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Power Plant Production Costs Explained

Power Plant Production Costs Antigua St John's - Following the parliamentary presentations of Opposition MP Robin Yearwood and Prime Minister Baldwin Spencer, there have been many allegations and much speculation about the cost of operating the Chinese Power Plant and APCL.

The fuel efficiency, the miscellaneous costs, and the labour cost have all been argued and discussed. This has led to much confusion, with the general public being left in the dark. To clarify the situation, the real costs must be presented to the people.

Following the affidavit presented by General Manager of APUA Esworth Martin, the real costs of the Chinese Power Plant, the Friar's Hill Power Plant, and the APCL Plants have become available.

This article will break down and compare the numbers that Caribarena has collected strictly from this affidavit.

APCL consumed 25,542.86 gallons of fuel per day. The cost of fuel was EC$8.91 per gallon. The APCL power plants (Black Pine and APC) generated 17,000,000 units of electricity in a single month. This means the yearly cost of fuel for the APCL plants was equal to (25,542.86 x 8.91 x 365) $83,069,212.15.


The price for a single unit from APCL is therefore (83,069,212.15 / 17,000,000 x 12) $0.407 (40.7 cents).

APCL charges the government $0.207 (20.7 cents) for every unit of electricity, making the total price for a single unit of electricity from APCL $0.615 (61.5 cents).

This same calculation can be used for the Chinese power plant.

The Chinese plant consumed 20,000 gallons of fuel each day, which also cost $8.91 per gallon. It produced 11,000,000 units of electricity per month, and the yearly fuel cost for the Chinese power plant is equal to (20,000 x 8.91 x 365) $65,043,000.

This number indicates that the price for a single unit from the Chinese power plant is equal to (65,043,000 / 11,000,000 x 12) $0.493 (49.3 cents).

The additional costs of running the power plant (from Caribarena's investigation, not from the affidavit) include the following:

Spare parts and lube oil cost = $0.03 per unit of electricity


The 30 Chinese employees' labour cost = $0.014 (1.4 cents) per unit of electricity.

Insurance, legal, and administrative fees, as well as APUA employee fees, have still not been verified.

Loan repayment = $0.11 per unit of electricity.

This means the total cost for one unit of electricity from the Chinese power plant is $0.647 (64.7 cents).

The final power plant that needs to be calculated is the Friars Hill Power Plant.

Unlike the previous two, the Friars Hill plant operates on more expensive diesel fuel. This plant consumed 4,800 gallons of fuel per day, costing $11.18 per gallon. Thus, the yearly fuel cost for the Friar's Hill Plant is (4800 x 11.18 x 365) $19,587,360.

This plant produced 2,000,000 units of electricity per month, which results in a price per unit of electricity equal to (19,587,360 / 2,000,000 x 12) $0.816 (81.6 cents)

So to conclude the price per unit calculations, APCL costs $0.615 (61.5 cents per unit), the Chinese Power Plant costs $0.647 (64.7 cents) per unit, and the Friar's Hill Power Plant costs $0.816 (81.6 cents) per unit.


But what does this really mean on an operational level?

The difference in price between APCL and the Chinese Power Plant is $0.032 (3.2 cents) per unit. After a year, that difference becomes: 0.032 x 11,000,000 (the units per month) x 12 = $4,224,000.

The difference in price between APCL and the Friar's Hill plant is $0.201 (20.1 cents). After a year, that difference becomes: 0.201 x 2,000,000 x 12 = $4,824,000.

This means the total difference in cost between APCL and government-owned power plants is (4,824,000.00 + 4,224,000) $9,048,000.

The resulting numbers from Martin's affidavit indicate that APUA is paying $9,048,000 extra every year for the production of electricity. Caribarena's investigation into this matter is ongoing. We will release more information as it becomes available.

See related stories:

PM Says ALP Distorted Power Plant Info

No Plan Behind the Power Plant

Yearwood Presents Figures on Chinese Power Plant

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61 Comments In This Article   

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tanny

#61 anna » 2011-12-20 22:17

I heard anny on the attack this morning. I think he has been called in to do some spinning and intimidate some people. That made me feel sick and to believe that somebody has cocoa in sun. All of sudden a man that benefitted from stanford is criticizing his land acquisition around the airport. Where was his voice when he was collecting his monthly checks. sorry, it is still about the monthly check.
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anna

Good point Osbert!

