Compiled by Sandra CA Ferguson
Timelines re Grenlec and the Electricity Sector, 1960–2007
Part 4 is an attempt to map key events in the evolution of Grenlec and the electricity sector in Grenada in order to be aware of the political and economic context of the various periods and therefore, assist we the people in putting in perspective the actions and decisions taken by our various political administrations. The writer apologises for any inadvertent errors.
TIMELINE/EVENT | REMARKS |
27 September 1960: Grenada Electricity Services incorporated – private company controlled by the Colonial Development Corporation, a statutory corporation established by the British Government. | |
28 September 1960: 1960 Electricity Supply Ordinance legislated | |
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7 February 1974: Grenada attains Independence | |
13 March 1979: People’s Revolutionary Government assumes power and suspends the Constitution of Grenada; | |
1979: Grenlec is nationalised | |
October 1983: People’s Revolutionary Government implodes. | |
December 1984: The New National Party led by H A Blaize comes to office. | |
1985: Government of Grenada – USAID Grant Agreement[1]; a conditionality of the agreement was the “development of a programme to privatise major state-owned enterprises”[2]. | |
2 February 1990: The Worrel Commission of Enquiry[3] is set up. | |
The Worrel Commission was mandated to “to make diligent inquiries into the conduct and management and overall operations” of a number of statutory bodies including the Grenada Electricity Services Ltd. (Grenlec) that was then managed by one, Gregory Bowen. [4]All of these bodies were under the purview of then Minister of Communication and Works, Dr Keith Mitchell who had been removed from the position by Prime Minister Blaize. | |
The Worrel Report, released in March 1991, presents some most unflattering insights into the management of Grenlec during the tenure of Mr Bowen:
The report further noted in Chapter VII:
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March 1990: General elections results in National Democratic Congress, led by Nicholas Braithwaite, assuming office. | |
1992–1994: NDC Administration undertakes a Voluntary Structural Adjustment Programme | |
5 April 1993: Intent to privatise Grenlec is announced by PM Brathwaite via address to the nation. | |
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15 September 1994: Privatisation Package Concluded:
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Shareholders:
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Among the Provisions of the 1994 Share Purchase Agreement were:
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June 1995: General Elections; New National Party, led by Dr Keith Mitchell, returns to office; | |
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(a) Commission of Enquiry: established the Piper Commission of Inquiry set up in November 1995 to investigate the sale of Grenlec | No Evidence of Impropriety: The Piper Report did not note any evidence of impropriety.
Certain Provisions Not in Best National Interest: The Commissioners withheld any opinion as to whether the best terms were obtained by the Government re its shares in Grenlec. However, it was of the view that certain provisions of the Share Purchase Agreement were unfair to the Government and not in the best interests of Grenada. |
(b) A Legislative Committee constituted to investigate its allegation that Grenlec was charging illegally high rates; | A Joint Committee compared Grenlec’s rates before and after privatisation. The Committee reported to Minister Bowen, via letter of 15 July 1996 from W R Agostini – It “was of the unanimous agreement of the members of the committee that the actual rates charged by Grenlec over the period investigated, did not differ in any significant or material way from the rates obtained from the application of the old formula.” |
(c) declared that for procedural reasons, the 1994 ESA had never taken effect; | While ESA was passed in Parliament in September 1994, it had not been proclaimed into law. The Government challenged the ESA 1994 in the High Court. The Piper Report note that it was matter before the High Court, “therefore we must not comment further on it except to say that it has not as yet been Proclaimed into law” |
(d) Government sought to renegotiate of various provisions of the SPA (including the purchase price for the Grenlec shares | Via Communication in 1997, Minister Gregory Bowen, the Minister responsible for overseeing Grenlec, warned WRB – “renegotiation of the SPA was “not a matter of choice” and that it had “always been the clear position of this administration” that the SPA was “neither legally nor morally binding on the Government of Grenada” because the Prime Minister of Grenada, who had signed the instrument of ratification “had no authority from Parliament” to sign it”.
