💧 Water and Power · U.S. Virgin Islands

WAPA board approved cost increases for underground electrical projects on St. Croix and St. John

The Virgin Islands Water and Power Authority governing board on November 4 approved contract modifications tied to underground electrical projects on St. Croix and St. John, including higher costs and schedule extensions.

On St. Croix, the board approved a $1.8 million increase for the Container Port underground project. WAPA said the added cost reflected changes in the scope of work, higher labor and material costs incurred between bid submission and the notice to proceed, and revised secondary service requirements for some customers that required additional equipment, including transformers and duct bank runs.

On St. John, the board approved a 240-day extension and a $448,910 increase for the underground project running from Mongoose Junction through Cruz Bay toward Frank Bay. WAPA said the revised schedule was tied to archaeological discoveries, additional civil work, and delays in obtaining easements and other clearances. The board also approved a further 30-day extension and a $1.8 million increase for changes in roadway restoration and resurfacing along parts of the project route. WAPA said FEMA, which was funding 90% of the project cost, had authorized the scope changes and increased costs.

In other action, the board approved a two-year, $200,000 master service agreement with Arcadis for air pollution consulting and engineering services through December 2023. It also approved modifications to an existing contract with American Wire Group, changes to an existing contract with Haugland Energy for transformer oil removal and disposal, and authorization for the interim executive director to negotiate and execute contracts with On Site Environmental Inc. and Grace Civil LLC for work on a new firewater pump house at the Randolph Harley Power Plant on St. Thomas.

The board also authorized the interim executive director to extend an existing contract with Sustainable Capital Advisors LLC through February 28, 2022. WAPA said the three-month extension cost $60,000 and brought the contract total to $920,000, excluding expenses and transaction fees.

At an abbreviated meeting on October 28, the board also authorized five-year bond anticipation notes to cover remaining acquisition costs, maintenance and accrued interest for Wartsila propane-fired generators at the Randolph Harley Power Plant, as well as installation costs related to leased Aggreko units at the Estate Richmond Power Plant on St. Croix. WAPA said the notes would be secured by fuel tax revenue.

The board also approved extensions of credit lines with First Bank and Popular through January 31, 2022. WAPA said the facilities totaled $18 million with First Bank and $21 million with Popular.

Official source: https://www.viwapa.vi/news-information/press-releases/press-release-details/2021/11/04/wapa-governing-board-approves-modifications-and-cost-increases-for-electrical-underground-projects-on-st.-croix-st.-john