Our subsidiary PQP owns three barge-mounted, diesel-fired generation facilities through its branch in Guatemala. The facilities are located on the Pacific coast at Puerto Quetzal, Guatemala, 62 miles south of Guatemala City. The plant, which commenced commercial operations in 1993, consists of (i) twenty Wartsila 18V32 bunker-fired reciprocating engines commissioned in 1993 and (ii) seven MAN B&W 18V48/60 bunker fuel-fired reciprocating engines commissioned in 2000. PQP supplies power to Empresa Eléctrica de Guatemala S.A., or EEGSA, under a 20-year PPA which ends in 2013 for 110 MW of capacity and a 50% take-or-pay energy obligation. PQP, through its wholly-owned subsidiary Poliwatt Ltda, sells the remaining 124 MW in the Guatemalan and regional wholesale electricity market. Since April 2006, in response to a request from the Guatemalan government, PQP agreed to unilaterally grant EEGSA a discount over the PPA energy prices. This discount program did not modify the PPA and can be terminated by PQP at PQP's sole discretion. AEI Guatemala Limitada, a wholly-owned subsidiary of AEI, conducts the day-to-day operations of the plant. The plant utilizes bunker fuel pursuant to a long-term fuel supply agreement that expires in 2013 but has an option to extend to 2016. The fuel supply agreement includes detailed fuel specifications that have to be satisfied in order to meet equipment and environmental requirements. PQP conducts its merchant activities through a wholly owned subsidiary, Poliwatt Limitada, or Poliwatt. Poliwatt does not operate as a separate profit center, but passes through to PQP all revenues received from its power marketing activities, net of costs. Poliwatt markets the 124 MW of PQP's merchant capacity under short and medium term sales agreements (typically from one to three years), spot market sales, and sales of ancillary services to the market, such as spinning reserve. Poliwatt's portfolio of customers in Guatemala and the regional market (primarily El Salvador, but also Nicaragua) includes wholesale customers such as local distribution companies, other generators, and large end-users authorized to directly participate in the market. Contact PQP: PQP
Av. Reforma 9-55 Zona 10, Edificio Reforma 10, Nivel 10, Oficina 1101
Guatemala, Guatemala 01010
PBX: +502-2-229-8400 Last update: August 2010 | |
Country of Operation: 
