GPL maintains that procurement process for Heavy Fuel Oil compliant with law
The Guyana Power and Light (GPL) yesterday insisted that its procurement process for Heavy Fuel Oil (HFO) is fully compliant with the law.
In a statement, GPL was responding to a letter by Edward Burrowes in yesterday’s Stabroek News which alleged that the barge that capsized off of Tobago and caused environmental damage was illegally transporting oil from Venezuela to Guyana in violation of American sanctions. The letter writer alleged that only the privileged are allowed to sell fuel to GPL.
In a statement, GPL said that whilst the company is aware of the unfortunate oil spill incident, “GPL refutes the accusations outlined in the writer’s correspondence. The letter is riddled with inaccuracies, conjecture and false information to deliberately mislead the public”. The GPL statement did not address the specific allegations.
The GPL statement noted that on Wednesday, February 21, 2024 the company issued a public statement explaining the company’s procurement process for Heavy Fuel Oil.
“The Company maintains that its procurement and tendering processes are transparent and are in accordance with the National Procurement Act of Guyana”, the statement said. GPL said it found it alarming that after releasing a statement a week ago, Stabroek News did not contact the company or publish the statement.
Stabroek News did publish the contents of the statement in its edition of February 22 in a news item headlined: ` Search still on for oil spill principals’. https://www.stabroeknews.com/2024/02/22/ news/guyana/search-still-on-for-oil-spillprincipals/
In that statement, GPL said it had tendered for the supply and delivery of HFO in June 2023, via national competitive bidding. Six bids were received. The tender was awarded on October 24, 2023, to Staatsolie MaatSchappij Suriname N.V. (the first ranked bidder). An additional award for the supply and delivery of HFO was awarded to the joint venture Rapid Results Inc. and Osher
International Holdings LLC (the second ranked bidder) to augment GPL’s increasing consumption of HFO and supply requirements.
GPL said that the terms of both contracts require the suppliers to deliver the fuel to GPL’s ports along the Demerara River.
“Title, ownership, and risk of loss for the fuel passes from the suppliers to GPL at the discharge port. GPL has not received any notification from any of its contracted fuel suppliers that they have encountered difficulties with their vessel(s) resulting in the loss of cargo. GPL therefore wishes to unequivocally state that the Company is not related to this unfortunate incident”, the company said.