WILLEMSTAD - In connection with the expected cash shortfall in the remaining months of 2020 as a result of the corona crisis, Aqualectra is formally requesting a deferment of payment of taxes and premiums.

This is a new and extra setback for the Country of Curaçao, which was already struggling with shortages - from previous years and also over 2020 - before the crisis and with the closing of the (air) borders, followed by the lockdown, faced with less income. At the beginning of last month, the loss of revenue for the government was calculated at 385.5 million; it is unknown what the supplementary budget for 2020 is based on.

The Emergency Fund Committee previously reported that government companies such as Aqualectra, Curoil and the airport are faced with loss of turnover and other losses.

This leads to an expected negative cash position of 41 to 44 million guilders at the end of 2020. In this context, the management is entering into discussions with the three unions at the utility company. Suppliers are also requested to agree to later payment. For example, it has been agreed with fuel supplier Curoil to pay the invoices in the coming weeks. However, a letter will also be sent to the tax authorities with the request for deferment of payment and, therefore, a payment arrangement to meet the tax obligations and social security contributions.

About 580 employees are on the payroll at Aqualectra. Their joint payroll tax and contributions (employee and employer part) form a significant monthly amount, which is temporarily not ending up in the treasury. The energy company indicates that it concerns the months of April, May and June for the time being, with the request to the tax authorities to pay it only in 2021.

The utility company is projected to expect a 40 percent drop in electricity demand between April and December and a 20 percent drop in water demand. In addition, Aqualectra takes into account in the calculations that 80 percent of the invoices are paid.

Staff were informed recently about the serious situation at the utility company. The unions received a separate letter about the need to cut certain secondary employment benefits. All in all, this saves 14.5 million on labor costs until the turn of the year.