GPA awaits PUC approval for fuel contract extension

by Mindy Aguon

Guam - A three-year, multimillion dollar fuel contract between Petrobas Singapore Private, Ltd. and the Guam Power Authority expires this month.  The company had the option to renew another two years but Petrobas declined, saying it was too expensive for them to continue under the existing contract. Consolidated Commission on Utilities chair Simon Sanchez says last fall, GPA issued a new procurement and received three bids for the fuel service contract. 

He says Petrobas was disqualified on a technical basis, Vitol was awarded the contract, and Jiershin GT OHNG & Company, LLC was denied because GPA had concerns about where the oil was coming from, incomplete financial statements and whether the company could deliver.  Gersing has filed a protest which put the procurement on pause, saying, "In the meantime, we know it's the right of Gersing to protest and we have to follow the process.  The question became how do we keep the oil going because Petrobas' contract ends this month.

"Petrobas and GPA have reached an agreement for a six month extension so that we can continue to get oil."

Sanchez says GPA is hoping to get the Public Utilities Commission's approval of the six-month extension before the end of the week. 

In the meantime, GPA general manager Joaquin Flores is dealing with the protest and depending on how he rules, GPA may sign the contract with Vitol or start a new procurement.