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West Indies Power Nevis to appeal geothermal contract cancellation ruling
Powell said that while the Nevis Island Administration will not rush back into an agreement to develop the sector, it has had interest from other parties.
“We think what we should do is take our time about geothermal power in Nevis,” he said, adding “we are still interested in developing geothermal power and we still see geothermal power as being to the greater good to the people of Nevis”.
Last year, the Nevis Island Administration filed suit in the Nevis High Court to have West Indies Power Nevis declared insolvent and according to the court documents, the Nevis Island Administration is using the court to get out of its deal with the cash-strapped West Indies Power Nevis and have its exclusive license to produce geothermal energy on the island revoked. Nevis Island Administration claimed that the company is indebted to a number of companies.
The exploration for geothermal energy began here in 2007 after the NIPA secured a 25-year power-purchase agreement with the Nevis Island Administration.
In April 2011 the Nevis Island Administration approved a resolution guaranteeing a US$57 million loan for West Indies Power Nevis from Ex-Im Bank of Washington for the construction of an 8.5 megawatt power plant in Spring Hilll and last year Premier Joseph Parry told the nation that he held talks with the Washington bank on moving forward with the geothermal project.
McDonald said that the West Indies Power Nevis has always met its obligations under the accord and accused the Nevis Island Administration of withdrawing a guarantee that would have allowed the EX-IM bank to release funds for the project.
He said the company has already spent in excess of US$10 million in “discovering and bringing the engineering and development of the resources to the point where it can begin”. -(CMC)
