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Monday, 19 December 2011 02:30
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By caribarena news
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
61 Comments In This Article
tanny
anna
Good point Osbert!
Notice how they all are avoiding the Chinese cost ,and passing off the higher current cost as pride in ownership!!!!!! !!
R.Smth
The Change
Osbert Frederick
Tenman
Guest2
Guest2
Quote:You may not like this but as usual the governments PR department is always found lacking.
..
tenman
Anna, Tenman etc.
Guest2
calculation
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
..
tenman
Call the doctor
..
tenman
Verify
anna
Verify
anna
We like it so
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
pedro
aggree with Skywill
From The Side Line
CALL THE DOCTOR
VERIFY
IT WASN'T ME WHO SAID
BEEF
Who said anything about racism
BEEF
new plant
anna
Re tenman
Call the doctor
verify
..
tenman
Good discussion,let' s deal with facts not personalities.
At the end we should be able to save this country some $$""...
L.Walters
APC & power generation
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?
Worldview
caribarena
By the way, where did they get the 11cents for loan?
verify
RE: Power Plant Production Costs Explained
backburner
@Skyewill
Confused
RE: Power Plant Production Costs Explained
backburner
L.Walters is correct.
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....
R.Smth
Well said Mr. Joseph
Apua is OURS
re: beef
call the doctor
@ L.Walters
BEEF
APUA will own APC plants .
Build ,Operate including Finace cost ,Own..TRANSFER. ..
R.Smth
RE: Power Plant Production Costs Explained
backburner
@ Confused
Skyewill
re: bongo part 2
call the doctor
Bongo
..
tenman
re: bongo
call the doctor
sigh
call the doctor
Where is our Ambassador,Sir David
Where is our Ambassa
@Confused
Steadyj
@Tenman
Steadyj
Nice work
Bongo
Where is our Ambassador,Sir David ,;
R.Smth
pay attention
..
tenman
Good one!
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!
Confused
APUA stacked against us
Steadyj
confused
..
tenman
re: pedro
call the doctor
confused
..
tenman
re: confused
Quote: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.
call the doctor
Confused - blame it on our sick mentality
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tenman
only in antigua
Confused
Confused
..
tenman
The real Problem, PM
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.
pedro
hey..
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?
Confused
Does beef have an axe to grind!
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
L.Walters
Figures can tell many stories
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!
Confused
Beef
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?
..
tenman
RE: Power Plant Production Costs Explained
Wow
who have eyes to see let them see
Antiguan Youth
Only in ANU
Only in ANU
RE: Power Plant Production Costs Explained
piky head
Profit vs Employment (money staying in our economy)
BEEF
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