Dear Editor,
HAVING a discussion with the Honourable Juan Edghill is like trying to stand on shifting sand.
It was the Honourable gentleman that mentioned the gross annual revenue of the Wärtsilä contract, something which I had never previously publicly stated. However, as soon as his claims were proven incorrect, he made an about face and said that he only mentioned same for reference purposes. He then went on to claim that his figure was just “an average.”
Mr Edghill’s game is obvious: he made his claim to give the impression that large sums of money are involved in a bid to link this to corrupt activities. However, having been proven incorrect, this was quickly cast aside as “an average.”Mr Edghill should be aware that there are varying types of maintenance carried out on engines; there is routine maintenance – which can be as basic as changing oils and filters – then there are major overhauls on engines after prescribed engine running hours. In the case of the company’s generating sets, both activities were conducted by our local engineers. However, in the latter case, an external engineer was sent to certify that the works were completed to specifications. All costs for this external engineer were borne by the local branch, hence the reference to paying for someone to “check off” the works.
It should be noted that our local engineers are highly trained and qualified to certify these works themselves. Interestingly, when other neighbouring countries perform major overhauls, our local engineers are dispatched as the certifying engineers. This dispatch is, of course, at a cost to the neighbouring company. It is noteworthy,that from September 2015 all major overhauls in the Guyana operations were conducted by local engineers only – all of whom have elected to work for Power Producers and Distributions Inc. (PPDI).
It should be noted that currently in the PPDI’s organization, all the Plant and Workshop Managers possess degrees in electrical and mechanical engineering. Additionally, among the field-service engineers and plant technicians are over 20 persons with degrees or diplomas in engineering. If the Honourable Juan Edghill is suggesting that empowerment of our local engineers is a scam, then the Ministry of Public Infrastructure is pleased to be associated with this scam.
On the matter of spare parts, once again I am certain that the honourable gentleman is aware that not all the parts in these generators are manufactured by Wärtsilä; the engine block, crankshaft, and cylinder heads are primarily the parts manufactured by the company, while other parts provided are manufactured by other reputable companies and assembled to complete the generator. Hence, parts such as the pistons, fuel pumps, turbo chargers, injection equipment, alternators, and so on are outsourced. Under the previous arrangement, these outsourced parts were ordered by the company and then resold to GPL. PPDI will now be procuring these parts directly from the manufacturers, which results in cost-saving. I assume this is the “scam” being referred to by the honourable gentleman. I must emphasise that the costs saved will be transferred to the consumer.
Additionally, PPDI will be a state-owned entity. The contractual arrangements are similar to that of Wartsila’s, specifically, all spares, local labour and expert labour will be paid for by PPDI. The performance guarantees for heat rate, lube oil consumption and plant availability are similar to Wartsila’s.
Finally, the honourable gentleman is correct; the full board for PPDI has not yet been constituted and it is my intention to shortly seek Cabinet’s endorsement for nominees. Note that, in keeping with our stated policy, a board position will be reserved for the Opposition. It is my hope that this offer will be taken up so that the Opposition can have a representative present to prevent any potential scams. This hope might be a futile one, based on previous experience with the Opposition not taking up similar offers in at least eight other State boards under the ministry. However, one can hope that this petty behaviour is put aside for the greater good of our nation. These back and forth communications in the media could be avoided if the Opposition upheld its responsibility by allowing itself to be privy, first-hand, to information.
In closing, it must be stated that Wärtsilä has been an excellent companion to Guyana through the years; their generating engines have performed above standard and I have no doubt that we will be seeking to engage the company in the supply of equipment in the near future. The change in our otherwise excellent relationship is limited to the operations of the O&M contract.
Regards
David Patterson
Minister of Public Infrastructure