The Great Wilson City Power Plant Mystery

by Larry Smith

Concerns have been raised by environmentalists about Abaco's new power plant at Wilson City, which is now under construction. Very little information on this $105 million project has been divulged by either the government or BEC, so fears are being fed by rumours. Tough Call has reviewed the EIA for the plant that was completed in October 2008 by KES Environmental Services Inc of Florida. This report tries to cut through some of the obscurity.

The Environmental Impact Assessment for the 48 megawatt power plant now being built on Abaco is more interesting for what it reveals about BEC's environmental management than for what it tells us about this huge project deep in the pine forest.

Tough Call visited the power plant site a few days ago. It lies some 14 miles south of Marsh Harbour, five miles east of the Abaco Highway, and about two miles from the coastal ruins of Wilson City, the fabulous lumber town that operated for about 10 years in the early 1900s.

The site consists of a 25-acre fenced clearing, with foundations already laid out for a tank farm, powerhouse, transformer substation and office building. Another 75 acres of forested land has been assigned to the site for future expansion, but not yet cleared.

Access is via the old tramway that once hauled logs to the Wilson City sawmill. This has been widened from the highway to the plant for vehicles and transmission poles, but before the road gets to Wilson City proper, it cuts to the right, crossing over to the Bight of Old Robinson, where a pier and terminal will be built for tankers to offload fuel.

Along this road you can still find bits of iron, railroad ties and fragments of the terra cotta water pipeline that once supplied Wilson City. BEC plans to bury a 12-inch diameter corrosion-resistant pipeline under the road and pump fuel from the dock to the power plant. New transmission lines will also be required to supply electricity to the grid, but EIAs for these projects are still in progress.

The plant will enclose four 12 megawatt generators supplied by the European firm Man B&W, which has supplied engines for BEC plants on several islands in the past. A tank farm will be built within an impervious area known as a bund. And a cooling system will draw water from the underground aquifer and discharge it via a deep injection well.

Officials say the Wilson City site was picked because it is one of the few areas on the island within reasonable distance of a coast that can be approached by a fuel ship. Expansion of the existing power plant at Marsh Harbour would have conflicted with the city's development. The only other clear option was Snake Cay, a few miles south of the city, where a terminal was built by Owens-Illinois in the 1950s.

Unfortunately, the entire coastline around Snake Cay and Wilson City is a relatively untouched wilderness of mangroves, tidal creeks and shallow bights, all connected by a network of blue holes. In fact, the area is so ecologically sensitive that the Bahamas National Trust and Abaco Friends of the Environment want to make it a national park.

And one of the only two shipping approaches to the planned Wilson City fuel terminal goes right through the existing Pelican Cays Land and Sea Park, an area of great natural beauty.

So you can see why environmentalists are alarmed about the new power plant, despite the obvious benefits it will bring to Abaco's economy, which suffers through endless load shedding every summer. Their concerns are heightened by the fact that the plant will run on heavy fuel oil, like the one at Clifton that has been such an environmental disaster over the years.

In fact, BEC paid scant attention to such matters until the mid 1990s, when it belatedly introduced an environmental management policy. According to the EIA, several third party audits of that policy over the years have outlined the corporation's chronic failures. For example, drains discharged oily water into the ground for years at Clifton, resulting in a huge hydrocarbon plume in the freshwater lens and discharges into the sea from caves below the cliffs.

State Utilities Minister Phenton Meymour admitted recently that more than a million gallons of oil had been recovered from these caves in recent times, at a cost of over $1 million so far.

The EIA also reported that large areas of the Clifton plant were covered in semi-solid oil in 1996 (two years after the EMP was introduced) while the Blue Hills plant did not have an impervious floor to its bund enclosure, which "grossly contaminated" the site. Chronic problems were also noted at out island plants, including "widespread and undocumented oil discharges, inadequate bunding, no clean-up facilities and poor drum storage."

The EIA expressed concern over the lack of resources allocated to BEC's environmental oversight and concluded that the corporation's culture was at fault: "Clifton has suffered significant impacts requiring ongoing assessment and corrective action...Poor handling of materials at Clifton and Marsh Harbour has required the need for extensive ground clean up and plant upgrading to remedy historical oil pollution problems."

