WAPA Board OKs Negotiations With Wartsila, Aggreko

Virgin Islands Water and Power Authority Executive Director and CEO Karl Knight received the go-ahead from the utility’s governing board to negotiate an operation and maintenance contract with Wartsila and a two-year extension to the utility’s agreement with Aggreko during a regular board meeting on Thursday.

he board unanimously authorized Knight to enter negotiations with Wartsila for a three-year, $27 million contract for the operation and maintenance of four generating units at the Randolph Harley Power Plant on St. Thomas. After discussing a personnel matter in executive session, the board authorized Knight to negotiate a two-year, $18 million extension to its agreement with Aggreko. That company shut down its generators at the Richmond Power Plant on St. Croix because of nonpayment. Gov. Albert Bryan Jr. subsequently declared a state of emergency to free up “rainy day” funds for a $2.3 million payment to the company.

Ashley Bryan, interim chief operating officer of electric, said WAPA would have the option to exit the agreement after 13 months as long as they hadn’t accrued any penalties. “We would, however, have to pay any outstanding payables to Aggreko at the time of that termination,” she said. Later, Bryan said the utility had about $3 million in outstanding invoices.