… promises company will be transparent, accountable
With questions emerging about the incorporation of Power Producers and Distributors Inc (PPDI) as a company specially intended to replace Wärtsilä, officials are denying that anything sinister surrounds the company’s origins.
According to Chairman of PPDI Board of Directors, Mark Bender, all financial laws were obeyed when the company was incorporated in December 2016. The Chairman stressed the company was incorporated under Chapter 89:01 of the Company Act, as was necessary under the law.
One of the engines being managed by the company
“Once you set up a company, there are certain things you have to do legally. And all the procedures were followed,” Bender stressed. “It was incorporated under the Company Act, and all the attendant things necessary for the establishment of the company, as spelt out in the regulations, were followed.”
Bender emphasised that PPDI had nothing to hide and was an accountable and transparent company. He noted that as such, tours such as one facilitated by the company for media operatives on Thursday, would continue to be held.
“We have nothing to hide. The Government of the day thought that it was the best option for them when they set up the company. They have put a Board to overlook the company. And the Board has some very competent and experienced professionals. And I think the management team is doing a splendid job. We are fulfilling the expectations of the Government.”
“Going forward, in terms of the legislation, we will follow all the provisions of the legislation. So at the end of the year we’ll have audited accounts, we’ll hold an (Annual General Meeting). So best practises incorporate governance (will be followed) and that includes compliance with our legislation.”
The Board now comprises of the Chairman, Mark Bender; Chief Executive Officer of PPDI, Arron Fraser; Secretary, Ronald Burch-Smith; and the Permanent Secretary of MPI, Geoffrey Vaughn. The other members are Attorney Stephen Fraser, Verlyn Klass, Amanza Walton-Desir and Harryram Parmesar.
In the National Assembly, PPDI was the subject of heated debates. Opposition parliamentarian Juan Edghill had argued against the replacement of Wärtsilä, stating that Government may not have been truthful in their justifications to drop Wärtsilä.
But when the MP stated that Wärtsilä was being paid US$7.5 million per year, Public Infrastructure Minister David Patterson had hit back by releasing a list containing the payments to Wärtsilä from 2008 to 2015. Edghill had subsequently accused Patterson of bypassing the issue and not providing clarification about PPDI, as the list proved his quoted figure was an average.
PPDI replaced Wärtsilä, a company from Finland which for two decades has maintained over a dozen engines for GPL, as of January 1. The new Government had announced last year that it would not renew Wärtsilä’s contract.
During the instalment of the Board, Minister Patterson had been optimistic that working with PPDI would reduce operating costs. According to Patterson, capacity was a key consideration and he stressed that the company will continue to be fully manned by a Guyanese workforce.
According to PPDI’s CEO, Arron Fraser, there would be a significant difference in the rate. He said other things such as improving operational efficiency and labour will also play a part in the reduced price structure for PPDI.
“Going forward, Wärtsilä (was) proposing a rate of US$20.1 per megawatt of power, while PPDI will have a rate of US$16 per megawatt. So that’s $3.70 cents saving per megawatt and if you multiply that by production of 620,000 megawatts per year, you have savings in the vicinity of US$2 million per year,” Fraser had explained.
