Six companies have qualified to bid on generating additional energy in the Cayman Islands.
According to the Electricity Regulatory Authority, the six qualified bidders are: Aecom Energy, Optimal Energy Limited and InterEnergy Holdings, Dart’s construction management company DECCO, Energy World Corporation, the Louis Berger Group Inc, and Caribbean Utilities Company.
In all, nine companies, excluding CUC which is considered an automatic bidder in the process, applied to the regulatory authority’s request for statements of qualifications to generate 36 megawatts of energy capacity in the Cayman Islands, the authority’s deputy manager Louis Boucher said.
“Five qualified and four did not,” he said. “So, there are a total of six qualified bidders. CUC automatically qualifies as per the terms of the CUC [transmission and distribution] License,” he said.
Eight of the applicants were overseas companies, with DECCO and CUC being the only local firms in the process.
If CUC is not chosen as the preferred bidder in the process, it will be the first time that CUC will face competition in the generation of electricity for resale. However, CUC will remain the only distributor of electricity on the island, under the terms of the trade and distribution license.
Mr. Boucher said that once the statements of qualifications were received by the Dec. 20 deadline, the authority sent requests for proposals to the qualified bidders, who are currently reviewing them.
“There’s a time-line, they have a deadline to submit questions, and then bid. Then it would be in our hands to evaluate the bids,” he said.
After those bids have been evaluated, the winners will be chosen and the parties will be required to sign a power purchase agreement with CUC, Mr. Boucher explained.
When choosing the winning contenders, Mr. Boucher said that no preference would be given to local applicants.
“No points will be awarded in the non-price evaluation of bids based solely on the origin of the company providing the bid,” he said. “However, there is some scope in the attributes being scored in the non-price evaluation of bids for a Cayman company to potentially outdo a foreign competitor.”
“In the final analysis, it will be the highest scoring bid that wins,” he said.
The winning bidders are due to be announced in June.