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RUSAL buys GPL’s contaminated fuel at cost price

Apr 16, 2009 News

RUSAL Guyana, the bauxite company operating in the Berbice River, has purchased the contaminated shipment of fuel that was transported by BK International last January and subsequently damaged several key pieces of Guyana Power and Light’s generation components.
This newspaper understands that the company purchased the fuel at cost price and GPL has not paid BK International for the shipping, hence the company has not incurred any losses.
It transpired that the machinery at Rusal are not as exact as the power generating system operated by GPL. Such machinery can use the fuel without any ill effect on the machinery, a source told Kaieteur News.
The GPL Board of Directors is still reviewing the report that was completed as it relates to the contaminated fuel and, according to a source close to the Board, the decision was taken to refrain from commenting until a complete analysis of the extensive report has been completed.
Given that the analysis has not been completed, no entity has yet been found at fault, neither has the penalty to be levied been determined.
Contrary to reports that GPL had attempted to dump the fuel, a senior functionary at the company has confirmed that no such move was ever made.
The investigation into the contaminated fuel was ordered by President Bharrat Jagdeo on January 26, last.
The President made the disclosure during a press briefing at the Office of the President while responding to the fact that the contaminated fuel was only discovered after it had already damaged the equipment.
In the wake of the report on the contaminated fuel, the power company in a release to the media stated that a total of 4,000 barrels of heavy fuel oil was dispatched in two approximately equal shipments to the location, one on January 9 and the other one on January 14 last.
The company noted that both shipments arrived at the plant contaminated with water and some solid foreign matter.
Samples were dispatched to Trinidad for testing to ascertain the extent and type of contamination, given that the testing facilities available locally are limited in their capability.
The company acknowledged that from January 10 to January 14, last, extensive power outages were experienced by all consumers on the Essequibo Coast. These were attributed to the contaminated fuel.
It was also explained that both engines had suffered some damage, and that repairs were costly.
BK International, the company that transported the fuel for GPL, had swiftly stated that it was too early to lay the blame on anyone for the delivery of some $40M worth of contaminated fuel to the Essequibo Coast.

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