#60 R.Smth » 2011-12-20 11:12

David is trying to spin his way out of this by getting Tanny and others to go on the offensive..
Notice how they all are avoiding the Chinese cost ,and passing off the higher current cost as pride in ownership!!!!!! !!
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R.Smth

The Change

#59 Osbert Frederick » 2011-12-20 10:20

When we have people like David Shoul negotiating these major deals, what do we expect? By the way, I am just curious as to what is his 'take' on all this.
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Osbert Frederick

Tenman

#58 Guest2 » 2011-12-20 09:42

Tenman, The PM did give the detail break down. What he was saying that the technicians would be able to give the technical explanation the difference in fuel consumption among the plants. However, when it came down to the final cost, putting every cost items together the Chinese plant is cheaper. He actually gave numbers.
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Guest2

Guest2

#57 tenman » 2011-12-20 09:11

Guest2 the pm offered no numbers/ no details, just a conclusion. He never answered the charge of whether the chines plants yearly costs to APUA are more than the APC yearly costs to APUA. He stated APUA techs would provide further details. This is yet to happen. So I am not accused of misrepresenting what he stated let me quote him:
Quote:
The technicians will be able to explain the difference between a 17 mgw plant as against 6x5mgw plants, " the PM said. "The same with the black pine at 27. That explains that fuel requirement is different." Read more: http://www.caribarena.com/antigua/news/latest/99213-pm-says-alp-distorted-power-plant-info.html#ixzz1h50zrB8I
You may not like this but as usual the governments PR department is always found lacking.
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tenman

Anna, Tenman etc.

#56 Guest2 » 2011-12-20 08:26

Anna, It is 3 cents EC @ 83% capacity. It therefore means that the Chinese plant is 57 cents unit while the aPC is 61.5 cents. These are much closer to the PM numbers.
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Guest2

calculation

#55 tenman » 2011-12-20 01:04

the kilowatt hr cost based on the loan, I am getting $.01 cents usd per killwatt hr if the plant is treated as a 30 mw plant and 3 cents (0.027510373) US if its treated as a 30 mw plant. This assumes a straight (no moratorium and exchange rates stay the same) loan for 43.7 million USD, 20 years @2% interest with yearly payments amounting to $2,652,000.00 USD . The only how the 11 cents EC (0.038 Us cents)
cents could be true is if we assumed the Chinese RMB will appreciate by 4% every year vs the US (making the loan effectively 6% not 2%) and the plant stays generating 11mw. Perhaps I am missing something.
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tenman

BEEF

#54 tenman » 2011-12-20 00:13

BEEF lovell used basically the same words when he was negotiating with GABATCO, I am sure you did not agree with him then, so why now? The PM used the same words when EMS workers were on strike. .. The same thing was said when LIAT pilots took industrial action.

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tenman

Call the doctor

#53 tenman » 2011-12-20 00:04

Call the doctor if I have a loan for 43 million usd for 1 30 mw plant and you have a loan for the same amount for what is essentially a 11 mw plant are you suggesting that the loan cost per kilowatt hr is the same for both of us? Clearly it can't be.
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tenman

Verify

#52 anna » 2011-12-19 23:01

3 cents us or 8 cents ec
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anna

Verify

#51 anna » 2011-12-19 23:01

I got .03 us cents
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anna

We like it so

#50 pedro » 2011-12-19 22:23

Let me try again to put things in proper perspective.Bea r with me.Now the total energy produced per month by the three plants, APC , Chinese and Friar's Hill is (17,000,000 +11,000,000 = 2,000,000) 30,000,000 units.The total cost per month to APUA (17,000,000*$0. 6I5+11,000,000* $0.647+2,000,00 0*$0.816) equals $19,087,000.00. Now if APC was asked to produced all 30,000,000 units it would cost APUA (30,000,000*$0. 615) equals $18,450,000.00. This is a difference of $637,000.00 per month or approximately $7,644,000.00 per year.That is, the actual amount it is costing APUA and by extension the people of Antigua and Barbuda to go CHINESE is EC$7.644m per annum. This of course considering,... ."Insurance, legal, and administrative fees, as well as APUA employee fees, have still not been verified."
Be aware also,that APUA will only be spending 41cents/unit in fuel.Why then charge us 72+ cents per unit for fuel? . Also this will reduce our national fuel bill and consequently, our indebtedness to Venezuela.We like it so
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pedro

