Connect with us

Federal

Plaskett Casts Doubts on WAPA’s Hopes for Vitol Debt Federal Reimbursement

Published

on

In a recent media briefing labeled “Pen & Pad,” Stacey Plaskett, the USVI’s Delegate to Congress, engaged with local reporters on various matters. A significant point of discussion revolved around the delay in the repayment of the $100 million that the Water and Power Authority (WAPA) owes to energy trader Vitol, pursuant to a settlement agreement.

Plaskett’s initial remarks focused on the original 2013 deal between WAPA and Vitol. “From a legal standpoint, the nature of that initial agreement is highly unsettling,” she stated. She pinpointed the interest rate in the original agreement as alarmingly high. Moreover, she highlighted the appended change orders, which ballooned the concluding bill, making it more than twice the preliminary budget estimate for the project.

Addressing the subsequent settlement designed to end the dispute between WAPA and Vitol over the debt amount, Plaskett clarified her non-participation in any negotiation stages. Nevertheless, she expressed her reservations about Vitol’s role in the settlement, indicating that the energy trader didn’t seem to have made any considerable concessions. “Negotiations should lead to both parties enduring some degree of discomfort. But it appears Vitol hasn’t been impacted by any strains in working out this repayment plan,” she remarked.

Responding to queries about the decision to defer the payment from August to December, Plaskett acknowledged her limited knowledge of the internal discussions. However, her tone remained cautiously skeptical.

Governor Albert Bryan Jr.’s proposal to the 35th Legislature, urging approval of a credit line to facilitate the $145 million payment to Vitol, came with assurances. The administration expressed hopes that the funds would be replenished to the territory through a grant from the Department of Housing and Urban Development, specifically from the Community Development Block Grant aiding the territory’s post-hurricane recovery.

Yet, Plaskett voiced her reservations. “I seriously doubt the feasibility of tapping into CDBG resources for this purpose,” she conveyed. She further indicated that the anticipated authorization for such usage has not been obtained.

Elaborating on her skepticism, Delegate Plaskett questioned the likelihood of HUD’s secretary consenting to the use of disaster relief funds for settling what she termed as “an ill-conceived debt.” While she admitted being potentially out of the loop regarding specific details, Plaskett didn’t discount the possibility of Governor Bryan having additional information. “It’s conceivable that the Governor has insights I’m not acquainted with. But, based on my dialogue with HUD’s decision-makers, this seems like a long shot,” she concluded.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Federal

Virgin Islands Port Authority Faces $477K FAA Penalty; Takes Immediate Action

Published

on

The U.S. Federal Aviation Administration (FAA) has recently proposed a civil fine of $477,000 against the Virgin Islands Port Authority (VIPA) for alleged lapses in maintenance at St. Thomas’ Cyril E. King International Airport.

The FAA’s proposed penalty, made public this past Tuesday, originates from a series of inspections carried out in 2021 and 2022. These inspections uncovered multiple violations at Cyril E. King Airport, such as deteriorated runway and taxiway surfaces, inadequately graded and drained safety zones, and obstructions within these areas. Additional concerns raised by the FAA include faded or incorrect runway indicators, faulty or absent edge lighting on runways, and improper fuel storage and handling procedures. The FAA also criticized VIPA for not issuing a critical Notice to Airmen (NOTAM), which would have informed airlines about a specific issue with the runway.

Responding promptly to the FAA’s enforcement notice, VIPA issued a statement this Thursday. Carlton Dowe, the Executive Director of VIPA, provided further details on the matter. He acknowledged that while some of the issues were already on VIPA’s radar, several were newly identified in the FAA’s August 23 communication.

Dowe stressed VIPA’s proactive approach in addressing these concerns. “We’ve already submitted a comprehensive response to the FAA, supported by extensive documentation. This proves that many of the cited deficiencies have either been resolved, are currently being addressed, or simply do not exist,” Dowe said. He also highlighted VIPA’s ongoing partnership with the FAA’s Atlanta Airports District Office to plan and implement capital projects aimed at ensuring compliance.

Dowe also took the opportunity to spotlight VIPA’s commitment to safety and infrastructure improvements at Cyril E. King Airport. “We’re allocating more than $29 million for safety upgrades, and additional projects, such as runway rehabilitation, are also in the works,” he noted. Dowe elaborated on the logistical hurdles of operating a single-runway airport like Cyril E. King. “It’s not practical to shut down the runway for repairs. Therefore, we’ve scheduled most of our repair work for nighttime to minimize disruption to flight schedules,” he added.

