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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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