Prime Minister and GEBE to sign purchase and lease agreement for new engines

GREAT BAY--Prime Minister Dr. Luc Mercelina and GEBE Temporary Manager Ms. Iris Arindell will formally sign a Purchase and Lease Agreement for new electricity generation engines, marking another step in efforts to strengthen St. Maarten's power supply.

The agreement follows the government's securing of a NAf. 75.6 million loan, approximately US$42 million, from the Netherlands to address the electricity generation challenges that resulted in widespread load shedding during 2024. Parliament approved the financing in October 2024, and government confirmed receipt of the funds in January 2025.

The loan carries a 25-year repayment period and an interest rate of 2.43%. The original investment plan called for three generators with a combined capacity of approximately 27 megawatts. However, rising equipment costs subsequently required adjustments to the financing arrangements, with government committing its loan funding toward two generators and GEBE pursuing additional financing for the third.

The signing represents progress toward finalizing the financial and contractual arrangements needed to acquire permanent generation capacity and improve the reliability of electricity services across St. Maarten.