A $1.5 million plant to clean up waste oil at Bermuda's electricity company will come on stream within a few months, the firm's boss revealed yesterday.

Belco Holdings CEO Gary Madeiros also revealed that one of the group's companies lost $600,000 last year, but was expected to break into the black this year.

He also said that only five companies had taken part in an energy saving scheme offered by Belco since the project was set up last year.

Mr. Madeiros was speaking yesterday to the Hamilton Rotary Club on the successes and challenges of the group, which includes the Bermuda Electric Light Company and Besco -- Belco Energy Service Company.

On one success he revealed that from April a new waste treatment plant would come on line treating waste oil for recycling or shipping off the Island.

"We have completed construction of the plant and it should come on line in April to treat the oil that is used on our premises,'' said Mr. Madeiros.

But a challenge, he said, was Besco which lost $600,000 last year although the amount was budgeted for and it is expected to make a profit this year.

Besco carries out energy saving audits for companies and offers two ways of paying for the work -- but out only five out of 50 companies having audits took up a package.

"As businesses decry the cost of energy I ask myself what does one have to do to be a partner in solutions,'' said Mr. Madeiros.

On other successes, Mr. Madeiros highlighted Belco's relationship with the union and the quality of employees and management which ensured succession to top posts.

He said challenges included controlling costs and rates as well as environmental issues such as standards of emissions from stacks. About $600,000 has been set aside this year for the environmental department.

"A we look forward, one challenge will be growth and how we will achieve it,'' said Mr. Madeiros.

He added: "Belco will try as much as possible to reduce costs and find new ways of doing things.

"Belco Holdings will be trying to do other things to increase shareholders value and control costs of electricity to this Island.'' ENVIRONMENT ENV BUSINESS BUC