Cutting of energy bill by 50% closer - PM
-as Gas-to-Power task force has made `substantial’ strides
Prime Minister Mark Phillips yesterday told the National Assembly that the government is continuing to work towards cutting the electricity cost by 50% as according to him the Gas-to-Energy taskforce has made substantial advances.
Stating that budget 2024, the largest in the country’s history, has sent “shivers” through the opposition, Phillips asserted that major strides in shaping the future of Guyana have been made through the transformative gas-to-energy power generation project.
According to him, this project is significant for all Guyanese because of the positive impacts it will have, allowing for cheaper and more affordable electricity at approximately 50% less cost when it is completed. “This is what our party promised to the people of this country before we assumed office, and this is what we will deliver to them. Mr. Speaker, the Gas-to-Energy Taskforce has made substantial progress in the integrated power plant and NGL (natural gas to liquids) facilities, with 6.8% completion of Balance of Plant (BOP) site preparation.”
He stated that key areas, namely Areas 4 and 5, identified as critical paths, have seen significant advancements, including completion of wick drains in Area 5 and substantial progress in Area 4. “Wick drain installations are at 75%, with a targeted completion date of February 7, 2024. Surcharge activities in these areas are underway, with settlements recorded, and a decision on further surcharge or pile driving (was) anticipated by midJanuary 2024.”
Additionally, he said that crucial agreements have been concluded.
“Significant progress has also been made in the engineering and fabrication of gas turbines, steam turbines, and GSU transformers. Mr. Speaker, KPIL (Kalpataru Projects International Limited ) has achieved significant milestones in the Transmission Lines and Substations project, including the completion of land clearing and Geotech works at Substation locations and the scheduled white sand filling of Goedverwagting in December.”
The alignment of the transmission line along the new Schoonord road is in the finalization stage, involving coordination between KPIL, Stantec, TF, and CH&PA. Geotech work for the river crossing main and anchor towers has been completed, with official permission granted
for the occupation of the 100-foot corridor of the asphalt plant compound, the prime minister noted.
In the realm of consultancy for Transmission Lines & Substations and the supply of transformers, he said, Stantec has played an important role in overseeing Kalpataru’s EPC (Engineering Procurement and Construction) contract and Cummings Electrical’s transformers contract. In the area of land acquisition, progress has been made for the NGL Pipeline, with public acquisition completed and ongoing court cases for privately owned lands.
He then added, that state-owned lands are also in the process of being vested with the Guyana Power and Gas Inc. (and) communicated to GLSC. For NICILowned lands, “we are awaiting cadastral surveys.”
“In 2024, the Gas-to- Energy Taskforce is poised to maintain its steadfast commitment to the seamless execution of activities across its supervised projects. Anticipating the evolving needs, there are plans for strategically hiring additional project personnel throughout the year.”
According to him, the government’s focus on monetizing gas reserves is evident through the drafted and submitted discussion paper, seeking input from citizens to shape the National Gas Strategy. “The incorporation of citizen feedback will play a pivotal role in finalizing the strategy. Mr. Speaker, building on the progress made in the previous year, the Gas-to-Energy Project is on track for startup, supported by advancements in onshore and offshore pipeline installations.”
The continuity of installation campaigns and development initiatives in 2024 underscores the sustained effort to bring the transformative project to fruition, he stressed.
“The gas to energy taskforce in integrated power plant with 6.8% site preparation already completed, significant progress has already been made. Mr. Speaker (the) transmission line is progressing nicely at substation locations.”
Turning to the Guyana Power and Light Inc. (GPL), Phillips said that it has ramped up its gross generation capacity from 1,030,288 megawatt hours (MWh) in 2022 to an estimated 1,179,883 MWh in 2023.
“Moreover, Mr. Speaker, in 2023, the Guyana Power and Light achieved significant milestones, including successfully securing the services of an engineering firm to draft specifications for the steel monopole double circuit structure for the L5/L5-R Works”, he said.
The specifications, completed in June 2022, received the no objection from the Inter-American Development Bank (IDB) on July 28, 2022, and were crucial for the change in scope in Addendum No. 1. Additionally, GPL accomplished the first review of the Detailed Engineering Package on October 30, 2023, and November 22, 2023.
“The demarcation of works at the Kingston and Sophia Substation commenced in December 2023. GPL also achieved timely completion of the Audited Financial Report for 2022, submitting it to the IDB on April 18, 2023, well before the prescribed due date of April 30, 2023.”
In 2024, he said they plan to continue along the trajectory of success for power generation by utilizing the budgeted allocations for strategic and transformative projects – that is $732.016 million is earmarked for the construction of L5 69kV Transmission Lines and Substations Upgrade from Kingston to Sophia.
The contract, signed in September 2021, witnessed a commencement order issued in December 2022 following the approval of Addendum No. 1 due to a change in scope from wooden poles to steel poles. Physical work is now projected to commence at the end of January 2024, with Interim Payment Certificates expected from March 2024 and the completion targeted in Q1 of 2025.
