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Minister without portfolio in the Ministry of Economic Growth and Job Creation, Senator Aubyn Hill says the Government is working to address the inefficiencies at the National Water Commission (NWC) to improve its operations.
"We are in the process of fixing the NWC to be fit for the purpose that Jamaicans need it to be," Hill said, while making his contribution to the State of the Nation Debate in the Senate last Friday.
Hill pointed out that in the last 15 years, the NWC has made a net loss every year, with the total accumulated loss over the period amounting to $42.9 billion.
He noted, however, that although the NWC does not have the "very substantial amount of cash" it needs to operate efficiently, "we at the NWC still spend a lot of money to keep supplying water to Jamaicans and to keep thousands of Jamaicans in decent-paying jobs".
Hill cited numerous projects the entity will be spending $7.5 billion to carry out this fiscal year.
These include the Greater Mandeville Water Supply Improvement project, on which $500 million will be spent; the Spanish Town Road - Six Miles to Glenmore Road Transmission Main - $3.5 billion; Spanish Town Road Transmission Pipeline - $1.5 billion; Port Royal Transmission Main Replacement - $300 million; Islandwide Pump Replacement - $300 million; Martha Brae, Trelawny, Water Treatment Plant Intake Upgrading - $30 million; and the Hounslow-Parotee Supply and Installation of eight kilometres of 150-millimetre pipes - $125 million.
Meanwhile, in a move to transform the NWC, the entity contracted Castalia, an international consulting firm, three years ago, which looked at the need of the NWC to be recapitalised, and the prospect of bringing in new private corporate and individual investors.
Among Castalia's main recommendations was for the Government to mandate the rapid implementation of the firm's decisions by appointing an enterprise team to lead the transactions to transform the NWC.
Hill informed that Prime Minister Andrew Holness has agreed to the members of the prospective enterprise team "and the process of appointment is moving through the Ministry of Finance and the Attorney General's Chambers in the draft Cabinet submission".
"The Administration will make the necessary transformations, including difficult and complex ones such as this, in order to build back stronger," he said.
The other key recommendations were that the NWC will be transformed into a limited liability company with shares, and the water sector legislation and regulations should be modernised by passing a new Water Act, which, among other things, removes statutory powers from the NWC and transfers them to other appropriate bodies and provides for the corporatisation of the service provision functions of the NWC.
Another recommendation is that the Government needs to direct officials to ensure affordability and access to water for poor families and communities, consistent with the new water policy.
- JIS