GPL tables major expansion plan
-- 30,000 more households earmarked for power supply
Guyana Chronicle
July 16, 2004
THE Guyana Power and Light Company (GPL) has presented Prime Minister Sam Hinds with a comprehensive five-year development and expansion plan for 2004-2008, the Office of the Prime Minister announced yesterday.
The power company has undertaken an ambitious programme which will see a total investment of around US$120M over the next half-decade, according to a statement from Mr. Hinds who has cabinet responsibility for the electricity sector.
Expenditure of US$23.5M – US$21M of which will be taken from an Inter-American Development Bank-funded progamme worth US$27.4M – has been earmarked to provide access to electricity to more than 30,000 households in some 200 low income areas around the country.
One of the more important elements within the project is an extensive upgrading of GPL’s generation capabilities which sees the company installing a total of 60-65 megawatts of new electricity generation units under a phased programme schedule.
The steam generating station at Kingston and several diesel generators and other, smaller, generators are to be retired to make way for more up-to-date equipment, the statement said.
And in what appears to be a major breakthrough in a previous agreement deadlock on outsourcing power generation, part of the company’s plans to improve power generation is to contract Independent Power Producers (IPPs).
These include the Guyana Sugar Corporation planned co-generation facility at Skeldon and DELTA’s Wind Power farm at Hope Beach, both within the Berbice area.
According to the release, the power company “hopes that the costs of electricity purchased from the IPPs would be no greater than the costs incurred by the sets being replaced.”
GPL also plans to take steps to reduce overall losses by up to 30% during the five-year duration of the plan.
It plans to spend some US$21M on improving its transmission and distribution systems – including the construction of a number of sub-stations – which should reduce technical losses while improving voltage levels.
GPL also projects completing the conversion of 50 cycle areas in Georgetown and its environs to 60 cycles, after which it will retire the frequency conversion station at Sophia.
Regarding the reduction of commercial losses or theft of electricity, the company will be addressing the problem by “checking all meters, replacing all defective ones and changing all meter installations to the new standard.”, a projected investment of US$2M.
GPL is seeking the Government of Guyana’s aid in accessing concessionary financing for the project which it believes will bring additional financing costs not accounted for in the initial investment figures, the statement said.
The company “expressed concern that the returns to new equity, whether local or foreign, at usual commercial rates of return would add significant costs to the company, which…would need to be met from the electricity rates.”
It recommended that the government continue to forego the returns on its US$50M stake in the entity, estimated at close to US$10M per annum.
Should the government do this, GPL says that there is “a good chance” that there will be no significant increase in electricity charges.
According to the release, the Prime Minister recognises that the programme may seem to be optimistic but urged that everyone in Guyana should work to make the aims of the project a reality.
Mr. Hinds listed “four essentials” for a reliable supply of electricity:
** widespread local participation in the financing of the programme;
** zero tolerance for electricity theft;
** better customer service and job dedication by Guyana Power and Light employees;
** and more considered use of electricity by consumers. (RUEL JOHNSON)