Statement regarding SKELEC and COMS

With reference to certain false statements made in the St. Kitts media in August 2012 CaribNRG and Terry Burn wish to set the record straight in the interest of fact, truth and fairness.

Fact.  

Between December 2008 and May 2011 CaribNRG were contracted by St. Kitts Electricity Department (SKED) to carry out two contracts for installation of generating capacity at the Needsmust Power Station.  The first project in 2009 was the replacement in the power station of a damaged diesel generator with a new 4MW generating set.  The second project in 2010/11 was the installation of 16MW in a 4 x 4MW configuration on a new site close to the Needsmust Power Station buildings.

Fact.  

CaribNRG, using MAN diesel engines, was selected for the 16MW project in competition with Wartsila based on price and technical scope.  CaribNRG contract price was 20% lower than the Wartsila quote for the same size of power plant.  Furthermore, the CaribNRG contract price per Megawatt was 15% lower than the price paid by SKED to MAN Diesel for 8MW (2 x 4MW) purchased between 2006 and 2008.

Fact.  

In August 2011 the Government formed St. Kitts Electricity Company Limited (SKELEC) to replace SKED and the Government entered into a contract with a company, COMS, to manage the new utility company.  Since August 2011 when COMS took over management of SKELEC the only work carried out by CaribNRG for SKELEC has been to complete a project between October 2011 and January 2012 valued at approximately $350,000 started in 2008 and interrupted following a major fire in the power station in October 2008.

Fact.  

CaribNRG power plant installations are based on it’s own design.  This is a package power plant concept that is both fast to install and cost effective when compared to conventional power plants.  This package power plant design is based on single or multiple diesel generating sets in the 1MW to 4MW size range.  Generator sizes over 4MW are not offered.  SKELEC and COMS have identified that their future generating needs must be based on generating sets in the 6MW range.  SKELEC and COMS would appear to have therefore ruled out further CaribNRG package power plants in their medium and long range planning.

Fact.  

CaribNRG is actively involved in renewable energy opportunities.  CaribNRG have a partnership arrangement with a wind turbine company to develop wind farms in the Caribbean.  SKELEC and COMS have not approached CaribNRG for a proposal on wind energy, instead they have entered into negotiations with a company called North Star.

Fact.  

Terry Burn, a shareholder in CaribNRG Limited, is not and never has been a shareholder or director of the SKELEC management company known as COMS.