Guam – One of the largest contracts within the Government of Guam was signed today as the Guam Power Authority made its partnership with Hyundai Corporation official during a press conference in the GPA Board Conference Room in Harmon.
The two-year Residual Fuel Oil (RFO) contract is worth approximately $360 Million annually. That’s based on Guam’s historical oil consumption of about 3 Million barrels a year. The contract goes into effect on September 1st and expires on August 31, 2015 with options to extend for an additional three years renewable annually.
GPA General Manager Joaquin Flores says the competitive bid won by Hyundai will result in potential savings of about $20 Million dollars. During today’s ceremony Consolidated Commission on Utilities Chairman Simon Sanchez noted that those savings have already been passed onto consumers with a rate decrease that went into effect on August 1st.
Hyundai Corporation President Kim Jung Rae attended to ceremony today to sign the contract.