Added to this history of gross incompetence is the risk of a shipping disaster in pristine waters. This is not as rare as you might think. In 2005, for example, former Transport Minister Glenys Hanna Martin reported on several oil spills around Abaco, Grand Bahama and New Providence. They included the spilling of over 2,000 gallons of fuel by BEC at the dock in Marsh Harbour, several spills at the Freeport ship care facility, a wreck off Xanadu Beach, and the spilling of tons of lubricant oil at Clifton during a storm.

But the EIA remains optimistic that spills like this will not occur at Wilson City. Fuel will be transferred from the tanker via a state-of-the-art hose system and pumped to the power plant through a pipeline with safety valves installed every 500 feet. And the plant's storage facilities will be built to international standards within an impervious concrete bund designed to contain the catastrophic discharge of a million-gallon tank.

Clean-up equipment and supplies will also be based at the terminal, but the potential risks should not be underestimated. During a tour of BEC's Clifton plant last December, Minister Neymour said, "It is important that we demonstrate to the Bahamian people that we are serious about cleaning up oil spills and incidents, and also demonstrate to BEC and its staff how costly it is to clean up incidents after they have occurred."

In addition to the choice of a conventional power plant, Abaconians are worried about the type of fuel it will use. Oil-fired electricity generation in the United States is only a tiny fraction of total production because natural gas is a cheaper and widely available alternative. And the costs of pollution controls and extra maintenance often outweigh the lower cost of using fuel oil compared to more refined fuels.

But the EIA says that renewable energy options are not yet feasible for Abaco on a utility scale - winds are inconsistent, solar collectors require too much land, and the island's current waste stream cannot generate enough power to meet demand.

"This leaves oil-fired generation as the only reasonable solution," the EIA said. "A balance must be found between meeting the island's energy needs and environmental responsibility. A no-development option would mean more reliance on small diesel generators, which are not as clean or efficient as utility engines. Doing nothing is not a viable option."

Critics have pointed to the air pollution that could result from the burning of fuel oil. The Bahamas has no emissions standards, but the EIA says that exhaust from the 106-foot-high smokestacks at Wilson City will not exceed US Environmental Protection Agency standards, and BEC will monitor air quality on a regular basis.

"The plant is unlikely to contribute significantly, if at all, to acid rain based on the use of low sulphur fuel and engine efficiency. Atmospheric dispersal from the stacks will be effective."

An incinerator will be installed at the site to burn garbage, waste oil and sludge. Non-burnable items will be trucked to the landfill at Snake Cay. And all water discharges will be monitored. "Protection of the underlying aquifer is of paramount importance," the EIA said. "In the event of a discharge, clean-up must begin immediately in accordance with the environmental management plan."

The EIA acknowledged, however, that a fuel or chemical discharge from the power plant, pipeline or tanker would be an ecological catastrophe. And it says that a strictly applied environmental management plan will be essential to ensure that the plant operates with the least risk to the environment.

But it's hard to have confidence in these operational assurances when even the construction process has been shrouded in secrecy. A Salvadoran firm has apparently been subcontracted to build the plant and many Central American workers are already at the site, with a big influx expected in the next few weeks. The three-storey high generators will arrive in November and be slowly trucked from Marsh Harbour to Wilson City, entailing the cutting of many power lines along the way. It is unclear how many Bahamians will be employed at the site.

There has also been a puzzling escalation of the cost of this project. In 2007 Minister Neymour said the plant would cost $66 million. Prime Minister Ingraham pegged it at $80 million a year later, and Minister Neymour said $90 million in June. But in the budget debate shortly afterward, the cost was put at $105 million. A full outline of the project has never been disclosed, and no public consultations have been held on Abaco, despite frequent requests.

During community meetings held for the East Abaco Creeks National Park proposal in 2008 many residents voiced concern over the proposed power plant, according to Kristin Williams of Friends of the Environment.

"We were unable to answer their questions. We voiced some of the same concerns and asked that Minister Neymour host a public meeting to provide more information about the project. The public has not been fully informed about the power plant and when officials were asked, the response was 'it's a done deal' or 'it is not up for discussion'."

Meanwhile, the existing 25.6 megawatt plant at Marsh Harbour is barely keeping up with the demand from Abaco's 15,000 residents, 1500 second home owners, and 100,000 visitors. Over the past five years peak energy demand has risen by 64 per cent, the EIA said, and the government has been dithering since the late 1990s rather than acting to meet this growth.

