Bahamas Information Services Updates WSC signs $83 million Non-Revenue Water Reduction Contract
By Llonella Gilbert
Feb 23, 2012 - 10:14:49 PM
The Water and Sewerage Corporation (WSC) and the Inter-American Development Bank (IDB) executed an $81 million loan contract at the Office of The Prime Minister on Friday, February 17, 2012. Signing on behalf of WSC from left: Minister of State in the Ministry of the Environment the Hon. Phenton Neymour; Financial Secretary, Ehurd Cunningham; Anton Saunders, Chairman, WSC, and Deputy Chairperson, WSC, Pauline Nairn. (BIS Photo/Peter Ramsay)
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,
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
“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
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
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,
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
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