Waste Management Authority outlines $3.3 billion FEMA plan to replace territory sewer system; pumps and RFPs moving forward

The Virgin Islands Waste Management Authority said FEMA has obligated more than $3.2 billion to replace and repair the territory's aging wastewater system, and the authority has begun purchasing pumps and advertising procurement bundles to start work.

Interim Executive Director and CFO Daryl Griffith told the Senate Committee on Housing, Transportation and Telecommunications on Feb. 19 that FEMA obligated PW 1404 for Saint Croix with a net cost of $1,009,946,362.43 (federal share 98%), PW100216 for Saint Thomas/St. John with a net cost of $2,188,655,954.66 (federal share 98%), and PW100219 for St. John with a net cost of $83,589,179 (federal share 98%). Griffith said the territory's required local match for these obligations is 2 percent and that the authority is coordinating with the Office of Disaster Recovery (ODR) and other agencies on matching resources.

Why it matters: The authority and federal partners call the program a "prudent replacement" because FEMA concluded after post-hurricane assessments that piecemeal repairs would not stabilize the entire system. Commissioners and senators said replacing pump stations, pumps and miles of underground pipe is essential to stop raw sewage from surfacing when pumps fail.

What the authority is doing now - Saint Croix: Griffith said procurements began with the LBJ sewershed, including a redesign of the LBJ pump station, and that the authority purchased a bypass pump expected to arrive in mid-March to assist the LBJ system. The authority has advertised bids for all sewage pumps on St. Croix (13 small pump stations and three large stations listed in testimony) and has a design-build RFP through ODR for the North-Central bundle that covers thousands of linear feet of pipe.

- Saint Thomas & St. John: Griffith said FEMA obligated the larger Saint Thomas/St. John package in January 2025 and the authority is creating scopes of work to buy pumps and to repair and rebuild pump stations. He said three pumps and associated fittings were procured for an emergency at a Saint Thomas pump station and arrived the week of the hearing.

- Procurement approach: The authority said it is using a mix of direct pump purchases, pump-station RFPs the authority manages, and ODR-led 'bundles' (progressive design-build) for underground piping. Griffith said bundles are being coordinated with WAPA and Public Works when underground work affects multiple utilities.

Maintenance and funding concerns Griffith and grants lead Eloise Brown Mall emphasized that one major open question is how the territory will fund ongoing maintenance of a replaced system. The authority told senators it currently receives a small, fixed portion of sewer fees collected territorywide (the authority said it receives approximately $1 million of a larger fee pool) and has asked that a greater share of sewer-fee revenue be allocated to the authority for long-term maintenance. The authority estimates the sewer-fee pool will exceed $4 million with recent property connections and said it needs access to the full amount to maintain new infrastructure.

Timeline and risks Griffith said replacement of pumps and pump stations is the initial work and can move relatively quickly once RFPs are awarded and pumps are built (manufacturing lead times for pumps are measured in months). Replacing miles of underground piping and reconstructing treatment plants is complex and expected to occur in phases over multiple years; senators and staff repeatedly stressed the authority must meet FEMA's 10-year delivery expectations or face higher local-match obligations.

Selected direct quotes "FEMA would pay 98% of the cost," Interim Executive Director Daryl Griffith said, summarizing the federal share. He added: "This type of infrastructure change is complex and involved'it takes time to build better."

Next steps and committee direction Griffith told the committee the authority has active RFPs or imminent procurements for pumps and pump-station repairs and will collaborate with ODR on the progressive design-build bundles. Senators asked that the authority provide detailed project listings and timelines for each bundle and locally managed procurement so the legislature and oversight offices can track obligations and match funding requirements.

Ending note Griffith asked the legislature to consider changing the allocation of sewer-fee revenue so the authority can fund maintenance; he warned that without an adequate maintenance revenue stream the territory risks repeating infrastructure failures even after replacement work is completed.