Beautiful Virgin Islands

Tuesday, Oct 07, 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
Three Scientists Awarded Nobel Prize in Medicine for Discovery of Immune Self-Tolerance Mechanism
OpenAI and AMD Forge Landmark AI-Chip Alliance with Equity Option
Munich Airport Reopens After Second Drone Shutdown
France Names New Government Amid Political Crisis
Trump Stands Firm in Shutdown Showdown and Declares War on Drug Cartels — Turning Crisis into Opportunity
Surge of U.S. Billionaires Transforms London’s Peninsula Apartments into Ultra-Luxury Stronghold
Pro Europe and Anti-War Babiš Poised to Return to Power After Czech Parliamentary Vote
Jeff Bezos Calls AI Surge a ‘Good’ Bubble, Urges Focus on Lasting Innovation
Japan’s Ruling Party Chooses Sanae Takaichi, Clearing Path to First Female Prime Minister
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
Taylor Swift’s ‘Showgirl’ Launch Extends Billion-Dollar Empire
Trump Administration Launches “TrumpRx” Plan to Enable Direct Drug Sales at Deep Discounts
Trump Announces Intention to Impose 100 Percent Tariff on Foreign-Made Films
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Singapore and Hong Kong Vie to Dominate Asia’s Rising Gold Trade
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Manhattan Sees Surge in Office-to-Housing Conversions, Highest Since 2008
Switzerland and U.S. Issue Joint Assurance Against Currency Manipulation
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Thomas Jacob Sanford Named as Suspect in Deadly Michigan Church Shooting and Arson
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
New York Man Arrested After On-Air Confession to 2017 Parents’ Murders
U.S. Defense Chief Orders Sudden Summit of Hundreds of Generals and Admirals
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Trump Claims FBI Planted 274 Agents at Capitol Riot, Citing Unverified Reports
India: Internet Suspended in Bareilly Amid Communal Clashes Between Muslims and Hindus
Supreme Court Extends Freeze on Nearly $5 Billion in U.S. Foreign Aid at Trump’s Request
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
China Deploys 2,000 Workers to Spain to Build Major EV Battery Factory, Raising European Dependence
Speed Takes Over: How Drive-Through Coffee Chains Are Rewriting U.S. Coffee Culture
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Ringo Starr Champions Enduring Beatles Legacy While Debuting Las Vegas Art Show
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
FBI Removes Agents Who Kneeled at 2020 Protest, Citing Breach of Professional Conduct
Trump Alleges ‘Triple Sabotage’ at United Nations After Escalator and Teleprompter Failures
Shock in France: 5 Years in Prison for Former President Nicolas Sarkozy
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
BNP Paribas Abandons Ban on 'Controversial Weapons' Financing Amid Europe’s Defence Push
Typhoon Ragasa Leaves Trail of Destruction Across East Asia Before Making Landfall in China
The Personality Rights Challenge in India’s AI Era
Big Banks Rebuild in Hong Kong as Deal Volume Surges
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Arnault Denounces Proposed Wealth Tax as Threat to French Economy
Study Finds No Safe Level of Alcohol for Dementia Risk
Denmark Investigates Drone Incursion, Does Not Rule Out Russian Involvement
Lilly CEO Warns UK Is ‘Worst Country in Europe’ for Drug Prices, Pulls Back Investment
Nigel Farage Emerges as Central Force in British Politics with Reform UK Surge
×