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Water Supply with Ionics Incorporated Agreement (Scam), LEAKED

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Estwick_BWA27,000 m3 x BDS$0.80 x 365 DAYS x 15 years = BDS$118,260,000.00 or BDS$118 MILLION DOLLARS.. Imagine being given the opportunity to spend BDS$18 MILLIONS DOLLARS to build a new water treatment plant with a no-risk contract with Barbados Water Authority where them would take all the water treated and where BWA would repay you BDS$118 MILLION DOLLARS in 15 years – BU Tipster

The generation and distribution of water has always been a topical issue in Barbados long labelled a water scarce country. However, in the last 12 months it is difficult to recall a period post th 70s where access to potable water has reached such a level of criticality. The seriousness of water management in Barbados is best illustrated by the robinhoods who journey to the North of the island to distribute water.

We (BU et al) accept that the issues affecting water management are complex, we also accept many have been of our making. BU shares the following – Water Supply Agreement with Ionics Incorporated for the Supply of 27,000m3/Day of Desalinated Water from a Reverse Osmosis Desalination Facility.

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169 responses to “Water Supply with Ionics Incorporated Agreement (Scam), LEAKED”

  1. Well Well & Consequences Avatar
    Well Well & Consequences

    Scams at the taxpayers expense….taxpayers meaning the majority 260,000 plus people whom the politicians never tell about thir e bribe-taking scams against the people.

  2. Well Well & Consequences Avatar
    Well Well & Consequences

    *their

  3. David Avatar
    David

    Should be fixed now.

  4. Bajan Yankee Avatar
    Bajan Yankee

    Another case why the BLP never carried the Cahill issue to court. BLP just as corrupt as the DLP. How de arse yardfowls could support either party.

  5. Mora Avatar
    Mora

    Ionics Freshwater Limited – Projects

    PROJECT: Example 1

    SPRING GARDEN DESALINATION PLANT , BARBADOS (7.9 MGD)

    This is the largest brackish water desalination plant in the Caribbean. The plant began producing drinking water in just 15 months after signing of a water supply agreement with The Barbados Water Authority.

    The brackish water reverse osmosis (BWRO) desalination plant in Barbados was installed and commissioned in February 2000, it has a production capacity of 30,000 m3/day (7.9 MGD). The plant was built by Ionics Freshwater Ltd under a 15 year Design Build Own Operate (DBOO) contract with The Barbados Water Authority.

    This Spring Garden facility was recognised as being necessary to augment existing groundwater supplies after the island experienced a severe drought during 1994- 1995. The desalination facility is capable of supplying drinking water to approximately 20% of the population of Barbados. The feed water source is from ten brackish water wells. The plant utilizes ultra-low pressure brackish water reverse osmosis membranes and energy recovery turbines both of which helps to optimise the overall energy requirements of the system.

    Spring Garden BWRO Facility:
    Well Water Intake: ten eighty foot deep wells
    Pre-Treatment: antiscalant dosing and cartridge filtration
    Reverse Osmosis (RO) Trains:
    o Two trains totalling 256 pressure vessels

    o 1,536 low pressure spiral wound membranes
    Operating Pressure: 7.6 bar
    Post –Treatment: hydrated lime and sodium hypochlorite

    After post-treatment the potable water is directed to a site storage tank where it is constantly monitored for water quality and is then transferred to the water authority reservoir for distribution.

    The treated product water meets the World Health Organisation (WHO) water quality standards and has operated trouble free since commissioning.

    After over ten years of operation the original membranes are still a achieving water quality which meets the water authority’s product water specification requirement of < 250 mg/l TDS.

  6. Mora Avatar
    Mora

    The thing is people in beautiful Barbados believe Mr Bizzy Willaims is a patriot and fine gentlemen.

    I would like to know if the contract is going to be extending as it probably expiring this year.

  7. David Avatar
    David

    @Mora

    What choice dos the government have to negotiate? It does not have the resources to buy. Did you not listen minister Lashley on the talk show today resorting to crowd financing option to support programs in his ministry?

