WAPA Board Approves Glencore Ltd. As Supplier of Fuel Oil for Power Plants

Rendering of the Wartsila Power Plant with three new units at Harley power plant St. Thomas. (Image provided by WAPA, March 2017)
Rendering of the Wartsila Power Plant with three new units at Harley power plant St. Thomas. (Image provided by WAPA, March 2017)

On Thursday, Oct. 25, the Governing Board of the Virgin Islands Water and Power Authority (WAPA) Thursday authorized an agreement to allow WAPA to maintain a contractual relationship with Glencore Ltd., the utility’s primary supplier of No 2 oil. Under terms of the agreement, Glencore will continue to meet WAPA’s needs for No. 2 distillate fuel oil and ultra-low Sulphur diesel at the two power plants. The approved agreement is effective January 2019 for a 12-month period with options to renew for successive 12-month periods.

“Glencore Ltd. has demonstrated a consistently positive track record in regards to safety and reliability, and has maintained a good working relationship with WAPA,” said Clinton T. Hedrington Jr., chief operating officer of Electric System.

In other action, the governing board approved:
· Addendum to an existing contract with Barkley Technologies for an additional 14 months at a cost of $1.2 million. The company is providing specialized project management, design support, and field support services for composite installation projects across the territory.
· A contract with CDR Maguire in the amount of $289,500 for development of a territory-wide Water Distribution Master Plan. The plan was last updated in 1987.
· A contract with Leidos Engineering LLC totaling $1.5 million to perform engineering design services for a submarine cable project. The contract is fully reimbursable by FEMA as part of hazard mitigation projects. The new submarine cable will strengthen the electric transmission system allowing for more efficient restoration of electrical service following a natural disaster, and it will provide more reliable service for customers in the St. Thomas-St. John District.
· The extension of maturity dates of the Authority’s lines of credit and overdraft credit facilities with First Bank until Nov. 15, and an extension of the maturity dates of the Authority’s Banco Popular lines of credit until Dec. 31, 2018.

Board members in attendance included Chairwoman Elizabeth Armstrong, Vice-Chairman Hubert Turnbull, Commissioners Devin Carrington and Nelson Petty Jr., Director Marvin Pickering, Cheryl Boynes-Jackson and Gerald T. Groner Esq. Secretary Juanita Young and Noel Loftus were excused.