Review contract!

Following reports that staff of the Barbados Water Authority (BWA) would likely be locked out of their Pine, St. Michael Headquarters due to outstanding lease payments owed to its landlord Innotech, meetings have been ongoing to see what can come of the matter, in particular, if the existing contract can be renegotiated.

Chairman of the Board at the BWA, Leodean Worrell yesterday noted that, “Discussions commenced (Wednesday) with the Innotech team and external negotiators (supplied) by government. They are progessing quite well. We have not yet gotten a full report … but they are indeed contracts that have to be renegotiated and this is one in particular that needs to be renegotiated.

“As you know, we missed a payment on our lease and we received a letter saying that if we didn’t rectify the situation within 48 hours, they would be serving us a notice to vacate the premises,” she explained.

“Again, the Union and the staff assisted and we ensured that the vehicles that were not tied up in a contract related to the Innotech Group of Companies were actually stored offsite, so as to facilitate the ability to meet the needs of the people of Barbados. The workers, through their union representative, mobilised all the trucks offsite and equipment that could be moved from the premises here to the Belle, to ensure that no matter what happened, we at the Barbados Water Authority would be in a position to continue to supply the people of Barbados with their water,” she said of measures to mitigate any fallout, should the building be on lockdown.

BWA General Manager Keithroy Halliday meanwhile explained the arrangements made via the contract with Innotech and the difficulty the BWA has been having in making its payments.

“The arrangement with the building is what we call a lease plus arrangement. There are two components. There is a lease figure or a rental figure of $701, 000 dollars a month and then there is a service charge that runs between $230-$250,000 dollars a month. So every month conceivably, the Barbados Water Authority has been trying to make a million dollars in payment toward inhabiting this particular establishment,” Halliday revealed, noting that it is a fifteen year arrangement, of which just over two years have already lapsed.

“You can appreciate that is a significant dent in our cash on a monthly basis, if it is that you are earning an average of $10 or $11 million dollars a month and we are (taking care) of another loan, you will find yourself struggling, if you look at contracts like that. So they must be looked at. They must be renegotiated,” he further commented. (RSM)