aggree with Skywill

#49 From The Side Line » 2011-12-19 22:01

Skywill I agree with you that 1) Hadeed is an Antiguan and hires Antiguan. You cannot get more local than that. And a real patriot that put his money where his mouth is. We should appreciate local investors who invest in their country. Cause this is a major investment. And regardless of everything else an investors wants a return on their invetsment. If the governement had to put out this capital outly they would have to go borrow money and we will again have a nother block around our necks. Cause we really don't know the Chinese condition. And electricity benefits the entire country. Every single person and business. You name it. We should be a little more gratefull to local person making investments in the country instead of always looking to FDI's
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From The Side Line

CALL THE DOCTOR

#48 VERIFY » 2011-12-19 21:41

call the Doctor, Check your numbers again. Yo are of by a factor of 10. I got .03 cents
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VERIFY

IT WASN'T ME WHO SAID

#47 BEEF » 2011-12-19 21:00

(1) Lovell said the intention of APC was to hold the country literally at ransom by refusing the government’s offer to purchase enough power for residents during the load-shedding period. (2) Lovell, who was acting as prime minister in Spencer’s absence during negotiations between them and the APC suggested that the refusal by APC to turn on its power should be given the strongest condemnation. (3) Lovell went on to say that negotiations with the Chinese have been more forthcoming than that of APC. (4) Prime Minister Baldwin Spencer said when they offered APC to buy enough power to supply residents with electricity during the load-shedding period the company refused. (5) They were only willing to settle once the government bought 50.9 megawatts of power from them which amounts to three generators which they currently have offline. THOSE WERE NOT BEEF'S WORDS.
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BEEF

Who said anything about racism

#46 BEEF » 2011-12-19 20:53

As soon as someone says something pro-pickyhead they are racist? As I said before, once my conscience is good with God Almighty I am good. I have nothing against no nation of people. I just believe that the system is one where people (outside of the pickyheads) are set up by some uncle-toms to the detriment of the m** and to their benefit. This is what a chaiman of A.P.U.A. Board of Directors had to say: "ORIGINALLY, A.P.C. WAS TO OPERATE A TWELEVE (12) MEGA-WATT ENGINE FOR 12 YEARS ON A BOOTH ARRANGEMENT (BUILD OPERATE & TURN OVER TO A.P.U.A. AFTER 12 YEARS). SEVEN (7) YEARS INTO THE DEAL (IN 2003), THE CONTRACT WAS RE-NEGOTIATED BY THE A.L.P. GOVERNMENT FOR FIFTEEN (15) YEARS. THE EQUITY FOR THE ANTIGUAN & BARBUDAN CITIZEN WAS NOT “REALIZED OR PAID FOR”. That was not beef who said that.
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BEEF

new plant

#45 anna » 2011-12-19 20:47

I am concerned that we are saddled with an additional 153M RMB. Those engines dont look new to me. I hear that they are leaking oil and have rust in some areas. This story makes me feel sad.
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anna

Re tenman

#44 Call the doctor » 2011-12-19 20:41

Tenman, this is not true. Regardless of how much power is made,the cost per unit is the same. Therefore, even if you were to produce 30 mw, the 0.11 cents per unit would not change, assuming it is the correct figure. I'm trying to calculate it myself, but I keep coming up with higher numbers for the loan. I got 0.31 cents per unit any way I cut it, so I'm also interested in this calculation.
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Call the doctor

verify

#43 tenman » 2011-12-19 20:27

verify i too am waiting for that info because I suspect its based on our using 30 MW when we are actually using 11, which then makes the cost more

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tenman

Good discussion,let' s deal with facts not personalities.

