…records stellar performance in 2017

THE Power Producers and Distributors Incorporated (PPDI), having surpassed all the performance guarantees given to the Guyana Power and Light (GPL) in 2017, is planning to expand its operations.

Chairman of PPDI’s Board of Directors, Mark Bender, said given the performance of the state-owned entity in operating and maintaining four of GPL’s power plants, PPDI plans to expand its services.

Currently, PPDI operates and maintains four power plants at Garden of Eden (22 MW), Kingston Number One (22mw), Kingston Number Two (36.3 MW) and Vreed-en-Hoop (26.4mw). “We are currently negotiating with GPL to take over more of their plants,” Bender said, while fielding questions from Minister of Public Infrastructure, David Patterson, during PPDI’s first Annual General Meeting (AGM) at the Public Infrastructure Ministry since its establishment in December, 2016. Minister Patterson is the stakeholders’ representative.

Bender said PPDI, in keeping with its strategic plan, intends to tap into the Oil and Gas Industry. “We know that one of the issues being considered, and one of the projects being considered, is a project to produce electricity for the grid from natural gas,” he said, while noting the intention of the power company to play a major role in the supply of energy using natural gas. Already, PPDI is building its human resource capacity through training locally, regionally and internationally.

In presenting the 2017 Annual Report, Bender told those present that PPDI’s performance was “outstanding,” and has set the foundation for it to make a meaningful contribution to the development of the power sector in Guyana.

“The company surpassed all the performance guarantees given to the Guyana Power and Light Inc., namely, plant availability, plant lube oil consumption and plant heat rate, and plant reliability hovered around 98 per cent, Bender reported.

He said that the Board of Directors remains committed to good corporate governance, and in 2017 established a number of sub-committees namely audit and finance, tenders and procurement and human resources and technical. He reported too that an internal auditor was hired to ensure that the internal controls are adhered to. A procurement manual was developed, and approved by the National Procurement and Tender Administration Board for implementation.

Despite skepticisms, PPDI in 2017 rose to the occasion. “The management and staff were able to meet the challenges and deliver on their mandate as regards the agreement with GPL. “When the company was formed to replace Wärtsilä Operations Guyana Inc., there were reservations in some quarters as to whether it was a good decision. The management and staff have proven beyond doubt, that they are up to the task and had the combined skill set and motivation to make PPDI a successful company,” the chairman said.

Going forward, he said the power company will continue to build its network in its quest to secure new contracts to provide operations and maintenance services as well as to become an independent power producer.

PPDI’s Chief Executive Officer (CEO), Dr. Arron Fraser reported that for 2017, the company earned a profit of $277M. “That profit was supported by revenue of $2.3B. Total expenses for the year were $1.9B. Additionally we contributed to the coffers of the nation by paying taxes of $108.5M,” Dr. Fraser reported.

He said PPDI, in 2017, invested heavily into inventory in an effort to improve its maintenance of the plants. A total of $464M was invested in inventory, the CEO disclosed. The Audit Office of Guyana had audited the operations of the company.

Minister Patterson, in offering brief remarks, applauded the power company for successfully executing its functions in 2017, and for acquiring ISO certification. He recalled prior to the establishment of PPDI, GPL’s generators were procured and maintained by Wärtsilä Operations Guyana Inc. However, the agreement with Wärtsilä was scheduled to expire at the end of 2016. Ahead of that expiration the administration came to the realisation that Wärtsilä’s staff was 100 per cent Guyanese; they were all trained to conduct routine maintenance; and there was room for financial resources to be saved for the benefit of stakeholders. He noted that under Wärtsilä, many Guyanese were sent to various parts of the region to offer assistance in maintaining generators supplied by Wärtsilä.

“We also discovered that several of our Caribbean countries after a period of time with…Wärtsilä, transitioned over to local ownership and we thought that the time was opportune (for us to do) likewise,” the public infrastructure minister said. When PPDI started its operations in 2016, it had 114 employees. Today the company has 143 highly trained and certified employees.

Minister within the Ministry of Public Infrastructure, Annette Ferguson was also present at the AGM.