Virgin Islands Government Satisfies $45 million Payment Towards VITOL Settlement
Governor Albert Bryan Jr. announced on Monday May 1st that the Government of the Virgin Islands had satisfied the $45 million dollar payment necessary to resolve and ultimately sever its long-standing and troubled relationship with the energy supplier VITOL.
2023-05-04 11:45:10 - VI News Journalist
“I am pleased to announce today that with the assistance of the GVI, WAPA has fully satisfied the initial $45 million payment to VITOL as part of the negotiated settlement agreement for control of the propane terminals at the Authority’s Randolph Harley plant in St. Thomas and Estate Richmond plant in St. Croix,” said the Governor in a press release. He continued:
“Once completed, this settlement agreement will afford WAPA better financial footing to complete its resiliency projects, which include the addition of a substantial amount of renewable energy to the grid. It affords the Authority the ability to satisfy its obligations to other vendors, and more importantly: put the Authority in the position to ultimately deliver more affordable and efficient service to its rate-payers.”
According to the terms of the settlement agreement, WAPA must resolve the remaining debt with VITOL by Aug. 1st.
“We still have a long way to go,” said the Governor in his statement, “but today represents the first real step toward this long-sought-after goal.”
In order to make the $45 million payment, the GVI will utilized the $100 million line of credit extension approved by the 35th Legislature.
“I want to, again, thank the members of the 35th Legislature for authorizing the Government of the Virgin Islands to establish a line of credit to meet today’s payment deadline as part of the negotiated agreement, and I also want to thank our financial team, the leadership team at WAPA and our financial partners in making this arrangement possible on behalf of the people of the Virgin Islands,” Governor Bryan said.