Georgetown: President Donald Ramotar has signaled his Government’s intention to revive the US$840 million Amaila Falls Hydro Power Project, despite hindrance from the Opposition.
Based on studies, an estimated 20 per cent reduction in electricity tariffs would be experienced when the Amaila Falls Hydro Power Project goes into operation, with residential consumers saving approximately $208.7 million monthly or $2.5 billion annually.
Speaking at the Private Sector Commission’s 22nd Annual General Meeting (AGM) recently President Ramotar said the country’s economic landscape will undergo major transformation when the hydropower project materialises. Though the implementation process has been delayed, he assured the Private Sector that progress is being made. It was disclosed that the Inter-American Development Bank (IDB) approved US$64 million for the Guyana Power and Light (GPL). (see story on page 10) According to President Ramotar, the approved funds will be used to put GPL in a state of readiness to receive power from the Amaila Falls Hydropower Plant when it comes into operation.
According to him, the Government is hoping to wrap up negotiations sooner rather than later. “We are still hoping and ready to go with Sithe Global and Blackstone for this project, but we are not going to wait forever. We have other options and we have to bring those discussions to a conclusion,” he posited. “One way or another,” the project will come into fruition, the President said, noting that the Government is trying to avoid unnecessary delays.
In support of the Government, PSC Chairman Ramesh Persaud said Caribbean Development Bank President, Dr Warren Smith was right when he said that the high energy costs in the Region were affecting its competitiveness. “On behalf of the Private Sector, we would like to acknowledge publicly that we agree fully with the sentiments expressed by Dr Smith and we call on the leaders of Guyana, both in Government and the Opposition, to work on realising our hydropower potential whether it is Amaila Falls or any other source.”
Before crumbling in 2013, the Amaila Falls Hydropower Project was a Private Sector-led initiative, designed to be financed through debt from the IDB and China Development Bank (CDB) and with equity from Sithe Global and the Government of Guyana. China Railway First Group was identified for the construction of the power facility.
Earlier in the year, GPL’s Board Chairman Winston Brassington indicated that the Government returned to the drawing board after August 2013 when the A Partnership for National Unity (APNU) withheld its support in the National Assembly, resulting in Sithe Global pulling out of the project.
According to Brassington, China Development Bank has pledged to pump US$500 million into the project with China Railway First, Group (CRFG) remaining committed as well. China Development Bank has also indicated its willingness to pour more funds into the project to fill any gap.
Sithe Global had pulled out of the Amaila Falls Hydropower Project in August two days after the National Assembly failed to meet consensus on legislative arrangements deemed necessary to move the project forward. The company had already expended approximately US$16 million on preparatory works.
The Donald Ramotar Administration has always argued that the Amaila Falls Hydro Power Plant would produce reliable, affordable and clean energy. GPL will own and operate the project for 20 years, after which, the Project will be transferred to GPL for free, through a Build Own Operate Transfer (BOOT) arrangement.
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