Mr. Speaker, I rise to remind us all that the Tynes Bay Waste-to-Energy Facility remains at a critical point and that the Ministry of Public Works continues its efforts to address the current state of affairs.
Mr. Speaker, you will recall back in December 2021, the Island was facing a crisis with waste disposal. The full shutdown of the Tynes Bay facility, due to boiler failures and the untimely failure of the baling contingency system, meant the island unfortunately had to resort to landfilling for a period of seven (7) days.
Fortunately, with the assistance of the world class engineers at the facility, in the weeks that followed, the boilers were brought back online and bales from the contingency system were returned to the plant for incineration.
Mr. Speaker, the Tynes Bay Waste-to-Energy Facility is integral to the management of the waste the Island produces. Before 1994, Bermuda’s garbage was dumped in landfills, most notably the Marsh Folly site in Pembroke and this Government has committed never to return to landfilling again.
This is why shortly after the facility’s failure in late 2021 Mr. Speaker, the following February, the Government announced a Capital Programme for the refurbishment of Tynes Bay and the commencement of said programme to ensure that we can continue to dispose of the island’s waste in an environmentally friendly manner.
Mr. Speaker, this programme will see the complete retrofit of the waste processing facility. However, challenges have arisen with this initiative. Namely there have been significant delays in product delivery times attributed to global supply chain issues resulting from the fallout of the Covid-19 Pandemic and ensuing economic climate, causing the timeline for the refurbishment initiative to be extended which has increased the risk for a catastrophic failure.
Mr. Speaker this is not new information to members. I explained the circumstances as they were occurring and the Ministry’s efforts to avoid the risks, in a statement to this Honourable House on September 30th, 2022.
Further, in said statement I detailed that the Cabinet authorised a stabilisation programme of projects that focuses on replacing critical systems to preserve the Facility until major maintenance can begin at the estimated cost of Twenty-Two Million dollars ($22,000,000.00).
Mr. Speaker, these projects specifically targeted failed or obsolete systems that can be replaced without major disruption to the daily operations at Tynes Bay and that will also be integrated into the overall refurbishment works to avoid wasted expenditure. These upgraded systems are intended to assimilate seamlessly with the larger refurbishment works once they commence.
Again, this information was shared some two (2) years ago and now Mr. Speaker, I intend to update on some of the works completed under the Stabilisation programme.
1. The replacement of two (2) overhead refuse cranes
Mr. Speaker, Honourable colleagues may recall that in the aforementioned statement I announced that there was a catastrophic failure of one (1) of the two (2) overhead refuse cranes which happened in April 2022. During normal operation of the crane, the entire hoist and access platform collapsed as the support welds failed due to excessive fatigue. It was decided by management to take on the risk of running the facility with only one crane for an extended period with no operational redundancy.
Mr. Speaker, therefore the replacement of both cranes was deemed a priority under this programme. As such, in March 2023 the Cabinet authorised the purchase of two (2) overhead refuse cranes and four (4) refuse grapples complete with their control systems from Konecranes America Limited at the sum of $4,259,971.00.
After a successful open procurement for a replacement Clinker Crane in 2021 (which is used for the Ash the facility produces) by Konecranes America Limited, it was decided to standardise all cranes with the same manufacturer as the Facility’s maintenance teams have become familiar with these systems over the years. By selecting this company, technician training can focus on the differences in the upgraded systems and reinforce the common system knowledge which occurs from standardization of the crane manufacturer. Simply put, the teams are used to maintaining equipment from the company and as the old adage goes, “it is best to stick with what you know”.
Mr. Speaker, we were advised that the new overhead refuse cranes would take 6 months to design and another 12 months to manufacture. They were ordered in January 2023 and arrived 3 months early in April 2024.
Mr. Speaker to install the new cranes a separate Request for Proposals (RFP) was issued, and the contract subsequently awarded to the local company BCM Construction Ltd. – the sole bidder - in the amount of One Million, Four Hundred Eighty-Nine Thousand, Eight Hundred and Nineteen Dollars ($1,489,819.00).
Mr. Speaker, it is anticipated that the new cranes will be fully installed by August, then undergo a 2-month commissioning period and subsequently be fully turned over to Tynes Bay in October.
2. The Refurbishment of the Plant Distribution Transformers
Mr. Speaker, another project identified as a priority was the refurbishment of the Facility’s Distribution Transformers. As such, an open Request for Proposals (RFP) was issued in March 2023 to seek qualified contractors that can complete the work.
After a successful procurement process, the contract was awarded to another local firm – BAC Universal Ltd – the lowest bidder – at the cost of Two Hundred and FiftySeven Thousand and Forty Dollars and Zero Cents (BMD $257,040.00).