But the corporation's (and by extension, the government's) lack of transparency on this project has fueled anger and disappointment among environmentalists and other concerned citizens on Abaco, And this is despite the fact that BEC's chairman - Fred Gottlieb - is a popular Marsh Harbour lawyer and former politician.

There are also unconfirmed reports that the Wilson City plant will be sold to Marubeni Caribbean, the owner of the Grand Bahama Power Company. Marubeni - a Japanese-Abu Dhabi conglomerate which owns generating facilities throughout the region - is said to be in the process of doing due dilligence on the deal.

Following Tough Call's inquiries, we were told that a town hall meeting is being planned for mid-September. Perhaps then Minister Neymour, Chairman Gottlieb and General Manager Kevin Basden will be prepared to respond to the following questions that they were unable or unwilling to answer for this article:

1. What is the reason for the increase in estimated costs for this project?

2. What is the actual signed contract figure?

3. What scope of work does the contract price cover?

4. Are the engines that will be installed new or used?

5. Does Man B&W have the overall design-build contract?

6. Has Man B&W subcontracted the construction to a Salvadoran firm?

7. How many foreign workers will be employed at the site at maximum?

8. Will Bahamian firms and workers be employed at the site?

9. When do you expect power to be delivered by the plant?

10. Will this be over new transmission lines?

11. What assurance do we have that BEC will implement an effective EMP, given its past track record?

12. What is your current assessment of BEC's environmental management at Clifton, Blue Hills, Marsh Harbour and other family island sites?

13. Is the plant being sold to Marubeni Caribbean (owner of the Grand Bahama Power Company)?

Comments

[Kristin Williams]

Friends of the Environment does not feel that Wilson City is a suitable location for the BEC power plant and would propose that the site be relocated to Snake Cay. Although Snake Cay is not ideal, it would be a more appropriate area for the following reasons:

1. The BEC power plant, along with the proposed use of Bunker C fuel, will have a negative environmental impact on the surrounding marine and terrestrial environment. The Bight of Old Robinson is crucial juvenile habitat and research has shown it to be one of the most bio-diverse areas in Abaco. This bio-diversity and juvenile habitat is crucial to maintaining Abaco's tourism-based economy.

2. Snake Cay is the closest deep water port to Marsh Harbour and will most likely be further industrialized in the future. We realize that certain coastal areas must be sacrificed for public need, but feel that it would be
more beneficial to protect one area rather than have both the Bight of Old Robinson, which could be negatively effected by a power plant at Wilson City, and Snake Cay used for industrial purposes.

3. Based on The Bight of Old Robinson's importance to biological conservation, FRIENDS has submitted a proposal to the Bahamas National Trust to have the area designated as part of a coastal national park, along
with the creeks and coastal area south of Snake Cay.

4. The coastal area of Wilson City is subject to ocean swells, potentially making the transfer of fuel difficult. Snake Cay is less susceptible to such strong swells.

FRIENDS also feels strongly that alternative sources of fuel should be considered. Bunker C has been outlawed in many countries solely for its environmental impact. We feel that the use of Bunker C fuel will undoubtedly have a negative effect on the surrounding area regardless of where the power plant is located.

[C.Lowe]

If the political miscreants had any forsight at all, we wouldn't be having a Bunker fuel discussion, we would be developing LNG fuel useage, first in G.B. followed by Abaco,possibly pipelined, then shipped to Nassau ect.
Still a fossil fuel, but the cleanest one.
Solar and Wind for the more remote islands, with LNG backup ect.
Ho hum, typical fiasco.

[Michel Saint-Mars]

It will be a disaster. I don't live on the islands, but to my friends and acquaintences there I would recommend hiring a lawyer to halt the project on environmental grounds until a real coalition of Bahamian activists can be assembled to demand a relocation. If the government can be convinced that tourism will be damaged they may listen.

[Scott Dixon]

There are deployed solar solutions that would provide the power needed in a 165 acre footprint. 100 was already set aside which could provide 29 megawatts and would be a good start.

[larry smith]

Please point them out to us.

[Dwayne]

Is $2M per Mega Watt a reasonable cost for electric plant? What is the cost per Mega comparisons of Wind vs solar vs bunker C?

