PHILIPSBURG–Utilities Company GEBE is paying water producer Seven Seas between US $60,000 to $70,000 per month for 2,000 cubic metres of excess water that it cannot distribute because it is more than is consumed in the country.
In response to a question at a press conference on Friday, GEBE Chief Executive Officer (CEO) Kenrick Chittick told reporters that government has a contract with the water producer to produce a total of 18,000 cubic metres of water while the country only consumers 16,000 metres of water. This means that GEBE is paying up to US $70,000 per month for 2,000 cubic metres of water that cannot be expended.
The agreement between government and Seven Seas was signed in 2012 and the contract went into effect in 2014, when Seven Seas commissioned its two new water tanks in Pointe Blanche. The contract expires in 2021. In total, GEBE pays between US $650,000 to US $700,000 monthly for the total production of water, but 60,000 to 70,000 of what is being paid for is not used.
Chittick said the contract between government and Seven Seas is “water tight” and GEBE just has to pay according to the contract. “We checked with our lawyer to see what can be done and it’s pretty much water tight,” the CEO said. “In my humble opinion we should have had to pay for what we can consume and not to project the unforeseen,” Chittick said.”…We are stuck with this fee.
GEBE is examining how it can have the excess water used and has entered into contracts with two large consumers in the country – Port St. Maarten and Simpson Bay Resort – to have a fraction of the excess water used. The company said it will continue to examine ways of getting the water used.
GEBE is the water distribution company in the country. The water is produced by Seven Seas and distributed by GEBE.
Source: The Daily Herald https://www.thedailyherald.sx/islands/68686-gebe-pays-60-000-70-000-monthly-for-unused-water
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