Minister for Energy Dr. Vince Henderson has said that Ormat Technologies Inc is committed to delivering the Geothermal Power Plant to Dominica by December 2025.
He was speaking during the Eighth meeting of the First session of the Eleventh Parliament held recently where the Government of Dominica sought parliamentary approval to obtain a bank guarantee from the National Bank of Dominica for EC$ 13.5 million to secure the commitment for the construction of the Geothermal Power Plant.
The project financing agreement is between the Government of Dominica and Geothermal Power Company of Dominica (2023) Limited, owned by Ormat Technologies, Inc.
“The power purchase agreement, similarly DOMLEC [Dominica Electricity Services Ltd] will have to issue a letter of credit to Ormat to ensure that it can pay for the power that Ormat will be providing them with, but on the other hand Ormat will also be obligated to provide DOMLEC with a letter of credit for 3 million US dollars to ensure that they can deliver the power plant when they say they will,” he explained.
He continued, “In other words, Ormat has committed to deliver the power plant in 24 months of signing. That is to say by December 2025 we expect to have a power plant.”
Dr. Henderson added, “If they are unable to do that then DOMLEC would have to charge them for every day they are not able to provide power, because DOMLEC would have to get power elsewhere.”
He further explained that the power purchase agreement has to be approved by the Independent Regulatory Commission (IRC) on the electricity.
He said the IRC is satisfied with the agreement and they will be the ones responsible for enforcing it.
“In other words, they have to ensure that Ormat would be paid what the two parties agreed and to ensure further that DOMLEC will not add anything to that tariff that Ormat will be selling,” Dr. Henderson explained. “In other words, Ormat has committed that based on the financing, they can sell electricity at about 12 US cents to 15 US cents. That will be finalized before the completion of the plant.”
He made it clear that once this is sold to DOMLEC, the sole electricity company cannot add anything to it, “except the usual cost of getting your power to you.”
This is what I got from Domlec’s financial statesment:
2022 2021 2020 2019 2018
Units Sold (kWh x 1000) 88,986 89,257 85,502 81,243 56,289
Revenue/Unit Sold (EC Cents) 125.67 102.79 93.60 104.22 100.58
I hope the above is formatted properly. But Domlec was charging $1.26/KWh for power in 2022. Let’s hope they can cut the rate in half when the plant is fully operational.
Ideally, they should be targeting somewhere around 30 cents/KWh when the government takes ownership of the plant
Per your last sentence, when ideally will that be? 2050, may I ask?
Henderson, I would like to ask you a question. Imagine the Geothermal Plant as it exists today was owned 50/50 by you and your master Skerrit, would you still support this nonsensical deal with this US company? Of course you wouldn’t! You might as well sign it over to them free of charge and throw an additional 13.5 million in for good measure. The Dominican people ought to hold you guys accountable. You guys are unbelievable!
If it walks around and talks like a duck…. it is a duck. Mr. C Gregoire, former ambassador had already put this all together with the relevant people of Iceland who have a knack for getting geothermal energy achieved and running by local entities. And, that was his main interest way back in 2009.
With foot dragging, mamaguy talk gobbledygook, and his back against the wall we have never understood what Vince is doing nor talking about. Now we’re finally placed in lala-land buying himself as much as 25 years to shut you up.
Members of the present plutocracy are all Liars extraordinaire. They are totally devoid of ethics, morals and empathy. Every one of them, without exception, has an insatiable appetite for superabundance of riches.
These notorious Liars depend on outright lies, bogus charges, a corrupt electoral system, false promises, the ‘purchase’ of the courts, many media personnel, the clerics, influential business executives, in order to rust in government.
Most of their monumental promises are nothing but vapour. They vanish in thin air. The modern cruise ship facility, the missing $CBI billions, the resurgence of agricultural production, the exit from the $100 000monthly tax funded Morne Daniel fortress, are all unfulfilled promises.
This government’s promises are as reliable as a chain-linked fence built around a well to retain water.
Dominicans dont you all ever forget Vince Henderson and skerrit made a man like Zampoli your Ambassador that guy is involve in so many crooked deals its unbelievable you all will hear more later,and these guys keep on lying to you all ,all the time.
Dominicans its all over you tube and many media outlet , ask Vince Henderson if he know Jeffrey Epstein because he said he hang with those big boys maybe a the Kitt Cat Club in New York, Trump ,Zampoli , Epstine thats their hang out spot.
Dominicans if you all did not know about Jeffrey Epstine he own his own island thats a big boy, he hang him self in jail because he did not want to sell out his business and the big boys he had as his clients , Vince forget to tell you all about him.
Every time i look at Vinces face he look so pathetic that guy is more dangerous than skerrit . Vince what about the Kitt Cat Club in New York you missing that boy? the Martinis were out the hook. Concern citizen want to know.