All over the world countries are trying to reduce carbon footprints and we are busy increasing ours...

Its better in the Bahamas (i.e. better are poluting)...

[Scott Dixon]

Larry: What is the symbiotic relationship, if any, between BEC and the government? I can put together a package on solar and also provide a cost comparison answer to Dwayne, but it's academic if the project is already commissioned, or there is some other motivator for the Bahamas to pursue that particular deployment.

[larry smith]

BEC is a state corporation - with a legal monopoly on 85% of power production in the country.

It is just beginning to investigate the integration of renewable energy into the grid, with the help of the Inter American Development Bank. The German engineering firm, Fichtner, has just been hired to guide this process.

I would still be interested in reviewing the deployed solar solutions you mentioned.

[Scott Dixon]

First, I'm not maintaining these are easy, inexpensive solutions, but they are examples of projects in operation today and one under construction. I am a developer and can speak to the two most important issues; funding for the project(s) and subsequently a long term Power Purchase Agreement.

The first one I can take care of, the second is up to BEC/Bahamian Governement....

Operational:

Solar One in Nevada – 69 MW.

Sierra Sun Tower California – 5MW

PS-10 Spain – 11MW

HCPV system Nevada – 25MW

ISCC plant Morocco – 20MW

Under Construction:

Fluor Wins Texas – 46 MW

[Erasmus Folly]

The Bahamian government should not be building a heavy fuel power plant in Abaco in 2009. Just because their lazy a#%#s didn't do what they should have been doing in the 90's on renewable energy, doesn't mean that we have to perpetuate that mistake. Alternative fuels would be wonderful for Abaco, but if that isn't possible, at the very least, approve the LNG facility and get us off trucking heavy fuels through our pristine waters. What is wrong with these people? It doesn't just make environmental sense, it makes BUSINESS sense, ie dollars and cents! Renewable energy in this country would save our people and our government, literally, millions upon millions of dollars in foreign reserves. We could break the strangle hold of the oil cartels and we could be a world leader in stopping climate change - our very existence is dependent on it, since we are so low to the sea! These politicians care about money now and for themselves, they aren't looking at the future, they aren't THINKING and they certainly don't seem to care about the environment!

Shame on them!

Larry, as always, great article. Your facts on these things are very, very useful. I just wish there was more popular rage about the environment, but I guess our people are too busy eating KFC and throwing the box on the ground...

Cheers!

[larry smith]

Scott, see www.bahamasecoforum.com

[blue-bee]

Just a few points to think about. First of all solar and wind are not an option unless you want to double your monthly power bills witch I think we all agree is not posable. Second of all the only other site is Snake cay witch can not handle larger tankers do to water draft and the tankers will still have to pass through the Park at Sandy Cay. Thirdly there is all this take about the bad things about this fuel well snake cay is closer to the more populated town and islands. And lastly the ground for this plant was cleared a year ago with the plan for bunker c. I find it very unlikely that now with the millions of dollars spent and the engines already on the way that there can be anything done about it now. If it is stopped what will we do for power with the money borrowed and spent already on this.

[larry smith]

You are right about it being too late to do anything about the site choice. But that only points up the main issue in all this - which is transparency, or lack of it.

How can a state agency spend $100 million of public funds without any accountability whatsoever? Won't even answer basic questions until forced.

That lack of transparency will carry over to the operation of this plant if we let it - and based on BECs track record, as outlincd in this article, we know what that will mean.

The objective now should be to have full transparancy going forward with independent third party monitoring and audits of the plant - with Friends of the Environment involved.

[larry smith]

Bunker C at Wilson City, Abaco:

http://www.youtube.com/watch?v=owP9ufcP8f0

[Andrew Curry]

Great article Larry. The ironic part is that Minister Phenton Neymour has a degree in environmental engineering. This by the way is the application of science and engineering priciples to IMPROVE the environment (air, water or land resources )
Once again it all boils down to being involved. If we choose to give away our power to people who dont live in Abaco and dont care about Abaco then how can we complain ? I promise you if 10,000 pissed of Abaconians got involved this would be done the way WE wanted it done . So take the easy way out and let them distroy you home or get involved. Its called democracy. We are ultimatley responsible for what we get . We can blame the powers that be or we can take them on.