Wednesday, 02 December 2009
Minister of Water Dr. Horace Chang.Minister of Water Dr. Horace Chang has come to the defense of a two billion dollar government project which is earmarked to bring major improvements to the water supply system in the Corporate Area and some sections of rural Jamaica.
The project is expected to supply an additional 15 million gallons of water daily.
Speaking in Parliament Tuesday Dr. Chang said the Jamaica Water Supply Improvement Project is economically viable to liquidate the loans which have been sought from a consortium of banks to finance the project.
Parliament approved the government guarantee for loans totaling just over US$200 million to the National Water Commission (NWC) to implement the project.
The Water Minister was responding to concerns raised by opposition member, Ronald Thwaites, about the absence of details on how tax payers will foot the bill.
"This project will pay for itself almost immediately because by supplying the additional 50 million gallons per day that alone will be able to generate the additional funding. The reason for proceeding with this is that the 20 million gallons in terms of water is likely to be used very quickly and will generate the necessary cash flow to the National Water Commission in order to repay the cost,"
"One must also bear in mind that there is a K-factor in their water rates in addition to that the metering of some 70,000 customers that will include new meters as well as the changing of old meters will significantly reduce technical and commercial losses," Dr. Chang said.
He notes that the project is the largest ever to be undertaken by the NWC.
Minister of Water Dr. Horace Chang.Minister of Water Dr. Horace Chang has come to the defense of a two billion dollar government project which is earmarked to bring major improvements to the water supply system in the Corporate Area and some sections of rural Jamaica.
The project is expected to supply an additional 15 million gallons of water daily.
Speaking in Parliament Tuesday Dr. Chang said the Jamaica Water Supply Improvement Project is economically viable to liquidate the loans which have been sought from a consortium of banks to finance the project.
Parliament approved the government guarantee for loans totaling just over US$200 million to the National Water Commission (NWC) to implement the project.
The Water Minister was responding to concerns raised by opposition member, Ronald Thwaites, about the absence of details on how tax payers will foot the bill.
"This project will pay for itself almost immediately because by supplying the additional 50 million gallons per day that alone will be able to generate the additional funding. The reason for proceeding with this is that the 20 million gallons in terms of water is likely to be used very quickly and will generate the necessary cash flow to the National Water Commission in order to repay the cost,"
"One must also bear in mind that there is a K-factor in their water rates in addition to that the metering of some 70,000 customers that will include new meters as well as the changing of old meters will significantly reduce technical and commercial losses," Dr. Chang said.
He notes that the project is the largest ever to be undertaken by the NWC.
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