WRB Enterprises (WRB) and Grenada Private Power Limited (GPP) today (28 December) announced it had executed a Settlement Agreement with the Government of Grenada, effective 24 December 2020.
Under that Agreement, WRB/GPP and related parties transferred their majority stake in Grenlec to the Government in exchange for the payment of US$63 million, thereby making the Government of Grenada the majority shareholder of Grenlec.
“While we are sad to exit our investment in Grenlec, we are proud to have transformed it into a world-class utility system: one of the best-run utilities in the Caribbean,” said G Robert Blanchard Jr., Chairman and CEO of WRB Enterprises and Chairman and Managing Director of GPP. “We leave our involvement in Grenlec comfortable in the knowledge that the team in place today is capable of continuing to bring the utility forward at the highest level possible.”
Government’s repurchase of WRB/GPP’s shares in Grenlec was based on a Share Purchase Agreement (SPA) entered into in 1994. Government’s enactment of the 2016 Electricity Supply Act triggered the repurchase event under the SPA and left WRB/GPP with no choice but to proceed with arbitration.
“We would have preferred to stay and continue our involvement for another quarter-century; however, Government’s unwillingness to work in a collaborative process – despite our numerous attempts – prevented us from moving forward together constructively,” said Blanchard. “We want to stress that WRB/GPP never sought this path and we would have preferred to continue our work in Grenada. Our mission and focus has always been to serve in the best interests of customers, employees, shareholders, and all Grenadians who depend on Grenlec for safe, reliable, and efficient electricity services.”
WRB Enterprises
It does also make sense that foreign companies run the majority of power plants and businesses in grenada. what do you think would have happened if foreign companies didnt come to the country in the 80’s and 90’s. This country would have been so run down to the ground. That is why you need major international businesses. Grenada can’t just start major companies on its own and expect it to take off like that. It requires money. No wonder why we struggle to get our oil industry up and running. It would be difficult to start up a power generating company or a manufacturing company on our own.
It can be possible but in order to get our own local industries up and running it takes alot of investment and financing. That is why you see all these major foreign companies controlling and running half of the country right now. If it wasn’t for them we wouldnt have electricity.
Here goes the Chinese propaganda again. When will people just stop arguing. You are not the Government. You are not Grenlec so just shut it! I didn’t hear anything about a Chinese Company buying grenlec. So what is all of this chaos for? Probably if people had payed their taxes Grenlec would have not fallen into the hands of Foreign Companies.
Grenada belong to kcm and his gang
Grenada government is taking loans it can’t pay. You borrow money from bank to buy a van, then you can’t make payment so the bank takes your van and you be walking. China loan Grenada government money, they can’t make payment so China take back someting like airport then they control all flights in and out. Or, they could close their airport if they please. Think about that awhile… Ah but Keith Mitchell probably already has a nice house in Beijing courtesy of his chinese friends.
At this point maybe people in Grenada need to sign on to Duolingo.com and learn to speak chinese. A close family friend, a Grenada fisherman, told us Grenada has too much crime, people are attacked & robbed, police are useless. What bring tear to my eye was he said he no longer wanted to stay there. The man was born there and he no longer wants to stay. He said “there is nothing here for me anymore”. Sad to say… I understand how he feels.
I agree with most of what you said but the crime and violence thing is being blown out if proportion…of course there is crime. ..name somewhere that doesn’t have it but it’s far less than the so called big countries. At the moment things are difficult worldwide so I wouldn’t be in such a rush to fly elsewhere. And I am not a born Grenadian but someone who loves it with all its faults
you are lucky you have the world bank and china. be grateful for what you have or else you would have lost it. if it wasnt for the world bank and the peoples republic of china this country would have been dirt poor like haiti. there is no way we could have payed for roads and infrastructure when the country had little to nothing. the government had little to no financing at all. people could barley pay tax. you are lucky that this country is struggling with the little to nothing we have. i am sorry to say this but sometimes you just have to give up what you have for the best. this country can struggle to make it on its own. thats why we will need foreign companies and businesses helping us out.
If GRENLEC makes EC$100 million a year in profits, or about US37 million then paying US$63 million is, financially, is not such a bad deal for 51% of the profits – which would be about $19 million a year. The payback period is therefore 3. 3 years. Don’t know if I got all the numbers right but…..
What was the valuation used to come up with that figure of $63 million USD. If I remembered right GRENLEC was purchased for $5 million USD. Despite investment and upgrades this is very high ROE in a 26 yr period. What’s more troubling is the lack of transparency. This outrageous.
It’s a scam…a way for the guy the Trump of Grenada to steal from the people…thus us so sad that people if Grenada are allowing this kind of scam..
US$63 million to buy out Grenlec…. hmmm where have I heard a similar amount mentioned recently??
Oh yeah, the Chinese loan allegedly for airport reconstruction?
Let’s see which China is going to end up owning – the airport or Grenlec??
It’s very obvious Grenada has no way of paying back that money so what the heck is the Government plan??
Very very suspicious in my opinion – all we need is to tie in the oil fiasco to have a full picture of corruption and underhand dealings…
Grinch – this is not the way the population of Grenada should learn about these matters
Transparency pleeeeeease.
you are lucky you have the world bank and china. be grateful for what you have or else you would have lost it. if it wasnt for the world bank and the peoples republic of china this country would have been dirt poor like haiti. there is no way we could have payed for roads and infrastructure when the country had little to nothing. the government had little to no financing at all. people could barley pay tax. you are lucky that this country is struggling with the little to nothing we have. i am sorry to say this but sometimes you just have to give up what you have for the best. this country can struggle to make it on its own. thats why we will need foreign companies and businesses helping us out.
china has nothing to do with it fool
So where do we go from here as WRB was doing a wonderful job where the public was enjoying a faultless company externally.
I can’t remember the last time we suffered a power cut and that was common place before WRB came on board.