Secrecy surrounding Amaila Falls a major worry – AFC
AFC leader: Khemraj Ramjattan
The Alliance For Change (AFC) has demanded that the government “come clean” on the “secretive affairs” relating to the Amaila Falls project. Party leader, Khemraj Ramjattan noted that government’s boast of transparency and accountability would demand that it would, ever so often, make releases about the status of major projects that “affect all citizens of this country.”
Ramjattan was responding to questions relating to this newspaper’s recently published article; headlined “Amaila Falls Hydro Project…
Construction unlikely before 2015.”
Kaieteur News had quoted a senior engineer connected to the project.
Ramjattan’s position, on behalf of his party, is that the government should have been the source of information for “such a major and valuable project to society.”
The party leader stated emphatically that the government needs to find it necessary to be accountable to the Guyanese public; “…that has not been happening,” he noted.
Further, he expressed that “We understand that the delay has to do with the fact that the IDB (Inter-American Development Bank) hasn’t finalized its US$100M into the deal. We understand too that there might be problems in relation to issues dealing with the back-up electricity generating plants.”
Ramjattan noted that, assuming the dry weather comes “as suggested by the President”, the government hasn’t put any mechanism in place for electricity to still be generated in the absence of water force.
Asked if his party has any trust in the Guyana Power & Light Inc. (GPL) as it relates to its technical capacity to accommodate the project, Ramjattan stated that GPL has presented the AFC with a detailed plan of improvements needed to be implemented so that the project could be accommodated. However, Ramjattan said that “if it will come through is another matter.”
Kaieteur News reported that the Amaila Falls Hydro Project will be facing major setbacks and is unlikely to start anytime soon.
This newspaper learnt that delays in road construction and the completion of a feasibility study of the project coupled with due diligence by the Inter-American Development Bank (IDB), will contribute to the hold up. However, the IDB has already signed a mandate letter, paving the way for due diligence to begin.
The Bank is being sought after for US$175M to complete the consortium of investors in the project which has an announced price tag of US$840M.
The senior engineer explained that the feasibility study is important as the project has to show that it can generate enough revenue to service its debt, grow the economy and not become another Government “’sinkhole’ like the Skeldon Factory”.
Among other things, the bank will want to examine GPL management’s technical capacity and its ability to reduce electricity losses from thefts and system inefficiencies. Further, it was noted, that the IDB would have conditions to its loan, including improvements to GPL’s systems.
In September, government announced that Sithe Global had signed a US$506M Engineering, Procurement and Construction (EPC) agreement with China Railway First Group (CRFG) for the project.
The 165-megawatt project is to be built in Region Eight with funding coming from a number of sources including US$100M in equity from the Guyana government.