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PHILIPSBURG--Utilities Company NV GEBE is negotiating an additional US $28 million loan to help finance the purchase of three new generators, as negotiations with the preferred supplier move toward the final stage, Prime Minister Dr. Luc Mercelina said Wednesday.
Speaking during the live Council of Ministers press briefing, Mercelina said government had previously safeguarded US $42 million with the assistance of the Council of Ministers and negotiations with the Netherlands for the generator purchase. However, rising prices following the war have meant that the US $42 million will no longer be enough to purchase the three generators.
He said the additional US $28 million being negotiated by GEBE would cover the amount needed on top of the US $42 million for the generators, while also supporting several other projects.
A remaining step in the negotiations with the preferred supplier is the submission of comfort letters from government and GEBE.
The prime minister said government’s comfort letter is already prepared and has been presented to the preferred supplier. However, the supplier asked that government wait until GEBE’s comfort letter is also ready so that the two letters can be presented together.
“We are just waiting now on the comfort letter from GEBE,” Mercelina said. Once GEBE’s comfort letter is ready, Mercelina said only some details would remain before the parties can proceed with the final deal to purchase the generators.
He explained that the additional US $28 million being negotiated by GEBE would not be used solely for the generators. Part of the financing would be added to the US $42 million already secured for the purchase of the three generators.
Another portion would be used to begin work on a new national fuel farm for St. Maarten. Mercelina said the fuel farm would contribute to the expenses associated with energy production if GEBE is able to have its own fuel farm and tanks. A portion of the financing would also go toward the further development of alternative green energy, including the solar panel project.
The financing would additionally include a small portion to begin preparing the plant for the arrival of the ordered generators. Mercelina said the base infrastructure is already there for the installation of the three generators.
He said the financing is therefore intended to cover the generators, preparations for their installation, the fuel farm and the start of work on alternative green energy.
Mercelina said government is now waiting for GEBE’s comfort letter before moving to the next stage of the generator deal.
