The Economic Mess is Actually Bigger

Than previously reported. Although I had forgotten to add the budget of Jeetah's Ministry I didn't include the much larger capital repayments either. So that now -- based on the same budget 2010 numbers -- we have debt servicing 82% and 80% larger than the education budgets for 2012 and 2013 respectively. It was already 38% a couple of years ago.The total debt service for these four years is a staggering Rs69.25 billion and the corresponding figure for education spending is only Rs42.62 billion -- Rs27 billion more. That's roughly 10 Midlands Dam or one LRT plus a couple of billions to spare. In case you're wondering.

CWA Applies Harsher Cuts, After Downpour

Plus you will be fined if you are caught washing your car. You may not even collect 200 and go to jail directly for up to two years as per section 49a of the CWA act. Ain't that so funny after all the rain we've received the past few days? With some regions being practically flooded?

CWA will carry on with the patchwork: Midlands dam will now be connected to Mare-aux-Vacoas. That's after linking Mare Longue to the island's largest reservoir. So, the minister's prayers haven't worked. Neither has the recent water hike. They also seem to be telling us that there is water in the Midlands area. How come then Phase 2 of the reservoir there did not get done? Is it the same reason why policemen have only one used shirt to wear?

This critical problem is here to stay until those responsible of the dossier quit sitting on their hands. Or are fired and fined.

2011: The Year in Review (Q2)

April: Bean-counting claims new victim: free distribution of laptops. 10 ways to solve water problems proposed. ECB hikes rates and hints more on the way while battling with a sovereign-debt crisis. Phase 2 of the Midlands Dam would have held more water than currently in Mare aux Vacoas. 82% of poll not happy with Government.

May: Policy blunders responsible for robust poverty. DSK taken off plane to face attempted rape charges. Presidential pause ruins Obama toast. Jaysen reaches roof of the world. World is playing football, Barca is playing something else.

June: Bhagwan asking whether contract of Financial Secretary should not be terminated. Mansoor says water problems date back before his arrival 5 years ago. World's longest passenger plane arrives in Paris. Bill Clinton has 14 ideas to cut US unemployment. Bad Economics made Mauritius a sad place. Deerpalsing wants planning unit under PMO. More Mauritians visit Blogger than any newspaper.

Read the review for Q1, Q3, Q4.

Bagatelle or Phase 2 of Midlands Dam?

Bagatelle Dam will hold 15 million m3 and cost between Rs 3.1-3.4 billion while Phase 2 of the Midlands Dam involves 17 million m3 and by my rough estimates should come with a tag of Rs1.2 billion. Isn't that getting 2 million m3 for a couple of billions less?

More Water Than Mare aux Vacoas

That's how much of the precious liquid Phase 2 of the Midlands Dam would have been holding these days if it had been built during Mamou (Chacha being already taken) Ramgoolam's second mandate.

How do I arrive at this? Simple. Given that Midlands Dam was 83.2% full on April 5th, it's not too much of a stretch to assume that its Phase 2 would have clipped a similar water level. At a capacity of 17 million m3 that translates to 14.1 million m3 or 13% more than the water currently in our 125-year old Mare aux Vacoas.

Why was Phase 2 not built? Guess that's what happens when you entrust critical economic positions to a toxic bean-counting duet.

How State Could Have Spent Our Money Better

By giving the green light for Phase 2 of the Midlands Dam during the last 5 years. Phase 1 cost USD 60 million (Rs1.8 billion) and took Lahmeyer International 3 years to build. That increased our water storage capacity by 40% in 2003. Phase 2 would have added another 17 million cubic metres or 20% more. That would have set us back by about Rs1.2 billion or 25% of the amount the STC claims it lost on hedging but it would have reduced frustration levels and saved a few billions in lost economic output this year alone.

But we have to understand that government was busy ripping us off with abusive retail energy prices and broadcasting dumb propaganda. Plaisir quand tu me tiens...

Economy Could Grow By Only 2% in 2011

Or about half the current forecast of 4.2% because of how dumb we've become managing things in general and water in particular. See Minister Beebeejaun is saying that we are facing a 1-in-40 year drought which is exactly what the authorities said to us in 1999 when lower than usual rainfall cut economic growth by 50%.

True the Midlands dam came to life in 2003 but we have to remember that our economy has grown by a third since then. And I don't think it's possible at all to shower with the Mo Ibrahim Index rankings.