Minister of Public Utilities and Aviation Deodat Indar says negotiations over the continued use of one of Guyana’s rented power ships are almost complete, while rejecting suggestions that the Government was forced into accepting unfavourable terms.
Speaking on the Starting Point Podcast, Indar said the discussions relate to the 36-megawatt power ship brought in two years ago to help stabilise electricity supply, particularly on the Berbice side of the grid.
The minister explained that Guyana initially secured what he described as a very low concessional rate for the vessel, at a time when the country urgently needed additional power to meet rising demand.
“The genesis of this matter is that we had to get extra power, and at the time, two years ago, we brought in 36 megawatts. At that time, that’s what we needed,” Indar said.
He said the Government negotiated with UCC, a joint venture involving Turkish interests that owns the assets, and secured a rate of 7.2 cents per kilowatt hour.
“We negotiated 7.2 cents per kilowatt. It’s split between a capacity charge, and that rate was the cheapest rate anywhere we could find it, with a ship that is available, at the time that we needed it,” Indar said.
According to Indar, a second power ship, supplying 60 megawatts, was later secured at 9.5 cents per kilowatt hour to help meet increased demand during a period when GPL required more generation capacity.
He said the Government moved quickly to connect that vessel, including completing approximately four kilometres of transmission line in six weeks.
The minister noted that two years have now passed since the first power ship came into operation, and Guyana still requires the additional generation as the Gas-to-Energy project is not yet delivering power to the grid.
Indar said the 36-megawatt vessel remains important because of its location and its role in supporting voltage levels in Berbice.
“We have not got the power yet from gas to energy, so we need the power still, because we need the voltage, and we need the generation at Berbice side,” he said.
The minister confirmed that the company requested an increase to 9.5 cents per kilowatt hour, while the Government countered with 9 cents.
“So they asked for 9.5 cents. We said we want 9 cents, and we are working between that,” Indar said.
He said the Government understands that the company may not renew the arrangement at the original concessional rate, but insisted that the administration has taken a firm position in the negotiations.
Indar also said the public release of correspondence during the negotiation process created misunderstanding and allowed some persons to misrepresent the situation.
“You don’t negotiate in the public. You negotiate with the people, and we are back and forth. They give their position. We say, fine, we give you our position,” he said.
The minister said the Government has been tough in the talks and remains focused on protecting the interests of citizens.
“Our government, led by President Ali, we made sure that we took some strong positions on negotiation,” Indar said.
He added that while the vessel is already connected and Guyana still needs the power, the company also needs the work, making it necessary for both sides to find common ground.
“We need the power. They need the work. Let’s find a middle ground, and that is what we’ve been working on,” Indar said.
According to him, the matter is close to being settled.
“We reached, I would say we are 99% there, not fully yet, but we are 99% there with a final outcome,” he said, adding that a formal statement will be issued once the process is completed.
Indar also strongly rejected claims that Guyana had been placed in a weak negotiating position.
“No one should believe we were ever backed in a corner. We will defend the interests of the Guyanese people. We will fight the best we can to get out of the outcome,” he said.
He added, “We don’t lay back and say, well, you come and bamboozle us. That doesn’t work with us. We don’t operate like that.”
Meanwhile, Indar said the ongoing power supply challenges are not linked to inadequate generation. He said GPL currently has more generation available because of its existing assets and the two rented power ships.
He said peak electricity demand is around 228 megawatts, while GPL has approximately 267 megawatts available.
“Any outage that you get is because of those same notices that you see going out, or somebody jamming the grid. It is not because of generation,” Indar said.
The minister said demand continues to fluctuate based on weather, development activity and customer use, but GPL continues to monitor the situation closely.
He said the Government’s wider energy strategy remains tied to the Gas-to-Energy project, which is expected to bring cheaper and more reliable electricity once it comes on stream.
