WSC bill up to $21 mil. but payments made in recent months

The government’s bill to Consolidated Water, which produces bulk water supplies for the Water and Sewerage Corporation (WSC), grew to $21.4 million at the end of September, up from the $16.8 million owed at the end of 2020.

Consolidated Water Chief Financial Officer David Sasnett, in the company’s third quarter earnings call yesterday, said he believes the funds owed will be paid based on the government’s track record and given the close to $10 million payment made in September and October.

“With respect to our balance sheet, our accounts receivable balances related to our Bahamas subsidiary amounted to $21.4 million at the end of the third quarter, which was up from the $16.8 million at the end of last year. We believe the delays in collecting CW Bahamas receivables have been extended by the severe adverse impact of COVID-19 on the Bahamas government’s revenue sources,” he said.

“Based upon our discussions and collection history with the Bahamas government, we believe our accounts receivables from the WSC are fully collectible. In fact, the Bahamas government and the WSC continue to make intermittent payments on these accounts receivable, such as payments amounted to approximately $6.9 million in the third quarter and $15.6 million in the first nine months of 2021.

“Furthermore, in October 2021, we received a $2.4 million payment that further reduced these accounts receivables. The possible exception of this liquidity matter relating to CW Bahamas, we’re not presently aware of anything that would lead us to believe we will not have sufficient liquidity to meet our needs. As of September 30, 2021, our cash and cash equivalents totaled $40.4 million. Our working capital was $59.3 million, we had only $200,000 in debt and our stockholders equity totaled $157.4 million.”

During the course of the pandemic, WSC was not permitted under emergency orders to disconnect water services to customers for nonpayment. Further, customers were not required under the emergency orders to pay their bills.

Although the state of emergency which protected customers from disconnections ended on November 13, WSC Chairman Sylvanus Petty said Bahamians do not need to worry about disconnections at this time, but encouraged them to pay their bills.

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source https://thenassauguardian.com/wsc-bill-up-to-21-mil-but-payments-made-in-recent-months/