The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

An MP yesterday said the Davis administration is poised to "unleash" the most ambitious capital investment initiative ever by the Water & Sewerage Corporation with $200m earmarked for 80 projects over a five-year period.

Bacchus Rolle, parliamentary secretary in the Ministry of Works, told the House of Assembly during the 2023-2024 Budget debate that the capital development plan will enhance the quality and reliability of the state-owned utility's infrastructure. It will also infuse climate resiliency into the Water & Sewerage Corporation's existing services, and expanding its network to communities it does not presently serve.

The South Beach MP gave no details on how the Government or Water & Sewerage Corporation plan to finance these works, especially given the latter's cash-strapped position and reliance on multi-million dollar taxpayer subsidies in the annual Budget. These are forecast to drop from $54m in the present fiscal year to $36m in 2023-2024.

Mr Rolle admitted that the water utility's financial direction is "unsustainable", with costs increasing much faster than revenues. While the latter grew by 15.8 percent of $7.7m year-over-year, rising from $48.7m in 2021 to $56.4m last year based on unaudited management accounts, expenses rose by $17.2m or 19.4 percent to $106m compared to $88.8m in 2021.

The parliamentary secretary blamed the cost hike on increased staffing costs and higher prices that the Water & Sewerage Corporation was charged to purchase water from its reverse osmosis suppliers. "This trend is clearly unsustainable and requires urgent strategic correction," Mr Rolle said, pointing to the engagement of consultants to develop a new business plan for the utility.

Yet, during the same presentation, Mr Rolle said: “Some 80 plus projects, totalling some $200m, have been identified throughout the length and breadth of The Bahamas. The Water & Sewerage Corporation continues to address critical water production, storage, supply, transmission and distribution and infrastructure challenges on the island of Eleuthera.

"Since September, 2021, Water & Sewerage Corporation has commenced works in excess of $6.9m to improve these systems, including a substantial increase in water storage capacity for central Eleuthera, North Eleuthera and Harbour Island. An extension of the water mains to Russell Island, planned major repairs to Spanish Wells storage tanks, new standby generation for the Tarpum Bay distribution station and the Current Island desalination plant.”

The Government is also expanding the use of public-private partnerships (PPPs) to improve the water transmission and distribution systems across Eleuthera in advance of major road paving works. Plans for these works are in an “advanced stage”, and Mr Rolle added: “In Exuma, Water & Sewerage Corporation recently awarded a contract for $9.1m to contractors to carry out extensive water transmission and distribution systems.”

He added that the Straw Market Authority's rental income is expected to be $910,000 over the course of the next fiscal year. The Straw Market at Fort Charlotte is 75 percent complete and expected to be finished by December 1, 2023, while he Fort Charlotte Straw Market is expected to reopen with a “different flavour”. Its projected rental income is pegged at $43,000 annually, Mr Rolle said.