  8. Mora Avatar
    Mora

    David,

    I don’t listen to Minister. I do not willingly submit my brain to pollution. Well if they are going to continue buying the water from Bizzy then I hope the BWA gets a major reduction in the purchase price of water, remember by now the debt has been repaid to whosoever funded the project.

  9. David Avatar
    David

    @Mora

    It is not Bizzy’s fault some JA signed an agreement for x supply/period and receive less than agreed.

  10. Shaft Avatar
    Shaft

    Rain water not collected and recycled..! Barbados should never have a water shortage.. I so admire the lakes created (rain water) by White Bajans in and around the Westmorland areas.

  11. Mora Avatar
    Mora

    David
    I don’t blame Bizzy for the BWA’s inability to take the water, that is a separate and compounding issue. I am concerned with investing $18 m and getting back $118 m by end of the supply contract. That is got to be one hell of great IRR for such a simple investment.

  12. Mora Avatar
    Mora

    Hopefully that unit cost will come down when BWA extends the life of the supply contract.

  13. Mora Avatar
    Mora

    18 m to 118 m is a 550% profit in fifteen years.

  14. David Avatar
    David

    @Mora

    One would imagine that Bizzy (Ionics) is holding the stronger hand at the renegotiating table?

  15. pieceuhderockyeahright Avatar
    pieceuhderockyeahright

    TO THE MORE KNOWLEDGEABLE READERS

    IONICS is an american company so are we to assume that they were paid in US dollars correct?

    The water being supplied to the BWA was ultimately being sold to Bajan consumers right?.

    Could you more literate fellows let the old man know if the sale of the water permitted (a) the recouping of the expenditure per cubit metre sold (b) generated any profits over that period and (c) if those profits could have permitted the purchase of the plant AFTER the BOLT contract expired.

    If so why not?

    If not, could someone in addition to providing an interpretation of the hieroglyphics of the signatories provide (i) a translation of the names of all of the signees of this document and (ii) share with the BU family, the identities of vultures, sorry people, who would have been party to this agreement. in 1998

    Just as an aside one notes that this $118 M contract was made on the 11th November

    Can someone give any comparitors per the costs of a desalination plant services AT THAT TIME and if we got the best bang for our buck.

    Would the party who delivered the bound document indicate if (i) there were any other proposals submitted at that time (ii) were those companies reputable (iii) were the costs competitive rather were the costs cheaper than those of Ionics? (iv) who were the menebers of the selection committee?

    Could someone indicate whether given the premium that was to be paid over the time period why the facility was/is not now ours?

    Would Kammie Holder or any other of the Environmental Gurus and Cahill experts, please comment if the list of chemical listed in the contract, pose any Environmental issues?

    Certainly, one was just curious if, over all these years those chemicals have been seeping into the water and might in fact be responsible for the rampant brass bowlery that is besieging the island.

    One should not jump to any conclusions if the other information indicates that the other proposals for service were equally disproportionately/expensive, can one? and like we have done with our general election choices, the BW&A picked the best of the evils.

    To be fair, we still need to compare apples with apples and just not say that Bizzy et al. had an advantage, or that “he dug out anyone’s eyes” or that “there was obvious collusion” etc.

    Just saying!!

  16. Violet C Beckles Avatar
    Violet C Beckles

    If any part is a scam all of the DBLP Government is a scam, their is NO water shortage another scam fraud to collect more money , rate and Vat on top of that.

    BU bloggers act like any news about the fools , crooks in office is any big news, By the time you all smell the rat the cheese gone.

  17. pieceuhderockyeahright Avatar
    pieceuhderockyeahright

    Now, having said all that. if someone was to show a trail of checks from Ionics to any of the vultures sorry parties to this agreement over the course of the 15 years and that any or all of the say, selection committee members did by way of such evidence benefit financially from an influx of cash to their US Bank accounts, then we could connect the dots like those in the current prosecution of the President of Guatemala with $25M from a sole tender contract valued at $225M to operate in their port.

