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by pltm
(PLTM) - The government has moved to renegotiate all water purchase agreements with the hope of receiving a lower price rate for government.
Negotiations have already been initiated with the three major water production companies in the Territory---GE Water/Aqua Design, Seven Seas Water (formerly BiWater) and Ocean Conversion, to decrease the cost of water to the government.
Permanent Secretary for the Ministry of Communications and Works, Mr. Anthony McMaster has stated that the discussions thus far have been very successful and government thinks that within the first quarter of 2017, they would sign amendments to the water purchase agreements, "which will see a dramatic decrease in the water purchase rate to government.”
The Government of the Virgin Islands is currently purchasing water at an average of $22.00 per 1,000 imperial gallons, including the cost of electricity. The purchase cost being negotiated is approximately 40 percent lower.
“What we are pushing for now is about $13.00 per 1,000 imperial gallons, including the cost of electricity, across all the companies. So some rates might be lower and some higher, but the average rate will be around $13.00," McMaster added.
However, public water prices are expected to remain the same with the proposed amendments.
“If we are able to renegotiate the water rates and get them down, then we can allow the water rates to the consumer to remain constant while lowering the cost to government.” McMaster said.
In his budget address on Monday, January 16, Premier Hon. Dr. D. Orlando Smith indicated that the commencement of the additional water purchase agreement (Seven Seas Water) increased costs for water purchase by approximately $10M.
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