Power Producers and Distribution Inc. has 100% Local Content

Dec 21, 2018 Letters

Dear Editor,

The Ministry of Public Infrastructure wishes to respond to an article published in the Kaieteur News edition, dated Wednesday, December 19, 2018, under the headline, “Don’t criticize the purveyors of gloom and doom”.
This article sought to misinform the general public, that the Power Producers and Distribution Inc. (PPDI) does not have a local content nor does it have the capacity as its predecessor, Wartsila Operations Guyana Inc. (WOGI). PPDI seeks to correct certain statements through the following facts:
i) PPDI is a state-owned company that operates and maintain four power plants on behalf of Guyana Power and Light Inc. (GPL), which was established in December 2016. These power plants were previously operated and maintained by Wartsila Operations Guyana Inc. (WOGI).
PPDI is responsible for a total electrical output of 106.7 megawatts of installed power generation capacity within the Demerara to Berbice Interconnected System. The four power plants under PPDI’s management are Garden of Eden (22 MW), Kingston #1 (22MW), Kingston # 2 (36.3 MW) and Vreed-en-Hoop distribution of electricity throughout the Demerara to Berbice Interconnected System.
As part of the Operations and Maintenance Agreement, PPDI offers performance guarantees to GPL that are based on the industry’s key performance indicators: availability, plant heat rate, and lube oil consumption.
SAVINGS
ii) During the history of WOGI in Guyana, the company was always managed by 100% local content. In 2016, when PPDI took over, the employees were given the opportunity to remain with the new company or to seek avenues of employment elsewhere. To date, approximately 90% of the most experienced, trained, certified, and qualified employees remained under the new management of PPDI.
iii) Under the new management of PPDI all of the company’s capital profits remains in our jurisdiction. According to PPDI’s Audited Financial Statements for 2017, the company experienced a profit of 16% before tax with an overall profit of 12% after tax.
PROJECTS
iv) PPDI follows the Engineering, Procurement and Construction agreement, this agreement allows GPL to tender out on different projects. For instance, in the past WOGI would have provided the equipment, supervision for the instillation of the equipment, however, the installation has always done by a 100% Guyanese staff. It is quintessential to note, that these staff came from construction companies that are indigenous to Guyana, that is, there were companies that undertook the foundation, fabrication or installation of projects. These projects were supervised by the manufacturer, but they were all constructed by local companies.
What this article has sought to achieve is to discredit the profound decision-making capabilities of Minister Patterson, while embarrassing our local engineers’ ability to get the job done. Yet, what is pellucid clear is that the statements in the letter are purely based on assumption and misguided information.
For this reason, we do urge the author, Mr. Robin Singh to browse through PPDI’s website where all of the company’s facts/information can be found, free of charge to the general public. Website: https://www.ppdi.gy

Yours Faithfully,
Krest Cummings
Public Relations Officer
Ministry of Public Infrastructure

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