Turnbull slams BVIEC/WSD merger as premature and risky
Second District Representative Melvin ‘Mitch’ Turnbull criticised the proposed merger between the BVI Electricity Corporation (BVIEC) and the Water and Sewerage Department (WSD), warning that combining two struggling utilities could worsen service delivery across the territory.
“Putting them together without fixing them individually is what I see as a problem,” Turnbull argued during a recent House of Assembly sitting.
Communications and Works Minister Kye Rymer defended the move, calling it “a strategic initiative aimed at improving financial efficiency, enhancing service delivery, and strengthening operational resilience.”
He said the plan will “streamline management” and “leverage the strong leadership and established infrastructure of BVIEC to benefit both utilities.”
Rymer explained that while the entities will share leadership, “separate accounting systems” will be maintained to ensure “financial ring fencing.” He added that the merger would eliminate inefficiencies, especially within WSD, and allow resources to be deployed more effectively.
But Turnbull questioned the logic of the decision, pointing to longstanding financial issues in both organisations.
“The number-one payee to the BVI Electricity Corporation remains the government,” he stated. “Any given month that I’ve been in this House for the last 10 years, BVI Electricity is owed by the government between three and five million dollars.”
He added that WSD collects only about $8 million in revenue, despite government spending between $25 million and $28 million annually to operate it. “You have systematic problems with these two entities, and you have persons that are continuing to leave the [WSD] service,” Turnbull said.
Rymer admitted that no new feasibility study had been done on the merger. “A feasibility study for the saturation of the Water and Sewerage Department was completed in 2018,” he said. However, for the merger, “we do not require the feasibility study to confirm what is already apparent. We simply need water.”
“Numbers are not words, and numbers can’t be manipulated like words can. If you have two failing entities… you’re gonna be in the same problem,” Turnbull warned.
The government expects the merged utility to be more agile and cost-effective, with support from international partners and continued infrastructure upgrades.
However, Turnbull warned that without first resolving the “systematic shortfalls” in both departments, the merger may fail to meet its intended goals.
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Wsd just a financial black hole and they want to make it bviec’s problem to deal with. All we going to get out of this is a higher electricity bill.
Typical of this guy, just complain!!! What do you suggest Hon. Turnbull? Just saying fix it does not help.
He makes sense. Privatize.
Mr. Turnbull is correct. WSD has no current revenue generation plans in place. Over several years, that department has suffers from lack of funding, adequate management and any strategic long-term planning from the successive ministers of said department. PWD is not any different.
By combining electricity, water and sewerage, I foresee more lack of investments into infrastructure, staff and assets. Currently BVIEC is struggling with load shedding which is going to get worst as this summer heats up and more aircons crank up! Alternative energy sources here is not something the Gov is pushing.
Of a mess if we’re not careful, literally a power move trying to water down a certain family’s grip on the power station.
Water doesn’t make any money and it can’t pay for the electricity consumed at the desalination plants, so Bviec will take it under it’s umbrella and subsidize it, so it’s a sure list of revenue for Bviec.
Turnbull is right on this one.
Follow the Bull on this one.
WSD will bring BVIEC to its knees in quick time. You need to fix WSD first before hitching it to anything especially BVIEC.
Hon. Turnbull is right on this one. I do not agree with this merger. Fix the problems first, leadership matters!
Mitch is Absolutely correct.
the European mimd set and mentality have invaded and become a permanent fixture on this red, white and blue news site comment section.
It just seem like the stupid lazy man approach to solving the problem that is WSD. If management is the problem then fix that don’t just throw the problem on bviec with a merger that makes no sense financially for bviec. Government done don’t pay bviec on time as it is already now you want to attach this ball and chain to their feet.
Why wait so long to speak up? Nonsense. Wasted my vote. Not again