(From 2nd left to right) BVIEC Managing Director, Mr Leroy A. E. Abraham along with the Chairman of the Board of Directors Mr Ron R. Potter inks a deal with SOL General Manager Mr Rufino Lin for the supply of diesel fuel to power the Henry Wilfred Smith Power Station, on Tortola. Photo: VINO

Managing Director, Mr Leroy A. E. Abraham along with Chairman of the Board of Directors Mr Ron R. Potter. Photo: VINO

BVIEC has awarded the major three-year contract to SOL St Lucia Ltd as their main supplier of diesel fuel to power the Henry Wilfred Smith Power Station, on Tortola. Photo: VINO/File

SOL Saint Lucia Ltd—after some fourteen (14) years—managed to propose a package to BVIEC that was much more attractive than their lone competition in the territory, Delta Petroleum, for this primary supply of fuel. Photo: Internet Source

SOL Saint Lucia Ltd—after some fourteen (14) years—managed to propose a package to BVIEC that was much more attractive than their lone competition in the territory, Delta Petroleum, for this primary supply of fuel.

Though delayed by months because the restoration to their power grid was not complete until March of 2018—due to damages from Hurricanes Irma and Maria—signing the contract on behalf of BVIEC on Thursday, December 20, 2018, was Chairman of the Board of Directors, Mr Ron R. Potter along with Managing Director, Mr Leroy A. E. Abraham and for SOL, it was their General Manager Mr Rufino Lin.

Attractive Cost

“What SOL did right is present a very attractive cost in relation to the cost of the fuel,” announced Mr Abraham at a simple signing ceremony at the corporation’s Long Bush headquarter. 

“This is for the sole purpose of producing energy for the majority of the grid,” he told those present at the ceremony.

According to Mr Potter, this time around BVIEC took the decision to extend the period of the contract to three years, “This is just to ensure a longer guarantee of supply of fuel. But we can assure the public that the tender process… was very transparent and accountable as any other that the BVIEC has held in the past.”

However, Delta Petroleum was awarded four smaller contracts with BVIEC for the supply of fuels for their vehicle fleet, generating equipment in addition to the provision of Diesel Fuel for Anegada. That contract is scheduled to be signed today, December 21, 2018.

SOL St Lucia Ltd had proposed in their bid of July 2018, to provide fuel for the entire BVIEC vehicle fleet for $467,992. SOL had further proposed to supply lubricating oil to the BVIEC for $1,285,555 and diesel fuel for the Henry Wilfred Smith Power Station, on Tortola and the Anegada Power Station, at a cost of $88,145,137.

Delta Petroleum gets vehicle contract 

On the other hand, Delta Petroleum (Caribbean Ltd), proposed to provide fuel for the BVIEC’s vehicle fleet at a cost of $481,415. In addition to providing lubricating oil, the company had provided two separate bids. Delta Petroleum in its July 2018 bid, proposed to use either ‘MobilGard Oil’ at $922,259 or ‘Castrol Oil’ for $887,242.

In their bid to supply diesel fuel, Delta had proposed a cost of $91,928,488.

The Managing Director noted that the provision of Diesel fuel to Anegada has shown some slight increase from the prior contract but the provision of gasoline sees a slight reduction in cost, “we have materially seen a reduction from the prior contracts for lubricant and waste oils,” he said.

Exactly how does this trickle down to the pockets of consumers, both domestic and commercial, Mr Abraham said, “As it relates to rates… this contract will have the most bearing with regards to rates based on the cost of Diesel fuel which then translates to everyone’s bills pertaining to the fuel variation surcharge.”