#42 L.Walters » 2011-12-19 20:13

The issue is did we pay 300m yuan for a 147m plant. It so ,we can correct this wrong via an investigation ,and renegotia with the Chinese!
At the end we should be able to save this country some $$""...
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L.Walters

APC & power generation

#41 Worldview » 2011-12-19 19:54

Face the fact: APC is a done deal - we did the deal - now we have to find a way to live with it - that's only the honorable thing to do.
Now APUA has its own generating capacity: obsolescent technology, 'tis true - but all in all A&B now have more than we need for the immediate future - as long as we can pay the (rising) fuel bill.
The joke on us is: having tied up a huge chunk of our future national wealth in struggling with unpayable debt to China ... we are now talking (seriously!) about moving into alternative energy sources. Yes - really.
And the PRC have taken A&B to the cleaners: so what else is new? We can always leverage our foreign policy ... can't we?
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Worldview

caribarena

#40 verify » 2011-12-19 19:53

I notice that both Caribarena and Yearwood were using Martin's afidavid, however they came up very different numbers. Robin claim 17mil more in opt cost for Chinese plant while caribarena claim 4mil for the same.

By the way, where did they get the 11cents for loan?
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verify

RE: Power Plant Production Costs Explained

#39 backburner » 2011-12-19 19:37

So Skylewill there we have it. Do we blame the whiteman or forigner for this or do we blame our corrupt pickey head people for there constant corrupt practices? When the UPP gained power 7 years we were promised good governance and a change but it seems that our people have a chip in their brain that says thief.
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backburner

@Skyewill

#38 Confused » 2011-12-19 18:59

Dont get the issues confused...it has nothing to do with Antigua or foreigner....if you can to that conclusion by my comments i hope this entry clears it up....if you give someone a monopoly guaranteed cash flow for 15 or how ever long and then act like they are a saint that's my problem. Did the generation that APC got ever go through tendering process....How do we know that someone could not have provided the same services cheaper...pleas e man open ur eyes.....and this could go for many other issues. Check back to the day when APC and APUA made that deal...Robin said APUA was making money like peas! And the same thing for the Chinese...did anyone check to see if someone could have provided that for cheaper...hmmmm ...
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Confused

RE: Power Plant Production Costs Explained

#37 backburner » 2011-12-19 18:46

Beef unfortunately you are one of the people that racism has clouded your mind. When race becomes a factor in any discussion then you have lost. Please explain to me how APC as a private enterty supplying good stable current to a island became a racial issue? If an black man or woman was supplying Antigua at a higher price would that be all right with you? The fact is that Alp and / or the upp all black Antiguians made a mess of negociating a good rate for electricity, the came our present prime minister with the same racist mentally as you and made a even worst deal with the chinese just because he was determined to drive a big shaft in APC so here we now are all of us up a s... creek with no paddle. I would like to ask you beef how must a place like little Antigua survive when our main industry is tourism and people like you don't like white people?
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backburner

L.Walters is correct.

#36 R.Smth » 2011-12-19 18:18

Beef ,; is not W.I.O.C owned and controlled by 1 ENTITY? You pay them 3x more for power than APUA/APC.Combined..
They generate in excess of 500m in revenues per annum.How about Cable and Wireless...Digecell..
You say nothing'' when your govt kills APUA i mobile to benefit a foreigh ENTITY.
You are only good at fighting your own! : STOP THIS BLUE/RED THING....
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R.Smth

Well said Mr. Joseph

#35 Apua is OURS » 2011-12-19 17:51

BEEF I could not have said it better myself. That's what a politician said some time ago. Hmmm. We should make sure it happens; us black Antiguans. Our children should have life way better than we have it now.
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Apua is OURS

