'CHAMPAGNE' FROM A TAP

Some of the most impressive utility services in the region are to be found in Aruba, an essential requirement for attracting foreign investment. There are no power blackouts, and everyone has access to good, clean water. In fact, Aruban drinking water has been dubbed ‘the champagne of the Caribbean’, and is even bottled and shipped to nearby Curaçao.
Utilities Aruba NV is the state-owned entity that oversees water and electricity services on the island through two operating subsidiaries. Water en Energiebedrijf Aruba (WEB) is the generating and production arm, while Electriciteit-Maatschappij Aruba (Elmar) is the distribution arm.

Julio Curiel, Utilities Aruba’s Managing Director, says that the island is now producing 50 percent more water and electricity than a decade ago, with the same number of employees, while simultaneously keeping prices stable. Total power generating capacity stands at around 149 megawatts from steam turbines, and a further 20 megawatts from standby diesel turbines.
“We have invested about $230 million in the past 10 years and have only increased the price of water by six percent in 1999,” he says. Half of the investment comes from internally-generated sources, the rest from external financing structures.

There is continual expansion and innovation, such as a recently launched automated billing system. A new power generator is due to come onstream in 2004.
Mr. Curiel thinks that one of the guiding principles in the transformation of the utilities sector is keeping politics out of the business side, despite state ownership. “We pay on time, we manage effectively and our people are the best,” he says.
Disciplined financial management has also allowed the organization to tap into more affordable private financing from overseas.

Joss Lacle, Managing Director of WEB, says that his organization has been labeled an example of how companies should be run. “We are not in the business to make money,” he says. “We must provide excellent water and electricity to our people, as mandated by the government.”
There is a desire to stay ahead. Aruba—which has a 70-year history in water desalination—is currently looking into alternative energy sources like wind and solar power. Mr. Lacle says that WEB plays an important role in supplying businesses with the best water and a reliable source of power. It is also a plus for the tourism sector. “The backbone of tourism in Aruba is the people, but the infrastructure has to be good,” he adds.