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News

LNG contract going back to tender

Thursday, July 14, 2011



OPPOSITION spokesman on energy Phillip Paulwell has questioned government's reason for not disclosing that a Cabinet decision was made last month for the Liquefied Natural Gas (LNG) contract to be sent back to tender.

Paulwell, who was addressing a press conference at the People's National Party headquarters in Kingston yesterday revealed that the project is to be separated into two contracts -- one for the provision of onshore facilities and the other for offshore facilities including the proposed degasification terminal.

Contractor General Greg Christie had recommended that the contract be put back to tender after he cited several discrepancies in process which resulted in the Exmar Consortium winning the bid, and suggested that there appeared to be a bias toward Exmar in the bidding process.

Yesterday, Daryl Vaz, the minister responsible for information, while confirming that the project has been put back to tender, said despite Cabinet's decision, a process has to be followed before an announcement is made.

"It is still a process as a result of the decision taken by Cabinet for the abandoning of the original tender," Vaz told journalists at the weekly post-Cabinet press briefing at Jamaica House in Kingston.

According to Vaz, the LNG steering committee which was given three weeks to report its findings, is expected to inform Cabinet by next week as to the implications of the retender.



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