Image depicting a Wärtsilä generator, courtesy of NV GEBE.
PHILIPSBURG--Agreements for three new Wärtsilä generators for St. Maarten’s sole utility provider, NV GEBE, were signed on November 4, marking the start of one of the most significant upgrades to GEBE's electricity generation infrastructure in years.
The long-awaited development marks the beginning of a major implementation phase which will result in additional capacity, and move the dial from “stability” to “reliability”, as stated by Prime Minister Dr. Luc Mercelina during a shared press conference/signing ceremony alongside GEBE Temporary Manager Iris Arrindell and Wärtsilä Sales Director Mathias West.
After moving from stability to reliability, the next steps would include tackling affordability and then introducing alternative energy, for the country to have actual sustainability, the PM outlined.
The agreements cover the acquisition, production and installation of the three 9.3-megawatt generators that will, upon being fully operational, add a combined generation capacity of 27.9 megawatts. They will also allow for growth and reduce strain on GEBE’s ageing generators, along with the risk of needing to depend on them.
Wärtsilä is scheduled to commence on-site activities in June 2027, with the commissioning of the new engines expected during 2028 (after around 14 months), as stated in the press conference and confirmed in a GEBE-issued press release, which added that the lifespan of a generator is around 25 years.
Work is already in progress to prepare the power plant to be able to accommodate the new units – no small task: this includes demolishing buildings 1 and 2, relocating a road, and preparing a plot of land, Arrindel explained. “Two of the new engines will be installed in areas currently occupied by older generating units, while the third will be positioned at a newly prepared location within the power plant,” it was added in the GEBE press release. “The company emphasises that the project involves more than the purchase of generating equipment. It also requires the preparation of installation sites, associated infrastructure works, installation, testing and commissioning before the engines can be brought into commercial operation.”
As for who carries out the work, a large team from Wärtsilä will be on-island, who will work alongside GEBE personnel, with both the Wärtsilä and GEBE project managers working hand in hand. Managing this project for GEBE is Owners Engineer Edmund Philips. He works for the company Caribbean Utility Services, and has been negotiating with Wärtsilä since this project’s inception. At the press conference, he assured that local contractors would also be hired, in response to a question by the media.
This project represents an investment of just over US$70 million, of which $42 million is financed by the Government, thanks to a loan from the Netherlands. The project started two years ago, and Prime Minister Mercelina opened the press conference by recalling the energy crisis that all but crippled St. Maarten in 2024, at the start of his term in office. He acknowledged how much the crisis hampered and threatened the country’s economy, safety and security, and people’s livelihoods, and stated that it prompted him to request a loan from the Netherlands, which is what made this project possible. On GEBE’s side, the journey started under the then-temporary manager, the late Troy Washington.
PM Mercelina expressed his confidence in Arrindell’s leadership, which was secured after “trying out a lot of captains”, expressing that her commitment helped to make this deal a reality. He acknowledged a rocky, sometimes turbulent relationship between the government and GEBE, comparing that to a current sense of reliability. Arrindell also acknowledged that GEBE “has been through its turmoil back and forth, so we are happy to see that we could reach here today, for this milestone.” She said that the timing had also been affected by the project being very capital intensive.
In the end, the three parties signing the agreements all expressed their confidence in each other. West also commented on GEBE being one of Wärtsilä’s oldest customers, adding that they share trust and a common goal.
The PM also thanked Economic Affairs Minister Grisha Heyliger-Marten and Infrastructure Minister Patrice Gumbs, and Reliable Energy Supply Committee members Ronald Halman and Abel Knottnerus for their significant contributions, all of whom were present for the signing. A small group of other representatives of government, GEBE and Wartsila were also present.
The signing ceremony involved two separate documents, seeing that the project is being co-financed. First, PM Mercelina and Arrindell signed a Purchase and Lease Agreement, which governs the investment. This stipulates that GEBE is selling two of the three generators to the government, and that the government is in turn leasing them back to GEBE. The second document, the generator contract, was then signed between GEBE and Wärtsilä, covering the acquisition, production and installation of the three generators.
