Latest update November 26th, 2024 1:00 AM
Five int’l firms submit bids to build gas-fired power plant for Govt.
Kaieteur News – Five International companies have submitted bids to construct the Natural Gas Fired Power Plant for the Government under the much anticipated Wales Gas-to-Energy project.
The Ministry of Natural Resources project which opened at the National Procurement and Tender Administration Board (NPTAB) office on Tuesday saw companies from China, Puerto Rico, and United States all vying to execute the construction of the plant.
The companies that bids are as follow: Guycan Consortium – US$549,088,000, China Energy Int’l Group Co. Limited – US$466,649,772, China Machinery Engineering Inc. – US$696,001,776, Power China Int’l Group Limited – US$703,652,256, and Lindsayca Inc. in joint venture with CH4 Guyana Inc. – US$898,764,244.
The Gas-to-Energy project, as previously reported will encompass three major aspects, that is, the pipeline to transport the gas to Wales, the Natural Gas Liquids (NGL) facility that will treat and separate the gas, and the power plant to generate the electricity. So far, Guyanese have been told that the pipeline aspect, which is being pursued by US oil major ExxonMobil, will cost around US$1.3 billion. Even this is expected to increase when Exxon closes critical contracts for same.
In the meantime, Vice President Bharrat Jagdeo was hoping to have the other two components come on stream for US$700 million.
At a Press Conference in June of this year while expounding on the benefits of the project, VP Jagdeo explained, “We are doing estimates. We are saying US$1 billion dollars now for the pipeline. That is where we run the numbers. So assuming it comes in at US$900 million, then if it comes in that will come down
Vice President Jagdeo also added, “The US$1.6 cents will come down to about US$ 1.4 cents so it comes down lower. If it goes to US$1.1 billion, it may go to US$1.7 cents…that’s just the pipeline part…then if you estimate the power plant and the NGL facility to be about US$700million…that will add another one point something cents per kilowatt hour.”
He said that if one were to consider estimates for paying for the pipeline, NGL and power plant, it can come down as low as four cents to about five cents per kilowatt hour. He said this would be paid back over 20 years. He was keen to note that while the five US cents per kilowatt hour may be the cost to generate the electricity, another five cents may be lost in the transmission and distribution of the power, which could take the final price for the sale of the electricity to about US$15 cents, after adding five US cents as profits for the company. Currently the country pays US$30 cents per kilowatt hour of electricity. It must be noted however that since all of the costs have not yet been finalized, the price of electricity too is still in limbo.
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