Mark Barnett | NWC open to dialogue with municipal corporations

In recent weeks, two municipal corporations (MC) have gone on record to make a number of statements regarding the National Water Commission (NWC):

- In the April 13 edition of The Gleaner, it was reported that the Kingston and St Andrew Municipal Corporation (KSAMC) has issued an ultimatum of three months for the NWC to reinstate all excavation done to effect leak repairs;

- On April 16, The Gleaner reported that the Hanover Municipal Corporation is threatening to take NWC to court for not timely reinstating roadways that had been disturbed while effecting leak repairs; and

- In the Jamaica Observer of April 25, councillors from the KSAMC were adamant that the NWC must seek the permission from the corporation before roads are excavated.

Let me categorically state that NWC does not purposefully disturb roadways and intentionally leave them without having them reinstated, as we believe that timely reinstatement of excavated areas enhances our public image.

Nonetheless, the focus that has been placed on this cost item by the MCs cannot be discussed as a standalone issue, but has to be addressed in the context of NWC’s overall expenses, as well as bill payment compliance by all customers, including MCs. Customers expect to get the highest level of service from the NWC. However, those with such expectations are often guilty of not honouring their monthly obligations of paying for the water and/or sewage services received.

SHARING FACTS

It is not the ambition of the NWC to engage in a tit-for-tat with MCs, but instead to share the following facts:

A. The history of our water supply distribution network, which back then was operated and in some instances still operated by parish councils (PC), and what was then the National Water Authority (NWA) for rural areas and the National Water Commission for Kingston and St Andrew, was constructed predominantly in roadways. This is the legacy that the NWC inherited. This is not ideal, as such infrastructure ought to be constructed in a reserved pathway, in general, parallel to the roadways for ease of access and maintenance. This is not our reality, and as such, pipe maintenance activities come with the disturbance of the driving surface of most roadways.

B. The NWC’s overall expenses are not static, but extremely vulnerable to external shocks. This has worsened – first, during the last two years from the impact of the COVID-19 pandemic, and second, with a compounding effect of the recent Russia-Ukraine war. The NWC, in these circumstances, has very little control over these escalating costs, which affect routine consumable items necessary for the treatment and distribution of water, such as liquid chlorine, electricity, and capital goods, such as pipes and fittings. The NWC’s overall average monthly expenses total approximately $3.66 billion.

C. The NWC’s ability to provide the highest level of service to our valued customers, as well as the ability to quickly address issues that affect service delivery, is a function of the NWC’s available cash resources. Of all the customers receiving NWC services, on average only 237,000 active customers pay their bills in full. Our reality is not one wherein customers behave responsibly and pay for water and sewerage services willingly.

It is a known fact that the water supply currently provided to customers is a post-paid service; that is, it is paid for after the benefit has been provided and enjoyed by the customer. It is, therefore, crucial that our customers understand that the NWC would have already incurred the expenses in providing the service and only seeks to recover same after.

Where payments become less and less in subsequent months, service standards inevitably will reduce. While improvements have been made in collections, we will continue to tackle the high receivables through various modalities to realise an increase in the current average monthly collection of $2.83B.

FINANCIAL CONSTRAINTS

The above highlights demonstrate the NWC’s financial constraints and the negative impact delinquency has on the Commission’s ability to address the main issues raised by the MCs. Notwithstanding, proactive steps have been taken to improve road reinstatement activities across the island and this will now be addressed.

The NWC does not possess any core competence in road reinstatement, and hence, approached the reinstatement of roadways in the following manner:

1. We have engaged the National Works Agency (NWA), and established a memorandum of understanding (MOU) that has been in place since May 1, 2018, wherein, the NWA acts on our behalf to undertake the reinstatement of roadways disturbed in the process of water main repairs. While this arrangement is not perfect, it has significantly improved the response time for correcting road surfaces, predominantly in Kingston & St Andrew and across urban areas in other parishes.

2. We have also continued with the engagement of reputable roadwork contractors to undertake reinstatement activities. Currently, the NWC engages approximately 70 contractors across the island, excluding the NWA.

3. Approximately two years ago, we commenced dialogue with each MC to engage them in the road reinstatement process, specifically roads for which they have primary responsibility. In an effort to establish a formal arrangement, we wrote each MC with an accompanying draft MOU for review and eventual execution. In essence, the NWC wants to contract the services of MCs to execute road reinstatement activities.

This was intended to address concerns by the MC on the subject, but more importantly, to establish workable partnerships with MCs while addressing an issue important to both institutions. We believe there is still hope, since to date we are advanced in finalising arrangements with three municipalities – Clarendon, St James and St Ann.

4. NWC expenditure on road reinstatement for the 2020-21 financial year was approximately $380 million. However, due to low collections in the 2021-22 financial year, our expenditure was close to $267 million.

Finally, the NWC has a responsibility to the Jamaican public in a similar way MCs do. Hence, we remain open for dialogue with all MCs with the hope that both NWC and MCs can jointly partner for solutions that will improve our communities.

Mark Barnett is president of National Water Commission. Send feedback to columns@gleanerjm.com