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BUSINESS: EWI posts 1% bid bond for 360MW project
2013-10-18 14:37:32 | (0 Comments)
Energy World International/Pacific LNG (EWI) today posted its bid security as a condition of its selection as the preferred bidder in the base load generating capacity 360 megawatt power plant project.
Director General of the Office of Utilities Regulation , Maurice Charvis (left) receives the one per cent bid bond instrument from Christopher Pope, Associate Director of Energy World International at the OUR’s office in New Kingston today - Contributed
The US$7.37 million bond, which was due today, represents one per cent of the total cost of the US$737 million project, the Office of Utilities Regulation (OUR) said in a release.
EWI was selected as the preferred after the consortium of Azurest Cambridge failed to meet a deadline earlier this month to post the its US$6.9 million bond as required by the OUR.
The submission of a bid bond is a security to indicate the preferred bidder’s interest in pursuing the project. It is forfeitable if the bidder fails to proceed with the project and refundable upon the successful completion of the project.
The next upcoming phase of the project is the posting of the five per cent performance bond, which will become due prior to construction, the OUR said.
This instrument is a guarantee against the entity’s performance and, like the bid bond, is returnable and forfeitable.
“In accordance with international best practises, apart from initial checks carried out as part of the evaluation process, the OUR continues to conduct further due diligence,” the release said.
This includes an investigation by the Revenue Protection Division of the Ministry of Finance and Planning.
EWI will now have to commence negotiations with the Jamaica Public Service Company Limited with a view to signing a power purchase agreement, finalize a fuel supply agreement for the project as well as meet and present all the statutory requirements needed to achieve financial closure to allow for the commencement of construction, the regulator said.
The company will also be setting up local offices.
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Source: The Gleaner/Power 106 News
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