WHILE SOME utility companies find it difficult to make collections for service offered, Michael White, hydrology consultant and entrepreneur who was granted a licence to operate a water supply system in St. Ann, is reporting a 95 per cent collection rate.
Mr. White is one of two entrepreneurs to be granted temporary licences by the National Water Commission (NWC) to operate a water supply system until new legislation is in place to allow for private operators to supply water to the public.
He was speaking at a Rural Water and Sanitation Programme (RWSP) workshop held recently by the Ministry of Water and Housing, at the Knutsford Court Hotel in Kingston.
"Our customers pay their utility bills on time and the majority of them do pay," he said. Mr. White supplies some 450,000 litres of water per day to commercial base customers in Ocho Rios.
He said his operational cost was not very high as the infrastructure was already in place and he was able to acquire one of the springs, which the Government had abandoned. Mr. White also said that the use of solar generated power pumps instead of electricity also contributed to low operational cost.
As a result, he said customers benefited and were charged 42 per cent of what the National Water Commission charged its customers, and the supply, he said, was reliable.
The hydrology consultant said that while the business had not yet made a profit, he was determined to stick with it. "We lost money over the last two years and the reason we continue, is that in the long run we will be making money," he declared.
Asked by potential operators about the challenges faced in getting the licence, Mr. White said that the process was not difficult.
Explaining the process, Eileen Salmon, Manager of Corporate Services at the Office of Utilities Regulation (OUR) said that application for a licence could be made through the OUR.
"You must also satisfy the OUR that everything is in place," she said, adding that the licences would offer certain terms and conditions, such as environmental standards.
The applicant is also charged a fee of $65,000 for the licence.
Also participating in the workshop was E.G. Hunter, President of the National Water Commission (NWC) who also encouraged prospective operators to get involved in the business.
"I am elated that other persons have come into the field. The prospects of having other players in the field are challenging and exciting. I welcome you to the fold," he said.
The RWSP is a partnership between communities, Government, the private sector and other partners. The programme is aimed at improving the sanitation and health status of citizens in rural Jamaica.
The Government has committed US$12.5 million to the programme, through a US$10 million loan from the Inter-American Development Bank (IDB) and US$2.5 million from the national budget.