PHILIPSBURG: --- Prime Minister Dr. Luc Mercelina announced on Wednesday that no final decision had been taken by the shareholder representatives of Government-owned company NV GEBE on how the company intends to move forward with the current energy crisis that has been affecting residents and businesses in St. Maarten. Mercelina said that even though he had two previous meetings with the board and management of NV GEBE, he intends to meet with the company again on Thursday when key decisions will be taken on the way forward to bringing relief.
Mercelina said he will not get involved in the political games now being played by some politicians or their political rhetoric. Instead, as the responsible leader, he said he opted to find immediate short- and long-term solutions.
He outlined the five options the company has been exploring which are as follows:
• Renting of container generators
• Lease to own the container generators
• Power Barge
• Combination of both a power barge and container generators
• Rent to own both barge and generators.
Mercelina said that while the five options are being explored, the company still has to order at least three engines, which would take two years to build. Meanwhile, the company and the shareholders will be working on a vision plan for renewable or green energy.
Another project NV GEBE has to work on, he said, is the organizing of its powerplant and fuel farm.
In breaking down the preliminary costs to bring about urgent relief, the Prime Minister said if they choose to rent the container generators then it will cost the company $500,000.00 monthly, while the lease to own will cost the company $200.000.00 monthly for the next 36 months, this he said does not include the cost of fuel consumption. In the event the shareholder chose this option it would take between three to six weeks before the containers reach St. Maarten and is installed.
Should the country opt for the power barge, it will have to invest between one and three million USD.
Mercelina explained that the power plant has to continuously provide 57 megawatts of electricity, but currently, it can only produce 40 megawatts, meaning there is a 17-megawatt deficit.
Financing
Mercelina said that St. Maarten is busy exploring all possibilities for assisting NV GEBE with its financing. He indicated that he had already written two letters, one to the World Bank regarding the diverting of the Trust Fund monies and the other to State Secretary Alexandra Van Hufflen and copied to BZK, informing them of the crisis St. Maarten is facing and the need for financial assistance.
The Prime Minister also explained that his government is considering diverting the monies budgeted for CAPEX 2024.
In order for the Government of St. Maarten to stand as a guarantor for the financing of the projects undertaken by NV GEBE, they would need to seek the approval of the CFT. A budget amendment would be needed to move the CAPEX funds, trajectories that would have to be followed once a final decision is taken by the shareholder and NV GEBE on the way forward.
The Prime Minister said over the years, the government-owned company's financial capacity has been misused.
