GPL to approve power purchase with Giftland

Jun 15, 2019 News

With the recent and constant power outages having an adverse effect on the citizenry, as well as on production, the Government of Guyana has recently been able to secure power purchasing agreements with the popular business establishment, the Giftland Mall.
This is in an attempt to assist and provide an efficient and consistent supply of electricity to the Guyana Power and Light Incorporated (GPL).
This new information came from the Director-General of the Ministry of the Presidency, Joseph Harmon at his Post Cabinet Press Briefing, yesterday, at the Ministry of the Presidency.
Harmon related that the power purchasing agreements form part of the many corrective measures that GPL has instituted to address the issue of the damaged submarine cable which linked the Vreed-en-Hoop power station to the Kingston facility. The damage resulted in the loss of 14 megawatts of power that would normally be transported to the eastern section of the inter-connected Demerara-Berbice system.
Harmon stated that arrangements for the purchasing of excess power by the Giftland Mall are being finalised, and those contracts are to be submitted to the GPL Board of Directors for approval. Giftland Mall will provide 5 megawatts of power to GPL. Furthermore, Harmon stated those agreements with Giftland Mall and a proposal to purchase two Caterpillar generators units from MACORP are both expected to be approved by Monday, June 17.
Discussions were held with the local beverage manufacturer and distributor, Banks DIH Limited in order for them to also supply power, but the excess capacity is not available at the moment.
In addition to the news of power producers and electricity, a voice note has recently been circulating on social media with various claims specific to Power Producers and Distributors Incorporated (PPDI). “The claim of Chinese-made spare parts being used in the execution of our maintenance activities is completely false,” according to the PPDI.
The PPDI in a press release stated that, “As a matter of fact, our Operations & Maintenance Agreement with our sister State entity, the Guyana Power & Light Inc., specifically states the use of Original Equipment Manufacturer spares and supplies and explicitly prohibits any such attempts. Our governance structure, particularly the Board Tender Committee, includes independent personnel and a management representative of The Guyana Power & Light Inc. who must approve all major acquisition of spare parts.”
In addition, the two major suppliers of PPDI operations are Wartsila and ABB Turbochargers. They say that as a new company, they are often required to make advance payments for spare parts and supplies, in some cases 100% and other 50%.
“Purchases with these commercial terms guarantees us early delivery of spares and supplies. Currently, the PPDI has one engine that is down for a major overhaul at the Kin 2 plant, which has started and is expected to be completed within a month.”