The Consolidated Commission on Utilities has greenlighted the Guam Power Authority's plan to enter into two diesel fuel oil contracts, worth $146 million combined, with local companies.
GPA will procure diesel fuel oil No. 2 from Mobil Oil Guam for three site locations: Yigo CT and Aggreko; Piti 7; and Cabras 1&2, MEC 8&9, Manenggon Diesel Plant and Talofofo Diesel Plant. The aggregate cost for the two-year contract base period with Mobil Oil Guam is estimated at $113 million.
A separate two-year contract, worth $33 million, is with IP&E Holdings for supply of Diesel Fuel Oil No.2 for Macheche CT and Dededo CT.
“While the aggregate contract value for all site locations is estimated at $146 million, the total savings for the two year contract is estimated at $1.6 million,” said John M. Benavente, general manager. “The estimated savings is derived from the premiums or transportation costs, insurance expense etc.”
GPA also received approval to conduct inspection and refurbishment of GPA’s bulk storage fuel tanks used to supply fuel to the authority’s baseload units.
Upon completion of the inspection and refurbishment of the bulk storage fuel tanks, they will be utilized to store ULSD fuel to supply Piti Power Plant 7 and upon ULSD conversion for MEC Plants 8 and 9 and the proposed 180 MW power plant. A sole qualified bidder submitted a bid for GPA’s consideration and an evaluation committee has determined Tristar Agility to be the responsible and responsive bidder at a cost of $8.9 million.
“With CCU approval, all three contracts will be forwarded to the Public Utilities Commission for review and final approval,” Benavente said. “Both play significant roles with the Authority’s plans to reduce costs, prepare for the new efficient power.