No quick fix to power blues - GPL US$80M needed to upgrade system Stabroek News August 11, 2000 While it is aware of decades-long frustration over poor electricity supply, the power company yesterday warned that there was no "quick fix" and it may take around US$80M to bring the system up to international standards. In a detailed statement yesterday, Guyana Power and Light (GPL) said many years of neglect of the power sector could not be redressed overnight and its strategy over the next three to five years is to show consistent progress and ensure sustainable improvements. Taking over the reins of the power sector from the beleaguered Guyana Electricity Corporation in October last year, GPL has come under public pressure recently over continuing blackouts and billing problems. GPL's four-page statement said that the electrical grid requires major investment to reverse the current appalling conditions. It revealed that its comprehensive analysis has determined that an outlay of US$80M is needed and GPL has been discussing with international banks and other institutions ways of cobbling together the requisite financing. "The pre-requisites for accessing finance in international markets include a stable socio-economic environment; and clear evidence of a strong and consistent revenue stream through customer tariffs and payments", the statement asserted. Capital refurbishment has already commenced, GPL said, adding that the company's 2000 budget has provision of US$7.3M for this. The company's continuing negotiations have not yet concluded agreements that would enable further investments, the statement said. Based on the October, 1999 agreement clinched with the govt, CDC/ESBI - the parent company of GPL - was to plough US$23.45M into the utility over a four-year period. The schedule was as follows: US$9M on October 1, 1999; US$6M on October 1, 2000; US$5M on October 1, 2001; US$3.45M on October 1, 2002. These monies were to be used for capital investment and plant refurbishment. "However, the bulk of the investment, so far provided under the Agreement has been used to meet operational costs, in particular oil supplies to keep generators working", the statement noted. It pointed out that the power company's fuel bill this year is estimated at US$24M, "an alarming increase over the 1999 fuel bill of about US$17,000,000". Defining the current status of the company, the statement noted that about 40% of GPL's generating equipment is obsolescent while both the Georgetown and Berbice transmission systems are beset by under development and maintenance defects. "These networks are highly vulnerable to instability, excessive voltage swings and surges, conditions that contribute to the high outage", GPL lamented. On the distribution front, the release highlighted the design problems of the existing system including the two cycles of 50hz and 60hz, low voltages of 125v and 220v where only one is needed and high voltages of 13,000 volts; 11,000 volts and 4000 volts where only 13,0000 volts is required. These give rise to high additional systems costs and severely limit operational flexibility. It contended too that the distribution system contains too many overloaded transformers "and extensive, rambling supply lines with conductors of inadequate capacity. Literally tens of thousands of substandard connections exist throughout the system". It added: "GPL's ability to extract useful service from the system is largely due to the commitment of its Guyanese staff whose dedication is beyond the normal call of duty and the main reason why the system remains functional." Follow the goings-on in Guyana in Guyana Today