    Whuloss that sound like Cahill and DownLowe.

  18. David Avatar
    David

    It is of value to report the Special Audit of the BWA Auditor General’s report of 2012.

    http://www.bao.gov.bb/themes/marinelli/files/BWA%20Special%20Audit%20Report.pdf

    @PUDRYR

    The Special Audit responds to a few of your audit trail concerns.

  19. David Avatar
    David

    A reminder to the BU family we have added Whatsapp and Skype to the sharing buttons at the bottom of the blogs to allow for easy forwarding to others on your friends list.

  20. Prodigal Son Avatar
    Prodigal Son

    You mean to tell me that there is not one deal these morons make that would benefit the taxpayers instead of the few white taxpayers money grabbers?

    Oh lawd, nuh!

  21. Sick & Tired Avatar
    Sick & Tired

    Desalination Plant
    4. The Audit revealed a number of issues that need to be addressed by the Authority. After twelve (12) years of the Desalination Plant’s operations, the Authority does not have the capacity to receive all of the water contracted from the company which owns and operates the Plant. Provisions should have been made to receive all of the contracted water. It should also be noted that the Authority has paid over $19 million
    Executive Summary
    1
    BWA’s Special Audit
    in standby charges for water contracted but for which it did not have the capacity to receive.
    The Comments of the BWA
    The plan was not to receive all the water from inception, but to provide a reserve capacity that would be utilised as demand arose out of the many projects that had been submitted for approval to the Town and Country Development Planning Office and to reduce the level of over pumping that was occurring at the Belle Pumping Station which could have resulted in loss of supply due to saltwater intrusion.
    5. It was envisaged that the plant would have been providing potable water from water with a higher salt content. However, the water supplied is mainly from water with a low salt content. To derive potable water from this source is less costly. There was no evidence that relevant investigations were conducted to determine the salinity of the water to be processed. This would have resulted in a lower price being paid for the water supplied.
    6. The amount of Total Dissolved Solids (TDS) found in the water and a related electricity factor are components in determining the costs of water to the Authority. It would appear that both of these factors were overstated when the formula for the price of water was determined. This resulted in the Authority paying significantly more for water than was necessary. In July 2008 Ionics unilaterally reduced the electricity factor used to compute production cost resulting in cost savings of $70,966.00 for that single month.
    7. No evidence was provided that the Authority undertook any analysis of the financial arrangement surrounding this project (such as the reasonableness of the rate of return paid to Ionics), or explored other financial models for the construction of the plant. These steps should have been pursued given the novelty of the Public- private partnership agreement and the high rate of return (18%) paid to the company.
    Executive Summary
    2
    BWA’s Special Audit
    8. The introduction of desalinated water appears to be good for the Country with the Plant producing the amount of water the BWA can accommodate and at an acceptable quality. The Authority’s personnel however need to be familiar with the operations of the Plant in case the option to acquire it is exercised. It also needs to ensure that the capacity is there to receive and distribute all of the water supplied. If the aim is to reduce over-pumping at the Belle as stated by the BWA then utilizing more of the Plant’s capacity would assist in reaching this goal

  22. David Avatar
    David

    Item 20 in the Special Audit report makes one question the role of the BWU at the BWA.

    Recruitment
    20.
    The Authority currently employs around eight hundred (800)workers with an annual payroll of approximately $38 million. An area of concern was the absence of transparency within certain aspects of the recruitment process. There was evidence that some posts were advertised. However, it wasn’t clear which posts should have been advertised, nor was any documentary evidence provided as proof that interviews were conducted.
    21.
    The new recruits were given a specific period of employment; however, some of these officers continued to be paid beyond the specified
    periods, without the issuing of letters extending the employment.

