Beautiful Virgin Islands

Wednesday, Oct 22, 2025

WAPA slapped with $48M Breach of Contract Lawsuit

WAPA slapped with $48M Breach of Contract Lawsuit

The Virgin Islands Water and Power Authority (WAPA) has been hit with a lawsuit from Wärtsilä North America, Inc., a Houston, Texas-based firm which in March 2017 entered into an engineering, procurement and construction agreement (EPC Agreement) with WAPA to design, engineer, procure equipment for, construct, start-up and test an LPG-fired reciprocating engine power plant at the Randolph Harley Generating Complex in St Thomas.
The lawsuit, which seeks $48 million, alleges and details a plethora of instances where WAPA made partial payments and failed to pay past due amounts, and where the authority failed to make payments altogether even as owed debt accumulated, according to the suit. The authority, when challenged by Wärtsilä, would then enter into forbearance, extensions and amendments, and would not only agree to pay, but would also acknowledge outstanding and undisputed funds owed to Wärtsilä under the EPC agreement.

Wärtsilä showed in the suit, filed in the District Court of the Virgin Islands on Tuesday, that following WAPA's first and continuing partial payments and in other instances nonpayment, it entered into a forbearance agreement with the authority. Thereafter, the company entered into two extension and amendment agreements with WAPA which also lapsed after the authority failed to make good on the covenants.

"As a result of WAPA’s breach of the Forbearance Agreement, the Extension and Amendment, and the Second Extension and Amendment, Wärtsilä is entitled to recover any and all rights and remedies that may be available at law or in equity including without limitation the right to recover all Losses incurred by Wärtsilä resulting from said breaches," said Wärtsilä in the suit, seen here. "The term “Losses” is defined in EPC Agreement and incorporated in the Forbearance Agreement and its subsequent amendments as “any and all damages, losses, costs and expenses, including without limitation reasonable attorney’s fees."

Wärtsilä had performed work for a full year before providing WAPA with a first bill of $7 million in June 2018. It was then — on the first invoice — that WAPA's nonpayments commenced, providing Wärtsilä with $5.6 million and leaving a balance of $1.4 million, according to the suit. "WAPA’s payment delays continued, as it failed to pay any part of the Milestone Invoices or Change Orders issued by Wärtsilä over the next six months," Wärtsilä said in the suit.

The trend continued over the years as Wärtsilä attempted to receive payment from the authority through multiple extensions and amendments, alleges the Houston, Texas-based firm.

Wärtsilä is seeking relief on two counts, each with a $24 million judgement request. The first count is for WAPA's breach of contract for the EPC agreement, and count two for breach of contract for the forbearance agreements and amendments.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
Surging AI Startup Valuations Fuel Bubble Concerns Among Top Investors
Australian Punter Archie Wilson Tears Up During Nebraska Press Conference, Sparking Conversation on Male Vulnerability
Australia Confirms U.S. Access to Upgraded Submarine Shipyard Under AUKUS Deal
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
Brands Confront New Dilemma as Extremists Adopt Fashion Labels
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Erika Kirk Delivers Moving Tribute at White House as Trump Awards Charlie Presidential Medal of Freedom
British Food Influencer ‘Big John’ Detained in Australia After Visa Dispute
ScamBodia: The Chinese Fraud Empire Shielded by Cambodia’s Ruling Elite
French PM Suspends Macron’s Pension Reform Until After 2027 in Bid to Stabilize Government
Orange, Bouygues and Free Make €17 Billion Bid for Drahi’s Altice France Telecom Assets
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
Bessent Accuses China of Dragging Down Global Economy Amid New Trade Curbs
U.S. Revokes Visas of Foreign Nationals Who ‘Celebrated’ Charlie Kirk’s Assassination
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
×