Nevis Island Administration rejects claim of former developer

Nevis well 3, steam flow (source: West Indies Power)
Alexander Richter 23 Nov 2013

Following the announcement of a winner for the tender of a geothermal project in Nevis in the Caribbean, the island administration rejects claims by the former developer of the award being invalid due to existing obligations.

Yesterday news broke about a new company being trusted with the development of the geothermal power project on Nevis island, of the Caribbean island state of Nevis & St. Kitts.

As reported previously, the former development company West Indies Power had threatened to seek legal actions should this happen and is now planning to seek a stay of execution to prevent the administration to pursue the project with a new company.

West Indies Power considers this new tender and the award to a new company invalid due to its rights to the project and has sought a court ruling on the matter.

The government in Nevis considers to be relieved from the contract with West Indies Power “on the position that that … West Indies Power could not pay its bills. The company has since refuted this claim and filed an appeal.

The Nevis Island Administration considers the termination of the contract with West Indies Power to be valid and “will pursue geothermal energy with NREI regardless of whatever court action is taken by West Indies Power.

The agreements with Nevis Renewable Energy International, that won the tender process started in September, will be signed with the company in December.

A government release said NREI will assist NEVLEC and NIA to design and implement a geothermal program that will enable Nevis to develop the expertise needed to serve as a center of excellence for geothermal development throughout the West Indies. The government asserted both NEVLEC and the NIA placed a strong emphasis on identifying a technically and financially qualified development partner for the island’s geothermal resource potential that would create the most value for the island and NEVLEC’s customers.”

Source: WINN FM