Gov. Albert Bryan Jr. told members of the Public Finance Authority on Wednesday that the Water and Power Authority is stable, has had a significant obstacle removed, and “has a path, but it is painful.”
The obstacle removed is Vitol. A $100 million grant from the federal government is allowing WAPA to buy its way out of a contract with Vitol that was forcing it to purchase only Vitol fuel, and that also is allowing WAPA to purchase the territory’s fuel storage units, which Vitol owned.
Bryan said the $100 million and an anticipated additional $45 million to be released soon will help clear some other hurdles for WAPA. WAPA will now be able to bring on the four long-awaited Wärtsilä generators. The efficient and versatile generators were supposed to go online last year but might still not get online this year. Bryan said they would be commissioned in December. They have been on the island for over a year.
The discussion on WAPA arose as the board approved a third extension to Squire Patton Boggs’s contract for an additional three months and an increase to the not-to-exceed amount from $800,000 to $1.1 million.
Board member Dorothy Issacs said it felt like the board was approving extensions for Squire Patton Boggs at every meeting. The firm was hired in 2022 when Vitol threatened to cut off WAPA’s fuel supply because of nonpayment. The firm then helped acquire the grant from the federal government.
Bryan said with this extension, “We are done.”
However, it does not appear the government is done helping WAPA.
The PFA went into an executive session to discuss other possible ways to aid WAPA.
At the beginning of the meeting, Bryan introduced Kimika Woods, a new board member and acting director of the Office of Management and Budget. She replaced Jenifer O’Neal, who resigned last month after it was revealed she was a subject in a federal investigation of potential fraud.
The board also approved a contract to upgrade the financial management system.
Joy Wheatley, comptroller for the Public Finance Authority, outlined the need for a contract with TruNorth Dynamics that would be limited to $501,500.
She said the agency had expanded from 33 employees to 70 employees and potentially could increase to 135 employees.
According to Wheatley, the upgrade would:
- Pay employees with ease and accuracy and minimize manual processes
- Enhance the employee experience with access to the HR and payroll information
- Keep the agency’s taxes in top form
- Track key business metrics and easily create detailed performance reports
Government House announced last week that it had successfully obtained the $100 million from the U.S. Department of Housing and Urban Development.
