WAPA Governing Board Approves Glencore As Supplier Of Oil For Power Plants On St. Croix And St. Thomas

The governing board of the Virgin Islands Water and Power Authority on Thursday authorized an agreement to allow WAPA to maintain a contractual relationship with Glencore, Ltd., the utility’s primary supplier of No 2 oil, WAPA announced Friday. Under terms of the agreement, Glencore will continue to meet WAPA’s needs for No. 2 distillate fuel oil and ultra-low Sulphur diesel at the two power plants, WAPA said.

The approved agreement is effective January 2019 for a 12-month period with options to renew for successive 12-month periods, according to WAPA. “Glencore Ltd. has demonstrated a consistently positive track record in regards to safety and reliability, and has maintained a good working relationship with WAPA,” said Clinton T. Hedrington, Jr., chief operating officer of Electric System at WAPA.

In other action, the governing board approved:

• Addendum to an existing contract with Barkley Technologies for an additional 14 months at a cost of $1.2 million. The company is providing specialized project management, design support, and field support services for composite installation projects across the territory.
• A contract with CDR Maguire in the amount of $289,500 for development of a territory-wide Water Distribution Master Plan. The plan was last updated in 1987.
• A contract with Leidos Engineering, LLC totaling $1.5 million to perform engineering design services for a submarine cable project. The contract is fully reimbursable by FEMA as part of hazard mitigation projects. The new submarine cable will strengthen the electric transmission system allowing for more efficient restoration of electrical service following a natural disaster, and will provide more reliable service for customers in the St. Thomas – St. John district.
• The extension of maturity dates of the Authority’s Lines of Credit and Overdraft Credit Facilities with First Bank until November 15, and an extension of the maturity dates of the Authority’s Banco Popular Lines of Credit until December 31, 2018.

Board members in attendance included Chairwoman Elizabeth Armstrong, Vice-Chairman Hubert Turnbull, Commissioners Devin Carrington and Nelson Petty, Jr., Director Marvin Pickering, Cheryl Boynes-Jackson, and Gerald T. Groner, Esq.  Secretary Juanita Young and Noel Loftus were excused.