Govt. signs rental deal for second powership

Nov 14, 2024 News

Govt. signs rental deal for second powership

Kaieteur News- The agreement to rent a second powership was officially signed on Wednesday, according to the Ministry of Finance.

In a statement the ministry said, “Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, Dr. Ashni Singh and Minister within the Ministry of Public Works. Mr. Deodat Indar oversaw the signing of a second agreement between the Guyana Power and Light Company (GPL) and UCC Holdings for a second powership”.

The signing of the agreement took place at GPL’s Duke Street office. GPL’s head, Kesh Nandlall signed the contract with the Managing Director of the Americas, UCC Holdings Mr. Antonio Neto.

According to the ministry, it will supply an additional 75 megawatts of power to the national grid and will be “deployed to Guyana in another month”. “The powership will be stationed in the Demerara River and will in its first phase, deliver 60 megawatts of generating capacity to the national grid” the ministry while adding that the remaining 15 megawatts will be delivered in a second phase.

Alliance For Change (AFC) Member of Parliament and Former Minister of Public Works, David Patterson

UCC Holdings Representative, Mr. Neto assured that his company will be mobilising as soon as possible to have the second powership deployed to Guyana. Guyana’s first powership is being rented from the same company for a period of two years. That contract was signed between the GPL Inc. and UCI, a subsidiary of UCC Holdings, a company incorporated in the State of Qatar. UCC Holdings reportedly has a strategic alliance with Karpowership International, a Turkish company.

That deal is for some 36 megawatts of power. Karpowership arrived in May and was set up at Everton, Berbice, Region Six. For the first vessel, Guyana had to pay a mobilization fee of US$1M to get the ship here and the contract, according to GPL, includes the provision of operation and maintenance services as part of the agreement. The utility company had said then, “the contract requires GPL to pay UCI a fee of 6.62 US cents per kWh as a monthly charter fee for the powership and a monthly operation and maintenance fee of 0.98 US cents per kWh, based on electricity generated.”

Vice President, Bharrat Jagdeo

Vice President Bharrat Jagdeo, on Thursday last revealed that government had selected the same company for a second powership and noted that some of the contract terms are similar to that of the first deal. The second ship will supply Guyana with power for two years and the country will have to supply the vessel with fuel so it can do its job.

Meanwhile, Alliance For Change (AFC) Member of Parliament and Former Minister of Public Works, David Patterson said that the decision to rent another powership is a waste of taxpayer’s money. The AFC parliamentarian noted that “The PPP’s management of this sector continues to be abysmal and of concern to the Alliance For Change and we assume all Guyanese who have to pay for the poor decision making of the PPP… The cost associated with these two rentals for our country is tremendous.” Cumulatively, he noted that Guyana will be paying daily rental of the 36 megawatts power ship, the rental of the first power-ship is being rented at GY$13.5 million per day and the second one would be GY$35.3 million per day or a total of almost GY$49 million per day.

(Govt. signs rental deal for second powership)

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Dr. Ashni Singh, Guyana Power and Light Company, Office of the President, powership, Responsibility for Finance

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