Cabinet has given the greenlight for a consortium to set up a 300 Megawatt Combined Cycle Power Plant and Natural Gas Liquids (NGL) Plant at Wales, West Coast Demerara (WCD), under an Engineering Procurement Construction (EPC) Contract.
President Irfaan Ali on Thursday announced that Cabinet has issued its no-objection in favour of CH4/Lindsayca as the number one ranked group to build the power plant. He said Cabinet’s no-objection would allow negotiations to proceed for the conclusion of the EPC contract.
Power China, another bidder that participated in the tender process of the project was ranked number two and will likely be engaged if negotiations fail to conclude a contract with Lindsayca by the end of November.
“Contract negotiations will now start with the expectation that a contract will be executed before the end of November. Key considerations in the evaluation took into account the expected date of delivery of the 300 MW power plant by December 2024. Both top-ranked companies confirmed this deadline. The EPC Contract will be supervised by a global supervision firm. The selected supervision firm is Engineers India Limited,” the President said.
The Head of State added that the 300 MW power plant and NGL plant will be owned by the Government of Guyana and before the conclusion of the construction, an international firm will be competitively selected to operate the project to international standards and best practices.
“Exxon Mobil is expected to deliver the completed pipeline to the power plant by the fourth quarter of 2024, to achieve commissioning and testing of the 300 MW power plant by the end of 2024. The Gas to Energy Project is expected to deliver power at less than half of the current costs. Project generation costs, taking account of payment for the pipeline, operations, and maintenance (O&M), and capital cost recovery, shall total less than five (5) US cents per kilowatt-hour,” he added.
President Ali stressed that the project would not only aid Guyana in achieving energy security, but also result in a substantial reduction in the cost of electricity for Guyanese.
“Just for reference, a family at the end of this project that now pays GY$20,000 per month in light bill or electricity costs will see that costs coming down to GY$10,000,” he reasoned.
Earlier this year, nine firms were publicly pre-qualified to bid on the EPC contract. A Request for Proposals (RFP) was issued to these pre-qualified bidders. At the closing date of September 13th, five (5) bids were received. These bids were evaluated for technical compliance and ranking by Stantec and Worley, two global engineering firms with expertise in oil and gas. Based on the reports of these international firms, an Evaluation team of three people, including a representative of Exxon, was appointed. The Evaluation Team performed the evaluation in accordance with the technical and economic criteria set out in the RFP. Based on the bids submitted and clarifications received, the Evaluation Team unanimously ranked CH4/Lindsayca as number one, and Power China as number two.