BASSETERRE, ST. KITTS, DECEMBER 2ND 2010 (CUOPM) – The US$22 million investment in a new power plant at Needsmust will ensure the continued rapid development of the twin-island Federation.
Prime Minister and Minister of Finance, Hon. Dr. Denzil L. Douglas who toured the premises where he saw the two recently commissioned Holeby units in operation and two more being installed, said the four units combined will supply an additional 16 megawatts to the national grid.
He noted that when the two units are commissioned in February next year, a total of 43 megawatts will be available as “never before have we prepared our country for this kind of generating capacity” as the present maximum demand is between 26 and 29 megawatts.
“We know that there are a number of new development projects in the pipeline and we are now in a position to power these important projects which will come on stream and thus continue to ensure that the development of the country takes place without any difficulty,” said Prime Minister Douglas.
Pointing out that the US$22 million was allocated at a time when countries are experiencing global economic financial crisis, Prime Minister Douglas said the Cabinet took a determine decision to ensure that the money was available to bring to an end the difficulties that domestic and commercial consumers have been experiencing in terms of a reliable and efficient supply of electricity.
“We have done this investment despite the relative challenging debt situation that we have, but it is because of the government’s commitment to ensure continued development if we are going to attract the support of the local as well as foreign direct investment that has held us in good stead so far in this country, which you are aware can compare with any other country in the Eastern Caribbean in terms of the attraction in new investment in St. Kitts and Nevis,” said Dr. Douglas.
Prime Minister Douglas said the government has to review what consumers have been paying for electricity.
“We are heavily at the moment subsidizing electricity to both the domestic consumer and the commercial consumer. We would have naturally to re-base what I believe is the tariff rate to ensure that they are more realistic and they are more in line with what it is costing us today to generate supply and distribute electricity to our people here in St.Kitts and Nevis,’ said Dr. Douglas.
He however gave the assurance to consumers that “even though it would cost more, the efficiency and the reliability will also increase to their own liking.”
“I believe the government would have kept its own commitment with what we promise that we would do, even thou it would cost us a little more,” said Prime Minister Douglas, who expressed pleasure with what he had seen on the visit.
