Saturday, May 22, 2010

WASA contract above board, no done deal: Sultan Khan

The Chairman of the Water and Sewerage Authority (WASA) in Trinidad and Tobago on Friday responded to opposition allegations of a secret billion-dollar deal with an Israeli company, saying the leader of the opposition is making a mountain out of a molehill.

Earlier in the week Kamla Persad-Bissessar told media about a rush to conclude a contract between WASA and an Israeli Company that was registered in January.

Kamla Persad-Bissessar said there should be an investigation over the award of a $700 million contract to Merhav Merkorot Development (MMD), for the advancement and improvement of WASA’s service under a Management Action Plan (MAP).

The UNC leader also raised concerns about why CitiCorp Merchant Bank is lending WASA $1.36 billion for WASA’s MAP.


Read the story:
Kamla reveals $M sweetheart WASA deal

But Shafeek Sultan-Khan said the $700 million contract is above board. He explained that MMD is a legitimate state company in Israel and WASA selected the company because research showed it is the best in the world in water management.

He did not provide any research data to explain how he arrived at that conclusion
especially since the companay he described as the best in the world was only registered in January this year.

He said the company specialises "in institutional strengthening and not project management, therefore Merhav-Mekorat Development Company of Trinidad and Tobago was registered in this county earlier this year for this reason."

He admitted that a contract is in place but it would not be finalised until certain conditions are met. "There is no deal and no deal will happen until the conditionalities are met. So whichever government comes into power, they have to deal with this," he said.

Sultan-Khan said foreign and local expertise will work on the 18-month project to supply water to 75 per cent of the population.

He explained that WASA approached CitiCorp Merchant Bank for financing because "all other banks required a guarantee for the full capital and interest. Citi Bank in their proposal only asked for a guarantee of the interest only."

WASA's CEO, Andrew Smith, assured reporters that no money has been paid up-front but admitted that WASA has spent $2 million to set up a scanner room.

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Jai & Sero

Jai & Sero

Our family at home in Toronto 2008

Our family at home in Toronto 2008
Amit, Heather, Fuzz, Aj, Jiv, Shiva, Rampa, Sero, Jai