By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

New Providence’s main water supplier yesterday said there has been “some progress” in cutting debts owed to it by the Water & Sewerage Corporation that were nearing $30m at end-June 2025.

Rick McTaggart, president and chief executive of BISX-listed Consolidated Water, told financial analysts the company remains “very focused” on slashing the accounts receivables due from the state-owned water utility after he was questioned over The Bahamas’ struggles to pay its bills.

He added that Consolidated Water, which operates the Blue Hills and Windsor reverse osmosis plants that supply most of the water consumed by the Water & Sewerage Corporation’s New Providence customers, is “seeing an increase in payments coming through now” after debts owed to it hit $29.3m at end-June 2025.

One analyst asked: “Your friends in The Bahamas tend to be a little slow in their bills. What are you seeing there, and how’s that working out?” While another added of “the good old Bahamas receivable”: “It seems to be holding the line but is there any additional colour from the Government?”

In response, Mr McTaggart said: “We’ve been very focused on getting that reduced. We’ve had a number of discussions and meetings over the last several months, and we’re seeing an increase in payments coming through now. I think on The Bahamas’ side there’s been an undertaking for some time to bring that account current. There’s been some progress.”

Reiterating this message again minutes later, during Consolidated Water’s 2025 second quarter and first-half results conference call, he added: “I mentioned earlier that, although it’s not reflected in the quarter, we’ve had some progress since the end of the [second] quarter.

“We have an understanding with the Government that they’re going to make some scheduled payments there and we’re positive for the outlook for reducing that over the next months.” David Sasnett, Consolidated Water’s chief financial officer, also voiced optimism that the Government will make good on the Water & Sewerage Corporation’s debts.

The inability of both the Government and Water & Sewerage Corporation to make sustained headway in reducing the latter’s debts to Consolidated Water reflects both the former’s cash flow and liquidity struggles and the latter’s failure to cover its expenses because consumer water rates and tariffs are set below the cost of production.

The Water & Sewerage Corporation’s $29.3m debt to its main water supplier at end-June had increased by $3.8m or 14.9 percent compared to $25.5m just three months earlier at end-March 2025, although the rise was just $900,000 above the year-end 2024 level of $28.4m.

“Consolidated Water (Bahamas) accounts receivable balances, which include accrued interest, due from the Water & Sewerage Corporation amounted to $29.3m and $28.4m as of June 30, 2025, and December 31, 2024, respectively,” Consolidated Water said in its results filings with the US Securities & Exchange Commission (SEC).

“Approximately 81 percent of the accounts receivable balances were delinquent as of those dates, respectively. The delay in collecting these accounts receivable has adversely impacted the liquidity of this subsidiary. From time to time (including presently), Consolidated Water (Bahamas) has experienced delays in collecting its accounts receivable from the Water & Sewerage Corporation.

“When these delays occur, we hold discussions and meetings with representatives of the Water & Sewerage Corporation and the Government of The Bahamas. All previous delinquent accounts receivable from the Water & Sewerage Corporation, including accrued interest thereon, were eventually paid in full,” the results filing added.

“Based upon this payment history, we have not provided for a material allowance for credit losses for Consolidated Water (Bahamas)’ accounts receivable from the Water & Sewerage Corporation as of June 30, 2025.

“We continue to be in frequent contact with officials of The Bahamas government, who continue to express their intention to significantly reduce Consolidated Water (Bahamas) accounts receivable balances in the near future. However, we are unable to determine when such reduction will occur,” the BISX-listed water provider added.

“If Consolidated Water (Bahamas) is unable to collect a sufficient portion of its delinquent accounts receivable, one or more of the following events may occur: Consolidated Water (Bahamas) may not have sufficient liquidity to meet its obligations; (we may be required to cease the recognition of revenue on Consolidated Water (Bahamas) water supply agreements with the Water & Sewerage Corporation/

“And we may be required to provide a material allowance for credit losses for Consolidated Water (Bahamas)’ accounts receivable. Any of these events could have a material adverse impact on our consolidated financial condition, results of operations and cash flows.” The Bahamas accounts for about 70 percent of Consolidated Water’s total $42m company-wide accounts receivables.

Mr McTaggart, meanwhile, said Consolidated Water is investing $1.5m in the construction of reverse osmosis plants for Cat Island “which we expect to complete later this year”. He added that the company hopes the Government will “talk to us” about how to meet the demand for water elsewhere in The Bahamas.