As discussions with the FAA are ongoing, Dowe reassured the public that operations at Cyril E. King Airport would continue without interruption.

Continue Reading

Federal

Momentum Builds for Plaskett’s Bill to Halt NPS Expansion in St. John Amid Calls for Fixed Park Boundaries

Published

on

In a recent exclusive discussion, Congresswoman Stacey Plaskett shed light on the growing legislative movement aimed at curbing the expansion of the National Park Service (NPS) on the island of St. John. This initiative comes in response to the concerns of local inhabitants who feel increasingly hemmed in by federally controlled lands.

During the interview, Plaskett touched upon the controversial land exchange involving Whistling Cay and a federal land parcel in Estate Catherineberg. She expressed that the swap was a necessary action given the current circumstances. However, she also recognized the deep-seated emotional responses from the residents of St. John, attributing them to the island’s historical relationship with the NPS.

With the NPS currently owning an estimated 60% of St. John, Plaskett posed the question, “The National Park’s establishment was undoubtedly a positive development, but at what expense?” She revealed that a bill is underway to permanently establish the boundaries of the Virgin Islands National Park, thereby preventing any future territorial growth by the NPS. The legislation has already undergone its preliminary hearing in the House of Representatives.

Senator Angus King of Maine, chair of the Senate Energy and Natural Resources Committee, has pledged his support for the initiative. Plaskett dismissed the notion that the park’s existing boundaries could be reduced, citing President Biden’s unwillingness to establish such a precedent. The President has indicated that he would not endorse any measures that could trigger a flood of similar requests from other states and territories.

Plaskett also clarified misconceptions surrounding a land transfer in Maine, which some Virgin Islanders cited as proof that the NPS could relinquish lands without a reciprocal exchange. She explained that the Maine transfer was the culmination of a 30-year-old legislative agreement, not a unilateral land gift from the NPS.

The congresswoman emphasized that the bill to cement the Virgin Islands National Park’s boundaries is gaining traction. A companion bill is currently being drafted in the Senate to expedite the legislative process. To further bolster the bill’s chances of success, Plaskett has arranged for Senate staff to visit St. John and engage with the local community, as the island’s future has implications for the entire Virgin Islands territory.

Continue Reading

Federal

Legislative Stalemate on Caribbean Policies: Plaskett Cites Republican Roadblocks for Delay in Crucial Initiatives

Published

on

The advancement of critical policy matters concerning the U.S. Virgin Islands remains at a standstill, a situation Congresswoman Stacey Plaskett attributes to current political divisions in Capitol Hill. In a comprehensive interview with Ernice Gilbert, the publisher of Consortium, Plaskett expressed her concerns over the deadlock.

One key issue Plaskett had highlighted was the permanent continuation of the rum cover-over funds. The Congresswoman had expressed optimism last year that this would be resolved by the close of 2022. However, the situation now appears uncertain, a development she attributes to GOP disputes concerning tax legislation.

“The inability to reach a consensus on tax reforms has persisted for the last two years,” Plaskett stated. She mentioned that ongoing legislative discussions include measures to permanently fix the rum cover-over rate at $13.25 per gallon, an increase from the existing $10.50. However, this legislation is not moving forward due to Republican disagreements on its contents. “It’s a broader issue affecting various industries and regions, but it’s unlikely to make progress because of GOP disunity,” she added.

Plaskett also noted that even the Republican defense bill suffered a blow on the House floor earlier in the week, due to a lack of unity among the party members. Despite these setbacks, she assured that should any tax bill clear the Ways & Means committee, it would include provisions for the rum cover-over rate, as confirmed by bipartisan agreement.

In a shift from rum taxes, the Congresswoman clarified her position concerning the Virgin Islands’ debt resecuritization plans. “My legislative team advised the Virgin Islands government to proceed with the current $10.50 rate, rather than the proposed $13.25,” she disclosed.

Another significant issue facing the territory is the introduction of a visa waiver program for Caribbean nationals. According to Plaskett, the idea initially received widespread regional support, including endorsements from Caribbean prime ministers. “But the current Republican-majority House views this as an immigration bill,” Plaskett explained. Conservative House members’ stringent stances on border control have effectively shelved this initiative for now.

As for the way forward, Plaskett believes a shift in the balance of power in Congress could break the deadlock. “Many of us are campaigning to regain a Democratic majority in the House. If that transpires, there’s hope for these key legislative matters to finally progress,” she concluded.

By addressing the complexity of the political climate and its direct impact on legislation affecting the U.S. Virgin Islands, Plaskett emphasizes the need for unity in Congress to move forward on these critical issues.

Continue Reading

Trending