Delta Petroleum Caribbean Ltd will be the main supplier of refined petroleum to the BVI Electricity Corporation (BVIEC) over the next five years after signing a contract on Thursday October 27 to provide fuel to the Corporation until 2026.
The BVIEC held a contract signing ceremony to signify the new partnership between the two entities which officially commences from November 1, 2021.
Chairwoman of BVIEC Mrs. Rosemarie Flax explained the criteria used to select Delta as the winning bidder of the contract.
She said Delta satisfied all the requirements needed which made them the preferred choice, but also revealed that the contract, despite being for a five-year duration, will be split into two separate terms which will run consecutively.
“Based on the analysis of the bids received on the 22nd of April 2021, the Corporation accepted Delta Petroleum Caribbean Limited’s bid for the supply of number two diesel. This acceptance was based on the guarantees, condition, specifications and price, stated in their tender documents dated the 21st of April 2021. Hence the contract was awarded to them for five years,” she said.
“Due to the present uncertainty in the global marketplace brought about by the pandemic, both parties have admittedly agreed to a two-year term commencing the 1st of November with caveat for a renewal on the same terms and conditions based on the mutual consent of both parties for the further three years, from the 1st of November 2023 to October 31, 2026,” she added.
Chairwoman Flax said that the Corporation is confident in Delta’s ability as in the past that they will perform their responsibilities to the highest standard.
Sharpened pencils after losing contract to Sol in 2018
Delta’s Regional General Manager Bevis Sylvester said that his company had to do some reevaluation after losing the contract they initially held to SOL in 2018.
He said he believed the 2018 contract was lost because of the pricing bid the company submitted.
“BVIEC always looks for the best and lowest price and we in this time, we sharpened our pencils pretty well and went back to a very low price that has not been offered to Electricity since like in 2007 and that price is what I think gave us the advantage, along with our very good service and the fact that we have proper storage pipelines in place that we can supply you on. I am happy that we are signing today and I am also happy that our team at Delta Petroleum continues to do a good job in supplying BVIEC,” Sylvester stated.
Delta now the main supplier of fuel to every electricity company with a branch
Managing Director of Delta, Vernon Lake said that Thursday’s signing meant that his company was now the main supplier of every electricity company in the region where a Delta Petroleum branch is located.
He said his company has been in business with the BVIEC for nearly four decades as was the first petroleum company to bring unleaded fuel to the BVI.
Lake said, “For me it is a great pleasure for me to speak to you this morning. It’s been 38 years that I have been associated through Delta with the BVI Electricity Corporation. Our first contract was in 1984 when Shell was here, a monopoly in the country, prices were way through the roof. You could hardly drive your car, you could hardly buy cooking gas, it was impossible. My dear company Delta Petroleum came along to change everything.”
He added, “Delta Petroleum was the first company in the BVI and the Eastern Caribbean to bring unleaded gasoline into these islands.”
No electricity without fuel
Meanwhile, General Manager of BVIEC Leroy Abraham spoke to the significance of the signing.
He said, there is a direct correlation between fuel and the production of electricity, adding that at this present time the majority of the electricity in the territory is produced on fossil fuel and if there is no fuel there is consequently no electricity.
Abraham said the relationship between the Delta and BVIEC over their 30-plus year relationship has been consistent, and he is confident in them providing excellent service during the five-year deal.