The BVI Electricity Corporation (BVIEC) has inked a multi-million-dollar contract nearing $159 million with regional petroleum company SOL St Lucia Ltd to replace Delta Petroleum as the Territory’s main provider of No.2 Diesel for the production of electricity.
As explained by BVIEC Chairperson Mrs. Rosemarie Flax, in addition to the fuel supply contract, SOL St Lucia Ltd has also secured other contracts with the Corporation, inked that same day, for necessary services at the Henry Wilfred Smith Power Station at Pockwood Pond and the Anegada Power Station.
“Today we are signing contracts with SOL for No.2 Diesel fuel for the Henry Wilfred Smith Power Station and the Anegada Power Station. We are also signing contracts for lubricating oil for the Henry Wilfred Smith Power Station and the removal of waste oil… All for a period of just one year. These contracts are critical to the operations of the organisation and to ensure that we have a steady supply of electricity to the residents of the Virgin Islands”, she said.
The new deal with SOL St Lucia comes in the wake of previous agreements with Delta Petroleum being ended prematurely due to Delta being unable to meet the demands of the existing agreement.
Being the only other petroleum company with significant capacity to store fuel in the British Virgin Islands, SOL St Lucia positioned itself to replace Delta by submitting bids to the BVIEC after a tender was advertised locally.
The bid was received by BVIEC in May in the amounts as follows:
$156.2 million for the supply of fuel to the Henry Wilfred Smith Power Station, $1.9 million for the supply of fuel to the Anegada Power Station and $856,000 for the supply of lubricating Oil.
Flax said that the physical presence of the awardee within the BVI was imperative to ensure that ease and reliability were considered for this important utility, as the receipt of fuel from outside sources could face delays or fall victim to inclement weather.
General Manager of SOL St Lucia, Ruffino Lin took the occasion of the contract signing to pledge the company’s dedication to consistency in its duty to supply the BVI.
“As we execute this contract we confirm our commitment to continue to supply the corporation and the BVI with all its requirements for diesel and lubricants and also the removal of waste oil. We recognize and accept the obligations that come with these contracts and we wish to ensure the corporation and the BVI community that we will deliver”, he said.
The contract with SOL St Lucia will only be active for the period of a single year, and will expire on August 31, 2023.
Due to its short duration, the obligations which it fulfils will go out for tender again in January 2023.