Power Producer and Distribution Incorporated (PPDI) on Thursday announced that not only did the company surpass all performance guarantees, but it was able to rake in a whopping $277 million profit for 2017.
PPDI was established back in 2016 and carries the responsibility of operating and maintaining power plants for the Guyana Power and Light (GPL).
The announcement of its massive performance was revealed during a meeting hosted by the agency.
Chief Executive Officer of Power Producer and Distribution Incorporated Arron Fraser
The company’s Chief Executive Officer (CEO), Arron Fraser, told media operatives that, “For the year ending December 31, 2017, we were able to earn a profit for that year of $277 million. That profit was supported by a revenue of $2.3 billion. Total expenses for the year was $1.9 billion. Additionally, we contributed to coffers of the nation by paying taxes of $108.5 million”.
Fraser added that the company invested significantly in an inventory so that the company could increase its reliability and availability of the power plants. In fact, at the end of the year PPDI had invested $464 million in inventory, he said.
The CEO was keen to note that the company’s value at the end of the year stood at $809 million, as cash and cash equivalents included $186.7 million. “We had cash and cash equivalent of $186.7 million, total assets at the end of the year was $809 million and that was supported by total shareholders’ equity of $277 million and the liability side, we had accounts payable of $378.6 million, related party of $44.6 million and provision for taxation of $108.5 million. All total, the company’s value at the end of the year was $809 million,” he explained.
While giving an update on the company’s physical performance, it was explained that the Board established several sub-committees, including an audit and finance, tenders and procurement and human resources and technical committee.
With regard to the power plants PPDI is responsible for managing, the officials said that, “For all four plants we gave guarantees of 92 per cent which is a widely accepted industry standard. At Garden of Eden, it was 93.57, Kingston Plant (1) that was 93.57, Kingston Plant (2) which had four of the five engines overhauled in 2017 we had 88.52 (per cent). At Vreed-en-Hoop where there was significantly less scheduled major overhauls, we were able to have the engines available 98.23 per cent of the time”.
Meanwhile, the Public Infrastructure Minister, David Patterson, boasted of the power agency’s impressive performance, lauding it for its hiring practices as well as its outstanding service.
He said, “We have surpassed all of our targets with our maintenance programme. The finances are audited by the Auditor General’s office so, therefore, I will lay this report in Parliament whenever that convenes next”.
PPDI is a State-owned company that operates and maintains four power plants on behalf of Guyana Power and Light Inc (GPL).
It was contracted to operate and maintain the four power plants on behalf of GPL.
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 number 1 (22MW), Kingston number 2 (36.3 MW) and Vreed-en-Hoop (26.4 MW).
The technical boundary of the company’s operations is limited to 13.8 Kilovolts Switch Gear (outgoing feeder) of the power plants. Thereafter, the Guyana Power and Light (GPL) has the sole responsibility for the transmission and 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 is based on the industry’s key performance indicators: availability, plant heat rate and lube oil consumption.