The WRB initiated arbitration under ICSID seeking an award compelling the GoG to repurchase the Grenlec shares for EC$18.7 million, calculated according to Second Schedule Compensation provisions – a capital gain compared with the EC$15 million purchase price. |
July 1998 Supplemental Share Purchase Agreement[5]:
GPP and WRB were released from their obligations re environmental cleanup of Queen’s Park[6], “[i]n consideration of Grenlec’s expansion programme” |
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7 September 2004: Hurricane Ivan ravaged Grenada: considerable damage to the electricity infrastructure; | |
January 2007: At the 44th Meeting of OECS Authority in 2007, Heads of Government agree to a proposal to set up a regional, regulatory authority for the electricity sector to address challenges of electricity supply and improving regulatory framework. |
[1] The first state-owned enterprise to be privatised under this agreement was Grenada Telephone Company Ltd. (GRENTEL). Dr Keith Mitchell, Minister of Communication, Works and Public Utilities.
[2] Report of the Piper Commission of Enquiry, pg. 3
[3] The Commission of Enquiry was conducted by Lindsay Irwin Worrel and began its public hearings on 5 February, 1990. This Commission of Enquiry was appointed by Prime Minister Ben Jones, head of The National Party, the breakaway faction of the NNP, following a fallout between Prime Minister Blaize and Dr Keith Mitchell, Minister of Communication & Works, over party leadership. PM Blaize fired Dr Mitchell. Prime Minister Blaize died in December 1989 and was replaced by Ben Jones.
[4] Bowen entered the political arena in 1995 and became the Minister of Communication and Works, in the New National Party administration of Dr Keith Mitchell following the elections of June 1995. He is currently the Minister with responsibility for Infrastructural Development, Public Utilities, Energy, Transport and Implementation.
[5] ICSID Tribunal Award, para. 80,81, 82 & 83, pp. 32-33
[6] ICSID Tribunal Award, para 82, footnote 74; pg. 32
The people who has the power to solve problems that they has created in the past leaves Grenada with the simtoms of division of the economy due to the unique skills they got to influince governments with resources that they refuse to train and assist poor countries with instead of building economies globally, Grenada economy is vacuumed by bad abuse of power and democracy needs to get to work on the percent of shares the locals own in that company WRB With their carbon technology . There is enough natural and vibrant efficient economically cheap resources like the sun and wind. We are living in the modern time when technology is at its highest peak with solar power and wind power that can be set up and be distributed clean and cheap .
I THINK WRB should convert fron those carbon generators that is polluting the atmosphere and forget the large profit , now is the time to reduce electricity bills by 75 % from this ironic fear that cause poor people to unplug their refrigerators to try to save $100 on very little horsepower burned from house hold items .WRB should also take in front to transform and expand in technology for Grenada and don’t wait on governments who see the the changes needed to be made . Find a way to work for everyone and help not only to put food on the table but try to strengthen Grenada economy in this dreadful time of racial and social discrimination , COVID19, and poverty .Why in this modern time poor people salary is so small and their bills are so high .With knowledge ,skills, and freedom to govern your own power energy and a local university to train people. Grenada and Grenadians will start to come out of financial slavery and discrimination .
Time to shut down all fuel vehicles too and bring the electric and water cars and trucks. We all know that COVID19 is no respector of persons so let equality be for all .
Many countries in the west has their greatest investments such as factories , energy companies , communication companies and mining companies based in colonial countries just as how WRB is based in Grenada .
Where is our investments around the global economy ? And when is probably never .What will it cost is to grow and produce with the help of good will investment without monopoly in business for Grenada electric energy.
The bill for electricity on the island for consumption of electricity is shy high .
I think that 3/4 of the population has to be paid 3000-5000 US dollars a month to be able to afford to meet demands such as food health and utilities.
Technically, Grenada is deep in poverty and triple slavery through secret organization that leave local Government with all the problems to fight amongst the uncivilized population who they had brought through colonialism from the beginning to now and if the people choose to become civilized as they are by wanting to set up their own energy , they loose billions of dollars and many laws will change .