The Senate has announced its independent consultant to analyze the V.I. government-Southern Energy deal before legislators decide whether to approve a sale that would give the company 80 percent interest in the V.I Water and Power Authority.
Senate President Vargrave Richards said the firm of Arthur D. Little, Energy Industries Practice, of Denver, Colo., was chosen to analyze the deal negotiated by the Turnbull administration and the Southern Co. The contract is for 30 days and reportedly costs $250,000.
Richards said that after the Senate voted to hire an independent consultant to analyze the sale proposal, six firms answered a Senate selection committee’s request for proposals. Arthur D. Little was chosen.
The firm, said Richards, "has extensive experience with the privatization of utility systems around the world, with a list of highly competent professionals on their staff."
The proposed deal between the V.I. government and the Southern Co., negotiated by a government team, would give the Atlanta-based company 80 percent ownership of WAPA in a deal worth between $380 million and $400 million over 25 years. The immediate value of the deal to the government is about $148 million, including the forgiveness of $31 million the government owes WAPA and other indebtedness.
Of the $14 million, Southern Energy would pay the government approximately $105 million in cash up front.
Richards said he was hopeful the analysis would be completed by mid-August. After that he said he anticipates public hearings on all three islands.
"Then we will move into Committee of the Whole to dissect, analyze and debate the issue," he said.
