Caribe Waste Technologies is one of five companies selected in a competitive procurement three years ago to solve the territory's solid waste problem.
Our technology takes the energy content in waste and converts it to clean synthesis gas used to make electricity. There is no other practical use for the gas in the V.I. Therefore, unless the Water and Power Authority buys our electricity, there is no project.
Section 8 of Title 30, V.I. Code, chapter 2 states in relevant part: "Each electric utility shall purchase … any energy and capacity which is made available from a qualifying facility …" The Public Services Commission found we were a qualifying facility on July 1, 2002. WAPA has refused to negotiate a contract with CWT since that date.
One criticism some at WAPA have made is that our group does not have the financial credibility to finance and build the project. This is patent nonsense. We already have a verbal commitment from UBS, a large Swiss investment bank, to finance the project.
The government's selection committee and its technical and legal advisers selected the Caribe Solid Waste Management Alliance in a competitive procurement to provide comprehensive solid waste management services. Each of the five companies that comprise the alliance is contractually obligated to perform its scope of work and provide guarantees of its performance backed by performance bonds and other financial instruments. It is the collective strength of the alliance that will insure the government's project is properly financed, designed, constructed and operated.
CWT's alliance partners are:
1. Thermoselect, which is owned 25 percent by Badenwerk, a major German electric utility with assets of $18 billion and annual revenues of $7 billion.
2. A joint venture of HDR Inc. and The H.B. Zachry Co. HDR has been involved with the design and construction of over 30 waste-to-energy facilities. Zachry employs over 15,000 people on the construction of a variety of infrastructure projects worldwide. HDR/Zachry has combined revenues of over $2 billion per year.
3. Montenay/Onyx, a subsidiary of Veolia with over $30 billion in annual revenues, which provides solid waste services to 23 million people worldwide. Onyx operates 200 waste disposal facilities worldwide, including 73 waste-to-energy facilities. Montenay operates 11 solid waste resource recovery facilities in North America.
In short, the alliance has annual revenues that total $39 billion per year — more than many countries. The CWT Alliance was found financially qualified in competitive procurements in Puerto Rico; Collier County, Florida; and by the government selection committee in the U.S.V.I.
CWT has spent $3 million to develop the government's project to date. We are prepared to invest an additional $3 million to complete the development effort. In addition, we will invest $180 million to finance and construct the waste-processing facilities. We will invest an additional $11 million per year in the U.S.V.I. economy for the 30 or more years the contract will be in effect. These investments will have a major and positive impact on the U.S.V.I. economy.
We say again: Federal and territorial law require WAPA to purchase electricity from a "qualifying facility." WAPA should obey the law and promptly negotiate a fair contract for the purchase of electricity and water from the CWT facility. This will allow the government's waste project to proceed. It will improve air and water quality and the health of citizens and visitors. It will enable the government to close the Anguilla and Bovoni dumps and remove the threat of sanctions and closure of the airports by the Federal Aviation Administration.
Chief Executive Officer, Caribe Waste Technologies
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