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WAPA BOARD APPROVES FUEL SUPPLY CONTRACT EXTENSION

(Monday, February 29, 2016)

In a special meeting Monday, the governing board of the Virgin Islands Water and Power Authority authorized Interim Executive Director Julio Rhymer, Sr. to negotiate and enter into a contract extension with the current supplier of No. 2 fuel oil for the supply needed by the public utility for power generation.

Rhymer explained to board members that WAPA’s current contract with Glencore, Ltd. for No. 2 fuel oil expires at the end of March and an uninterrupted supply of this fuel type is needed until the Authority switches to LPG as the primary source of fuel for the generation of electricity. “We have negotiated with Glencore, Ltd. and the company has proposed an agreement which does not require a minimum purchase obligation if the supply contract is extended to the end of June 2017.”

Given the Authority’s knowledge of the Eastern Caribbean oil market and the supply capabilities of oil companies operating in the region, Rhymer said, there are only a few companies that would be potentially qualified to supply WAPA’s unique future No. 2 fuel oil volume needs and quality specifications. “We have considered the other companies and determined, based on acquired information or on past dealings, and determined that Glencore, Ltd. would best meet the Authority’s needs after March 31, 2016.”  The contract extension covers the period beginning April 1, 2016 through June 30, 2017.

Board members present included: Chairman Gerald Groner, Esq., Vice Chair Juanita Young, Secretary Noel Loftus, Commissioners Devon Carrington and Gustav James, Elizabeth Armstrong and Cheryl Boynes Jackson. Director Marvin Pickering was excused.

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