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May 28, 2007

Governor intervenes in outstanding potable water bills between WAPA and V.I. Housing Authority; Settlement reached

The Virgin Islands Housing Authority (VIHA) and the Water and Power Authority (WAPA) have settled outstanding water invoices at five public housing communities on St. Croix. The agreement was reached at a recent meeting at Government House convened by Gov. John P. deJongh, Jr. Under terms of the agreement, the VIHA, under HUD receivership, will pay WAPA 70 percent of the outstanding accounts payable as of May 7, 2007. That figure is pegged at $2,457,448.55. Additionally, the VIHA will hold in escrow the remaining 30 percent or $1,053,192.24. 

"The potable water accounts have been outstanding for some time at the D. Hamilton Jackson; Ralph de Chabert; John F. Kennedy; Aureo Diaz Heights and William’s Delight Villas public housing communities," deJongh said Monday. The agreement will also require both agencies to constitute a joint assessment task force to review ways in which the two entities can resolve their concerns regarding WAPA billing at the five housing communities. "I complement Mr. Bruno-Vega and Mr. Hollis for negotiating a compromise that is in the best interest of all parties. It is important to me that agencies which have disputes, meet, discuss the issues and reach a solution that is in the best interest of everyone," deJongh said. 

Other conditions of the May 24th agreement require VIHA to pay seventy percent of each WAPA invoice in the five housing communities until metering issues at each community are resolved. The agreement also outlines a goal of resolving open water distribution items up to the meter within a six-month period or by November 23, 2007.

"We appreciate the Governor’s intervention and leadership. His involvement was superb," said VIHA receiver Attorney Michael Hollis at the conclusion of the meeting. WAPA Executive Director Alberto Bruno-Vega said the agreement will go along way towards assisting WAPA’s cash flow. "For years we have been carrying this debt for the VIHA, the $2.4 million payment will ease the cash flow crunch and the agreement means we can address outstanding concerns of the VIHA such as metering and the losses recorded at each housing community." 

The U.S. Housing and Urban Development (HUD) approved the agreement on Friday. 

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