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WAPA Extends Scheduled Date for Advising LNG/LPG Respondents of RFQ Status

(Thursday, November 29, 2012)

 

 

The Virgin Islands Water and Power Authority

NEWS RELEASE

Contact:  Cassandra Dunn, Director of Corporate Communications

340-773-2250 extension 4085 or 340-690-5758

 

The Virgin Islands Water and Power Authority is extending the scheduled date for advising respondents to its Request for Qualifications (RFQ) for Liquefied Natural Gas and Liquefied Petroleum Gas of which companies were selected for further evaluation and discussion. The RFQ issued on October 1, originally set November 28 as the date to short list the thirteen responses received by the November 9 deadline. The Authority anticipates completion of the review process by December 17, 2012.

 

According to Executive Director Hugo V. Hodge, Jr., the larger than expected response, and the complexity of the responses, require additional time for the Authority’s technical and legal team to comprehensively evaluate each company’s qualifications.  “We were very pleased with the interest in the RFQ’s, however, there is a significant amount of detail in the responses and additional time will be needed to truly evaluate this most critical next step in the Authority’s fuel diversification,” Hodge said. The evaluation team will determine the most qualified respondents based on scores assigned to weighted measures including:  project timeline and project permitting process (35%), general qualifications and proposed solution (30%), financial capacity and financing plan (20%), and single point of accountability (15%).

 

The Authority entered the RFQ process to identify companies capable of implementing and operating a turnkey solution to supply natural gas and/or propane. The successful respondents will have demonstrated a proven track record in the industry.  WAPA’s Chief Operating, Officer Gregory Rhymer, who chairs the  evaluation team, said that the LNG or LPG supplier must develop infrastructure to import and deliver natural gas/and or propane to  St. Thomas’ Harley Power Plant and St. Croix’s Richmond Plant. Respondents to the RFQ’s must also demonstrate how they can successfully overcome some of the anticipated challenges including  shipping, safe unloading and storage facilities, permitting regulations, dock improvements, dredging that may be necessary, and unfavorable price volatility possible in the LNG and LPG market, but outside of local control.

The Authority’s  “Energy Production Action Plan,” (www.vwiapa.vi),  recently published by the Governing Board, sets forth the significant benefits that could be realized by  converting to LNG and/or propane including: a potentially lower cost of generation relative to fuel oil; comparable fuel cost to coal; improved fuel consumption efficiencies in gas turbines; reduced maintenance costs relative to oil generation; fuel supply diversity; potential infrastructure for additional uses of natural gas (e.g., industrial use or transportation fuel); and lower carbon dioxide and other pollutant emissions compared to fuel oil and coal plants.

By early 2013, the company or companies selected from the shortlist will be notified and scheduled for final negotiations, Hodge said.

 

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