VIDEO: PM Browne Traces Current Energy Challenges to Costly UPP Decisions

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Prime Minister Gaston Browne has defended his government’s handling of the energy sector, arguing that Antigua and Barbuda’s current limitations stem from missteps made under the previous United Progressive Party (UPP) administration.

Speaking in Parliament on Monday, Mr Browne recalled that in 2010 the then government pursued two separate contracts to meet a single requirement for 30 megawatts of power.

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PM Browne Traces Current Energy Challenges to Costly UPP Decisions

Prime Minister Gaston Browne has defended his government’s handling of the energy sector, arguing that Antigua and Barbuda’s current limitations stem from missteps made under the previous United Progressive Party (UPP) administration.

Speaking in Parliament on Monday, Mr Browne recalled that in 2010 the then government pursued two separate contracts to meet a single requirement for 30 megawatts of power. One project involved Chinese partners who built a plant at Crabs, which was later mothballed after failing to operate. He said that venture cost the country US$55 million “without any value.”

At the same time, the UPP also signed a deal with the Hadid Group, sparking a legal battle. “They took them to court and won. They got a judgment against the state for US$222 million,” Mr Browne said.

When the Antigua and Barbuda Labour Party came to office, the prime minister explained, his administration negotiated the settlement down to US$30 million. Unable to pay the lump sum, the government instead extended the Hadid Group’s existing power purchase agreement (PPA) by five years.

Mr Browne stressed that no new PPAs have been granted to the company under his leadership, only the extension necessary to close what he described as “a good deal” for the state.

The prime minister said the agreement is due to expire around 2030 or 2031, at which point opportunities may open for the Social Security Scheme to invest in energy infrastructure. “By then, hopefully social security will be flowing in cash to invest,” he told lawmakers, suggesting that such investment could be made independently or in partnership with Antigua Power Company.

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6 COMMENTS

  1. Look, when is Gaston Browne and the ABLP going to take responsibility for their own shortcomings as well?

    When the UPP were governing, of course mistakes were made (as the ABLP supporters keep trying to remind everyone), but the UPP were never ever going to copy the ABLP’s playbook from back in the day.

    However, the opposition has clearly now shown in recent times that they have not only learnt from their first time around and ready to govern, but UPP have also noted that this current government’s malaise has led to so much more poverty, ever increasing debt, and the ever rising tide of white collar and blue collar crimes.

    Spencer is no longer in charge, because there’ll be a new UPP sheriff in town (whoever that maybe) and governing Antigua & Barbuda at the next General Election.

    Remember, everyone deserves a second chance … don’t they? 😉

  2. In st croix wapa power company previous employees are subjected to federal investigation concerning their fiduciary trust to the company, but here in Antigua, a general manager and electricity manager isn’t even ask a question about their fiduciary trust in securing the APUA property or equipment, the previous old power station we had survived from the 1950’s under less academically qualified work men, now we have so call engineers with their masters degree and can’t fix a thing, they are just entitled to the job because of family and political connection, those two APUA top management should answer to an inquiry. And APUA should create the post of generation engineer and let the electricity manager concentrate on the poles and lines.
    Now come to think of it that those 50’s engine survived, there seem to be purposefully sabotage of the new power station that the UPP under the prime minister Baldwin Spencer installed, it had çross path with the one percenters who continuously sup at the chaff of the public for perpetuity, none of these one percenters came to Antigua with any wealth, but enjoyed white privilege that transform them into billionaires, all while the people that suffered as slave have to live a meager life not been able to access the state resources through their black government.
    The Gaston brown administration was not democratically elected, but financed into office, largesse was given out, appliances and electronic gadgets and shoes and concert parties financed by the one percenters that we sold out future for and swayed public perception.
    The then government in the process is transformed into a dealership instead of a leadership, they sign contracts once more with the one percenters, they even get another fossils fuel power power station and told us it green energy, extending contracts into perpetuity with this Syrian family dynasty.
    And then now Gaston comes to us making a technical argument about contracts done by the upp based on size of engine or power production, for all I know the Baldwin Spencer administration was advised that hadeed group should not bring in a 30 megawatts plant but smaller sets equivalent of 10 megawatts, because the vision was for APUA to have its own assets, Gaston did not understand but felt ingratiated by this family getting him elected that he sign new extended contracts , and the a whole new power station on contract also extending the burden on the backs of the poor ANTIGUA people with exorbitant electricity bills that suddenly spike high as the people complained, the upp government was to implement a utility commission but was hampered by involving the private business mogul who provides electricity to the same government.
    The people of Antigua will have to live with this millstone around their necks that Gaston hastily sign upon coming to office in 2014 for the next 40 years. It is sad to see black men after slavery can still be elated to serve white monopoly capital domination and seek validation from these Caucasian one percenters that has been controlling this countries economy from since emancipation and independence.

  3. One this of side of the story. But ok UPP had their own plant, the Wadadli plant and what ever reason they lost a case saying they couldn’t have Hadeed and another company at the same time so what was the power supply agreements?

    Why did you give up on the Powerplant because surely hadeed didn’t supply all the power. When I remember UPP was blamed for blackouts. Don’t matter how you look at it owning our utility is one of the most important things for “empowerment” and independence.

    The fact that hadeed allowed you to pay 30 mil over the 222 was obviously because they know they will make it back in someway, so the PPA could be changed although I am ignorant on the contract signwd.

    The reason I’m bias towards the UPP because their vision was not bad at all ever they may have failed and did things poorly in some areas. I don’t believe in black capitalism it’s obvious by the name I use here, because instead of white people exploiting black people you take that white face and substitute it with black and suddenly it’s black empowerment. When if a white person did half of it the stuff done you wouldn’t accept it. Also their tax system was objectively better to have a progressive income tax over a regressive import duties.

    Now having SS over powerplant would just be silly you don’t need them running the plant for profit just have a board to take control of it if it’s still running because remember you said we will be on green energy by 2030.

  4. COOKS POND WATER and his “Sunshine”Government EXPERIMENT was thee WORST THING TO EVER HAPPEN TO ANTIGUA! Horrible, piss poor decisions. What a WICKED, INCOMPETENT government it was 2004-2014.

    -IMF
    -“NEW”ENGINES (Blood in hotel lobby Press Conference)
    -hard, guava crop times

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