– CEO responds to Kaieteur News
Chief Executive Officer (CEO) of the Guyana Power and Light (GPL) Incorporated, Bharrat Dindyal, yesterday refuted statements made in a letter written by one Tony Vieira in the January 7, 2011 issue of the Kaieteur News, as it relates to the proposed expansion of the Kingston Power Plant.
At a press conference at the company’s Kingston office, Dindyal said that the contention arose from an unsolicited proposal received by the power company for a similar plant at the cost of US$3M less than what the company is contracting Wartsila to provide. Dindyal explained that Bakshi is not offering a power plant but rather some equipment required for the assembling of a power plant.
“Since 1992, when Wartsila was contracted to supply an 11 megawatt power supply at Garden of Eden, we have always had a “turn-key proposal” and a “turn-key scope” with the company,” he said.
He further explained that for US$18M, Wartsila is providing almost all of the various components required in the building of a power plant, with the exception of the foundation work.
“At the extension of the new plant, Wartsila is offering nine of the 15 medium voltage circuit breakers which are not included in Bakshi’s proposal, each of the breakers worth approximately US$70,000,” Dindyal noted.
Additionally, the generator output that Bakshi is offering is for 6.6 Kilovolt and therefore a step-up transformer has to be used for each machine. Dindyal explained that the use of these transformers will lead to GPL incurring a loss of US$458,000 per annum.
He also clarified that Wartsila has a worldwide sales organisation and does not use agents, thereby reducing the claim made in Vieira’s letter that Bakshi is a Wartsila agent, as mere speculation.
GPL circulated a press release in which it stated, “the equipment that Bakshi is offering falls short of the required complement to complete a power plant for commercial operation. When one factors in the missing equipment, and the time to complete the plant, the offer is not only expensive, but would also be impossible to complete within the stipulated 14 months.”
The 7.8 Megawatt engines that GPL is acquiring from Wartsila have a higher fuel efficiency, which equates to US$1, 242,000 in fuel savings annually.
Dindyal disclosed that having responded to Bakshi’s offer on January 7, he has indicated his willingness to reduce the price of the equipment to US$11.98M. However, he added, considering the benefits, the larger Wartsila units present a far more lucrative option.