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Virgin Islands Water and Power Authority Issues two Invitations for Bid for Fuel Oil Supply

(Monday, March 19, 2012)



The Virgin Islands Water and Power Authority  (VIWAPA) issued two Invitations for Bid (IFB)  Friday to all entities interested in supplying  No. 2 Distillate Fuel Oil and No. 6 Residual Fuel Oil for the utility’s generating facilities in Krum Bay, St. Thomas and Estate Richmond, St. Croix. Bid proposals are due by April 10, 2012. The purchase agreement between the Authority and the successful bidder (s) will be for one year commencing July 1, 2012, with options to renew for one year.

According to Executive Director, Hugo V. Hodge, Jr., CPQ, the Authority will require No. 2 distillate fuel oil for its gas turbines, and the heavier No. 6 heating oil for its steam boilers. The Authority uses a total of about 200,000 barrels of fuel oil monthly. Hodge said that there has been a great show of interest in the region from entities interested in meeting the utility’s need. “We anticipate that it will be a very competitive process,” he said. “Our mission is to secure a quality fuel supply that will be appropriate for burning in our generators without requiring extraordinary maintenance to the generating stations and their associated equipment or causing extraordinary problems in our plant operations. The fuel must meet all local and federal environmental regulations. Most importantly, the Authority is committed to accepting bids that will provide the most reliable supply at the lowest cost per kilowatt hour produced, and which will result in the most reasonable rates for our customers,” said Hodge.

VIWAPA was forced to seek a new fuel supplier after the current provider, HOVENSA LLC, announced in January that it would cease refinery operations in its St. Croix plant by mid –February and that it will not supply fuel oil to VIWAPA after June 30th.  HOVENSA, a division of Hess Corporation which merged with Petroleos de Venzuela, SA in 1998, is one of the ten largest refineries in the world and had been supplying fuel to VIWAPA for the last 40 years. HOVENSA will maintain an oil storage facility after shutting down its other operations.

Proposals to supply the Virgin Islands Water and Power Authority with fuel oil are due on Tuesday, April 10 2012. Detailed bid documents can be reviewed on the Authority’s website at under “Business Opportunities.” Questions about supplying No. 6 residual fuel oil should be emailed to the Contract Administration Department at Questions about supplying No. 2 distillate fuel oil should be emailed to Potential bidders may also call 340-774-3552 extensions 2032 or 2038 for more information.