Desal plant, WASA’s fat cow

THE EDITOR: From inception, during construction and even after coming on stream there appears to be an aversion by several Ministers for the desalination plant. One Minister inferred that there was misappropriation of TT$ 100m, another indicated that WASA would have to increase water rates as the desal plant is a financial burden on WASA. Now to hear the private financiers of the project refer to the desal plant as a fat cow and that they are prepared to offer further financing; one has to take stock. From investigation the desalination plant is a boot project where Desalcott, a private company, builds, owns, operates and transfers the entire operation after 20 years to WASA at a cost of US$5m.

What does WASA get on behalf of the taxpayers from this arrangement? WASA buys 22 million gallons of potable water per day for TT$450,000 thereby adding 11 percent to WASA’s peak production during the rainy season. From its supply of water WASA diverts 15 m gallons to Point Lisas for TT$512,000 at the present profit margin of TT$3 per 220 gallons. WASA receives an annual unearned income of TT$22.6m, sufficient I dare say to pay enhanced salaries. As there is no corresponding increase in revenue one can only surmise that there will be a reduction in water rates. What is the issue with the TT$100m or it may now be US$ 100m? The only burden on WASA is counting the cash flow from the fat cow.

WILLIAM A DALTON-BROWN
Port-of-Spain