-US$1m mobilisation fee to be paid
Government yesterday assured that consumers will pay no increase on their power utility bill, even as the Guyana Power and Light (GPL) yesterday announced that it was paying the power ship rental company a US$1 million mobilisation fee in addition to around US7.06 cents per kWh (kilowatthour) in monthly charter, operation and maintenance fees.
“There will be no increase in the price for electricity because of this rental…” Vice President Bharrat Jagdeo yesterday declared when asked by the Stabroek News if GPL consumers should expect any increases in their power bills over the next two years.
“They are bringing the vessel, you’re paying for the capacity. For example; for the use of the equipment and the operation and maintenance cost and [we] have to supply the fuel…,” he explained.
GPL yesterday announced the terms of the agreement it signed with “Urbacon Concessions Investments, W.L.L (UCI) to charter a powership with a total installed capacity of 36 Megawatts (MWs) for a period of two years.”
“The contract includes the provision of operation and maintenance services as part of the agreement…The contract requires GPL to pay UCI a fee of 6.62 US cents per kWh as a monthly charter fee for the powership and a monthly operation and maintenance fee of 0.98 US cents per kWh, based on electricity generated,” GPL said in a statement as it pointed to the US$1 million mobilisation fee.
It is unclear how the mobilisation fee is amortized over the two-year period, into the cost per kWh.
Referencing a Stabroek News article which highlighted that GPL remained in the dark on the costs for the rental of the powership from the Qatari company, UCC, Jagdeo said that it was never government’s intention to not state how much it would rent the ship for, but that negotiations were ongoing.
GPL explained that UCI is a subsidiary of UCC Holdings, a company incorporated in the state of Qatar. UCC Holdings has a strategic alliance with Karpowership International, a Turkish company and that the powership is expected to operate at 96 per cent availability.
“GPL has paid a total mobilization fee of one million United States dollars and is not required under the contract to pay a demobilization fee. Under the contract, GPL is responsible for providing Heavy Fuel Oil (HFO) for the operation of the generators,” GPL stated.
The utility company noted, “The powership was last operated in Cuba as part of a contingent of similar generation assets and is expected to arrive in Guyana on May 1, 2024, subject to weather conditions.”
“The powership will be located at Everton, Berbice, and will be interconnected with GPL’s grid at 69 kV (kilovolts). GPL has already commenced preparatory work at the site to accommodate the powership and the interconnection to GPL’s Grid. The powership is expected to be fully operational and delivering electricity by May 8, 2024,” it added.
In addition to the powership agreement, GPL will also have to pay for transport of the fuel it will supply the ship for power generation.
In preparation for the arrival of the power ship, the utility company yesterday advertised for the rental of a barge to transport and store Heavy Fuel Oil (HFO) from Kingston/Vreed-en-Hoop to Everton, Berbice.
In the advertisement in Stabroek News, GPL stated that it is in the process of expanding its generating capacity and the need has arisen for a barge with the capacity to transfer and store between 8,000 and 35,000 barrels of HFO to be transported from Kingston to Everton. The barge will be primarily stationed at Everton.
The barge must be available for lease on a continuous basis for a minimum period of one year to a maximum period of two years. It must have a valid barge registration/licence, be double hulled, and capable of performing ship-to-ship transfer/loading of heavy fuel oil.
The relevant documents have to be submitted to the National Procurement and Tender Administration Board by 2 pm on April 30.
On Friday, President Irfaan Ali announced that Cuba will assist with engineers to help manage GPL’s electricity system, as an agreement was signed with Qatari power company, UCC Holdings, which has a strategic alliance in Latin America for the Turkish Karpower ship.
“They have very skilled technical personnel who they are willing to deploy immediately to work in the system and to help us technically,” he said on Friday, following a meeting with Cuban Ambassador to Guyana, Jorge Francisco Soberon Luis, as he announced that Havana pledged to have 10 engineers urgently dispatched here.
The President also clarified that the agreement for emergency generation to be supplied by the Turkish Karpowership will be signed with the Qatari power company, UCC.
