ST GEORGE’S, Grenada — THE Grenadan government says while it has not been able to purchase controlling shares n the island’s lone electricity company, it will ensure that shares are made available to the general public.

“We cannot buy the shares, we do not have the money to buy them,” Finance Minister Nazim Burke told reporters, adding “we did not have to grab the company for the sake of ownership”.

The US-based WRB Enterprises which owned 61.4 per cent of the Grenada Electricity Company (GRENLEC) recently offered the Tillman Thomas government the option of retaking control of the company by purchasing its shares for almost EC$100 million (One EC dollar =US$0.37 cents).

But Burke told reporters that the Barbados-based Light & Power Holdings (LPH), which is a subsidiary of the Canadian-owned Emera Inc had “reached an understanding” with WRB and is close to completing a purchase agreement for the controlling shares in GRENLEC.

Burke said the shares are presently valued at EC$11 but the new majority owners are purchasing them for EC$7.50.

Grenada Private Power, a subsidiary of WRB owns 50 per cent of the existing majority shares with the remainder being owned by the Belize-based Eastern Caribbean Holdings (ECH), the National Insurance Scheme, the Government of Grenada and the general public.

Burke said that under the new agreement LPH will be allowed to purchase the 61.4 per cent shares.

“However, in keeping with the government’s policy that no entity shall own more than 50 per cent of GRENLEC, the new agreement blocks LPH from having any voting rights associated with the Eastern Caribbean Holding shares and allows the Government to purchase them at the same price the LPH purchased the shares up to one year after the initially purchase is concluded,” Burke said.

Attorney General Rohan Phillip said in anticipation of the LPH takeover, government has been in negotiations with the company and talks are “well advanced”.

Phillip and Burke, who have been involved in the negotiations with LPH, said there will be amendment to the Electricity Supply Act to govern an agreement between the Grenada government and the Barbados-based company.

“Some laws are to be passed,” said Burke, adding that government is establishing a “regulatory framework to serve the best long term interests of the country”.

Government has circulated a 20-point document captioned, “The New Framework for Grenada’s Electricity Sector” which indicates that “an exclusive license will be granted to GRENLEC to generate electricity from fossil fuels only”.

Burke described this as one of the positive outcomes of the negotiations with LPH and that government had broken GRENLEC’s monopoly on electricity supply.

“Even though government couldn’t buy the WRB/ECH shares…it used it as a historic opportunity to promote renewable energy, including a proposed project for the introduction of electric vehicles and to put policies in place that are fair to all Grenadians. We are very pleased with the outcome of these negotiations,” said Burke.

“The government has moved swiftly and decisively to protect and enhance the interests of its citizens in a sector that is vital to national security. Access to affordable, reliable and clean energy is critical for the sustainable economic development of Grenada,” he added.

LPH also owns 19.1 cent of St Lucia Electricity Services, while parent company Emera owns 80.4 per cent of Grand Bahama Power Company (GBPC). Emera, which bought GBPC last year, reported Cdn$124 million ($11.4 billion) in operating revenues and Cdn$4.6 million in net income for the Bahamian company last year.

— CMC