re: beef

#34 call the doctor » 2011-12-19 17:46

beef, I don't get it. I tried, but I don't get it. Why are you hating on the investor? Check out Canada and the US. While the provincial/stat e government regulate electricity and produce some of the electricity, literally hundreds of independent companies are responsible for the generation of electricity. So why is APC being viewed as some type of yolk putting family? Instead of hating, perhaps regulations of the power market should be put in place so that APC can't milk us dry. That's how these sectors work. A REASONABLE maximum price per unit is set, and then the market is open to competition, with the best company taking the contract. The only reason APUA ever ran into problems is because they didn't pay APC. And they didn't pay APC because they had no money. Either the money was made invisible as sometimes happens magically in Antigua, or APUA was actually in a financial crisis. Judging by the Affidavit above, APC is giving antigua a good deal. I know I sound like an APC diehard supporter, but I really am not. I just see the logic in the deal they offer, and I am putting paranoia and political nonsense aside. Beef, please point out to me what I missed. :-)
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call the doctor

@ L.Walters

#33 BEEF » 2011-12-19 17:07

It is obvious that you really don't know me. What people say or think about me is not really important to me. MY GOOD CONSCIENCE WITH GOD IS WHAT MATTERS TO ME. I have said before and I will repeat again. NO ONE FAMILY OR ENTITY SHOULD BE IN A POSITION TO PROVIDE THE MAJORITY OF POWER THIS COUNTRY NEEDS. WHATEVER NEEDS TO BE DONE (LET ME REPEAT) WHATEVER NEEDS TO BE DONE TO REVERSE THAT SITUATION NEEDS TO BE DONE NOW. There is so much more I can say but space is not there for me. THE YOLK THAT IS BEING PUT AROUND OUT CHILDRENS NECK SHOULD NOT BE PUT THERE. NO ENTITY SHOULD BUILD UP THEIR PRINCIPALS AT THE EXPENSE OF FUTURE GENERATIONS OF ANTIGUANS (BLACK PICKEY HEAD ANTIGUANS). That is my position. I hope I have made myself clear. AND BY THE WAY, ANY POLITICIAN WHO AIDS IN PLACING SUCH YOLKS AROUND THE NECKS OF OUR FUTURE GENERATIONS SHOULD BE JAILED FOR TREASON.
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BEEF

APUA will own APC plants .

#32 R.Smth » 2011-12-19 16:23

In 7 years APUA will own the APC Plants. This will mean we will only pay them to operate and maintain the engines. I belive this is what is called a BOOT project..The PM spoke of Penalties to to levied on APC if they fail to deliver power. ..
Build ,Operate including Finace cost ,Own..TRANSFER. ..
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R.Smth

RE: Power Plant Production Costs Explained

#31 backburner » 2011-12-19 14:39

Beef, your question of Apc's annual profit is not in question and does not form part of this debate. It is just your way of ducking the issue at hand and shows a lack of understanding of the issue. That question shows what you always had even when you were on air, a horrible dislike for the APC owners. The question is did the government negociate properly with APC or the Chinese to get the best deal for Antigua to provide stable electricity at an affordable rate? Had this been done and we were getting these things that APC's annual profit is of no concern to us. PEOPLE ARE IN BUSINESS TO MAKE MONEY NOT TO GIVE THERE PRODUCT AWAY. It is the government to negociate properly, and that is what they have failed to do.
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backburner

@ Confused

#30 Skyewill » 2011-12-19 14:36

As far as I know Hadeed is Antiguan and hire Antiguans. it is safer to go with Hadeed. This is there home in most cases it all Hadeed know is Antigua and besides Hadeed' treat Antiguans with some level of respect
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Skyewill

re: bongo part 2

#29 call the doctor » 2011-12-19 14:19

I asked a friend of mine, whose had experience with power plants all over the world, and he says that typical power plants are only financially viable in the first 15 years, unless very hardcore maintenance is done daily. After that, the costs of maintenance are so high, it makes more sense to build a new plant. So if he's right, and I doubt the government will conduct super good maintenance, we will need a new plant (or new engines) several years before the end of the chinese loan. If you want to talk about being ripped off, the Chinese have completely amputated us. :sad:
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call the doctor

Bongo

#28 tenman » 2011-12-19 14:12

Bongo one day? You mean after 20 years or more? The loan is for 20 years with a 5 year no payment moratorium. Knowing our payment history we will probably ask that the loan be extended. By the end of this period we will find that these generators are as useful as the friars hill units. They will be too old and inefficient fuel wise.