Mr. Speaker, the transformers have been manufactured and will be released for shipment sometime next week. Installation works will commence upon arrival with the project slated to be complete by the end of September.
3. Turbine Overhaul
Mr. Speaker, not to get too technical for this project, as I am not an engineer, but The Tynes Bay plant utilizes two (2) steam turbines, coupled with a generator to transform the energy released from the burning of refuse in the incinerator into electrical energy. This electrical energy supplies both the plant itself and a Reverse Osmosis Plant, with the surplus energy being sold to the BELCO power grid. The equipment associated with the primary T2 – Turbine was installed and commissioned over five (5) years ago and is due for a major overhaul to maintain safe and efficient operating conditions.
A contract for this work was awarded to Siemens Energy AG who are the Original Equipment Manufacturer at the sum of One Million, Five Hundred and Forty Thousand dollars ($1,540,000.00). As the turbines are critical for both the successful operation and safety of the facility, it is essential to source any works and replacement components from the company.
Mr. Speaker, currently Siemens Energy is working with management at Tynes Bay to ensure that all elements needed are on island and ready for project kick-off in November.
4. The Replacement of the Band Screens
Mr. Speaker, another priority project is the replacement of two (2) Travelling Band Screens at the Facility's Sea Water Screening Plant. These band screens – which are over thirty (30) years old – remove debris from sea water before it is pumped to the cooling system for the turbine. Failing to remove debris can lead to damage of the pumps, valves or pipework of the system.
After an open procurement process which resulted in only a single bid for the works, a contract was approved with the local company H&H Plumbing and Mechanical Ltd. at the sum of Nine Hundred-Fourteen Thousand, Three-Hundred Forty-Nine Dollars and Zero Cents (BMD $914,349.00).
Mr. Speaker, currently the required equipment is being manufactured with physical works slated to take place in the First quarter of 2025.
Mr. Speaker, this Government is committed to our local companies, and this is demonstrated by seeking qualified contractors for works that are not extremely specialised in nature. Of the four projects I have mentioned, two (2) are being performed by local companies whom we have the upmost confidence can deliver.
But Mr. Speaker, these are not the only projects happening simultaneously regarding Tynes Bay. As I have said before, the Facility is integral to the management of the waste the Island produces. Without it, we will be landfilling all of our waste – contrary to best practice – and the wishes of the Bermudian people We have learned from the situation which occurred in late 2021 which was a direct result of the lack of funding for adequate maintenance. And I stress again that we cannot return to landfilling as the primary form of waste disposal.
This is why Mr. Speaker in February 2023; this Government commissioned a Business Case Study for the full redevelopment of the Tynes Bay Waste to Energy Facility. This study which was performed by KPMG will define the scope of redevelopment and associated cost estimates for the complete refurbishment of the Plant.
Further, it performed a comprehensive examination and comparison of various facility business models with associated funding mechanisms to achieve the goal of continued Solid Waste disposal through the redevelopment of the Tynes Bay Waste-to-Energy Plant.
The business case has considered not only the financial elements of the current business model versus alternatives but also takes into account the Government's will for economic recovery and growth potential including synergies with government services such as waste management, water production and sewage treatment amongst others.
Mr. Speaker, KPMG in collaboration with the expertise of key technical officers, has completed its initial study and has provided a report to the Government for consideration. Once a decision is made regarding this report, I will ensure to update the House accordingly.
Mr. Speaker, I again want to stress in the strongest possible terms that the risk of a catastrophic failure is very real. The plant has a number of issues that threaten its functionality.
Concurrent with the review and processing of the Business case - pre-engineering planning, expected to take 6 months, is also being executed. The works currently underway by the phenomenal staff at the site and our industry partners are striving towards the immediate goal of stabilisation which will then give opportunity to focus on the larger refurbishment works that is far more complex.
This Government will continue to do all it can to ensure Bermuda’s waste is properly disposed of while the necessary upgrades are under way.
Mr. Speaker, back in 2021 we were on the edge of going over a cliff, but the stabilisation works have prevented that from happening. The full refurbishment works must now proceed apace so that the country is never on that cliff edge again. All the plans are in place to move forward, and this will mean that the work must continue and the necessary funding, over several years, must be provided.
Mr. Speaker, let me end by thanking the team at KPMG and our own inhouse team of Permanent Secretary, Kirk Outerbridge, Acting Chief Engineer, J. Tarik Christopher and Tynes Bay Waste to Energy Plant Manager, Mr. Nasir Wade for the countless hours they committed to the production of the business case, in addition to their day jobs.
As always, Mr. Speaker, I will keep this house updated as we progress.
Thank you, Mr. Speaker