Yearwood Presents Figures on Chinese Power Plant

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Wednesday, 14 December 2011 02:30

By caribarena news

Antigua St John's - Opposition MP Robin Yearwood has presented some details of the project for which the government secured a concessional loan from the Export Import Bank of China to build the Wadadli Power Plant operated by the Chinese.

Yearwood presented the information on Tuesday as part of the budget debate, and said the information would make every Antiguan quiver.

He said he had obtained documents, and if the government were to repay the loan sooner than scheduled, it would pay an interest rate of about four percent.

Citing information from the documents, Yearwood said Antigua had signed a contract that takes away any right to challenge any grievances under local law.

“Neither the borrower nor any of its assets or revenues is entitled to any immunity or privilege, sovereign or otherwise, from any setoff arbitration awards, execution attachments, or other legal process,” he quoted.

He noted that any dispute between the government and the Chinese bank, as well as the rights and commitments of the parties, would be governed by and construed in accordance with the laws of China.

Focussing on the dispute aspect of the agreement, Yearwood said any such grievance would have to be submitted to the China International Economic and Trade Arbitration Committee, in accordance with their rules, effective from the date of submission.

Antigua & Barbuda’s arbitration issues customarily go to the London Chamber of Commerce.

Yearwood also had an affidavit from court proceedings involving APUA, from which he quoted key points that suggest that the authority’s financial stance was precarious.

The former Works minister said when he left office, the APUA had only one month in outstanding payments owed to the West Indies Oil Company (WIOC). Today, that bill stands at about $96 M, he said. APUA’s fuel cost annually is $83 M, he further alleged.


Yearwood said too that the according to the general manager's affidavit, APUA purchased 20,000 gallons of heavy fuel for the Wadadli Power Plant to produce 11 million units of electricity monthly.

The cost of this fuel per year, according to Yearwood, would be approximately $65 M. And the cost to produce one unit of electricity from Wadadli is 0.49.3 cents, as opposed to APUA's 0.40.7 cents.

“This means that 8.6 cents more, it costs, than from the APC plant,” he said adding that further additions to operating costs would mean almost 0.11 cents per unit of electricity that would go toward the loan for the Chinese plant.

“That means the total cost for producing electricity from Wadadli (Power Plant) is $0.69.7 cents per unit. The total cost for buying power works out to be 57 cents per unit. This means if you look to see what they produce, Wadadli would cost $0.12.9 cents more than APC, giving a total of $17,000,028,000 million a year,” he said. 

The opposition MP did not disclose the amount borrowed from the Chinese for the plant.

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Further, Yearwood, like his ALP colleagues, challenged the 2012 budget, noting that the country’s finances have gone from “bad to worse,” and suggested Antigua & Barbuda could even be bankrupt.

He said there are no growth projections in the 2012 budget, and called on the government to call an election to get a new mandate for the economic crisis, either through the election of a new government, or the UPP reinstated on a new platform.

Yearwood said tourism is the greatest asset to move the country forward, but the nation is cursed with a tourism director who travels all the time with no benefit to the people.

“Every department should be a profit center. Close that tourism authority…” the MP suggested.

He proposed that duty free concessions on paint for businesses in St John’s be considered, with colours to attract people, similar to those being used in other parts of the Caribbean.

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