PHILIPSBURG:--- NV GEBE has reached a major milestone in its efforts to strengthen St. Maarten's electricity generation capacity with the signing of two agreements that will facilitate the acquisition, production, and installation of three new Wärtsilä generators, representing a total investment of
approximately US$70 million.
The agreements, signed on Wednesday, November 4, establish the contractual framework for the long-awaited generator project, which will provide GEBE with three new 9.3-megawatt engines, delivering a combined generation capacity of 27.9 megawatts once fully commissioned.
The first signing ceremony involved Prime Minister Dr. Luc Mercelina and GEBE Temporary Manager Ms. Iris Arrindell, who formally signed the Purchase and Lease Agreement governing the investment in the new generators.
This was followed by the signing of the generator contract between GEBE, represented by Ms. Arrindell, and Wärtsilä, the international energy technology company that will produce the three engines.
The project represents a combined investment of approximately US$ 70 million, of which US$ 42 million is being financed by the Government of St. Maarten. GEBE has secured the remaining US $28 million required to complete the financing package.
The government's contribution follows the securing of financing from the Netherlands in response to the country's electricity generation challenges, which resulted in widespread load shedding during 2024. The investment is intended to strengthen the utility's generation infrastructure and reduce its dependence on aging equipment.
Under the project arrangements, Wärtsilä will produce three standard 9.3-megawatt engines, each with an expected operational lifespan of approximately 25 years. The new units will form part of GEBE's long-term strategy to modernize its power generation facilities and improve
electricity supply reliability for households and businesses.
With the contractual arrangements being finalized, attention will turn to preparing GEBE's existing power plant to accommodate the new generating units.
The project will involve demolition and other preparatory works to create the necessary space and infrastructure for installation. 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.
Wärtsilä is scheduled to begin on-site activities in June 2027, with commissioning of the new engines expected in 2028.
GEBE recognizes that the commissioning timeline is an important consideration for the public, particularly given the electricity supply challenges experienced in recent years. The company emphasizes that the project involves more than purchasing 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.
Temporary Manager of NV GEBE Iris Arrindell stated: "This journey started two years ago, with the then Temporary Manager, the late Troy Washington, and the Prime Minister Dr. Luc Mercelina. At that time, GEBE faced an energy crisis, and today’s signing is a significant and necessary step toward energy security for Sint Maarten. This investment signals a move away from temporary fixes and toward a stable, modern power system. Three generators of 9.3
MW each are important for a few fundamental reasons: Replace old units and have redundancy.
Newer generation also means more efficient, better-performing units, reducing the strain on GEBE’s aging fleet. This capacity is also essential for our growth. As demand increases from households, tourism and business, Sint Maarten must have sufficient power to meet peak demand, particularly during the high tourist season."
The signing of the agreements therefore represents the beginning of a significant implementation phase, with work still required before the additional capacity becomes available to the electricity network.
The investment is among the most significant upgrades to GEBE's electricity generation infrastructure in recent years and is intended to address the long-term need for reliable generating capacity.
Once commissioned, the three Wärtsilä engines are expected to strengthen GEBE's ability to meet electricity demand, provide greater operational flexibility and reduce the risks associated with reliance on older generating equipment.
The project also represents an important collaboration between the Government of St. Maarten and GEBE, combining government-supported financing with additional funding the utility secured to deliver a major infrastructure investment.
GEBE remains focused on advancing the project through its successive phases while maintaining its responsibility to provide electricity services to the community.
