NASSAU, BAHAMAS — Water and Sewerage Corporation (WSC) Executive Chairman Adrian Gibson yesterday accused reverse osmosis (RO) plant operator Aqua Design Ltd of embarking on a local public relations smear campaign as it threatened to shut off water supply on several islands.
Gibson, commenting on the issue during his contribution to the 2021/2022 budget debate, said: “In recent months, WSC and the government have been placed in a most unfortunate position by a RO provider.
“This provider has repeatedly threatened to cut water supply — even during a pandemic — and has demonstrably carried out such threats in Central Eleuthera and with cutbacks in South Eleuthera. In recent months, there was a threat to cut the water supply to South Eleuthera, San Salvador and Inagua.
“In a most unusual turn of events, this provider embarked upon a local public relations smear campaign, having foreign-based agents appear on local TV and radio, in social media as well as distributing flyers to the local populace of each island whilst placing blame on WSC.”
Gibson added: “The facts are that the Inagua contract ended in 2018, San Salvador in 2019 and South Eleuthera in 2020. They were all month-to-month and the company had been given notice in each instance that WSC would move on.
“When our new plants arrived and were delivered to the various locations, that appears to have triggered a response and the most recent threats began.
“Quite honestly, we had been in communications with the local manager, who told myself and the general manager — in a joint telecom — that all they needed was a letter stating a fixed period that we would need them for before we transition to our plants and a undertaking we would pay outstanding balances. That was provided; however, the goalpost kept moving, only in what we have all concluded was an attempt to force us to enter into a new long-term contract.”
According to Gibson, ultimately, a six-month agreement was arrived at with the assurance that receivables would be paid down and current bills paid up.
“For far too long, WSC has been paying absurd amounts to — get this — buy back our own water from foreign providers. These contracts are absurd,” said Gibson.
“WSC provides the land; pays the electricity for the production of the water; provides coverage for work permits and customs exemptions; in some cases pays for the drilling of the wells, for the construction of buildings, for plants not in containers, for consumables, etc.
“Since coming to office, it was discovered that many of our reverse osmosis suppliers benefited from lucrative contracts, to the disadvantage of the corporation and ultimately the Bahamian people. From 1996 to present, the Water and Sewerage Corporation has paid out more than $395 million to privately owned reverse osmosis suppliers. The corporation has therefore undergone a major policy shift toward WSC-owned and operated reverse osmosis plants, saving the corporation millions of dollars.”
He noted that the average purchase cost per plant is some $306,000.
“With $395 million, I could put a plant in every settlement and have change left over,” said Gibson.
“Of that $395 million, $302,489,398.60 has been paid to Consolidated Water; $60 million to Aqua Design; $11.2 million to Water Makers; $1.7 million to Clearview; $7.3 million to Matrix; $1.1 million to TSG — we now own that plant; $9.9 million to Bimini Bay Water; $823,606.90 to Bimini Water Services; and $490,819.90 to Consolidated Water Bimini.
“Today, the corporation owns and operates plants in Sweeting’s Cay, Moore’s Island and Ragged Island. We are completing the installations of plants in Deadman’s Cay, Long Island; San Salvador; Inagua; and South Eleuthera. A new plant is being built for installation in Crooked Island in the coming weeks.
“We expect to complete and commission all of these plants by the end of the summer. We have hired RO specialist engineers and technicians and developed a rigorous maintenance plan that will be codified by policy; we expect to save millions of dollars per year via these operations.”
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