Uncertainty Clouds WAPA-Vitol Settlement with Critical Friday Deadline Nearing

“The deal definitely is imperiled.”

That was Governor Albert Bryan Jr. on Tuesday, responding to a question from the Consortium on the current status of the $145 million negotiated settlement between the Water & Power Authority (WAPA) and Vitol, the energy trading company with which WAPA has been embroiled in a long-running contract dispute.

That settlement, which would dissolve the contract between the parties, requires an initial payment of $45 million, due this Friday. Without sufficient liquidity to meet those terms, WAPA was depending on being allocated the funds out of a $150 million line of credit the executive branch was seeking approval from the Legislature to establish. The intention, according to WAPA and the government’s financial team, is to replenish the funds issued from the line of credit after grant applications to federal partners are approved and the money disbursed.

However, during a special session on April 5, instead of approving the request from Government House, the Legislature voted to hold the bill until their next meeting on April 14 – the same day that general counsel to the Public Finance Authority, Kye Walker, told senators was the “drop dead” payment deadline for the WAPA-Vitol deal. During debate, senators expressed unease about the language of the draft legislation, which they asserted needed further scrutiny and amendment. They also criticized the executive branch for withholding information during the dealmaking process that could have led to the crafting of a better bill for consideration.