Home' Trinidad and Tobago Guardian : July 20th 2015 Contents The National Gas Company Limited
(NGC) has responded to a Sunday
Guardian exclusive story stating that
Super Industrial Services Ltd (SISL) has
already been paid US$139 million of a
US$162 million contract for the Beetham
Wastewater Reuse Plant by saying that
NGC is honouring the payment schedule
in the contract and that the contractor
had completed 42 per cent of the con-
struction related activity by the end of
Yesterday s T&T Sunday Guardian lead
story stated that as at the end of the first
quarter of 2015, SISL had received over
86 per cent of the total fee for the project,
which was 66.1 per cent complete.
T&T Sunday Guardian s calculations of
US$139 million already paid to SISL include
US$107 million paid to the contractor for
engineering, procurement and construction
and US$32.4 million as a 20 per cent
The NGC does not dispute the T&T
Sunday Guardian contention that US$139
million has been paid to SISL, but argues
that the mobilisation fee will be repaid to
NGC and that under the project agree-
ment, the first repayment of the mobil-
isation fee by the contractor is due next
month. NGC did not say exactly how
much this first repayment would be or on
what day in August it would be repaid.
The NGC response also alleged that the
T&T Sunday Guardian article was based
on "erroneous information" but the state-
owned company failed to identify any
specific errors in the reporting.
Following is the NGC s response to the
T&T Sunday Guardian report:
The NGC has noted the article published
by the Sunday Guardian of July 19, 2015,
under the heading SIS Banks $.9B.
NGC strongly refutes the article s con-
clusions especially since this is based on
erroneous information and is not sup-
ported by the current facts of the project s
progress to completion. We believe that
it is essential that NGC corrects the inac-
curacies contained in the article given the
importance of the project to the national
community. The Beetham Water Reuse
Plant (BWRP) will provide 10 million gal-
lons of water per day to Pt Lisas, freeing
up water for distribution to domestic cus-
tomers across the country. This additional
ten million gallons of water per day will
provide a full-time water supply to over
150,000 people and positively impact over
In light of the issues highlighted in the
Sunday Guardian, we would like to provide
the following update and address some
of the inaccuracies highlighted in the arti-
• The contract between the NGC and
the Super Industrial Services Ltd (SISL)
for the Beetham Water Reuse Plant (BWRP)
contains a payment schedule which is
being honoured. The payment schedule
includes a 20 per cent mobilisation fee of
$US32.4 million. As is standard for projects
of this nature, over the course of the proj-
ect, this mobilisation fee is REPAID to
NGC by the contractor. Under the terms
of the project agreement, the first repay-
ment of the mobilisation fee by the con-
tractor is due in August 2015.
• The contract also caters for a 20 per
cent retention fee to be repaid in two
tranches. The first tranche of 10 per cent
is due at commissioning (after taking over
certificate is issued) and the second
tranche (10 per cent) after the defects
notification period of 365 days.
• Two consultants are assigned to this
project---CPG Corporation Pte Ltd (Sin-
gapore) and Ernst & Young. CPG Corpo-
ration Pte Limited were responsible for
developing the plant s scope of works and
technical specifications. Ernst & Young
provides overall oversight for the project.
• As with all contracts of this nature,
there will always be unforeseen circum-
stances which will be addressed through
contract variations as catered for in the
terms and conditions of the contract.
• The project delivery schedule has faced
a minor setback given prevailing weather
conditions and procurement delays. NGC
is currently working with the contractor
to develop a revised project timeline.
• Overall 78 per cent of the engineering,
procurement and construction planned
to complete the project have been deliv-
ered. As at May 30, 2015 this overall figure
represented 98 per cent of the engineering
work, 90 per cent of the procurement and
42 per cent of the construction-related
• Twitter: @GuardianTT • Web: guardian.co.tt
maica s sole electricity
provider says crews have
pulled down nearly 10,000
illegal connections to the
power grid and police have
arrested over 300 people for
theft so far this year.
In a statement yesterday,
the Jamaica Public Service
Co says it is "relentlessly
pursuing" electricity thieves
in neighbourhoods where a
tangle of illegal wires can
often be seen tapping into
In one town in Jamaica s St
Catherine parish, residents
fled their homes last week to
avoid arrest as power crews
removed about 850 illegal
connections. The govern-
ment has a 20 per cent stake
in the electricity distributor
on the Caribbean island,
where power theft has long
been rampant. In import-
dependent Jamaica, con-
sumers pay as much as five
times more for electricity
than people do in communi-
ties in South Florida. (AP)
KINGSTOWN, ST VINCENT---Prime Minister Ralph
Gonsalves has written to his Barbadian counterpart Prime
Minister Freundel Stuart, over what he says has emerged
as a "Barbados-only" plan for policyholders of the collapsed
British-American Insurance Company Limited (Baico).
