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From:TheBahamasWeekly.com Bahamas Information Services Updates
Nassau, Bahamas - The Water and Sewerage Corporation (WSC) signed an $83 million Non-Revenue Water Reduction (NRW) Contract with Miya/Veritec at the Office of the Prime Minister, Friday, February 17. Glenn Laville, General Manager of WSC explained that the signing of the contract completes the execution of an $81 million loan agreement that was signed on December 16, 2011, between the WSC and the Inter-American Development Bank (IDB), secured with a guarantee by The Bahamas Government. “The loan (from the IDB) is to essentially help the WSC to achieve financial and operational sustainability,” he said. Prime Minister the Rt Hon. Hubert Ingraham; Minister of the Environment the Hon. Earl Deveaux; Minister of State in the Ministry of the Environment the Hon. Phenton Neymour; Efrat Peled, Chairman and CEO, Arison Investments and Meir Wietchner, Chairman, Miya were also present at the signing between The Bahamas Government and Miya. WSC received the loan that will focus on New Providence to tackle four major areas of concern identified in the WSC’s Corporate Business Plan and Strategic Sector Plan: The reduction of Non-Revenue Water Institutional strengthening of WSC Rehabilitation and upgrade of waster water infrastructure and preparation of Waster Water Treatment Plan Update the regulatory framework for the sector “The NRW is by far the largest and arguably the most critical component of the loan programme. WSC presently does not generate revenue from over five million gallons of the water it supplies daily in New Providence,” Mr Laville said. “This is equivalent to over 50 per cent in losses and is valued at nearly $16 million annually.” In 2009, the Corporation actively began following IDB procedures in expectation of securing funding to address the problem, he explained. “The process involved International Competitive Bidding with top firms from around the world participating and following evaluation, resulted in Miya Water Projects Netherlands and Veritec Consulting Incorporated being the top-ranking firm,” Mr Laville said. Miya, is a wholly owned subsidiary of Arison Investments. According to the company’s profile, Arison Investments is a global business company incorporating leading firms in the Israeli and world economy. The activities of Arison Investments focus on finance, real estate and infrastructures, and water and energy. In each of these areas, the company provides comprehensive solutions for basic human needs. Mr Laville noted that Miya is a global leader in water loss management and one of the initial companies offering a comprehensive water efficiency solution and a one-stop-shop for WRW reduction projects. Veritec, a Miya Group company is recognised as a leading firm in North America in water loss management and water conservation, he added. The primary objective of the project to be undertaken by Miya is to reduce NRW from over five million gallons per day to 2.5 million gallons per day within five years, Mr Laville said. “The second phase ensures that the reduction is maintained for a sufficiently long period for WSC to benefit fully. “Additionally during the second phase, Miya/Veritec is required to reduce NRW further to 2.0 million gallons per day in year seven. During the 10 year period over 10 billion gallons are expected to be saved,” he said. While the total contract price is $83 million, the projected savings of the project are over $80 million. WSC will also receive over $40 million in infrastructure and other improvements in addition to the water savings, Mr Laville explained. They include training of WSC staff; replacement/maintenance of over 23,000 service connections; detection and repair of over 6,000 leaks; provision of an integrated asset/NRW management software system; improved service to customers and deferment of capital upgrades to accommodate increased demands. He also noted that a unique aspect of the contract is that it is performance-based. “Thirty per cent of the fees to be paid over the project life are directly related to the actual achievement of the targets agreed. “Aside from any other penalties under the contract, Miya/Veritec will only be paid the performance fees based on the actual volume of water saved. “The IDB funding will be applied to the phase one reduction activities, while savings from the reduced volumes of water purchased, and increased revenue from sales is expected to fund the second phase.”
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