GAMMA COVENTA – WASTE TO ENERGY PROJECT – TENDERING EXERCISE
(No. B/301) Mr E. Guimbeau (First Member for Curepipe and Midlands) asked the
Deputy Prime Minister, Minister of Renewable Energy and Public Utilities whether, in regard to
the Waste to Energy Project of Gamma Coventa, he will state if any tendering exercise was
carried out and, if not, why not, indicating if direct negotiations were resorted to for the award of
the contract.
The Deputy Prime Minister, Minister of Renewable Energy and Public Utilities (Dr.
R. Beebeejaun): Mr Deputy Speaker, Sir, there has been no tendering exercise for the waste to
energy project of Gamma Covanta.
I refer the hon. Member to the reply to a Private Notice Question on 22 May 2007 when
the House was informed that in 2006, based on the demand and supply forecast for the period
2006-2013, the Central Electricity Board had to make arrangements to ensure that adequate and
timely supply is put in place to much electricity demand.
Consequently, CEB started working on different scenarios to meet the demand
requirements. At that time and in the context of the economic reform, which advocates measures
to attract Foreign Direct Investment in the country, the Board of Investment was in presence of a
number of proposals for the setting up of power plants, under section 13 of the Investment
Promotion Act 2000.
Based on its requirements the CEB commented on the proposals and in the light of the
CEB’s comments, BOI issued a Letter of Intent to Gamma Covanta Ltd on 05 May 2006. Mr
Deputy Speaker, Sir, Letters of Intent were also issued to Suzlon Energy Ltd, CT Power and CT
Sav3 in December 2005, April 2006 and November 2006 respectively, all unsolicited proposals.
One of the numerous conditions of the Letter of Intent issued to Gamma Covanta was
that a Power Purchase Agreement between the CEB and the company should be signed with
respect to purchase of electricity from the company. Subsequently, the company entered into
negotiations with the Central electricity Board and the Ministry of Local Government. The
negotiations are still ongoing.
Mr Guimbeau: We are talking about equal opportunity, good governance, Maurice Ile
Durable and transparency, Mr Deputy Speaker, Sir. I would like to ask the hon. Deputy Prime
Minister whether he will go in a new tender exercise so as to give a chance to everybody to have
a quote nationally and internationally on this issue?
Dr. Beebeejaun: Mr Deputy Speaker, Sir, I thought my reply included opportunities for
everybody. Everybody who applied was given a Letter of Intent, including CT SAV3, Suzlon, all
of them. So, where is the missed opportunity?
Mr Guimbeau: That means that there has been a tender exercise, Mr Deputy Speaker
Sir.
Dr . Beebeejaun : Mr Deputy Speaker, Sir, there has not, and as I have said, it is not for
the first time. For the information of the House, there is no IPPs today that has been done on an
open tender exercise. All the IPPs have been done by negotiations. So, let’s not start again on
this devil.
Mr Guimbeau: Mr Deputy Speaker, Sir, can the hon. Minister state whether there is any
contract with the Local Government for the waste disposal? Is there any arrangement?
Dr. Beebeejaun: Of course. The discussion will be with Local Government and CEB
separately and then conjointly.
Mr Guimbeau: A last question, Mr Deputy Speaker, Sir. Can I know from the hon.
Deputy Prime Minister, whether Maurice Ile Durable funds are going to be used in that project?
Dr. Beebeejaun: We will come to that. No final decision has been taken. The answer is
partly yes.
Mr Soodhun: Thank you, Mr Deputy Speaker,Sir. Will the Deputy Prime Minister
inform the House whether there is another project concerning the same technology before the
one proposed by Coventa?
Dr. Beebeejaun: I am not aware of one before, but I am aware of one after.
The Deputy Speaker : Next question, hon. Guimbeau!

21 April 2009

(No. B/301)

Mr E. Guimbeau (First Member for Curepipe and Midlands) asked theDeputy Prime Minister, Minister of Renewable Energy and Public Utilities whether, in regard to

the Waste to Energy Project of Gamma Coventa, he will state if any tendering exercise was carried out and, if not, why not, indicating if direct negotiations were resorted to for the award of the contract.

The Deputy Prime Minister, Minister of Renewable Energy and Public Utilities (Dr. R. Beebeejaun): Mr Deputy Speaker, Sir, there has been no tendering exercise for the waste to energy project of Gamma Covanta. I refer the hon. Member to the reply to a Private Notice Question on 22 May 2007 when the House was informed that in 2006, based on the demand and supply forecast for the period 2006-2013, the Central Electricity Board had to make arrangements to ensure that adequate and timely supply is put in place to much electricity demand.

Consequently, CEB started working on different scenarios to meet the demand requirements. At that time and in the context of the economic reform, which advocates measures to attract Foreign Direct Investment in the country, the Board of Investment was in presence of a number of proposals for the setting up of power plants, under section 13 of the Investment Promotion Act 2000.

Based on its requirements the CEB commented on the proposals and in the light of theCEB’s comments, BOI issued a Letter of Intent to Gamma Covanta Ltd on 05 May 2006. Mr Deputy Speaker, Sir, Letters of Intent were also issued to Suzlon Energy Ltd, CT Power and CT Sav3 in December 2005, April 2006 and November 2006 respectively, all unsolicited proposals. One of the numerous conditions of the Letter of Intent issued to Gamma Covanta was that a Power Purchase Agreement between the CEB and the company should be signed with respect to purchase of electricity from the company. Subsequently, the company entered into negotiations with the Central electricity Board and the Ministry of Local Government. The negotiations are still ongoing.

Mr Guimbeau: We are talking about equal opportunity, good governance, Maurice Ile Durable and transparency, Mr Deputy Speaker, Sir. I would like to ask the hon. Deputy Prime Minister whether he will go in a new tender exercise so as to give a chance to everybody to have a quote nationally and internationally on this issue?

Dr. Beebeejaun: Mr Deputy Speaker, Sir, I thought my reply included opportunities for everybody. Everybody who applied was given a Letter of Intent, including CT SAV3, Suzlon, all of them. So, where is the missed opportunity?

Mr Guimbeau: That means that there has been a tender exercise, Mr Deputy Speaker Sir.

Dr . Beebeejaun : Mr Deputy Speaker, Sir, there has not, and as I have said, it is not for the first time. For the information of the House, there is no IPPs today that has been done on an open tender exercise. All the IPPs have been done by negotiations. So, let’s not start again on this devil.

Mr Guimbeau: Mr Deputy Speaker, Sir, can the hon. Minister state whether there is any contract with the Local Government for the waste disposal? Is there any arrangement?

Dr. Beebeejaun: Of course. The discussion will be with Local Government and CEB separately and then conjointly.

Mr Guimbeau: A last question, Mr Deputy Speaker, Sir. Can I know from the hon. Deputy Prime Minister, whether Maurice Ile Durable funds are going to be used in that project?

Dr. Beebeejaun: We will come to that. No final decision has been taken. The answer is partly yes.

Mr Soodhun: Thank you, Mr Deputy Speaker,Sir. Will the Deputy Prime Minister inform the House whether there is another project concerning the same technology before the one proposed by Coventa?

Dr. Beebeejaun: I am not aware of one before, but I am aware of one after.

The Deputy Speaker : Next question, hon. Guimbeau!