NWC moving to refinance debt, offload idle properties

WESTERN BUREAU:

Water Minister Mathew Samuda says the National Water Commission (NWC) is taking steps to refinance its high-interest debt and review its extensive landholdings in a bid to strengthen its financial position.

Samuda says the debt-refinancing initiative could generate nearly $1 billion annual savings for the state entity, while the commercialisation of suitable properties would unlock the value of assets currently sitting idle.

The initiatives were outlined on Wednesday during the groundbreaking ceremony for the $216-million Black River to Arlington Pipeline Project in St Elizabeth, which unfolded against the backdrop of public concerns over the NWC’s application for a 51 per cent tariff increase over five years.

“The first thing is NWC is going to refinance the parts of its debt that are high-interest-rate-based, and we expect to see savings of somewhere between $700 and $800 million on an annual basis by those reduced interest payments,” said Samuda.

He said the anticipated savings would be channelled into reducing the utility’s substantial electricity expenses through the replacement of ageing and inefficient equipment.

“We have in some places 70- and 80-year-old pumps that burn a lot more energy than the newer, more modern pumps. We need to change out our old infrastructure,” the minister said.

According to Samuda, the NWC’s electricity bill has increased by 51 per cent since 2019, placing additional pressure on its finances.

He said the Government had committed to its multilateral development partners that every dollar saved through refinancing would be reinvested in energy-efficiency improvements, including replacing pumps, rewiring pumping stations, and upgrading electromechanical equipment.

Turning to the utility’s property portfolio, Samuda said the value of the NWC’s landholdings exceeds its outstanding debt, presenting opportunities to generate revenue through strategic development and divestment.

“We will be commercialising the properties that are appropriate to ensure that we do not have idle lands – when developers and investors are looking for investments – sitting on our books when we also are carrying debt.”

Samuda said decisions concerning the properties would be guided by national development priorities and the specific needs of the parishes in which they are located.

While intimating that the various plans are at an advanced stage in planning, Samuda did not identify any specific properties earmarked for commercialisation, their estimated market values, or a timeline for the proposed transactions.

The initiatives are said to form part of a broader transformation programme that also includes improved staff accountability, digital technology, and measures to reduce water losses.

albert.ferguson@gleanerjm.com