NASSAU, BAHAMAS — The Water & Sewerage Corporation’s outstanding debt to its main BISX-listed reverse osmosis supplier increased stood at slightly over $23 million at the end of September.
Consolidated Water, the Blue Hills and Windsor reverse osmosis plants operator, in its latest financial disclosures, stated: “CW-Bahamas’ accounts receivable balances (which include accrued interest) due from the WSC amounted to $23.2 million as of September 30, 2023. Approximately 76 percent of this September 30, 2023 accounts receivable balance was delinquent as of that date. The delay in collecting these accounts receivable has adversely impacted the liquidity of this subsidiary.”
The company, which supplies all the water that the Water & Sewerage Corporation distributes to its commercial and residential customers in New Providence, continued: “From time to time (including presently), CW-Bahamas has experienced delays in collecting its accounts receivable from the WSC. When these delays occur, we hold discussions and meetings with representatives of the WSC and The Bahamas government, and as a result, payment schedules are developed for WSC’s delinquent accounts receivable.
“All previous delinquent accounts receivable from the WSC, including accrued interest thereon, were eventually paid in full. Based upon this payment history, CW-Bahamas has never been required to provide an allowance for doubtful accounts for any of its accounts receivable, despite the periodic accumulation of significant delinquent balances.
“As of September 30, 2023, we have not provided an allowance for doubtful accounts for CW-Bahamas’ accounts receivable from the WSC.”
The company stated that it has held discussions with the Ministry of Finance of the Government of The Bahamas, which said that the Government intends to return all of CW-Bahamas’ accounts receivable from the WSC to its current status.
The company also noted that the increase in bulk segment revenue was due to an increase in energy costs for CW-Bahamas, which increased the energy pass-through component of CW-Bahamas’ rates and, to a lesser extent, an increase of nine percent in the volume of water sold by CW-Bahamas.
