Bidders may be apprehensive about the role of the ESET vs OUR !

There are mounting concerns by persons in the electricity sector that the formation of the ESET to replace the role of the OUR may create more problems than it is likely to solve. There are fears that given the government’s move to circumvent the constituted authority ie the OUR for the procurement process for the supply of the 381 MW of power generating capacity, potential bidders may not be interested in the process.

Potential bidders who have been following the botched process and the IDB refusal to support the previous winning bid, have expressed the fear that the same could occur should the government of Jamaica proceed with the ESET vs the OUR.

No on wants to go through. spend the  time , effort and money to prepare bid documents, win a bid only to be told by a major financier like the IDB, that they cannot support the financing of the project as the constituted authority was never involved in the process and it did not meet IDD procurement guidelines as in the attached document.

Commonsenseja is once again warning the Simpson Miller led administration to immediately cease and desist from moving forward with the ESET and the group should be disbanded forthwith.

No bidder out there can come up with the US$650M needed to finance this plant if we go the route of a competitive bid and will need the IDB seal of approval to get other lenders to come on board.

If the PNP government foolishly decides to continue down this road, I can assure you that come 2019 ( not 2016) we will still NOT have a 381 Mw plant and no one would be interested in participating in any such process, with possibly the exception of  CHEC !

This would mean electricity prices will now be significantly higher then ( 2019) vs lower as was the expectation.

See IDB procurement documents below.

Guide_for_Acceptance_of_the_Use_of_Country_Procurement_Systems

Policies_for_the_Procurement_of_Goods_and_Works_financed_by_the_Inter-American_Development_Bank

 

This is not wild thinking or wild speculations, these are real concerns and the only place you will read this is on commonsenseja, where we try to be as thought provoking as possible and offer a entirely different perspective on issues that others would otherwise not speak about.

I hope this and the others will get people to begin to think and focus .

I will say this as often as we can, if we plan and  prepare very well and follow the correct set of processes, we will most often than not, get the correct results.

If we however focus on the results and then try to create the processes as we go along, we will never  have a proper process that can hold up to scrutiny  and neither will we get the results we expect.

 

Well the facts are ( PNP versions) , we cannot have both the OUR and Phillip Paulwell playing the very roles they played before in the botched EWI 381 Mw bid process, as nothing would have changed.

The Portia Simpson Miller led government is bent on having Phillip Paulwell play his exact role(s) as before, which means the OUR has to be removed from the process.

The removal of the OUR from its role in the procurement process constitutes a breach of the current OUR act as it specifically relates to the provision of utilities.

The IDB will not lend any money to any  entity that emerges from a process that is fundamentally flawed and flouts the country’s and the IDB’s procurement guidelines.

This is what is likely to occur if the ESET is allowed to manage the procurement process as they are NOT the authority mandate by Jamaica’s laws to do so. Oh by the way, changing the laws to facilitate this will not work either

Is the PNP  government prepared to protect Phillip Paulwell and allow the country to suffer in the process ?

Are Jamaicans willing to allow that to take place ?

How we proceed from here forward, will be a defining moment in the political history of Jamaica, mark my word

 

Bless

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5 Responses

  1. Byles position on this project coincides in some part with my own assessment of the situation, as reported in today’s gleaner.

    Co-chairman of the Economic Programme Oversight Committee (EPOC), Richard Byles, has warned the Government that it might now be unable to attract bids from companies with the ability and track record to construct its prized power plant because of its penchant for revoking tenders it has accepted.

    Byles said that when international players, people who build power plants, see that the country repeatedly “goes to tender and pulls it back, they say, ‘Hello, we are not interested in Jamaica,’ because it costs them time, money, resources to make this tender”.

    Noting that “it’s a very sophisticated process to go through a tender for a plant of that size”, Byles said, “They are saying, ‘This country doesn’t look like it’s serious. Year after year after year it says it wants tenders. It then withdraws from the process, leaving everybody with nothing, so I’m not bidding next time’, and that is what we have reaped finally

    http://jamaica-gleaner.com/gleaner/20140611/lead/lead2.html

  2. I guess the answer is yes, given the PNP government have made amendments to the law to allow the ESET to operate .

    Jamaicans will continue to suffer at the hands of these people who have no clue how to operate.

    Its interesting how the laws can be amended in haste to make what was illegal now legal, all facilitated by a most distinguished AG, very interesting.

  3. Oh by the way, changing the laws to facilitate this will not work either ??

    Why is that ?. if you want a fresh process, and you want it to be legal, don’t you have to change the laws ?

    • What about the “existing” process is not working.
      Sent from my BlackBerry® wireless device from LIME.

      • if you end up in a stalemate with the existing process for over a decade, then you have to change something. you can’t do the same thing over and over and expect a different result

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