$13.07 million is designated for consultancy services related to the preparation of bidding documents and technical review of proposals for the installation of 55 MVAR Capacitor Banks across four substations.
A consultant has been engaged to assist GPL in developing the terms of reference for the bidding processes concerning the engineering, procurement, and construction contracts. The budgeted amount is intended to cover the remaining payment on the contract, with the completion of Tender Documents and Specifications expected in Q2 of 2024.
$65.678 million has been allocated for a consulting firm to undertake detailed engineering designs and specifications for the L1 and L3 transmission lines. The procurement process, initiated in December 2023 through the QCBS (Quality CostBased Selection) process, is estimated to take approximately six months, with the full engineering package expected by Q1
2025.
Additionally, $24.2 million is designated for project management, monitoring, coordinating team, and project administrative costs, covering staff expenses for the Programme Coordinating Unit, including procurement and financial assistants, transmission engineering specialists, and a clerk of works.
“Might I remind this Honourable House that when the PPP/C took over in August 2020, we inherited a bankrupt GPL due to gross mismanagement of the company because of course, a visionless bunch of elites were too occupied and unbothered about the plights of our people; all their work consisted of was what they could grab for themselves during their tenure, which included a blatant attempt to rig the elections in front of the entire world”, he charged.
In terms of the Hinterland Electrification Company Inc (HECI), Phillips said it is focused on prioritizing the enhancement of energy access in hinterland communities to foster their social and economic development with various initiatives being undertaken to extend or upgrade electricity services in these areas. “Capital projects for 2020, 2021, and 2023 showcase efforts to address generator issues and expand distribution networks. Mr. Speaker, in 2020, upon taking office, significant intervention was required as critical generators in Matthews Ridge, Mahdia, Port Kaituma, and Lethem required major overhauls or replacements.”
Further, he said, additional generators were then procured for Matthews Ridge, Lethem, Port Kaituma, and Mabaruma to meet growing electricity demands. Between 2021 and 2023, projects were implemented to provide electricity access to over 700 households in unserved communities near Mabaruma, Mahdia, Port Kaituma, Matthews Ridge, and Kwakwani.
According to the prime minister, key achievements in 2022 included the procurement of new generators for Port Kaituma, Mabaruma, and Lethem, improving reliability for numerous households and businesses.
Expansion projects were initiated in Kwakwani, Campbelltown, and other areas in Mahdia, benefiting unserved households. Upgrade projects in Bariminobo and Rocks Community in Mabaruma were started, enhancing electricity service to about 60 households, and expansion projects in Port Kaituma and Matthews Ridge were commenced, benefiting hundreds of households.
“Mr. Speaker, in 2023, notable achievements were accomplished in the energy infrastructure projects. The upgrade of the 2.3kV network to 13.8kV at Linden involved successful material supply and execution of upgrade construction works. Additionally, the upgrade of the substation at Linden saw the completion of the construction of the substation building and the supply and installation of switchgear.”
Other achievements he said included the construction of a distribution network to 4-Mile, Port Kaituma, procurement of a main power transformer for Mahdia, and the procurement of line hardware for network extension at 4-Mile, Port Kaituma.
The extension of the distribution network to Minab & Pakera, co-financing for the 150kW hydropower construction, extension of the distribution network to the Moco Moco Hydropower Site, construction of an office & washroom building for Matthews Ridge, and the provision of an emergency generator for Lethem Power showcase substantial progress in enhancing energy infrastructure. Additionally, the successful supply of generators for Mabaruma and Matthews Ridge further contributes to the overall improvement of power services in the respective regions, the prime minister noted.
In 2023, ongoing projects to extend electricity services to unserved communities were estimated to benefit over 700 households. The goals for 2024 include further extending or improving electricity services for an additional 200 households and strengthening existing generation and distribution systems to enhance service quality and reliability for approximately 18,600 consumers.
The planned major capital projects for 2024 include upgrade of the entire distribution network at Kwakwani to conform to national standards, reduce losses, and accommodate a solar farm, upgrade of the 2.4kV network to 13.8kV at Kwakwani, installation of a new 1MVA generator at Kwakwani, installation of a new 800 MVA transformer at Mahdia, extension of the electricity network to Canal Bank, Port Kaituma, providing electricity access to about 200 households, procurement of 4000 energy meters for hinterland utilities, wiring of approximately 88 community buildings in 9 hinterland communities to receive electricity from existing solar PV micro grids, and completion of the 150 kW hydropower project in Kato, Region 8.
“Mr. Speaker, given the tireless work of the HECI and the GEA under the stewardship of this PPP/C Government, to date, the proportion of hinterland population with reliable access to electricity moved from 50% to 66%. For 2024, continued works will seek to ensure that that proportion advances to an astounding 90% to achieve coverage for the entire hinterland population by 2025.