Executive Chairman of the Bahamas Electricity Corporation (BEC) Michael Moss suggested yesterday in a press release that the mismanagement of BEC by the Progressive Liberal Party (PLP) led to the corporation constructing Abaco's Wilson City power plant out of pocket.
But he suggested is has never been over budget as suggested by the PLP.
Moss was responding to claims by the PLP's Chairman Bradley Roberts that the cost to build and complete the Wilson City plant has overrun the government's budget by a least $30 million.
Moss said Roberts should be aware that BEC was forced to build the power plant from available cash flow after the PLP reduced the corporation's tariff, "making it impossible for BEC to continue securing loans on the strength of its balance sheet."
Roberts suggested in the statement he released Sunday that the power plant's budget, originally set at $90 million, increased to $120 million because of overlooked costs associated with peripheral components needed to generate power efficiently from the new plant.
He said those peripherals included power lines, special transformers, a new switching system and a sub-station.
Moss explained that it was because of BEC's dismal financial situation that it was necessary to put these peripherals in place as the funds became available.
"It became necessary to perform certain works as cash became available," he said.
"Construction of the Wilson City to Marsh Harbour transmission line was one such project. Final preparation and paving of the roadway leading to the site was another.
"Perhaps Mr. Roberts will be good enough to disclose details of the contract left in place for construction of such a transmission line from Snake Cay into Marsh Harbour or did he perhaps intend to bottle the electricity and have it distributed by truck?"
Roberts also revealed Sunday that both the old Marsh Harbour power plant and the new Wilson City plant are being utilized at the same time, which he called a "massive waste" of BEC's money.
Moss also explained why both the old and new power plants are being run simultaneously.
"As regards the present parallel-operation of the Marsh Harbour and Wilson City plants, it is to be noted that Abaco's maximum daily demand is presently about 16 MW (Megawatt), too much for each of the Wilson City 12 MW units (on their own)..."
He said one 12 MW unit is being used at the Wilson City power plant while one 4 MW unit is being used at the old Marsh Harbour plant.
"Because of the size of the units ordered during Mr. Roberts' tenure (as minister responsible for BEC), it will be desirable to maintain and operate some quantum of generation at Marsh Harbour until Abaco's load increases to a level to justify operating at least two units at Wilson City at all times," Moss said.
Roberts claimed that the Free National Movement (FNM) mismanaged the overall development of the Wilson City power plant.
Moss explained that the PLP government failed to make financial provisions to decommission the Marsh Harbour plant, which he said will require the construction of the sub-station and switching system Roberts contended was one of the oversights on the part of the FNM.
"These tip of the iceberg activities referred to by Mr. Roberts are in no way a part of the Wilson City power plant project and Mr. Roberts' attempt to characterize them as such is regrettable," Moss said.
"The planned works are firstly highly desirable so as to decommission the antiquated, hodge-podge of switchboards within the Marsh Harbour Power Station and thus improve the Abaco electricity distribution network. They are, moreover, essential in order to decommission the power plant."

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