Chairperson Leodean Worrell had reported that Government was in a contract, which would see it paying more than $170 million over a 15-year period before the BWA could own the Pine, St Michael building.
Besides savings from renegotiated contracts, Government is expected to rake in substantial earnings through tariffs.
Government is also expected to earn some $65 million from the Garbage and Sewage Contribution (GSC) levy introduced last July, which sees households paying $1.50 per day of which $1.25 goes to the Sanitation Service Authority.
Commercial entities are paying GSC equivalent to 50 per cent of their monthly bill, while pensioners living alone pay 75 cents per day.
Also, effective May 1 this year, the commercial rate for water moved from a fixed $4.66 per cubic metre for all water levels, to $4.66 for up to 40 cubic metres and then $7.78 per cubic metre for usage over 40 cubic metres but with a cap of 12,000 cubic metres, after which the rate reverts to $4.66 per cubic metre.
Government is expecting revenues of $2.1 million per month for the BWA from this measure.
Very good, I applaud you for this. Are you in re-negotiations with White Oaks too?
And how much from the illegal connections? Oh wait wrong country.
That should be just the start.Now that the Water Authority is in the Black we should be moving quickly to reduce our Barbados Light and Power Bill by moving quickly to add Solar Farms and Wind Towers to reduce the bill. We should then have the cash flow surplus to pay interest monthly to float a 30 year Bond to raise the required capital to install a new parallel water main on the Important Foreign Exchange Earning West Coast from the Desalination plant in Bridgetown north to St Lucy. This Bond should be available to Retirees so they do not starve as is happening now through no fault of their doing.
What about the extremely large Cabinet and millions slated for consultants? Wastage also Mascoll. Stop insulting us.
I hope we therefore see a reduction in the water rates.
Another Kellman
Is it that the overall cost of the building has been reduced or the monthly payments to Innotech lowered? Has the BWA been able to wipe out all their brought-forward losses to be in the black? Or is it a case that the BWA is in the black for last couple months? These are the questions the media needs to ask.
Very, Very good
Will Bus Fares now go back to $2.00
Will Water Bills be just water Bills again
Will Buses come on time now
Will Greenland Land Fill be Open shortly
the bwa debt must have been restructures something similar to how the government restructure it debt and is save a lot due to lower interest and paying off principal over a longer period.
When you say “revenue of 2 million last month” what exactly do you mean? Are you saying you made a net profit of 2 million, as there is a big difference between net revenue and revenue
.
@Jack Husbands: Yes they need to renegotiate the White Oaks contract as well. This administration alike the previous one can see all done wrong by the other administration, but nothing wrong with their own doings.
This PM need to remember the cost of the Prison we had to pay over years, maybe we’re still paying this debt. I’m sure she didn’t try to renegotiate that debt. The cost of Edutech probably still being paid as well, that’s surely not negotiated, how about the cost for Greenland, I’m sure both she and Clyde Mascol will call these projects ‘money well spent’.
I was reading an editorial in another media this morning by one lady Martindale. I had to ask myself if some of our journalist will ever stop patching up Mia Mottley’s political / administrative leaks.
When this government does anything good, they’re sharp, capable, and credible. When they make silly errors, or distasteful decisions, they always need more time to get things right, they inherited a mountain of debt, or they simply sing the ‘ten years and ninety days chorus’. What a pathetic bunch?
Only yesterday people were calling in on “Brass Stacks” and complaining about the amount of unattended burst mains spread across the country. Mr Mascoll you should also report that this situation is also in the “black”. Maybe the DLP IS STILL IN POWER.
“When this government does anything good, they’re sharp, capable, and credible. When they make silly errors, or distasteful decisions, they always need more time to get things right, they inherited a mountain of debt, or they simply sing the ‘ten years and ninety days chorus’. What a pathetic bunch?
GreenGiant: I Could not have said it any better
Remember Mia in a press release saying that the DLP have to big (17) a cabinet with some ministers having nothing to do and that they (DLP) can’t tax their way out of debt,,,,,,, but yet she has thirty and taxing their way out of debt. Shameless and conscienceless bunch
Talk is not enough. Bring figures for full public scrutiny.