Committee will look for ways to reduce WAPA debt

U.S. Virgin Islands Gov. Albert Bryan Jr. is forming a committee to find ways to reduce the Water and Power Authority's debt and improve the finances of the islands' hospitals and health care centers.

The Financial Solutions Task Force will work on potential bond-financing options for the USVI Water and Power Authority and Waste Management Authority. 

The objective would be to reduce long-term debt, protect essential services, strengthen financial oversight and limit recurring demands on taxpayers. 

"Public support must come with public accountability and every entity receiving taxpayer assistance must demonstrate that its resources are being managed responsibly," Bryan said. 

The territory must find a way to handle or reduce uncompensated health care costs, Bryan said. 

Bryan expects Office of Management and Budget Director Julio Rhymer and U.S. Virgin Islands Sen. Novelle Francis, Jr., to lead the task force. He also named six other government professionals or senators as likely participants.

"We are at a point where we have to move swiftly but deliberately," Bryan said. 

WAPA's electrical system had $152 million of revenue bonds, $183 million of long-term debt and $952 million of liabilities as of December 31, according to unaudited figures posted to the MSRB's EMMA web site.

U.S. Virgin Islands Sen. Ray Fonseca said in October WAPA should either start bankruptcy proceedings or be subject to a federal takeover. WAPA isn't eligible for Chapter 9 bankruptcy.