Lambert: It’s simple, increase
capacity at the lowest price
PHILIPSBURG--The process of having water supplied by either the current water production company Enerserve, a new company or utility company GEBE at the lowest price possible fits in the concept developed in 1995 that has led to a drastic decrease in the price of water by approximately 50 per cent.
The creator of this concept, former GEBE director Julius Lambert, told The Daily Herald he had noticed that the concept had been questioned lately, but that in fact it was very simple and there was nothing wrong with it or with what government had been doing.
Lambert indicated to government in 2005 that an increase in the water capacity was needed and in that light negotiations should start to increase the capacity at the lowest possible price available.
“Government can either force the current supplier to come up with a better price or decide to outsource the water supply to another company or give it to GEBE to operate. What government is doing fits in the concept and it does not matter who wins the bid, either the new company Air-Fin or Enerserve,” Lambert said.
He pointed out that the possibility for GEBE to operate the plant was built into the concept as an option, but stressed that “to outsource the management of the plant or to operate it ourselves is a government decision. The end result should be a cheaper price for water. It’s pure economics.”
Lambert explained that the issue of water production in St. Maarten went back to 1994-1995. “The Island Government could not finance a new water plant and I wrote a report proposing to contract a supplier who would invest in a water plant and from that plant supply water for the island.”
The catch in the contract was that the supplier would invest, but the Island Government would have the right to purchase the water plant at any time during the 10-year contract.
Lambert: “The reason was because at that time the reverse osmosis technology was relatively new. There was constant development in improving the membranes, high pressure pumps and energy recovery system.
“So with time, the production process would become cheaper. With that in mind, you would be able to force the supplier to offer a cheaper price, because government has the option to buy the plant, which buy-out price has been fixed in the contract, to either operate it itself or to get other suppliers to bid on managing the plant, which gives government the leverage to negotiate a cheaper price.”
He said that as well when he submitted his report to the GEBE board of directors and the Island Council in 1995. “Since this concept was introduced, the price of water has gone down drastically, almost by half,” he said.
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