GPL in final stages of negotiation for continued rental of Powerships

Minister of Public Utilities, Deodat Indar, has indicated that the Guyana Power and Light (GPL) has almost concluded negotiations with Karpowership on their continued presence in Guyana to support the national electricity grid with power.

Questioned about the particulars of the new agreement, the Minister said the negotiations are 99% complete. He would offer no details on the proposed new agreement.

The previous two-year agreement for the rental of the two power ships expired earlier this month. The Turkish-owned company demanded an increase in its charges and standardized rates, warning that it would disconnect the power if the Government did not meet its demand.

The Public Utilities Minister told reporters today that the Guyana Power and Light Company is expected to issue a full statement on the new agreement soon.

“Allow GPL to put out a statement…Listen, we have fought tooth and nail on the negotiation, but allow GPL to put out their statement at the appropriate time,” Minister Indar said.

However, pressed for the details of the agreement, Minister Indar said the two sides were in the final stage of the agreement.

“They are in the final, final stages of it, and allow them to put out a statement. 99% [concluded], 99%. Let GPL put out a statement….GPL and the company was doing the negotiation, and allow them to issue a statement, please, one day,” Minister Indar would only say.

The two power supply vessels were rented from Karpowership at a combined cost of US$235,000 per day.

In a statement earlier this month on the issue, Minister Indar assured that the Government was working in the best interest of the people of Guyana to get the best possible commercial rate for the renewal of the contract,”

At that time, he promised to be transparent with the negotiations and the outcome of the talks between the Guyana Power and the Karpowership company.

Two years ago, the Government through GPL signed a multi-million-dollar contract for the rental of the power ships for two years to meet the growing electricity demand in the country.