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tenman

re: bongo

#27 call the doctor » 2011-12-19 14:12

Bongo, there's a small problem with your argument. Theoretically, you're right, the $0.11 cents per unit will end. However, that will only be in about 20 years. Every single year, the maintenance costs increase. In 20 years time, keeping those engines working will no longer be financially practical. In addition to that, Antigua's needs may outgrow the station by then. It makes more financial sense to receive the service from APC. The power and maintenance are guaranteed, and APC's station ensures room to grow. In 20 years time, that chinese plant won't be worth a cent, but APC will be able to build another power plant to replace their old one. And guess what, Antigua's government would still be paying the monthly cost. No millions invested in another plant, just the monthly bill. Privatization of electricity is done all over the world. I have no idea why APUA insists on competing with private companies.
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call the doctor

sigh

#26 call the doctor » 2011-12-19 13:41

prices and deals aside, the single greatest disappointment I have is that plants like this are being built in the 21st century. Antigua is an amazing country. We have non stop sun year round, non stop wind year round, and yet we refuse to use wind turbines and solar panels. Instead of building this stupid chinese power plant, the government could have paid even less for a wind turbine farm. And guess what? NO FUEL. CLEAN THE ENVIRONMENT. Let's see... We have a cheaper, cleaner, easier, better solution that in the short term and long term benefits us more than either APC or the Chinese Generator. You can bet your life it will never happen in antigua.
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call the doctor

Where is our Ambassador,Sir David

#25 Where is our Ambassa » 2011-12-19 13:38

Where is our Ambassador,Sir David ??
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Where is our Ambassa

@Confused

#24 Steadyj » 2011-12-19 13:14

Water and electricity will always be challenge for us in Antigua, and if we don't start thinking outside to solve these perennial challenges they will continues plagues us. The general public has been grossly under serve by APUA for decades in its failure deliver reliable water and electricity at decent prices. Yet they are investing millions in a new cellular networking infrastructure. How is 4G service going to lower electricity bills? or improve water pressure? APUA has their ardent supports against privatization of this state own utility. I thinks APUA should out source meter reading for starters. I have just one question, when was the last time APUA published audited financial reports?
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Steadyj

@Tenman

#23 Steadyj » 2011-12-19 12:56

I don't think that the APUA transmission and distribution infrastructure as it stands now can handle all the added generation capacity. They probably need new feeders and substations. This just speculation and conjecture on part, since public relations is not something that is valued in our society.
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Steadyj

Nice work

#22 Bongo » 2011-12-19 12:52

Good job Caribarena! I asked for the numbers and you gave it! One comment. the 11cents loan repayment will eventually be 0. So in the long run the Chinese cost will be 11 cents cheaper. Are there any other charges in the APC contract? The question is government owned vs privately owned. Similar to buy vs lease?
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Bongo

Where is our Ambassador,Sir David ,;

#21 R.Smth » 2011-12-19 12:31

Our Ambassdor to China should give the people an explanation on the cost brealdown on the Chinese Engines! Are they new or USED? Why did the Engine supplier in China claim the cost was 147m yuan and you got the Govt to sign a 300m yuan loan? ?? :oops:
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R.Smth

pay attention

#20 tenman » 2011-12-19 11:43

Anyone else notice that we have a 30 MW Chinese power plant that only generates 11MW of electricity? We are paying a high price (interest clock is already ticking and its worse since we don't start making payments till 2013 due to a 5 year moratorium ) for 30MW yet only using 11MW.
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tenman

Good one!

