Water consumers can look forward to having the commodity available on a more
consistent basis in the months ahead, but the improvements in distribution and
supply are coming at a cost.
Utilities Minister Melford Nicholas said the government is securing a loan to help
finance the completion of the reverse osmosis plant at Bethesda. Getting the loan
would however necessitate an increase in water rates. The amount of $12-14
million is being secured from Caribbean Union Bank (CUB).
Nicholas said APUA is now discussing the terms of a loan agreement and that
those considerations took into account an increase in the rate at which water is sold
to consumers in Antigua and Barbuda.
“I recently presented to the Cabinet the notion that in order for us to meet the
ongoing demand for water services, one of the things that we had to do is to
remove the deficit that existed in terms of production of water and the price at
which the water is sold; there are differences in these costs,” he remarked.
Nicholas reminded that public that he had suggested that this would become
necessary at a press conference he held last year. “I intimated previously that we
would have to deal with closing this gap and that the Cabinet has given the go-
ahead. I have instructed the senior staff at APUA to proceed with plans to
implement a new fare structure for commercial customers by the first of March.
The rate for residential customers will go into effect later in the year,” he
disclosed.
According to the minister the delay in implementing the increase for residential
customers is due to belief that he has which suggests that there should be
improvements in the supply of water before charging domestic consumers more
money.
“I wanted to ensure that we had sufficient water in the system and that we were not
asking the public to accept an increase in rates without us being able to supply the
water,” he indicated.
Negotiations between APUA and the private water supplies – Seven Seas and
North Sound Management Group – are nearing completion. Together these
companies will produce a combined 4 million gallons daily; the new Bethesda
plant 3.2 million gallons with current production hovering between 7.5 and 8
million gallons dally. This will be more than enough to satisfy the daily demand
for water.
Additionally, Nicholas said the increased production will allow APUA to begin
providing water to a number of ‘under-served’ communities such as Clark’s Hill,
Cedar Valley, and Montrula among others. He said he does not mind going into
new areas as this would be a commercial arrangement.
The minister noted that the expansion in the water service can now be justified
because the new rates will help cover the increased costs.