In a real country Alibaba and all of his forty thieves would be serving many years in prison for all what they have done. But prime minister Roosevelt Skerrit in his capacity as Prime Minister declared that Dominica is not a real country
Vince Henderson said on a platform a poor boy from back street St joe hanging out with guys like donald trump and zampoli what a fool and a liar .
Zampoli was a pimp and they made him an ambassador that guy use to bring women to a rich club in new york where women would meet rich men thats where donald trump meet his wife in a gogo bar, today the truth has come out, and that fool vince run to dominica talking that BS. When people like vince come be hind a microphone he say anything and everything just to fool dominicans but we that live in that part of the world we know and see all these guys dirty secret.
Dominicans vince run from new york because that guy wasnt doing nothing on behalf of dominica, so he and skerrit plan for him to come back and he will step down and make him prime minister ,when the hungry hyenas saw that they put their feet down from that time vince is as cold as Canada thats where he want to go Dominicans look out.
“December 2025” – just far enough away for all to forget about this commitment, yet near enough to inspire hope. But total hogwash nonetheless!
@Plastic Putin
Corrupt, lame-brain politicians salivate over diehard followers like you. They don’t have to work, not even lift as much of a finger, to get your unwavering support.
You have often made yourself a subject of ridicule by giving credence to the most asinine and godawful things said and done by this puerile group of clandestine characters posing as government.
The people have the real power not the politicians. The biggest problem with voters like you (Putin) is that you don’t have the wisdom to use it wisely.
When voters like you, plastic Putin, give blind support to corrupt politicians, ignorance and poverty rule the country.
Ya, but my 50th birthday tomorrow, how old will I be before we(Dominica) get it back under your 25-30 year type of poorly written contract that’s as bad as the UWP’s or worse?
Vince…..I am not sure if you have every been involved in running a business, but I have worked in private business my entire career. Notwithstanding the fact that Ormat would pay Domlec a penalty for not delivering power on schedule, in the end that cost will be passed on to the Dominican consumer. It will not cost Ormat a dime in the end.
I am sure there is a proviso to guarantee a certain profit level for that company. No reputable company is going to invest in a developing country without an expectation of a premium on capital invested. That is simply because there is more risk in investing in those jurisdictions. You can run that argument by the uninitiated, but what you said is just ole talk.
I looked up the company’s performance from the New York Stock Exchange. Their Q1/2023 ROI was 17% – Income of $35M on 208M of revenue
good luck Mr. and your time line….u all just wasting money….I believe u all read the alphabet backwards….
“What a tangled web we weave when we practice to deceive” sometimes i’m left to wonder in which field of study did some of our politicians get their educational/occupational degrees (PhD) etc; I have no respect for members of this Cabal whatsoever, and like all good and bad things one day your reign of divide and control must come to an end; and by the way you can fool some of the people some of the time but you can’t fool all the people all the time.
Man you phonies have absolutely no shame. Don’t understand how do these people live their lives knowing that they are notorious liars. These men an women just continue to lie and lie and lie to naive people who just continue on believing them . Vince Henderson and others why and how do you people do that? It on takes people with Absolutely No pride, No shame to behave with such manner. Shameless. Shameless. You all have made my beloved country motionless. Dominica has become disabled under your rule. I am angry
A couple election cycles ago Roosevelt vociferously took to the airwaves and assured the nation that geothermal energy would be a reality within the said year of that general election. He even ordered the closure of the roads leading to a well and unleashed thick puffs of steam that convinced many that the mission was soon to be accomplished at last. Five years that deception not even one bulb of light from this specific renewable source of energy.
Many political leader have been touting geothermal energy over the years but only Guadeloupe has a geothermal plant that generates 5% of its energy.
Dominica is not known to create, produce, manufacture, do anything praiseworthy. Geothermal energy is just a pipedream f this unproductive, bankrupt, barren, egotistical Roosevelt led aristocratic regime.
“Dominica is not known to create, produce, manufacture, do anything praiseworthy.”
Lol! Careful, Ibo, last time I checked you were “produced” in Dominica. So those fingers are coming right back at you, sakway sot!
Maybe is me that dotish, but they need to explain why we have to guarantee profits for a foreign company after over 150 million was invested in the geothermal project already. Will the government recoup that investment?
Why couldn’t they contract Ormat to build a plant that we own and train our people to operate it? Was that option was too expensive, so Ormat is being paid in profits from operating the plant?
Why is it so difficult for this government to be straightforward with it citizens?
Comrade Henderson! The journey has been long and arduous. I admire your steadfastness and courage. On behalf of all Dominicans (including the ungrateful mischief-makers and their to-be-born progeny), I say a sincere “thank you!”