NASSAU, BAHAMAS- The Water and Sewerage Corporation (WSC) owes some $26 million to its main water supplier, with the government pledging to substantially reduce that debt over the course of this year.
BISX-listed Consolidated Water in its latest 10K filing with the US Securities & Exchange Commission (SEC) revealed that CW-Bahamas’ accounts receivable balances (which include accrued interest) due from the WSC amounted to $25.6 million and $26.9 million as of March 31, 2024, and December 31, 2023, respectively.
CWC noted: “Approximately 79 percent and 80 percent of the accounts receivable balances were delinquent as of those dates, respectively. From time to time (including presently), CW-Bahamas has experienced delays in collecting its accounts receivable from the WSC. When these delays occur, the Company holds 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 not provided a material allowance for credit losses for its accounts receivable from the WSC as of March 31, 2024.”
The company further noted: “CW-Bahamas held discussions with the WSC in March 2024 and with representatives of The Bahamas Government in April 2024 during which CW-Bahamas was informed that the Government intends to substantially reduce CW-Bahamas’ accounts receivable from the WSC over the course of 2024.”
CWC’s Blue Hills contract expires in 2032 and requires the company to deliver 63 million gallons of water each week. The Windsor contract expires in 2033 and requires the company to deliver 16.8 million gallons of water each week.
