Protest Delays Approval Of Proposed Guam 120-Megawatt Solar Farm

Failed bidder contesting Guam Power Authority's awarding of contract

By John I Borja

HAGÅTÑA, Guam (Pacific Daily News, July 26, 2017) – A decision on a proposed solar farm in Mangilao will have to wait at least another month after one of the bidders protested Guam Power Authority’s awarding of the contract.

GPA General Manager John Benavente on Wednesday told members of the Consolidated Commission on Utilities that Shanghai Electric Power Company didn't agree with the agency’s awarding of a 120-megawatt solar installation to two other companies.

The power agency will petition the Public Utilities Commission to proceed with payment for Hanwha Energy Corporation and KEPCO-LG CNS Consortium, the two lowest bidders for the project. Each company had two proposals for 30-megawatt solar installations.

According to Benavente, Shanghai Electric Power Company’s proposals were ranked fifth and seventh in the list of bids, with rates of 12.9 cents per kilowatt-hour and 16.1 cents per kilowatt-hour. The bids of Hanwha and KEPCO-LG CNS were at approximately 6 and 8 cents, respectively. Ranking was determined by the rates the bidders proposed, per 30 megawatts of solar installation. 

Benavente asked commissioners to table the resolution while GPA addresses the protest.

Commissioner George Bamba expressed concern over the terms of the agreement with the winning bidders, and asked Benavente if their proposed prices will remain the same while time is spent dealing with the protest.

Benavente said they can to request an extension on the decision. However the agency handles it, CCU chairman Joey Duenas said, it needs to work quickly to resolve the issue.

“We need to be aggressive in dealing with this protest. We can’t afford to wait,” Duenas said.

The solar project would be built in Sasajyan, Mangilao, and is expected to be a 25-year agreement, Benavente said. The project is meant to help reduce the cost of energy and stabilize rates against rising oil prices.

Payment option

PA’s commercial customers soon will be able to pay their utility bills with MasterCard debit and credit cards.

“We have finally received favorable rates, which reduces commercial transaction costs, making the service possible at a reasonable cost,” Benavente said.

Commissioners approved the resolution to extend the payment option to businesses, which previously was available only to residential customers.

Pacific Daily News
Copyright © 2017 Guam Pacific Daily News. All Rights Reserved

Rate this article: 
No votes yet

Add new comment