Discussion continues on Public-Private Partnership for water services
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Contact: Adhara King
Monday, September 22, 2008 – Government officials have indicated that a major driving force behind the move to privatize water services has stemmed from the Water and Sewage Authority (WASCO) absorbing additional costs associated with improved infrastructure.
Officials say WASCO's efforts to improve water quality and supply for the island, particularly more rural areas, included significant expense that the company did not transfer to its consumers.
Public Relations Coordinator of the Public-Private Partnership (PPP) for water services, Truscott Augustin said WASCO has been unable to meet its daily cash flow requirements for some time now.
“With all the infrastructure that had been put in place, the rate had not been commensurate or enough to cover that cost, so you find a situation of WASCO was constantly swimming against the tide, until it reached to this point where the debt is basically insurmountable,” said Augustin.
Permanent Secretary in the Ministry of Public Utilities Ben Emannuel illustrated the disparity: “The cost of delivering 2000 gallons of water is estimated now to be something in the range of over $22, while what is being actually being charged is $14.70 per 2000 gallons of water, minimum charge. But I think the cost is in excess of $22. Right away, that shows you the mathematics. And it has been that way for a considerable length of time.”
The privatization move, Emmanuel said, is part of a plan to reform the water sector dating back to 1997. As such, he said, the public should be cognizant that the initiative is an evolution, not an overnight occurrence. |
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