GEBE generator purchase in final negotiation phase

GREAT BAY--Prime Minister Dr. Luc Mercelina has said the process to initiate the purchase of new generators for St. Maarten is still ongoing, with government now in the final phase of negotiations before the formal purchasing process can begin.

The Prime Minister said the acquisition remains a priority, but he noted that the process has become more complicated due to recent geopolitical developments, rising international prices and a major increase in global demand for generators.

“We are now in the last phase of the negotiations to order the generators,” Prime Minister Mercelina said. “It is a very complicated process, but ultimately we are in the last phase to start with the purchasing of the generators.”

The generators are tied to government’s effort to strengthen St. Maarten’s electricity supply and respond to the power challenges that affected the country. In January 2025, government confirmed that it had received a Cg. 75.6 million loan from the Netherlands, approximately US $42 million, to support the purchase of new generators for utilities company GEBE. The loan was reported as carrying a 25-year term and a 2.43 percent interest rate.

In September 2025, Prime Minister Mercelina and the National Recovery Program Bureau signed an agreement to advance the Stable Electricity Supply Project. That agreement gave the NRPB access to approximately US $1 million in technical assistance funds to support the procurement process, adding technical guidance and oversight to the US $42 million already allocated for the generators.

Prime Minister Mercelina said government is now facing new market realities. Prices originally identified for the generators are being affected by global developments, while increased demand from other countries may also influence delivery timelines.

“We see a challenge for the originally determined prices for the generators,” the Prime Minister said. “There is also an enormous load of requests from the world for the generators that we would like to order.”

He said these factors may have consequences for both the final agreement on pricing and the waiting time for delivery.

According to the Prime Minister, government is also reconsidering whether it should continue with the current route or examine other manufacturers that produce generators. He said the administration is reviewing the situation carefully before finalizing the next steps.

“We are also in the phase of reconsidering everything to really see if this is the route we have to continue moving, or if we have to look in other directions to other factories that produce generators,” he said.

At the same time, the Prime Minister said the country must continue moving toward alternative green energy. He referenced the Energy Nautics report, which he said has already outlined the path St. Maarten should take.

Energy Nautics has said its work for St. Maarten provided a roadmap for a more sustainable energy future, with solar photovoltaic systems as a major component, along with wind, battery storage and steps aimed at moving St. Maarten away from a predominantly diesel-based generation system over time.

The Energy Nautics work was commissioned under the National Recovery Program Bureau’s Emergency Recovery Project 1 and focused on improving NV GEBE’s business and investment strategies while supporting more reliable power supply across St. Maarten.

Prime Minister Mercelina said the country’s energy transition remains necessary, but will take time to move from planning to execution.

“We have our report ready from Energy Nautics, and it is already explained in this report the path that we have to move forward,” he said. “I think it is a matter of time for us to start the process and the project of green alternative energy for St. Maarten.”

The Prime Minister’s comments place the generator purchase in a broader energy strategy: stabilizing electricity generation in the near term while preparing St. Maarten for a longer-term shift toward cleaner and more resilient energy sources.

‍