US Virgin Islands government signs historic agreement to develop territory’s first alternative energy facilities

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Gershman, Brickner & Bratton, Inc. (GBB) announced today that it provided expertise, as a subcontractor to the Maguire Group, to the Virgin Islands Waste Management Authority (VIWMA) with due diligence review of waste-to-energy proposals and assistance in negotiations for Solid Waste Management Service Contracts for St. Thomas and St. Croix.

As a result, on August 10, 2009, Governor John P. deJongh, Jr. announced that the Virgin Islands Water and Power Authority (WAPA) had just signed two 20-year Power Purchase Agreements, and the VIWMA had signed two 20-year Solid Waste Management Services Agreements with affiliates of Denver-based Alpine Energy Group, LLC to build, own, and operate two alternative energy facilities that will serve the residents of St. Croix, St. John, and St. Thomas. The alternative energy facilities, to be built on St. Croix and St. Thomas, have a projected cost of $440 million and will convert an estimated 146,000 tons per year of municipal solid waste into refuse-derived fuel (RDF) using WastAway Services® technology, which will be combined with petroleum coke as fuel in fluidized bed combustion facilities to generate steam and electric power.

“This procurement is a significant achievement for the U.S. Virgin Islands, and when the projects are fully implemented, they will allow the Territory to reduce its dependence on oil, recover the energy value and certain recyclable materials from its municipal solid waste, and divert this waste from landfill,” said Bob Brickner, GBB Executive Vice President. “These are sustainable projects that will help to provide long-term cost stability for electric power and solid waste management in the Territory,” noted Tim Bratton, GBB Senior Vice President.

GBB helped to evaluate the projects, advising VIWMA on the needs and issues of the projects, and provided negotiations support relative to technical and business elements of the service contracts. The projects will provide 33 MW of electric power to St. Thomas and St. John and 16 MW of electric power to St. Croix. Construction is expected to start in spring 2010 with an anticipated completion date during the fourth quarter of 2012.

The VIWMA is an autonomous government entity created in 2004 and is responsible for the development and implementation of comprehensive integrated waste management plans for both wastewater and solid waste. The vision of the Authority is to provide territorywide collection, treatment, and disposal services in a manner that will preserve the environment for future generations employing education and transparency of operations to build an agency that will serve as a model throughout the Caribbean. The mission of the Authority is to protect public health and the natural beauty of the environment for residents and visitors through efficient, effective, and fiscally responsible practices.

GBB is a national solid waste management consulting firm founded in 1980 that works on solid waste collection, processing, recycling and disposal issues and assists in planning, procuring, and implementing sound, cost-effective facilities and services at the local, state, and national levels for both the public and private sectors. For more information on the firm and its products and services, visit www.gbbinc.com or call 1-800-573-5801.

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