#19 Confused » 2011-12-19 11:43

Steady J thats the kinda thing i can agree with....bot boy there is a but....you think those Unions and general public not going to allow that to happen. The greatest sin you can commit in Antigua is to "take bread out of me mouth" even if you eating the bread every day and ur belly cant full. Even if the bread dragging the whole country down.
APUA...and a few other companies in Antigua should be expanding using their expertise to invest in other countries.....b ut all we do is stick in the mud with the same politicians. Big problem too is that most government workers want private sector pay...to do public sector type of work.....but dont want private sector scrutiny!
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Confused

APUA stacked against us

#18 Steadyj » 2011-12-19 11:13

APUA will always be stacked against its customers, because of the inherit conflict of interests. Clearly it has monopoly to generate and distribute electricity, while it also acts as regulator. The way APUA is currently constituted the fuel variation charged should be set by an independent auditing firm. So that their customers can receive third party verification for fuel variation charges. Moreover, just break it up into separate business units, generation, and transmission/di stribution. Let us see what the assets are worth.
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Steadyj

confused

#17 tenman » 2011-12-19 10:53

@confused in addition to what @call the doctor stated keep in mind that APUA costs will increase yearly due to things like labor costs, exchange rate increases. This means the stated difference (at least 9 million according to this article or 17 million according to Yearwood) will only increase while the APC cost will stay the same for the duration of the contract.

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tenman

re: pedro

#16 call the doctor » 2011-12-19 10:50

After seeing this article, I pretty much just forgot everything said in parliament. PM said that the chinese power plant is saving us 2.7 mil per month, when it is really costing us $9,048,000. I guess yearwood was closer, but I don't know how he got a figure of 17 mil. Either way, both the 2.7 less per month and the 17 mil more per year are incorrect. That's the whole point of this article, to do the actual calculation based on the sworn figures of the affidavit.
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call the doctor

confused

#15 tenman » 2011-12-19 10:44

confused I think Pedro breaks it down well as far as who is screwing us more.

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tenman

re: confused

#14 call the doctor » 2011-12-19 10:30

Confused, it's simple. With both power plants, you buy the fuel. APC then charges you x for the production of electricity from that fuel. Theoretically, the Chinese power plant doesn't, because it belongs to the government. However, there are other costs associated with the chinese power plant. The loan repayment, the chinese employees, lube oil, all those things are required by the chinese power plant and not by APC. That's not to mention the crazy inefficiency of the chinese plant. It's explained in the article above.
Quote:
APCL costs $0.615 (61.5 cents per unit), the Chinese Power Plant costs $0.647 (64.7 cents) per unit
So for APC, $0.615 cents per unit is made up of service charge and fuel, and for the chinese plant, $0.647 cents per unit is made up of fuel AND labour AND maintenance AND the loan repayment.
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call the doctor

Confused - blame it on our sick mentality

#13 tenman » 2011-12-19 10:26

Confused I want to see the best deal for APUA. The best deal would see APUA generating most of its own energy. However that cannot be done with the current setup. It has to be privatized. We need to get the politicians out of it because as usual they have messed up everything they have touched. Please note I am not saying we should sell it to some foreign or one local company/family. Have the Stat corps more so SS invest in it instead of wasting their moneys on government bonds. Have SIC also invest in it. Also have shares offered via the Eastern Caribbean stock exchange. Encourage local companies to have a pension plan which as part of its investments includes shares in APUA. Yes confused we are seemingly currently being shafted by both the Chinese and APC. Its all because we can find 54 million for things like fences and sporting complexes but can't find 80 million (if that much) to purchase a 30 mw plant that will return value. What the current government did in my mind is worse than the decision to invest in a public market (which was bad) vs using the moneys to equip APUA.
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tenman

only in antigua

#12 Confused » 2011-12-19 10:20

So if we pay for the fuel how is APC cheaper? how...so the have lower operation costs...plus we pay for the fuel.....and this is different from the Chinese ripping us off how?
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Confused

Confused

#11 tenman » 2011-12-19 10:17

Confused we pay for the fuel. APUA provides APC with the fuel
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tenman

The real Problem, PM

#10 pedro » 2011-12-19 10:15

So what does all this mean, it is costing APUA EC$17m per year to save EC$2.7 m per month. not considering,"In surance, legal, and administrative fees, as well as APUA employee fees'. The numbers still seem to be stacked in APUA's favour, doesnt it? that is, if that EC$2.7 m per month is correct.
My point still is, why are we being asked to pay 72 cents plus for fuel when it can cost as little as 41 cents/unit to APUA. So in effect, APUA is robbing customers to the tune of 0.31cents times 360,000,000unit s per year giving the massive sum of EC$101.6m per year.
So the reality is, in order to save EC$2.7m(taking this figure as correct)per month APUA spends EC$17m per year, MEANWHILE MILKING IN EXCESS OF EC$100M FROM IT'S CUSTOMERS. Hope we can now see the real problem.
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pedro

hey..

