GPL advertises for power producers in Berbice
-would provide third of peak demand
Stabroek News
June 8, 2003
Guyana Power and Light (GPL) has put out an official request for proposals for the independent generation of between 4.5-5.5 MW for purchase for its Berbice power system.
The company, in an advertisement last week, said it would be willing to enter into a power purchase agreement with a bidder with demonstrated experience as an independent power producer or to be associated with at least one company with a successful record in the operation of power stations with the kind of equipment the bidder is proposing.
The generating equipment is required to be located at GPL’s Canefield Power Station along the Canje River and output should be 60Hz and 13.8kv.
The 4.5-5.5 MW has to be generated by no more than three units with a rated output of no less than 1.5 MW each.
Proposals have to contain a section on environment, health and safety impact. Berbice has been experiencing serious difficulties in generation with one of its 5 MW Mirrlees Blackstone sets since last August and the one in operation is overdue for maintenance. The system is supported by 2.5 MW from Onverwagt and the power company recently rushed nine 1.4 MW base load Caterpillar sets to Berbice to meet the peak demand of 15 MW. Another one of these sets would be sent shortly.
To secure new generating sets would cost GPL US$4M while repairs to existing units would cost about US$1.2M.
As a result, the company is looking to buy power from an independent producer to meet the medium-term needs of the Berbice region. It expects to have power from this source in generation before the end of this year.
Synergy Holdings, which is working on the Amaila Falls Hydro project, had in its proposals covered short-term generation and the firm may be inclined to submit a proposal.
Additionally, GPL had reopened talks with the Guyana Sugar Corporation (Guysuco) on a power purchase agreement for its shelved co-generation project. The discussions were described as preliminary and no decision has been taken as yet on whether the contract for the construction of the factory at Skeldon would be modified to include the co-generation plant.
Guysuco had shelved its co-generation project after it could not reach agreement with GPL on a power purchase agreement and was unable to move on to find an investor for the project. If an agreement was reached and an investor found, the co-generation project could become a component of the Skeldon factory, releasing 12 MW onto the national grid.
Guysuco is still in negotiations with a Chinese team on its bid for the factory. An award for construction was expected since April but has been hit with a setback because of the inability of the Chinese team to travel to Guyana for discussions. The team was recently cleared by the Chinese government for travel overseas.
Meanwhile, the Upper Corentyne Chamber of Commerce is still working on its proposal to take over the Berbice operations of GPL.
David Subnauth, President, indicated yesterday that the chamber would not be keen on just selling power to GPL but wants to actually be involved in generation, distribution and marketing of power.
This was broached with Prime Minister Sam Hinds on a recent visit and more recently with Ronald Alli, chairman of GPL. Subnauth said Alli assured him that GPL would be managed properly but the Chamber is concerned about the increasing prices.
Subnauth said if the government agreed to release the Berbice system into its hands, the prices would immediately go down by 10% and in the longer term by more.
He said the intention was to form a public company, float a public offer and make every consumer in Berbice a shareholder of the firm. He said the bid would be finalised shortly and sent to the government. The Upper Corentyne Chamber is working with the Berbice Chamber of Commerce and Development Association on the issue.
Robin Singh, chief executive officer of GPL, yesterday said the issue of the Upper Corentyne Chamber proposal was one for the shareholders.
He said that the bids for the independent power generation for Berbice would be assessed based on the criteria advertised.
