Unable To Pay Propane Supplier, VI WAPA Extends Oil Contract For Up To A Year
ST. THOMAS — As its dispute with propane supplier Vitol persists, the Virgin Islands Water and Power Authority Board of Directors on Tuesday extended an oil contract with Glencore for another six months, with an additional six-month extension available were WAPA to need it.
The extension comes as WAPA’s outstanding balance of over $24 million to Vitol has yet to be paid, which has forced Vitol to withhold propane supplies to the semiautonomous entity. WAPA is currently seeking an $85 million bond to help with its financial woes and to purchase new generators, but whether the firm will be able to secure the funds after seeing multiple downgrades from top U.S. rating firms, and with the revelation that it has so far unable to honor its covenant to Vitol, is an open question.
The news about WAPA’s switch back to oil after spending over $200 million converting its systems to propane, was brought to the fore after Senator Alicia Hansen informed The Consortium that she had learned of the switch. The Consortium later obtained copies of letters Vitol wrote to WAPA, revealing the suspension and the amount WAPA owed, which stood at over $24 million.
Following our story, WAPA Board Chairperson Elizabeth Armstrong and the firm’s CEO Julie Rhymer, issued a joint statement in an attempt to allay residents’ fears.
Read more: http://viconsortium.com/business/unable-to-pay-propane-supplier-wapa-extends-oil-contract/