#9 Confused » 2011-12-19 10:10

I find Antigua is a weird place...its like some sins are acceptable and some are not...it just goes to show we still have a far way to go..
Hadeeds get a cash flow "taking us to the cleaners" is less than chinese taking us to the cleaners" oh well i guess when your on a death bed and you have no choice thats what it comes down to...the lesser of 2 evils!
As i said before if APC is doing such a good job with supply energy why dont we sell them APUA...then we can look forward to cheaper bills right Tenman?
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Confused

Does beef have an axe to grind!

#8 L.Walters » 2011-12-19 10:01

It's looks like beef doesn't care About the millions Apua have wasted on the Chinese? The 30,000',000 waste on bencorp
This man is obsessed and would rather destroy the country and it's institutions to satisfy an agenda?
Most business that invest 10m and up get Tax concession? Why does he not inquire on Co.Williams ,who got hundreds of millions in govt contracts.What tax did they pay? But I sinse they ar Bagan it's ok, 8 :sad:
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L.Walters

Figures can tell many stories

#7 Confused » 2011-12-19 09:53

You know i agree with Beef......How much profits does APC makes. APC is a monopoly....one which was given a guaranteed cash flow when APUA was said to be at the height of its glory. mind you this is according to the Same MP Robin
Most if not all of APUA functions are loss makers. Apua water, does not make money and its one of the biggest consumers of electricity.
These people are trying to say oh APC is so good for us....i dont know if i can say that...maybe both the chinese and APC are bad for Antigua.....but no sensible business goes and sells its most important money earner to another company... guaranteeing them a cash flow!
APC does not even have to compete for customers!
By the way i want to get this question answered....Who pays for the fuel that APC uses in its generators? I dont know so thats why i am asking!
The politicians in the past and present pat themselves on the back like they did something great....well i am not sure about that!
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Confused

Beef

#6 tenman » 2011-12-19 09:24

Beef my recollection is they got a 20 year corp tax exemption which is similar to what we give the large hotel sector. I have never been for such exemptions no matter the industry. I have no problem with allowing investors to get back their initial investment tax free (treat it as an expense even with lets say a 10% annual interest) but the idea of giving persons exceptions based on time to my mind makes little sense. By the way I have heard the Ambassador Joane Underwood, via Observer Radio, defending this practice.

Beef after saying all of that, how much of the moneys made from local generation stay in this country? After we pay for the fuel and the loan to the Chinese (including both the interest and exchange rate imbalances)? When was the last time you say a financial statement from APUA the company we are told we own? Doesn't Hadeed also have local staff and make some level of local purchases?


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tenman

RE: Power Plant Production Costs Explained

#5 Wow » 2011-12-19 08:03

Is that how our "Brand New" Chinese engines look already? Is that a current picture of what's there? If I lifted my diesel truck hood after 6 months and my engine looked that way I would take it back to the dealer for a refund. This looks like trouble.
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Wow

who have eyes to see let them see

#4 Antiguan Youth » 2011-12-19 07:14

good work Caribarena.
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Antiguan Youth

Only in ANU

#3 Only in ANU » 2011-12-19 06:39

So once again we can conclude that the PM is "reckless with the truth" by saying that the Chinese plant is cheaper and best for Antigua.
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Only in ANU

RE: Power Plant Production Costs Explained

#2 piky head » 2011-12-19 06:14

APUA is paying $9,048,000 extra every year or consumers.
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piky head

Profit vs Employment (money staying in our economy)

#1 BEEF » 2011-12-19 05:59

Could the public please be informed as to the amount of profit that is being made by A.P.C. (annually) and how much of that profit leaves Antigua free of taxation and how long is the tax emption on profits (if there is any)? I AM SURE THE PUBLIC WOULD LOVE TO KNOW.
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BEEF

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