"The judicial manager in Barbados put forward a plan
and I don't like the plan," Gonsalves told reporters, saying
that he did not "mince words" in his five-page letter of
June 25. Gonsalves did not release the letter to the media
but read sections, which, he said, would give insights.
"We are aware that in its December 2014 report, the
judicial manager of Clico International Life Insurance
Company (Clico) recommended to the Supreme Court of
Barbados that there be a liquidation of the company. We
are aware, too, that in the week of June 15th, 2015, there
were two meetings in respect to the above-mentioned
matter in an effort to avoid liquidation and arrive at a
consent order and another on Wednesday June 24, 2015.
All concerned appreciate that liquidation is a last resort.
"However, we wish to place on record the vigorous
objection of the Eastern Caribbean Currency Union to the
proposed Barbados-first plan which is now emerging as a
Barbados-only plan," Gonsalves said.
Gonsalves, who is also Minister of Finance, told reporters
that he has to defend the interest of the people of St
Vincent and the Grenadines and the policyholders of Clico.
Noting that he is also the person in the Eastern
Caribbean Currency Union (ECCU) with responsibility for
Baico and Colonial Life Insurance Company (Clico),
Gonsalves also said he has to defend the interest of
policyholders in the ECCU.
"I explained in it the whole story. I am not going to
release this letter yet. I am waiting to hear all the various
objections to what was emerging as a Barbados-first plan
to what is a Barbados-only plan," he said, adding that
Minister of Finance in Bridgetown, Christopher Sinckler,
has said this is not the case.
"Well, he can have a view, and I can have a view and we
have to sort out where the interest of everybody resides."
He quoted the letter, saying: "As a minimum, an
independent assessment of the proposal is critical. This
should, among other matters, examine the risks and costs
of the proposal to policyholders in the currency union.
Appropriate government arrangements, transparency and
collaboration must be established with compensation as
necessary so that the interest of the currency union
policyholders are properly considered in real-time and
before key event occur that may be irreparable."
"The reason why I say that they are saying some things
which we could get down the road. I want it in real time..."
He told reporters that the letter also says "there should
be inter-dependent assessment provided as to the division
and management of Clico's assets."
"And then I ended saying: 'We remain open to discussion
on this matter in an effort to find a solution palatable to all
concerned and are prepared to make representatives
available to discuss the matter with Barbados Ministry of
Finance and Financial Services Commission.'"
"So I just want the people in Clico to know we still at the
wheel dealing with the matter," Gonsalves said.
He, however, said that realistically, he doesn't think that
Port-of-Spain will disburse before the general elections in
September anymore of the US$40 million that Trinidad
and Tobago had agreed to give to help to resolve the
"I am just saying that. But I am still pushing and hoping,"
he said. (CMC)
Jamaica power utility pulls down thousands of illegal lines
Construction on Beetham
plant 42% complete---NGC Gonsalves protests
for Clico policyholders
One of the two steel and glass storage units installed by Super Industries
Services Limited (SISL).
ABOUT THE BEETHAM PLANT
The Beetham Water Reuse Plant
(BWRP) is an initiative designed to
upgrade the Beetham Waste Water
Treatment Plant (BWWTP) to recycle
wastewater to industrial standard
and use it to supply clients in the
Point Lisas Industrial Estate
(currently, treated water from the
BWWTP is pumped into the sea).
This requires modifications and
additions to the existing plant at
Beetham and new pipeline
infrastructure to transport the water
over land to Pt Lisas.
This pioneering project will be the
first to include water recycling among
the nation's menu of technologies for
The existing ones are: surface
water, ground water and desalination.
Why is the plant important?
The Point Lisas Industrial Estate,
the heart of our nation's energy
industry, is a major consumer of
water using an estimated 23 million
gallons of water per day. If that
supply is compromised and the
operations of the estate are
negatively affected, Trinidad and
Tobago would experience severe
economic consequences. The reality
of such an event became apparent
during the 2010 dry season in which
the water supply became so critical
that it almost led to the complete
shutdown of the entire Point Lisas
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