Minister of Works Roberts on BEC

MINISTER OF PUBLIC WORKS, UTILITIES
& BAHAMASAIR
BRADLEY B. ROBERTS, M.P.

TOPIC: COMMUNICATION TO PARLIAMENT
ON EVENTS AT BEC (MAY 2002-PRESENT)

OCTOBER 16, 2002

Mr. Speaker, I rise to communicate to this Parliament the events having thus far been initiated and in progress at the Bahamas Electricity Corporation since May 2, 2002 to this present date.

REPORT ON LOAD SHEDDING
Mr. Speaker, before I give notice of the projects underway at BEC, you would recall that during the announcement of the Board of Directors at BEC in late July of this year, I made it clear to the workforce of BEC that the incessant load shedding had to be addressed. You would recall that I made it clear that the interruption in power supply should and must be eliminated and ultimately eradicated as a part of summer life in the Bahamas.

Mr. Speaker, since that announcement some may say that power interruption has ceased dramatically depending on what area of New Providence they reside in; as well as some may say that it still remains a source of frustration and additional expense. However Mr. Speaker, I wish to communicate to this Parliament what the findings have been for the load shedding, as reported to me upon my request for a report.

1. Mr. Speaker, it is without question that load shedding occurred in the past summer months of July and August. However, I have been informed that the load shedding was due primarily to the unreliability of the No. 11 30-Megawatt Slow Speed Diesel Engine at Clifton Pier Power Station. This Diesel Engine was commissioned in 1999.

2. Mr. Speaker, I have also been informed that routine maintenance at both the Clifton Pier and Blue Hills Plants were said to be successfully completed. However, the outages of the No.11 30-Megawatt Slow Speed Diesel Engine took up most of the time designed for planned preventative maintenance routines at the other Generator Plants. This need for constant attention for the No.11 Engine at Clifton Pier, resulted in failures at other Plants, which in turn contributed to the load shedding during the past summer months.

3. However Mr. Speaker, by the end of August-past, a contract for a new high efficiency Hitachi Gas Turbine Generator at the cost of $10 million dollars was completed and I was informed that this generator brought the generation capability to more acceptable levels.

4. Also Mr. Speaker, I have been informed that work is continuing on the Alstrom Power Generator. This generator will be the newest generator at Clifton Pier and it likewise is a 30-Megawatt Slow Speed Diesel Generator. This unit was contractually mandated to be commissioned at the end of this month. I have been advised that this newest generator is now expected to be commissioned during the first quarter of 2003 at a cost of $34.8 million dollars. I wish to point out for the benefit of Bahamians that the Alstrom Power Manufacturer was the provider of the problematic No 11 30- Megawatt Generator.

5. Mr. Speaker, parallel to the commissioning of a second generator, BEC will soon be constructing a new 132 Kilo-Volts Transmission Line linking Clifton Pier with the Leisure Time Substation, while the Cable Beach Substation is under construction.

6. Mr. Speaker, I have been informed that these transmission links and its reinforcements, along with the construction of other and additional Substations will cost the Corporation $20 million dollars. And I have been advised that these works of transmission links and Substations should be completed by the first quarter of 2003.

Mr. Speaker, this report inclusive of the reasons for the power cuts this summer as well as what preventative measures are being put in place, is said by the Corporation to bring about security and stability of services at BEC. I would also hope and insist that it brings about accountability by the staff to make sure that amongst the many concerns of Bahamians, one of them should never again be reliable power supply. I will continue to monitor the ongoing events at BEC in this specific instance of reliable power supply.

Mr. Speaker, in regards to the power outages in New Providence on Monday past, the latest information regarding the temporary lost of power was as a result of lightning strikes at the Clifton Pier Power Station and at several transformers around the island. I have been advised that these problems, generated by lightning, have now been resolved. Unfortunately those kinds of problems are beyond prevention by man.

OIL SPILLS

Mr. Speaker, you may recall that over the summer months concerns was raised about oil spills occurring in the Clifton Pier area. I have been advised that BEC has been proactive regarding this concern and has instituted measures, inclusive of the engagement of a Specialist Company. I have been advised that a preliminary study has been completed into the cause of the oil spills and an action plan is now in progress as a result of the recommendations conveyed by the study. I likewise will be monitoring closely the results in this matter of the environment at Clifton Pier.

PROJECTS IN PROGRESS

Mr. Speaker, in turning to projects in progress since May 2, 2002, I have been advised of the following projects in progress at BEC:

1. At Big Pond, the old Power Station Building is being converted into an ultra modern office complex. This new office complex will house the Field Operations, Planning and Training Staff, as well as a Central Control Room. The cost of this improvement is said to be approximately $10 million dollars.

2. The Island Wide Street Lighting Programme for New Providence is said to be approximately 95 % completed. Its full completion is said to be expected in the first quarter of 2003. I have been advised that a similar programme is ongoing in the Family Islands and is said to have resulted in adequate lighting being provided in major populated areas.

3. Energy supplies are provided by BEC in some 28 Family Island Constituencies. As a result of the need for energy supplies to be ongoing to keep pace with developments in the Family Islands, I have been advised of projects in progress concerning Abaco and Exuma.

4. In Abaco, Treasure Cay was recently connected to the Marsh Harbour Supply System. Likewise major reinforcements are in progress in the Abaco Cays. The replacement of faulty submarine marine cables and the installation of new ones will be completed by mid 2003. The reason for this lengthy period of replacement and installation is due to the need for good weather to lay the cables.

5. In Exuma, in May 2002, a Letter of Intent was issued to Man B & W of Canada for the building of a new Power Plant on the Island of Exuma. Inclusive of the new plant is the provision of 2 X 4.4 Megawatts Medium Speed Diesel Generators along with the associated civil works. The cost of this specific contract is $8 million dollars.

6. Work has also been initiated in Exuma to construct a new Ring Feeder of 34,500 Volts at a cost of $1.68 million dollars. This specific aspect of progress in Exuma will be completed by the end of 2002 in time for the opening of the Emerald Bay Project.

7. Turning to Eleuthera, new fuel storage facilities and pipeline is being constructed at a cost of $750,000, with completion expected by the end of 2002.

Mr. Speaker, it is no secret that I have decided and attempting to bring BEC in tune with the demands not only of my government, but likewise those of the people of the Bahamas. It is from that view that I will remain ever diligent in my responsibilities as Minister to assist BEC in becoming an institution of dependability. My government colleagues know my position on BEC, the Board of Directors knows and management and staff should know.

Mr. Speaker, it has been clearly articulated by me to personnel that we must all work together to achieve dependability and accountability in services rendered at BEC. It is in response to my admonition that I have been advised of the attitude emerging at BEC. The Corporation has developed a strategy to improve Industrial Relations, Staff Morale, Productivity and Customer Service. I have been advised that a Strategic Planning Process has been completed, designed to transform BEC into a high performance workplace. BEC continues to institutionalize the recommendations of this Strategic Planning Process. It is expected that this Process will bring about significant and sustainable improvements in the performance and productivity of the Corporation.

Mr. Speaker, it is my duty to encourage BEC to improve in every aspect of the services they render to the people of the Bahamas. It is likewise from my position as Minister responsible that I will be monitoring the reactions of the paying public as to whether BEC is really improving their services, to determine what other measures need be taken if necessary.