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‘Govt. wasting taxpayers’ money to rent another power supply ship’– Patterson
AFC MP: David Patterson (‘Govt. wasting taxpayers’ money)
Kaieteur News-Alliance for Change (AFC) Member of Parliament and Former Minister of Public Works, David Patterson is adamant that the Government’s decision to rent another power supply ship is nothing but a waste of valuable revenue.
Patterson’s comments come on the heels of an announcement by Vice President Bharrat Jagdeo that the Government of Guyana will be renting a second power ship for the Guyana Power and Light (GPL) which will add 60 megawatts to the grid. The contract was awarded to Karpowership for a period of two years.
Karpowership is already supplying 36 MW under a similar agreement signed earlier this year. Under the latest agreement, Mr. Jagdeo said Karpowership would supply GPL with electricity at $0.095 per kWh down from $0.1117 after negotiations, but the overall cost would be US$0.22-US$0.23 per kWh when the fuel price of US$0.13 per kWh is added.
Speaking at an AFC press conference on Friday, Patterson underscored the number of problems with the government’s decision to rent yet another electricity supply vessel for the next two years instead of buying new generators for the state-owned Guyana Power and Light (GPL), Inc.
The AFC parliamentarian noted that “The PPP’s management of this sector continues to be abysmal and of concern to the Alliance For Change and we assume all Guyanese who have to pay for the poor decision making of the PPP… The cost associated with these two rentals for our country is tremendous.”
Cumulatively, he noted that Guyana will be paying daily rental of the 36 megawatts power ship, the rental of the first power-ship is being rented at GY$13.5 million per day and the second one would be GY$35.3 million per day or a total of almost GY$49 million per day.
Over the two years, he said Guyana would be paying Karpowership GY$35.6 billion. Fuel costs for both ships, he said, would amount to GY$53 billion over the two years. Fuel transportation cost will be GY$1.5 billion annually.
Additionally, Patterson noted that there is additional cost to the government of Guyana to supply the rented ships with fuel. He reminded that A Partnership for National Unity+Alliance For Change (APNU+AFC) administration had purchased 46 megawatts (MW) of brand new generation in 2019 for more than US$40 million. Patterson said the decision by the Irfaan Ali-led administration smacks of incompetence in managing the electricity sector.
Jagdeo made the announcement of the new deal on Thursday when he was asked by a reporter to provide an update on the power ship since Christmas season will soon be here. “… The only one that went to the Cabinet… I think it went to the Cabinet, the same company that came in…the power ship that is the only one because the rest were for supply of equipment which will take a long time to establish. All the other bids were for sale of power, but they had to come and establish a plant. So that has been settled I think it’s gone to the Cabinet today and they would sign up,” the Vice President said.
The VP said that, “it may take a month to six weeks to get the power ship in and so we are hoping still before Christmas the power ship could be here and turn on. That would be major… it will be 60 MW into the system and the possibility when we build another piece of transmission main 75 MW. So that will be for two years too like the 36 in Berbice is for two years.”
(‘Govt. wasting taxpayers’ money to rent another power supply ship’– Patterson)
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