Foreign contractor to excavate water system in 2013

Thu, Dec 1st 2011, 09:12 AM

After intensive workshops with consultants from the Inter-American Development Bank (IDB), the general manager of the Water and Sewerage Corporation (WSC) says the 10 year, $81 million infrastructure project will save the country $8 million every year.  But along the way, the streets of New Providence will take another pounding.

The $81 million loan, approved on November 16, seeks to reduce the amount of water lost through leakage and poor infrastructure by 50 percent.  Glen Laville, the general manager of SWC, told Guardian Business approximately $16 million in revenue is lost every year on spillage.  While those in the industry speculate the country loses 50 percent of its water each year, Laville pointed out that, based on higher demand every year from the population, that number is actually much higher.

"It will cost $8 million per year over 10 years to get it done, on average," he said.  "The IDB loan, however, will pay for itself, as we expect to save $8 million per year from the improvements. During the eighth year, we should start to go positive and we'll start saving more than we are spending."  The process, however, could come at a cost to the public.  Over the past few days, officials at WSC and the IDB have been working on the documents and agreements to get final government approvals. A technical and financial analysis was completed to help save WSC more money and ensure the process works as efficiently as possible.

Then, over the next seven months, a baseline survey will be done across New Providence, looking at the meters, infrastructure and final numbers to determine the strategy and execution.  What comes next will be excavations from a foreign company to fix the infrastructure that is causing the widespread leaking.

"There will be excavations," Laville told Guardian Business.  "One of the major construction parts is the replacement of service connections. What we won't have is traditional excavations. Road way crossings will be excavated in some areas. So it won't be as extensive as the kind of disruption as you see with the current road works project."  That said, first excavations, which should begin in 2013, will depend on the findings from the survey.  The hiring of a foreign company ruffle a few feathers, considering the recent controversy with the Argentinian firm spearheading the current road works project.

Laville insisted the contractor will have instructions to not dig up newly paved roads.  "It will be an international company, but working with local counterparts," he said.  Earl Deveaux, the Minister of the Environment, told Guardian Business that New Providence "will need assured supplies, improved reliability and reduced leakage to best in class if our economy will continue to grow".  In response to e-mailed questions, he speculated that areas such as Bain Town, Grants Town and Centerville had infrastructure that was up to 60 years old, while other areas, including Stapeldon and Dannottage were around 40 years old.

Laville confirmed that New Providence was dealing with "a lot of old infrastructure".  But in addition, companies that had come in to do work in the past had left a "legacy", with poor goods and information left behind. As a result, the task of figuring out how old certain areas are, and what needs replacing, is even more difficult.  He pointed out that the $81 million will not be spent on excavation alone.  Between five and seven waste water treatment plants will receive a ravamp, WSC plans to develop a sewerage "master plan", and automated meter reading and remote monitoring will be brought in centralize and refine the system.

Legislation and regulatory reform is also on the way, Guardian Business can confirm, with Utilities Regulation and Competition Authority (URCA) moving as the regulator.  An environmental regulator is planned that is independent of the government, making WSC just the service provider.  "It won't solve everything, but being highly focused on New Providence will help because that's where the large problems are," he said.

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