In the absence of the private media, Government last Thursday exchanged signatures with Biwater S.A to provide water and fix sewerage problems on Tortola. The signing which took place about 8:30 am, brought to an end months of speculations and battle between Biwater and Ocean Conversion, which had submitted a proposal to extend their current contract with Government. Premier and Minister of Finance Ralph T. O’Neal signed the contract on behalf of the Government with Minister for Communications and Works Julian Fraser as his witness. The water contract has drawn fire from competitor Ocean Conversion and Opposition Leader, Dr. D Orlando Smith.

According to the Government Information Service (GIS), the contract termed a Build Own Operate and Transfer (BOOT) will see the water plant handed over, free of charge, in good working condition to Government at the end of a 16-year period. GIS stated that under the contract, Biwater will renovate the existing sewerage pumping stations in Road Town, replace the sewers connecting the pumping stations to the sewer system and outfall with some 600,000 feet of 12-inch mains and construct new sewage treatment plants at Burt Point and Paraquita Bay. The sewerage works is said to be sufficient to treat sewage to World Health Organisation (WHO) standards, before being discharged to the sea. In addition, Biwater will install a new 500,000 gallon tank at Sabbath Hill and update the Water and Sewerage Department’s control centre to give it full operational knowledge of its system and install a new customer bill system. It is expected that the Baugher’s Bay plant will be functional by January 1, 2011.

According to the company’s website, the contract is for the operation of a sea-water desalination plant, which will produce 2.3 million imperial gallons of potable water per day. The plant has a construction value of US$43 million, the company stated. Executive Chairman of Biwater, Adrian White had previously indicated that Biwater would seek funding from local banks. The contract stipulates that Government will pay Biwater $12.90 per 1000 imperial gallons for the first 12.5 years and $6.85 for the remaining 3.5 years.

“I do not know what it costs for Biwater to fulfil the terms of the contract, but Government will not have to pay them any money from the treasury because it would be incorporated in the low charge of $12.90 for 1000 imperials gallons,” the Premier said.

Minister Fraser reassured those present that the contract was heavily scrutinized before it was signed.

“In December 2008 the negotiating team and I went to Miami to start the first round of negotiations with Biwater. I want everyone to know that nowhere in the history of the BVI has any other water agreement been scrutinized like this was; there are no stones that were unturned as far as this contract was concerned,” Minister Fraser said.

Executive Chairman White said the signing was a great day for the company.

“We never thought we would get here. You provided us with one of the biggest challenges that Biwater has faced and yet are working in over 40 countries on water and sewerage,” White said.

According to GIS, also in attendance were Deputy Premier Dancia Penn – Sallah, Territorial Representative Irene Penn-O’Neal, Fifth District Representative Elvis J. Harrigan and Fourth District Representative Dr. Vincent Scatliffe, among other senior public servants. The ceremony was chaired by the Acting Permanent Secretary in the Ministry of Communications and Works, Julian Willock.

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