There is a relentless battle being waged by two companies determined to win extended contracts to provide water on Tortola. While operations for both companies will be focused on Tortola, the entire Territory should be concerned about the developments since water is a necessity.

The Minister for Public Works and Communications, Julian Fraser is not secretive about his intentions to sign a contract with Biwater.

Ocean Conversion (OC) has taken on the task to oppose the Biwater proposal, despite other companies providing the service locally. OC has argued that over 1000 VIslanders hold shares in the company although over 40 percent is owned by Consolidated Water which also operates in Bahamas and the Cayman Islands.

The Minister returned to the Territory and immediately set about trying to set the record straight which included punching several holes in claims made by OC in the ensuring debate that erupted following his September 8 statement in the House of Assembly.

One of the interesting points raised by the Minister surrounded the financial status of OC as it relates to profits, the payment of dividends and the cost for water. OC is a private company and everyone should respect that.

They are also not obligated to release any information about its operations and that too should be respected. However, the StandPoint believed that during the current debate, it was important that OC make certain information available regarding its financial status. Residents are getting whipped up in an emotional whirlwind because a scare tactic is being waged regarding locals maintaining shares in the water business.

This was very evident last Monday when the Minister met with residents at the Sir Rupert Biercliffe Hall. Emotions were high and the facts got misconstrued. OC has asked residents throughout the Territory to join them and protest the Biwater deal, yet the company was reluctant to release information about its financial earnings. StandPoint believes that this is vital if residents are going to jump on the bandwagon to offer support.

The facts needed to be provided so that informed decisions can be made. When StandPoint contacted OC’s president Glen Harrigan, he said the company felt its financial records were private and they were not obligated to release them.

However, OC’s financial partner, Consolidated Water in August released publicly its financial record for the three months ended June 30, 2009. The company showed that revenues approximated $15.5 million, compared with approximately $17.8 million in the second quarter of 2008. Retail water sales were relatively unchanged at $6.2 million, versus $6.3 million in the prior-year quarter.

The volume of water sold was comparable in the second quarters of both 2008 and 2009. Consolidated Water also reported that revenues decreased due to a reduction in energy costs passed through to customers, as diesel and electricity prices were significantly lower in 2009 than in 2008.

Services revenues declined from approximately $3.9 million in the second quarter of 2008 to approximately $2.8 million in the most recent quarter, reflecting lower project construction activity than in the prior-year quarter.

If OC is going to gather support, then it must provide the facts to residents. It should look to follow the example of Consolidated Water. What is OC hiding?

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