The New Today

Letters

GRENLEC planned generation debacle

They are still NOT listening……

Despite technical and commercial advice by Grenlec’s engineers and management respectively, the Government appointed directors on Grenlec’s Board seems intent on moving ahead with the project to install high speed gas fired generating units at Queen’s Park.

The Board continues to ignore the advice from management and discussions on a Power Purchase Agreement (PPA) are proceeding at full speed with Power Phase LLC.

Grenlec’s management has requested Power Phase LLC to provide references where these units are installed in base load power generation service – and they have flatly refused to provide that information – not surprising as no such references exist!

The stooges on this new Board are leading Grenlec and by extension the country down a slippery slope by promoting a project that would yield financial rewards for certain persons, domestic and foreign without any regard for the well-being of Grenada.

The chief architect who has his hands all over the place including one of our key sectors for bringing in foreign exchange has been busy lobbying board members to align themselves with this crooked scheme.

My advice to Grenlec’s management is to put your objections clearly and boldly on the record. Otherwise, when things start going south, Board members and Government Ministers are going to put the blame squarely on your shoulders.

On another note, my sources have told me that Grenlec will be unable to pay a dividend for the first quarter of this year. If this is accurate, then this would be the first time that Grenlec is unable to pay a dividend since it started dividend payments post the 1994 privatisation of the company.

An earlier article appearing in The New Today warned about this situation: “The non-fuel component of the tariff is what allows Grenlec to operate and maintain its generating plant and transmission and distribution system, meet its debt obligations, and pay dividend to its shareholders. Indiscriminate lowering of this component of the tariff could have serious negative effects on the quality of service and profitability of Grenlec.”

Board members be careful and think about your fiduciary duty to all shareholders!

Grenlec Watcher