Letters to the Editor

What about bidder #3?

Wednesday, May 07, 2014    

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Dear Editor,

There has been a lot of talk about EWI and their ability to perform not only with a bond but with financing and the supply of LNG.

As they have not met the criteria set out originally it is felt that the number three bidder, Energize Jamaica Limited, should be considered. Their bid which came out at less than US19 cents and not US 21cents was based on the requirement for quotation stipulating dual fuel and they made the offer accordingly with LNG as primary fuel and HFO as backup.

It is noted that EWI quoted only on LNG. In this regard, it is felt that Energize Jamaica Ltd should be asked to do the same. It is understood that Energize Jamaica Ltd stands ready and they have the following:

1. Full financing available and confirmed by international agencies -- International Finance Corporation (IFC) and the Inter-American Development Bank (IADB). If required, Wartsila is prepared to make an investment of approximately 19 per cent.

2. They can put up a full bond both for the bid and/or for performance in short order, as required.

3. They have a supply of LNG from a most reputable petroleum company, guaranteed for 20 years.

4. They have a guarantee for financing, not only in the supply but in the establishment of the LNG infrastructure.

5. They are using the Wartsila systems and it is known that Wartsila is reliable and have a good track record, not only in Jamaica, ie two (2) barges -- Doctor Bird I and II and the 66MW plant but also in the Caribbean and the world.

6. The consortium of investors is competent in their fields, ie, Musson Jamaica Ltd, a diversified logistics partner and manufacturer in 33 countries worldwide; Tank-Weld, industrial infrastructure and pipelines; Seaboard International, experts in the oil and gas, marine and industrial infrastructure sectors; Wartsila, expert in generator manufacturer with over 4,000 Wartsila engines installed since 1992.

7. The project can be completed in 24 months.

8. They have a cadre of experienced local construction companies, who were involved in the 66MW plant and are ready to break ground with this project.

9. With a bidder having the above qualification and reputation, it should be prudent to call them in for discussions and negotiations.

10. Energize Jamaica Ltd has presented bids on three occasions for this project. They were the number one bidder the first two times and, on the third, they have been put in third place with the number one and two bidders either failed to perform or has a reputation that is suspect.

Energy enthusiast





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