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MAN B&W Generation Expansion in the Caymans

Posted on May 10, 2006

Caribbean Utilities Company, Ltd. announced that it has entered into a project agreement with its generation strategic alliance partner, MAN B&W Diesel AG of Germany, for the purchase and turnkey installation of one 16 MW V48/60 medium-speed diesel generating unit and auxiliary equipment. This project will cost approximately US$18.4 million to complete. The generating unit will be housed at the company's North Sound Plant and will be commissioned in summer 2007.

"It is quite apparent that residential and commercial development on Grand Cayman is continuing to grow at an impressive pace," commented Richard Hew, CUC president and CEO. "This growth has presented us with a significant challenge to restore generating capacity in time for this summer's peak demand, which is expected to surpass the pre-hurricane level of 85 MW. Additionally, with many residences and commercial buildings under construction and expecting service within a year beyond this summer, our 2007 generation expansion is necessary to enable us to meet new demand and continue to serve our existing customers reliably."

CUC entered a 10-year strategic alliance agreement with MAN B&W in 1998 to design and install diesel generating units on a turnkey basis for the company's generation expansion programme. The strategic alliance provides CUC with "most preferred customer" pricing as well as other advantages associated with improved design and construction and standardization of equipment, parts and training. The company has installed three 12.25 MW V48/60 medium-speed diesel generating units and an 8.4 MW gas turbine unit with MAN B&W since 2000.

For more information: www.manbw.com

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