Govt. makes $4 million payment on water supply debt

Govt. makes $4 million payment on water supply debt
The Consolidated Water logo.

NASSAU, BAHAMAS — Consolidated Water, the BISX-listed New Providence reverse osmosis plant operator has reported that the government made a $4 million payment last month on its nearly $20 million outstanding debt.

Consolidated Water in its Q2 results revealed that revenue for the quarter increased by 4 percent to $19.1 million, with its half year revenue up 13 percent to $39.8 million.

Rick McTaggert, president and CEO of the Cayman based company told investors on a conference call yesterday that water production volumes remain stable despite economic shocks.

McTaggert said: “Although The Bahamas’ tourism industry and economy has been severely hurt by the pandemic, our water production volumes remain stable in The Bahamas because our plant generally serves  the general population.”

David Sasnett, the company’s executive vice president and chief financial officer noted that as of June 30, 2020 accounts receivable for its Bahamas business amounted to $19.9 million compared to the $18.4 million as of December 31, 2019.

“We believe the Bahamas government’s ability to pay in a timely manner has been impacted by COVID-19, however we are continuing to work with the Bahamian government to collect these receivables,” Sasnett said.

“Historically our Bahamas subsidiary has seen delays in collecting accounts receivables from the Water and Sewerage Corporation in The Bahamas. When these delays occur we hold discussions and meetings with representatives of the Bahamas government and as a result payment schedules are developed for delinquent accounts receivables. All previous delinquent accounts receivable are eventually paid in full.”

Sasnett said: “Based on this payment history we have never been required to provide an allowance for doubtful accounts for any of our accounts receivable in The Bahamas.

“Despite the accumulation of significant delinquent balances as of June 30, 2020 we have not provided an allowance for doubtful accounts  in The Bahamas and it is important to note that The Bahamas government made a payment of $4 million in the month of July.”