Latest update November 21st, 2024 1:00 AM
Multi-billion bids for GPL’s smart metering, new transformers being assessed
The Guyana Power and Light Inc. (GPL) is embarking on one of its biggest upgrades, with several bids being assessed at the moment for the installation of a medium and low voltage distribution network and smart meters.
Bids are currently being assessed for a major, multi-billion-dollar contract for smart meter supply and installation and other upgrades for GPL.
Five bidders, including local and international companies, are jostling for the first part of the lucrative contract which, according to the engineer’s estimate, is around $3.8B (US$18.6M).
Over two years ago, it was announced that US$65M was approved by the Inter-American Development Bank (IDB) and the European Union to help Guyana reduce losses while at the same time increase its efficiency.
The project is also designed to ready GPL for hydro-electric power.
Among other things, the programme will be used to enhance operational efficiency of GPL, improve corporate performance and fund infrastructure investments to reduce overall losses.
It is the intention to rehabilitate approximately 830 kilometres of GPL’s distribution network by implementing an integral approach to tackle overall losses while strengthening GPL’s management and technical capabilities. It may also include hiring of experts, possibly from outside of Guyana, to help make GPL more efficient.
IDB approved loans totaling approximately US$37.6M and has also secured non-reimbursable investment financing from the European Union totaling approximately US$26.9M. Specifically, the monies will help boost the efficiency and reliability of Guyana’s power system through “electricity loss reduction measures, improvements in the operational capabilities, and strengthening the management and corporate performance of GPL.”
The first phase of the project for that US$18.6M will see the contractor procure and install transformers, cables and connectors and smart meters. The running of new lines for the medium and low voltage distribution network will cover an area of approximately 328 kilometres, with areas in Berbice and Demerara targeted.
With regards to the installation of the smart meters, some 28,000 of them, GPL will have the capability of being able from its facilities to read and manage its customers’ usage of power, even being able to remotely cut them off.
Currently, many of the transformers are old and inefficient.
GPL is at present recording almost 30 percent of power produced being lost to theft and technical leakages.
The contractor for this first phase, when selected, will have 540 days to complete works. Bids were opened since February.
According to information, there were five bids opened – Sinohydro Corporation from China – $7.1B; Multi Electrical System NV – $6.48B; China National Machinery Import and Export – China Sinogy Electric Engineering Co. Ltd – $4.6B; Cummings Electrical Ltd – $3.67B and the lower one of the lot Enrique Lourido- Fix-it Depot for $3.5B.
The last bid is a collaboration with Enrique Lourido, reportedly a Colombian company.
After implementation, it is the expectation that GPL will record a sustained trend in overall loss reduction; an improved and accountable management performance against consistent key performance indicators and within minimum international standards and a more modern, efficient, and reliable operational system.
There have been fears that GPL’s current infrastructure, because of its leaky lines, transformers and equipment, would not have been ready to take off increased power, including from any hydro electric project, leading to waste and losses. Theft of electricity has also been a major concern, with the project expected to introduce new technology to address this.
Last year, a new 26mw plant at Vreed-en-Hoop, West Demerara, was commissioned to meet growing demands from especially new housing schemes. Another transmission line project with seven new substations, to the tune of over US$40M, has also been commissioned. The contractor for that project was China National Machinery Import and Export, one of the bidders for this project.
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