WASA has a $10 billion debt

WASA's acting CEO Allan Poon King PHOTO BY SUREASH CHOLAI
WASA's acting CEO Allan Poon King PHOTO BY SUREASH CHOLAI

THE Water and Sewerage Authority (WASA) currently has a $10 billion debt and is challenged to receive revenue from some of its customers. WASA officials made these disclosures to members of the Land and Physical Infrastructure joint select committee (JSC) during a virtual meeting on Wednesday.

In response to a question from Barataria/San Juan MP Saddam Hosein, WASA acting CEO Allan Poon King confirmed the company's total debt was currently $10 billion. Hosein asked if WASA made any recommendations to the Public Utilities Ministry to restructure the debt. Poon King replied he was unaware that such recommendations had been made.

"The deliberation on the outstanding debt. We collaborate with our line (Public Utilities) ministry and the Ministry of Finance in respect of managing the debt and the expenditure." Poon King explained the way to address the debt was through funding from government subventions and revenue WASA receives from rates and charges for water services. He added Government was not removing its subvention to WASA.

After JSC chairman Deoroop Teemal noted the Regulated Industries Commission (RIC) is now reviewing a proposal from WASA for a higher tariff, Poon King said, " That is our focus at this time. To have that review done, so we can generate our own revenue and reduce the requirements for subvention from the Government."

Opposition Senator Anil Roberts was concerned that "increased (water) rates" will soon be paid by citizens.

" My hair is growing based on my concern for the population I need an afro comb. Citizens now have to be very worried. This is very scary for people of TT." Poon King replied, " don't think it needs to be scary."

He observed the maximum water rate in TT is $3 per day. "Something mor needs to be paid. What level that needs to be, will be the outcome of the deliberations by the RIC." Poon King acknowledged an earlier comment from other WASA officials former state oil company Petrotrin owes WASA $8.2 million and that debt was four years old.

He said WASA has not held talks with Guaracara Refinery Limited (which has jurisdiction over Petrotrin's former refinery at Pointe-a-Pierre) about this debt.

But he said, "We will discuss with them and even if it's not recoverable at this time, we will determine a way forward, if and when the refinery restarts." Hosein expressed concern that WASA may not have collected $586 million in revenue from residential customers

WASA officials told JSC members that outside of 2019-2020, decreased activity in the industrial sector over caused WASA to lose $20 million. While they said "the issue for the industrial estate is under control", WASA has not been disconnecting residential customers since last March because of the covid19 pandemic.

Senate Vice-President Nigel De Freitas was concerned about people who are not receiving water being charged for it. De Freitas also wondered how effective a proposed water metering system would be if WASA cannot properly address the issue of leaks in its pipelines.

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"WASA has a $10 billion debt"

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