'LNG report not alarming'
Published:Monday | January 10, 2011 | 12:00 AM
Zacca says committee following consultants' advice
Daraine Luton, Senior Staff Reporter
AN INDEPENDENT consultant has suggested that Government rethink aspects of its liquefied natural gas (LNG) project.
Christopher Zacca, head of the steering committee that has been set up to lead the project, told The Gleaner last week that he was not prepared to speak about the issues that have been raised in the report. He, however, said the advice of the consultants is being followed to ensure the project's success.
"There was a report done by an independent consultant, which was recommended by the World Bank, which looked at the project and pointed out some directions we should take in terms of making sure it was most beneficial to the country and that is what we are doing," Zacca said.
Asked if the issues raised were anything to be concerned about, Zacca responded said: "I would not say there were any alarms."
He added: "It just pointed out the risks we face and how to counter them and that is why we have this very concerted effort at a very high level to make sure the country gets value for money."
But Phillip Paulwell, the opposition spokesman on energy, said yesterday that the Government needs to make the report available for scrutiny.
"I am very keen to understand what is this report that we heard the World Bank had done and whether or not their comments on the project are being taken into account," Paulwell said.
Late last year, Prime Minister Bruce Golding stripped Energy Minister James Robertson of sole responsibility for the LNG project and then named two management teams to lead the country's push towards LNG by December 2012.
Hard-working committee
Golding heads a ministerial team which includes Robert-son, Finance Minister Audley Shaw, Laurie Broderick, state minister in the energy ministry, and junior minister in the Ministry of Foreign Affairs, Senator Marlene Malahoo Forte.
Zacca said his steering committee has been meeting regularly.
"We have started to meet with all the stakeholders," Zacca told The Gleaner.
"The committee is working hard to ensure that we mitigate any possible risks," he added.
Zacca also said a full-time project manager, Ernest Megginson, has been brought in to assist.
He said Megginson would work for an initial period of three months.
Meanwhile, Paulwell has argued that the LNG project is "ill-conceived and it needs to be revamped". He also said there are several questions about the project the Government must answer before proceeding.
"The Government needs to pause, especially in light of the request for proposal (RFP) that the OUR (Office of Utilities Regulation) has issued," Paulwell said.
Unfair bidding
His reference was to a RFP for 480-megawatts of electricity to be supplied to the national grid. In weighting the bid, the OUR has weighted 15 per cent to bidders who intend to use LNG.
"We believe that it is unfair as a bidder who, for example, says he can supply the 480 megawatts with coal, for example, is at a disadvantage," Paulwell said.
He also said the Government needs to say where it will source the gas and also who will be the purchasers of the gas - whether the bauxite companies or the Jamaica Public Service Company Ltd.
"We also want to know whether there are commitments in place for the purchase by those who are expected to off-take the gas," Paulwell said.
Zacca said the committee would be meeting with Jamalco next week as well as other bauxite companies in short order to discuss the country's LNG future.
He said consultations with stakeholders are far advanced, and has promised that his team will carry out the task assigned by the prime minister "as fast as humanly possible".