Paulwell sees 'no impropriety'

Gary Spaulding, Senior Gleaner Writer

Minister of Science, Technology, Energy & Mining Phillip Paulwell is stressing that he detects no hint of impropriety despite the repeated fits and starts of getting the 381 megawatt project off the ground.

In seeking to clear the air, Paulwell added little to what is already known in the public domain that has left the country in a tizzy. The minister said he has the power under law to make amendments to the licence granted to Energy World International (EWI) for the 381 MW project.

"This role is also reflected in the OUR Act, which states that no entity shall provide a utility service without a licence issued by the minister," said Paulwell. "As the terms of the licence are the purview of the minister, it may be amended as he thinks expedient."

After the brouhaha that raged over the past few days, Paulwell sought to assure the public that he is acutely aware of "the intense public interest and debate" surrounding the granting of the licence to EWI.

After coming under intense pressure about his motive for modifying the licence, Paulwell said given the importance of the project to national development, he was seeking to bring clarity to the matter.

He said he signed the April 4, 2014 licence because the Office of Utilities Regulation (OUR), in making its recommendation, also proposed terms to be included in the licence.

Paulwell said several of these terms were substantially different from those contained in the Form of Licence attached to the Instructions for Final Proposals (IFFP) that was issued to all bidders, by the OUR.

This Form of Licence (a document containing standard terms) would have been a critical consideration for all bidders in deciding whether to submit a proposal.

Paulwell said the legislative framework provides that the OUR should manage the procurement process for new generating capacity.

"Consistent with that framework, the OUR has full latitude to discharge its role and function," said Paulwell. "As far as the minister is aware, while there have been several delays, there has been no impropriety in the OUR's management of the procurement process," he added.

He noted that EWI was selected as the preferred bidder on October 4, 2013 and a Power Purchase Agreement (PPA) was signed and dated December 2, 2013.

Paulwell said he was advised that on the basis of the PPA, EWI made arrangements for the purchase of equipment, which had to be shelved due to the delays in the procurement process.

He said having selected the preferred bidder, the OUR conducted its due-diligence exercise and approved a PPA between the Jamaica Public Service and EWI. The regulatory body also made a recommendation to the minister for the granting of a licence to EWI.

Paulwell said having received the recommendation from the OUR, he became responsible for the terms and conditions of the licence, in keeping with the Electric Lighting Act.