The Virgin Islands Water and Power Authority announced Tuesday that an anticipated assessment of its operations has been delivered – to the Office of the Governor, the Public Finance Authority (PFA), and the Legislature – and that it is currently awaiting the opportunity to review the findings.
In June 2024, the PFA, chaired by Gov. Albert Bryan Jr., selected Ernst & Young (EY) as the turnaround management company for WAPA, as mandated by Act No. 8471. This legislation requires a comprehensive evaluation of WAPA’s financial and operational status. The initial assessment report was due within 120 days of EY’s engagement.
Act No. 8471, enacted in August 2021, outlines specific responsibilities and timelines for the turnaround management company. The firm is tasked with conducting a thorough assessment of WAPA’s ongoing programs, plans, projects, and organizational structure. Following the initial assessment, the company must also submit a turnaround report within 60 days, detailing actionable recommendations to enhance WAPA’s operations and financial health.
In its Tuesday statement, WAPA emphasized its cooperation with EY throughout the process and highlighted recent initiatives aimed at improving efficiency and reducing reliance on fossil fuels, including the Petronella solar farm on St. Croix and the commissioning of new Wartsila generators on St. Thomas.
WAPA CEO and Executive Director Karl Knight acknowledged the urgency of the situation, noting that the turnaround effort was initiated during the energy State of Emergency declared in April 2024. “Our team looks forward to reviewing the assessment report and the key action items that will be outlined in the forthcoming recommendations report, expected in the next 60 days,” Knight said. “This comprehensive process highlights the fragile nature of the Authority’s finances and the critical need to address the immediate priorities.”
As of press time, Government House Communications Director Richard Motta stated that he had not yet reviewed the document but planned to reach out to the Public Finance Authority to obtain a copy.
