💧 Water and Power · U.S. Virgin Islands
WAPA testified on proposed $150 million credit line tied to FEMA projects and Vitol obligation
The Virgin Islands Water and Power Authority testified on April 5, 2023, before the Legislature’s Committee of the Whole on proposed legislation, Bill No. 23-0485, according to a WAPA statement released April 7.
WAPA said the measure would authorize a $150 million line of credit to the Government of the Virgin Islands to provide working capital for more than 100 FEMA-approved projects and to help the utility meet a negotiated infrastructure settlement obligation to Vitol, the territory’s propane supplier.
The authority said acquiring Vitol’s propane assets would support its fuel operations and reduce a major debt obligation. WAPA said the propane infrastructure would also increase fuel inventory capacity, estimating that with full propane and diesel inventory St. Croix would have more than two months of fuel on hand and St. Thomas-St. John would have more than one and one-half months.
WAPA Chief Executive Officer Andrew Smith said in the statement that the Vitol debt was the authority’s largest single debt and operating cost, and that the utility was seeking timely establishment of the credit line to support a first payment due to Vitol in mid-April.
Gov. Albert Bryan Jr. said the legislation was intended to advance recovery projects and make a payment toward resolving the longstanding financial obligation between WAPA and Vitol. He said he planned to continue discussions with lawmakers before the next scheduled legislative session on April 13, 2023.