By Kyle Christian - Friday, October 26th, 2012.
Minister of Finance Harold Lovell
ST JOHN?S, Antigua ? Antigua Public Utilities Authority (APUA) is negotiating with local banks for a loan to restructure the nearly $37 million in debt, owed to the Antigua Power Company (APC).
Speaking on OBSERVER Radio?s Voice of the People, Minister of Finance Harold Lovell said APUA?s problems will not be solved overnight and needs a lasting solution.
?APUA is currently negotiating with a commercial bank with a view to taking a long term loan so that they will be in a position to liquidate the debt to APC in its entirety,? he said.
In a press release printed in the October 19, edition of this paper, APUA noted that APC charges 12 per cent interest on its debt adding, ?This has placed a severe strain on the company.?
It is not known what interest rate APUA will be seeking from the commercial banks, only that it is negotiating with several.
?They are speaking to more than one bank, but the discussions are most advanced with one particular bank,? Lovell said.
He added that APUA senior management has been in talks with a consultant in an effort to reorganise the statutory company.
On Monday government paid $2 million to APC as part of a deal to prevent it from following through with a threat to shut off most of the island?s electricity.
The finance and economy minister said central government had historically never paid for the electricity it consumed. However, in 2010 it signed a Memorandum of Understanding to pay $1 million a month to APUA, which would liquidate the debt, owed and pay down on current consumption.
?That $1 million a month is divided into $500,000 by way of set off of the ABST that is collected by APUA on our behalf, which is not paid over,? he said.
The remaining $500,000 is injected directly into APUA on a monthly basis.
?There is no such thing as free electricity. Somebody always pays and we are committed to being on a path whereby whatever is consumed is paid for,? Lovell said.
But while APUA is seeking loans to pay its debts, the company is owed millions.
Earlier this year APUA?s Chairman Clarvis Joseph said EC $682 million was owed to APUA.
He had disclosed that government is responsible for $330 million of this, while the bill for statutory corporations is almost $19 million.
Private businesses accounted for roughly $50 million of the state utility company?s receivables.
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(More in today?s Daily OBSERVER)
Source: http://www.antiguaobserver.com/?p=83028
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