AquaVenture – the parent company of Seven Seas Water – said it is committed to being an effective long-term partner to the government of the British Virgin Islands (BVI).
Seven Seas, which made the declaration in a press statement this month, recently took over the local water/sewerage operation of another overseas-based company known as BiWater BVI Limited.
BiWater was operating locally through a 16-year contract signed back in 2010 with the then Virgin Islands Party government.
Since the government changed, the current National Democratic Party administration repeatedly claimed that the said contract is in the best interest of the privately owned BiWater – not that of the BVI.
Minister responsible for water, Mark Vanterpool, this month disclosed that Seven Seas has decided to re-negotiate the contract since it took over from BiWater.
Vanterpool added that the government recently signed a non-binding Memorandum of Understanding with Seven Seas. He said Seven Seas is expected to formally sign the new agreement after it concludes discussions with Barclays bank and UK Export Finance.
According to Vanterpool, the new contract will see the BVI government saving $4 million annually.
But he told BVI News Online that the BVI will have to give Seven Seas ‘something’ in return.
Vanterpool declined to specify what will be given, adding that such information will be disclosed later.
Seven Seas’s parent company, in its press statement, said the terms of the potentially new contract with the government will be mutually beneficial.
The FULL statement from Seven Seas’ parent company READS:
AquaVenture’s BVI subsidiary (Seven Seas) continues to work with the BVI government to amend the Paraquita Bay Water Purchase Agreement to – among other things – help lower the overall cost of water and expand the water supply to people of the BVI.
The company has been working with the BVI government on these proposed amendments since the middle of 2016.
The expected impact of these proposed amendments were incorporated into AquaVenture’s financial forecasts prior to its initial public offering in October of 2016.
The credit facility for this BVI subsidiary requires lender approval before any such amendments to the Water Purchase Agreement can be implemented.
The company has been diligently pursuing this approval, and appreciates the assistance the BVI government is providing to obtain it.
Seven Seas Water is committed to being an effective long-term partner to the BVI government and its people.
As previously disclosed, the company has historically entered into, and expects to continue to enter into negotiations with customers to expand operations, build additional plants, and/or reduce water rates in exchange for other changes to the contracts that the company believes are mutually beneficial. The company believes the BVI negotiations are consistent with that approach.
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