  23. Colonel Buggy Avatar
    Colonel Buggy

    The Barbados Light and Power has trimmed its staff considerably, to what may be considered ,lean and mean. Since that retrenchment we have not had any major disruptions ,as many thought would follow. The present crews are working so efficiently, that a few weeks ago all of its employees received some very attractive “productivity bonus”, never before seen in the history of that utility company,or probably in Barbados.
    Perhaps we need to do a similar bit of load shedding at the BWA, starting from the top,as Emera did.

  24. Sick & Tired Avatar
    Sick & Tired

    Page 51 of the agreement says the BWA could buy out the Spring Garden Treatment Plant for $0.00 dollars at year 15. The question is did they?

  25. David Avatar
    David

    Even if the BWA bought out Ionics it will likely have to conrtact the management of the plant to said Ionics.

    On Sun, Apr 17, 2016 at 9:24 PM, Barbados Underground wrote:

    >

  26. Sick & Tired Avatar
    Sick & Tired

    David
    That is a joke. Desalination is a low tech industry these days. It not rock science and it ain’t complicated.

  27. Sick & Tired Avatar
    Sick & Tired

    Plus if it purchased the Spring Garden plant for zero per the agreement then the value of the plant would sit on BWA’s balance sheet as a significant asset.

  28. David Avatar
    David

    You obviously have confidence in the BWA management to get the job done?

  29. pieceuhderockyeahright Avatar
    pieceuhderockyeahright

    @ David [BU]

    That is real stupid that is not what a B.O.L.T is when you take ownership youu have the skills to run it yourself even if you still have to buy parts from them

    “The BWA was requested to provide information on the cost of producing
    water at the Belle but this information was not provided. ”

    This is shyte. The must hate that Trotman fellow at the Auditor’s Office

  30. David Avatar
    David

    @PUDRYR

    This is the point being intimated to Sick & Tired if one extrapolates from the AG’s report. It points to gross mismanagement and or malfeasance.

  31. Sick & Tired Avatar
    Sick & Tired

    The BWA has been managing all of Barbados’ potable water plants and needs and waste water treatment plants in Barbados and we are to believe that BWA cannot take over a simple brakish water plant and run it? This is pure nonsense. You have the contractual mechanism to get a major national infrastructure asset, one that has cost the BWA and the people of Barbados $180 million and BWA’s elects not to do so?

    We too love out frigging monopolies in Barbados.

  32. Sick & Tired Avatar
    Sick & Tired

    Someone should get jailed for this foolishness. Now if BWA had to buy the last and it cost millions and millions of dollars and they could not afford it, then that is on thing but to refuse to take it for FRIGGING FREE?

  33. David Avatar
    David

    @Sick & Tired

    It begs the question why this government continues to hand our price assets to a few, like BNOTC.

  34. pieceuhderockyeahright Avatar
    pieceuhderockyeahright

    Thank you for the link Blogmaster

    I stopped reading at page 30.

    We should be grateful that this is not China because, based on this report, several of these BW&A management team people would be executed by firing squad.

    Everyone is a law to themselves and any and every thing like the total dissolvable solvents that determine whether we are drinking proper or brackish water, seems to be a joke to the BW&A, as far as running this facility is concerned.

    17% variances in Tariff meters? no calibrations? no register? US$ 500K paid and no receipt of the purchases.

    I simply stopped reading

  35. David Avatar
    David

    Ok, there is nobody in Barbados who knows if the desalination plant has been snapped up as per BOLD arrangement by government? Have we reached such a low that there is such a lack of transparency in our public affairs?

  36. Sick & Tired Avatar
    Sick & Tired

    Because it suit them to ‘move’ the money outside of the Treasury where things can happen easily.
    The Ionics thing got me real rashole vex hear? Can’t people that 50 years after independence nitwits like Bizzy et al could walk bout here making people believe them is super businessmen.

  37. David Avatar
    David

    @PUDRYR

    BU has been made to understand the principal of the company responsible for purchasing the new meters is the brother of a man who received 700K for reading a contract.

  38. David Avatar
    David

    Hopefully we will see more agreements like the one with SBRC started by the BLP and consummated by the DLP.

