– but GPL CEO says local procurement process has begun
While the Guyana Power and Light Company Incorporated (GPL) and the Islamic Development Bank (IsDB) are yet to sign a formal agreement to secure the approval for a US$20 million loan to begin a planned upgrade project, Chief Executive Officer of GPL, Albert Gordon said the procurement process has started.
Gordon reminded that this loan is one of several that will help to start a series of upgrades at various GPL locations that would ultimately reduce power outages.
“The formal agreement has not been signed but there are some primary indications that we are on track and we have permission to start the procurement process which was done,” Gordon told <<<<Guyana Times>>>>.
“We expect to proceed as scheduled. But that will address some of the transmission and distribution issue at the Demerara-Berbice Interconnected System (DBIS),” he said, while explaining that it will complement the US$5 million loan from the Inter-American Development Bank (IDB).
Gordon further stated that the commissioning of another 5.5 megawatt of electricity generator at Canefield, East Canje, Berbice, is expected to be completed next month. He said GPL is also looking to implement additional capacity at Bartica.
“Because we have been operating over the years with very slim margins and so once something goes down due to the lack of redundancy customer feels it,” he noted, explaining that these loans will help to improve the current system.
The loan is expected to fund the shortfall to satisfy the targets of the power utility’s upgrade programme of GPL, namely reduction of overall electricity losses and improvement in the safety and reliability of the system.
Divided into six components, the works include upgrades to a number of lines that the company believes contributes to the number of blackouts experienced by its customers.
Those works include: rehabilitation of 153km of medium and low voltage distribution network, including the upgrade of the associated metering infrastructure; construction of new and upgraded substations at Kingston and Vreed-en-Hoop respectively, including associated feeder and transformer reconfiguration; consultancy services for the supervision of the works; project management support and start up workshop; financial audits, and Environmental
GPL CEO, Albert Gordon
and Social Impact Assessment (ESIA) study.
GPL said the first five components would be financed by the IsDB. In component one, it said the works will include mainly the installation of new poles transformers, conductors (anti-theft conductors included), installation of distribution boxes and change out of old meter and infrastructure with new smart meters and infrastructure.
In component two, it said the works will include the engineering, the procurement and construction (EPC) of mainly: new 13.8kV metal clad switch-gear, new 69kv GIS and AIS bays, new 80MVA and 25MVA 13.8/69kV transformers, and the reconfiguration of circuits and hardware associated with the two substations.
Meanwhile, in component three, the consultancy services will comprise the site supervision services for the works related to component one and the engineering services and site supervision for works related to component two.
The fourth component would involve mainly the procurement of two vehicles, the procurement of two specialised engineers and two technicians to reinforce the existing project management team and the organisation of the project startup workshop in Georgetown.
The fifth component would ensure that financial obligations are met according to project specifications. This would see the external financial audit of the project, during the development of the infrastructures, being undertaken.
The auditor will audit the financial situation of the project and verify that all payments are made to the concerned beneficiaries for the components and packages under IsDB financing.
In an effort to end the constant blackouts and bring some level of efficiency to local electricity services, Gordon had said GPL needed US$110 million to assist with a strategic plan to overhaul the entire operation, as well as upgrade and reconfigure the supply system to produce better electricity.
The GPL CEO said once secured, the US$110 million is to be used to reroute and correct the current system, where distribution lines that take power to buildings are connected directly to the company’s generator.
Gordon made this statement in April when he was first introduced to the media, following his appointment to the post. He said his first priority was to keep the lights on, but noted that all depended on the investment to make the necessary changes that were required to bring some normalcy to the system.
He said, “There is a lot of immediate action that is needed to address the problems… Aside from that, about 50 megawatts of the generating capacity, which is just over 130 megawatts is very old and in need of replacement. So, they fail very regularly. We need to change that and many other things we have to do.”
Government has promised to facilitate the process of securing the loans and said it would also play its part to ensure that the system is upgraded.
