Latest update March 23rd, 2025 9:41 AM
Jan 21, 2011 News
Head of the Presidential Secretariat and Cabinet Secretary Dr Roger Luncheon yesterday announced that the contract has been awarded for construction of the foundation for the 15.6MW Wartsila Generation Plant at Kingston.
The engineer’s estimate for the project was $120,784,220 and the successful contractor was Correia & Correia, which had the lowest of the four bids submitted.
The company’s bid was $60,032,519 – a mind-boggling 50% less than the engineer’s estimate, which was the source of controversy following its announcement during a recent opening of bids at the National Procurement and Tender Administration Board.
Chief Executive Officer of GPL, Bharrat Dindyal, at the time had explained that the estimate was done using factors that are no longer applicable.
He did say that whilst the numbers used by the engineers were not conservative, the estimate was done at a time when the cost of piles had skyrocketed, along with the fact that there was a problem with cement, which caused that item to also increase in price.
Dindyal explained that the engineer assembled information from the foundation that now supports the generating sets at the Kingston Power Station and foundations constructed elsewhere. The conditions that affected the prices then, he emphasized, do not apply now.
Correia & Correia was at the time described as having “the most realistic bid”.
The foundation for the installation of the Generation plant should be completed in August.
In December last year the President commissioned the new plant in Kingston after a US$27.5M upgrade.
The US$18 million contract recently inked between the Power Company and Wartsila for the provision of a further 15.6 MW in generation capacity was not publicly tendered, but is the extension of a proposal Wartsila made last year when it provided the 20.7 megawatt plant.
The engine that is now being sourced from Wartsila has a 20-year lifecycle.
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