Georgetown: President Dr. Mohamed Irfaan Ali said that the energy projects in the pipeline for Guyana will not only achieve energy security, but they have much broader ends, including the creation of jobs and wealth for Guyanese, and strengthening multiple industries’ performances.
He made these comments during a post-Budget 2022 virtual address on Saturday morning.
“Let us understand this when we speak about Amaila Falls hydro, the natural gas power plant, the investment in the agriculture sector is about jobs. Ultimately, it is about jobs, the creation of wealth, revenue and more disposable income for the people of this country,” Dr. Ali said.
The Government has a comprehensive energy sector agenda to be executed, which will bring the cost of electricity down to 50% of the current price, leaving more disposable income with Guyanese families. But more than that, the President stressed that this will result in lower operational costs for manufacturing, industrial development and agro-processing, which will be key to improving Guyana’s competitiveness as a destination for investment. This means, the President explained, in addition to the cost of electricity going down, Guyanese can look out for reductions in the price of building materials like nails and zinc.
The two major projects, for which construction will begin soon, are the Gas-to-Energy project and the Amaila Falls hydropower project. Both projects are purposed to clean up Guyana’s electricity generation, which has for years been powered almost entirely by heavily polluting heavy fuel oil and diesel. The introduction of cleaner solutions also has other benefits. For example, the Government is facilitating investments into the production of fertilizer at the Wales Development Zone, where the Gas-to-Energy project will be based.
“Imagine what our own fertilizer plant will do for the agriculture sector. This is how the budget and the energy sector and the natural gas plant and the hydro is linked to all of us. Just imagine what the fertilizer plant will do for the agricultural sector. Imagine what our own agrochemical plant will do. Imagine what our own LNG plant will do.”
The President also challenged the public to consider how many jobs will be provided in the implementation of these projects, during the construction and operation phases. For example, the project summary for the Gas-to-Energy project states that it will create over 700 jobs.
In addition to these mega-projects, Dr. Ali discussed the smaller renewable energy projects.
“Investments are also made in small hydro power plants, and off grid solar systems, and these are especially earmarked for the hinterland riverine communities.”
Two hydropower plants are in the pipeline for the people of Lethem and surrounding communities, at the Moco Moco and Kumu waterfalls. The Government is also gathering the finances to fund solar power projects across the country and for a project to electrify 30,000 hinterland and riverine homes.
Dr. Ali challenged critics of these projects to develop perspective on the benefits they will provide to the people.
“Those who are writing from their little cocoon in their AC offices cannot imagine this, but this is how Budget 2022 affects the lives of people directly, affects the lives and communities directly. That is why it’s a people centered budget.”
He said that the full context of Budget 2022 cannot be understood if one looks at it in isolation from the government’s long-term vision, which is established in the PPP/C manifesto. While Budget 2022 provides some of the tools needed, the President said that it is up to the Guyanese people to be positive and to contribute to the country’s overall development.