  39. Sick & Tired Avatar
    Sick & Tired

    SBRC agreement is even a bigger bundle of nonsense and waste of taxpayers money. For that contract Bizzy getting something like $34 m a year. How long is that contract?

  40. Sick & Tired Avatar
    Sick & Tired

    This country is in the clutches of brutal and seriously unethical businessmen who don’t care if people starve so long as they can play polo, fly their planes, drive the expensive race cars, own expensive villas all over the globe and fly everywhere first class.

  41. David Avatar
    David

    The following response from the BWA to the AG’s audit note of 2.7 seems special:

    2.7 The Plant was never run at full capacity. Therefore, it is not known whether the facility can be sustained over the long term or under drought conditions.

    The Comments of the BWA

    In these sections the Audit report states that the BWA’s infrastructural capacity was insufficient to accept the total volume of the desalination plant output. This is only partially true in that the additional demand needed to utilize the total plant capacity was not there. The desalination plant was put into production, (half capacity of 13,500 cu- m per day), on the 15 February, 2000 at a time when the BWA was just about meeting all of the demands placed on it by its customers. This extra production into our distribution system was absorbed by the matching reduction in output from the Belle P.S. [Pumping Station] which had been producing above its recommended level for a considerable period of time. This level was determined by recognizing the following:

    (a) There was the need to reduce the output of the Belle P.S. to its safe yield limit of approximately 9.0 mgd.

    (b) There was also an economic consideration since accepting more desalinated water than was necessary, drove up the overall cost of production. (The unit cost of desalinated water is more expensive than the unit cost of water from conventional sources.)

    In addition, the balance point of these two considerations was determined when it was realized that the cost of production from the Belle P.S., plus the penalty for not taking all of the desalination production, was less than the overall cost of production from the desalination plant. This consideration and demand determined the level of production of the desalination plant and not the infrastructure as is suggested by the audit report. The BWA could have lost much more than the $1.9M per year had the decision been taken to accept the full plant production while shutting down the less expensive conventional sources. Granted the additional infrastructure (installation of west coast main) should have been completed and ready to deliver water ahead of the new demands.

  42. watchman Avatar
    watchman

    @ David/BU

    Yes, we reach way below low when the M of F can say some US $$ is coming but not were it coming from,

  43. Sick & Tired Avatar
    Sick & Tired

    I WANT TO KNOW IF THE BWA EXERCISED, ON BEHALF OF THE PEOPLE OF BARBADOS, THE OPTION TO TAKE OVER THE SPRING GARDEN DESAL PLANT FOR 0.00 AS CONTAINED IN THE AGREEMENT???
    IF THEY DID NOT, THEN THIS IS CRIMINAL…………PURE AND SIMPLE.

  44. watchman Avatar
    watchman

    but not where the money coming from

  45. pieceuhderockyeahright Avatar
    pieceuhderockyeahright

    Yes they did Sick and tired but as you read the document you will see that the clauses in the contract EXPLICITLY RESTRICT THIS!!

  46. watchman Avatar
    watchman

    @ Sick &Tired

    The management team at BWA are actors, how long must they be allow to just read the play

  47. David Avatar
    David

    @PUDRYR

    Do not understand your last comment, clauses 29.1, 29.2 and 29.3 clearly spell out the options to control both parties at the end of the agreement.

  48. pieceuhderockyeahright Avatar
    pieceuhderockyeahright

    I was referring to the Auditor’s comments as such related to an earlier attempt to purchase and then i was responding to Sick and Tired s query re the option to purchase.

    But i was referring to an attempt to purchase prior to the effluxion of the contract

  49. Anti Corruption Avatar
    Anti Corruption

    Contract was renewed so we buying water from Bizzy. However don’t blame Bizzy, blame the piss in pocket negotiators.

  50. Anti Corruption Avatar
    Anti Corruption

    Ask Bull Dog Estwick why it was renewed. So it was negotiated by BLP and commissioned by DLP

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