Guam - Legislation that would authorize the Guam Waterworks Authority to borrow $495 million to fund capital improvement projects outlined in a federal court order went up for a public hearing this afternoon.
The measure introduced by Senators Tom Ada and Rory Respicio was supported by GWA along with Consolidated Commission on Utilities chairman Simon Sanchez. "We hope the body will consider supporting Bill 181 as written to allow GWA to borrow the monies needed to comply with the court order and other requirements of US EPA but more important to make sure we have a water and waste water system that survives all of this room," said Sanchez.
The measure also seeks to remove a $20 million repayment requirement from GWA otherwise it would surface as an additional rate increase for the customers of GWA. Sanchez says the borrowing however would still increase rates as high as 32-44% for residential customers and 82% for commercial and government ratepayers both in a phased in approach between 2013 and 2018. GWA hopes action is taken before the end of the month to meet the court order timelines.