CHARLESTOWN, Nevis – PREMIER of Nevis, THE Hon. Joseph Parry says the development of geothermal energy is the third best thing to happen to the island.
Addressing the media recently at his Bath office, Premier Parry said geothermal ranks behind his party winning the elections and the Four Seasons Resort, as important developments on Nevis.
“The most important thing to happen to Nevis was the change of government. When we got into power we put ourselves in a position where we could command the commanding heights of the economy of Nevis and give it some direction.”
According to the Premier, “The second most important thing was Four Seasons, because it provided full employment on Nevis. For the first time young Nevisians knew that when they left school they could find jobs other than those in teaching, agriculture, the civil service or abroad.”
He explained: “Four Seasons actually opened other avenues in ancillary areas like financial services for example.”
Premier Parry said geothermal was the third most important because it creates the opportunity for the diversification of the economy so “that if Four Seasons closes again, Nevis will not close down again”. He posited that any government that did not seize this opportunity does not deserve to be in power.
“Diversification meant direct jobs, attracting other industries and more money in the treasury. St. Kitts and Nevis alone could bring EC$40 million additionally to the treasury through geothermal. If we were to provide power to St. Thomas, in addition to the Federation, we could be bringing EC$100 million additionally per year to the treasury, in addition to jobs and other diversification activities.”
According to Parry, this influx of funds, jobs and other diversification activities would create a revolution for the island not only job wise but in terms of the capability to sustain itself.
“This is why the project is so important to us. It is not an NRP project, but a Nevis project with serious ramifications for the country.”
Parry said the quality of life in Nevis would improve further. He said that from the recent poverty alleviation study it could be seen that Nevis compares favorably with most, if not all, other Caribbean islands.
“But this will take the quality to an even higher level and I expect this to happen in the next 10 years. I want Nevisians to be conscious of this so they can give their best support, so we can move forward without too much diversion or political negativity.”
The Nevis Island Administration (NIA) last week signed an agreement with West Indies Power (Nevis) Ltd. (WIPN) to provide geothermal energy on the island. WIPN also signed with the Nevis Electrical Company (NEVLEC) to which it will sell power for consumption in the Federation. Power from NEVLEC to St. Kitts will however be transferred through sales to a company not yet named.
Power for overseas consumption will be sold directly by WIPN to consumers like St. Thomas and the British Virgin Islands. WIPN will pay 7.5 percent to the NIA on net returns on any exported power.
Premier Parry listed as important the fact that WIPN would: pay five percent royalties; five percent to a fund for development programs – which he said could be used for education, sports or whatever the NIA sees fit; and provide 10 percent of its shares to the government of Nevis. The Premier said the government would also negotiate in a few years for another 10 percent of the company’s share capital.
The Premier said June is the month set for actual start of construction at Spring Hill and Upper Jessups, and hopefully Nevis would have power from WIPN by next year. He said St. Kitts should come on stream the following year, and after that attention would be turned to areas beyond the shores of St. Kitts and Nevis.
Parry is conscious that the expected influx of foreign workers as the Nevis economy takes off could pose some social problems if not handled properly.
“We intend to grow gradually. We have limited capacity in schools. We need to scrutinise people coming in for jobs or we could have social upheavals.”
He continued: “The police force must grow. We must have areas for recreation. We must have a social infrastructure that can take the load of people. If we can’t do that properly then we are inviting a problem.”
According to Parry, the bottom line is that there must be controlled growth, including a housing plan, how many persons will be employed, and how many businesses will be allowed to open.
“This is the only way to maintain control of your country. Bermuda has done it very well, along with some countries in the Far East. Some others have not done it so well, so we have to look at them and develop our own model. The good thing is we are speaking about the next 10 years and not 18 months, so we have time to plan.”
Preparations also include training persons in various areas in expectation of the economic take-off expected from geothermal.
Parry said the NIA negotiated with the government of Iceland last year to have persons trained at the university there, which is funded by the United Nations.
“Training will take place at various levels in geothermal including accountants, engineers, managers and even lawyers. You don’t have to be an engineer to understand how geothermal works.”
