Haiti - Economy : EDH loses USD$ 11 million per month - HaitiLibre.com : Haiti news 7/7





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Haiti - Economy : EDH loses USD$ 11 million per month
20/12/2011 08:16:22

Haiti - Economy : EDH loses USD$ 11 million per month
Garry Valdemar Director General of Electricity of Haiti (EDH) said in an interview that the situation of the electricity company is not sustainable. Monthly revenues of the company, do not allow to cover 30% of the operating budget. Despite this, with the help of the international, particularly Inter-American Development Bank (IDB), Garry Valdemar remains confident that the situation will improve with the rehabilitation of several distribution circuits and that of the hydroelectric plant of Péligre.

"...Today, the revenues of EDH can cover about 30% of the operating budget, which includes wages, purchase of energy and fuel for power plants can operate [...] the situation is that the EDH receives about 6 million U.S. dollars per month for expenses that are around 17 million, so you see that financially, the company is not sustainable. Now we must work to get us out of this situation. The largest percentage of our spending are energy purchases and wages [...] our production facilities for the metropolitan area, that means all the plants that produce electricity in the metropolitan area, participates in 30%, the rest of energy the EDH buy it, now we buy in good or poor conditions ? This remains to be determined, we will analyze the contract and choose the best options [...] For purchases of energy, we get 200 million gourdes per month and we spend for these purchases nearly 460 million [...] when you are a client of EDH that means you have a contract with us, normally, that you have electricity or not, you have a minimum bill to pay, because in our pricing structure there is the cost of equipment which is amortized over a number of years [...]

We will work to refocus the EDH on its core trades, ie produce, transport, distribute and sell electricity throughout the country at a reasonable cost. In this context, we will rehabilitate the plant [hydro power] of Péligre. We will rehabilitate distribution lines to provide a power of quality, in quantity and time so that the population is satisfied, these lines need to be rehabilitated and during this exercise, we will begin studies and the projects enter in their implementation phase, normally in early January 2012.

[...] As our resources are scarce, it is with the support of donors that we will rehabilitate five distribution circuits at the substation of the Canape Vert, Delmas and Martissant. We will rehabilitate the central pf Péligre, a plant with a capacity of 54mw but with maintenance that was never done periodically, works with a very limited capacity, one group in 3. Last week we started a second group and within two weeks we will put a third group in operation. If we put the groups on, we will have a greater availability of power but the reliability rate of these groups is extremely low, hence the need for a complete rehabilitation, and that rehabilitation will be funded by some donors that we thank in particular the IDB https://www.haitilibre.com/en/news-4499-haiti-energy-$20-millions-for-peligre-hydroelectric-plant.html ... this rehabilitation will cost 48.5 million dollars, the contract should be signed normally during the first week of January 2012 and will last three years. We have made ​​arrangements for that during this work, the plant continues to operate.

We will develop an investment plan of 5 years, we will set a strategy to fight against theft of electricity, we will put a business management system, financial and technical, this is at the level of new information technologies. We will update the internal management of the company and strengthen the structures of control. We will improve the way we source, how we acquire materials, goods and services. We will improve and implement financial policies and procedures [...] from 2005 to 2011 the company has no financial statements, which casts doubt on this lack of management, so we have no credibility at the level of national and international institutions..."


S/ HaitiLibre

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