Palau Public Utilities Corporation (PPUC) announced that on January 23, 2023 it signed a Five-Year Fuel Supply Agreement for the Aimeliik Power Plant with IP&E Palau, Inc. that will take effect this coming March.
This Agreement resulted from negotiations following the selection of IP&E’s submission that was deemed the most favorable among those received by PPUC in response to its Request for Proposals.
IP&E is also the current supplier for the Aimeliik Power Plant, and has proven to be a reliable and supportive contractor for PPUC’s fuel needs. The basic terms of the new Fuel Supply Agreement, including pricing, are structured similarly to the contract that is presently in effect.
In addition, the Fuel Supply Agreement provides for IP&E’s maintenance of PPUC’s critical fuel tanker mooring buoy system at Aimeliik dock and for IP&E to conduct regular technical training of PPUC personnel concerning fuel management and safety matters.
At the same time that the Fuel Supply Agreement was executed, PPUC also entered into a contract for the favorable financing and construction by IP&E of a new fuel pipeline from the Aimeliik Power Plant dock to fuel storage tanks.
“This project will address the urgent need to replace the current pipeline and it is anticipated that construction of the new pipeline will be completed within this year. This undertaking is essentially a public-private partnership between PPUC and IP&E that is being carried out in order to serve our mutual interests in developing an industry-standard fuel handling facility to ensure uninterrupted supply to the Aimeliik Power Plant, and solutions to our evolving infrastructure demands and constant effort to safeguard and protect our environment,” explained PPUC CEO Frank Kyota.