Geothermal Third Well Not Producing Value For Money, says Audit

The Audit Department has called for improvements in contracts and negotiations to ensure the success of the geothermal project.

The recommendation is included a report, tabled in the Legislative Assembly in December 2019.

According to the findings, there is a need to improve the management of contracts, negotiations, and life-cycle relationships with contractors to ensure successful completion of projects and the delivery of expected benefits. The project has been stalled since 2016, after the contractor ran into difficulties with the third well, which was being drilled in Weekes’.

The Audit Department says the third geothermal well was drilled in 2015, but, years later, cleaning and testing remain undone, and it has not produced any value for money. DFID’s negotiations with the contractor stalled in 2016, and in 2018, the contractor firm removed its equipment from Montserrat, and it is unclear if and when the project will ever resume. 

The accumulative investment in the project has so far totaled  £18 million or over E.C.$60 million.