VI Govt Finalizes $100m Line of Credit Extension

The Governor had requested the line of credit extension for the purposes of providing an advance payment on behalf of the Water and Power Authority to Vitol in order to purchase the established energy infrastructure and to fund disaster recovery projects that qualify for federal reimbursement. Lawmakers approved an amended version of the Governor’s request after careful and thorough deliberation, which took place over the course of two sessions.

“I want to thank the 35th Legislature for approving this line of credit,” said Gov. Bryan in a press release. “With the acquisition of the LPG assets, WAPA will have more control of the fuel supply and management of fuel costs, which will eliminate substantial debt so the utility can better focus on executing its strategic priorities.”

Gov. Bryan said in the statement that the PFA had drawn against the loan to repay the $45 million the executive branch had used from the General Funds, which was done without the required legislative approval and ultimately outraged several lawmakers.

Earlier this June, the VI’s Director of Office of Management and Budget (OMB) told lawmakers that the Executive Branch had utilized $45 million in General Funds to satisfy the advance payment to Vitol until it secured the $100 million line of credit extension.

Senator Alma Francis Heyliger called the Executive Branch’s actions illegal and demanded accountability from the second branch of government.

“When the Governor abruptly proposed a line of credit extension that amounted to $100 million, I fought vehemently to ensure that it would not utilize the General Funds in order to broker this exit deal with Vitol,” said Sen. Francis Heyliger in a press release. “That power and responsibility lies within the first branch of this government–the Legislature. This unilateral act by the Executive Branch completely subverts our democratic structure and demands further action.”

Sen. Francis Heyliger said she requested guidance from the Senate’s Legal Counsel regarding potential ramifications for the Executive Branch and repeatedly pressed for further explanation from the Governor’s financial team during multiple public hearings to no avail and consistent stonewalling.

Nevertheless, Gov. Bryan Jr. celebrated the closing of the line of credit extension and elaborated on the plans for his administration to seek federal relief for the $100 million credit extension.

According to the statement released by Government House on June 20th, WAPA has begun the process of applying for federal funding from the U.S. Department of Housing and Urban Development (HUD) in order to reimburse the $45 million draw from the line of credit. If fully approved, the federal funding could replenish the $100 million line of credit extension by August.