Govt to move on WASA $3B debt

CHIEF Executive Officer of the Water and Sewerage Authority (WASA), Errol Grimes, yesterday said discussions were taking place with Government to address the authority’s $3 billion plus debt. “Prior to Severn Trent coming on board, Government took over all the loans, that is always an option. But at this point I don’t want to pre-empt discussions we are having with Government on the approach for dealing with the existing loan.” This was Grimes’ response when asked if Government would write off WASA’s debts. He also told the media that finance charges from loans were causing a “big gap” in WASA’s finances and expenditure. He said over the next two years, WASA’s total revenue would be eclipsed only by financial charges. Speaking after the opening of the public consultation on the Regulated Industries Commission’s (RIC) draft final position on the Quality of Service Standards for the Water and Wastewater Sector, Grimes acknowledged that a lot of money would be needed for WASA to be able to meet the standards set by the RIC.

At the consultation, at Crowne Plaza, Grimes said, “If this was a perfect world, our preliminary estimate, and I want to stress preliminary, is $26 billion over the next 15 years.” In his address at the opening, Grimes said WASA was working with a decrepit water system which has been in urgent need of modernisation since 1950. Grimes told Newsday that distribution centres in Port-of-Spain and San Fernando have been targeted for modernisation. “We want to focus on PoS which has an old cast iron system. There are issues with respect to our ability to supply water for firefighting. Then in San Fernando, most of the distribution network are asbestos/cement so that has some obvious connotations and we need to have that changed.” Grimes said a more “robust” grid, involving strategically placed large diameter pipelines connecting major water sources and serving communities, was needed, but such a system had not been developed in TT.

This system would enable WASA to supply customers even if there are major problems at source facilities. Grimes said proposals have been “put on the table” and funding would have to be approved by Cabinet. Referring to the impact of the dry season on Tobago and its tourism, WASA also plans to drill new wells in Courland so people in Crown Point, Plymouth and other areas could have a better supply. “All of these are in train, some are critical projects which will be implemented over the next three years, some of them are long-term.” Grimes said “a whole heaping set of money” was needed for the wastewater sector which could begin impacting on water supply if it was not carefully managed. WASA has 13 plants, it incorporated 30 from the National Housing Authority, and there are 200 private plants.