VIHFA to Pay $100 Million to Vitol on Friday Following HUD Approval of CDBG-MIT Funds

HUD has approved the use of Community Development Block Grant mitigation funds to finalize the buyout and acquisition of Vitol infrastructure at WAPA, bringing significant financial relief and stability amid ongoing power outages

The U.S. Department of Housing and Urban Development has approved the use of $100 million from Community Development Block Grant mitigation (CDBG-MIT) funds to finalize the buyout and acquisition of Vitol infrastructure at the V.I. Water and Power Authority's two power plants.

The information was provided by Eugene Jones, the new executive director of the Virgin Islands Housing Finance Authority. The news was sandwiched between several grant updates during VIHFA’s budget defense before the Senate Committee on Budget, Appropriations and Finance on Thursday. The approval, the result of a lengthy application process with multiple requests for resubmission of documentation, brings the Government of the Virgin Islands one step closer to stabilizing WAPA’s precarious finances and operations.

“We just got word just a couple of days ago,” said Mr. Jones. He explained that VIHFA had submitted two vouchers, the first for $100 million needed for Vitol payments, and a second for $45 million to serve as a reimbursement to the Office of Management and Budget which had extended the funds to WAPA as part of the government’s line of credit, approved by lawmakers last April. “What happens is that now we’re able to pay Vitol $100 million to acquire the generators,” Mr. Jones told senators on Thursday.