Joined: 19 Oct 2007
|Posted: Mon Sep 06, 2010 8:35 pm Post subject: Water and Electricity supply privatised on Boa Vista
|Water and electricity on Boa Vista, is in private hands, from now transport and distribution are the responsibility of the company Energy and Water Boa Vista SA (AEB). The decision, which had been announced after the Council of Ministers of June 3, has now been formalized with the publication in the Official Gazette of August 20.
In the sub contract, which came into effect, you can read that now is the AEB has a duty to fulfill all the activities of transporting energy, high voltage, since the transformation point to the reception, as well as must ensure all activities of water supply between the producer and the storage reservoirs and distribution.
"The option was taken by the state shareholder," stated, in April this year, Anthony Strong, president of Electra, in an interview published on the website of the company. While assuming that the Boa Vista is a promising market, the PCA explained that this decision relates to future investments.
AEB can produce at lower costs than the previous ones, because you are using more modern technology, which operates the fuel. As explained Anthony Strong, "the market and the growth prospects of Boa Vista allow such investments in production. In this order of idea, Electra found more convenient to buy energy AEB, instead of being the means to produce on its own. But business is more incisive in the water, as used in Boa Vista a system of mechanical compression of steam, which is much more expensive than reverse osmosis, "used by the private sector.
When he announced the decision after the council of ministers, the government explained that the bet was always to give priority "clear and taken to the water sector and energy, focusing on the supply to the population, in safety and in quantities that meet the minimum needs of households. "
On that note, was that the CM took "into consideration also the fact that today, the availability of water and energy more than a public service and is also one of the engines of economic growth and condition for achieving the objectives outlined in Government program, Agenda for Transforming Cape Verde and other strategic instruments made by the Government of Cape Verde. "
In the statement, it read that "the island of Boavista is one of the major tourist development of the country here and access to water and energy resources is ensuring the success of any development policy of the island."
The agreement will expire at the same time that lasted for the grant of the Electra, on the island of Boa Vista and may be extended by the period required for "depreciation and return on invested capital by the Subcontractor, upon prior approval of the state and the concessionaire."
The AEB is also obliged to "overall technical management of the electrical system of public service" and "management and operation of public lighting, as well as the" administration, operation of the storage, distribution and transportation of drinking water and its extension, renovation and repair, according to the technical requirements and with the water quality parameters set by law. " Private operator is also incumbent upon the acquisition, maintenance and replacement of all equipment necessary for treatment, storage and distribution of water for "a quality public consumption."
The sub will be carried on under the public service, "its activity being considered, for all intents and purposes, public utility."
In exchange for the sub, AEB Electra must pay an annual rent amounting to 0.1 percent of operating revenue for the year last year, and from all services provided by Subcontractor. It should also be made to pay a fee, the regulator of the sector, amounting to 0.75 per cent of all operating income.
The property, transport and distribution of electricity and water, as well as serving for the collection and wastewater treatment, which belonged to the Electra, go to the sublet, reverting to the dealership with the termination of the agreement, and after payment AEB to the net book value of each item.
Boa Vista out of the restructuring of Electra
With the privatization of energy in Boa Vista, the island is well outside the western Electra. The reorganization has already begun and could lead to a kind of holding, with one parent and two companies North and South
As stated Anthony Fortes, when he explained this reform, "would be a breakdown in the processes of production / distribution in each zone, covering the islands of the Windward and Leeward initially. From here there are other options, including the possibility of to separate water from electricity production and distribution process. The production would sell water distribution. Right now, Electra does both, but procedures are clearly different. "
The Boa Vista will not integrate this restructuring, but the government says it believes that "diversification of the actors and, in particular, the attraction of a strong private sector for water and energy sector will open a new period for the development of Cape Verde"