‘Fip’ Motilall secures US$12M for selling hydropower licence to Sithe Global
Makeshwar ‘Fip’ Motilall will receive at least US$12 million in profit from the entire affair.
Synergy Holdings was originally awarded the contract to construct the Amaila Falls Hydro Power
Makeshwar ‘Fip’ Motilall
Plant but after failing to secure financiers to back the project, was forced to sell his licence to Sithe Global.
A recent visit to Guyana by the top brass of Sithe Global, including its Chief Executive Officer Bruce Wrobel, afforded a chance for an answer to be had to the cost of the licence to Sithe Global.
Apart from disclosing Sithe Global’s rate of return on its US$152M investment in the hydroelectric project is 19 per cent, Wrobel also disclosed that Motilall will be walking away with some US$12M for flipping his licence to that company.
“Synergy is entitled under the agreement of the transfer of that asset to financial compensation upon successful completion of the project.”
Those were the words of James McGowan, Senior Vice President (Development) at Sithe Global and Wrobel disclosed this past week that the compensation will total some US$12M.
Wrobel says that the company is attempting to place a new face on things today as a result of the previous lamentations on the silence of all partners involved
“Our role is very clear….we are a builder, a designer, a developer of energy projects….we have never really encountered a situation before where the politics is so intermeshed in the power situation,” Wrobel said as he sought to explain why the company had remained silent for such a long time.
Wrobel said that the money will include some of the early preparatory works such as feasibility studies but should the project successfully close then Motilall earns some US$12M.
“His expenses including early works, come out of that,” Wrobel told this publication.
Synergy Holdings Inc. was first listed as the developer to design, build, own and operate a hydroelectric plant in Guyana.
In 2002, Synergy Holdings and Harza International were granted a licence by the Government of Guyana under the Hydro-Electricity Act for the development of a hydroelectric plant at Amaila Falls.
The licence was reportedly amended and extended in 2004 when Harza pulled out leaving Synergy as the sole licensee. The licence was again extended in 2006.
Synergy Holdings was granted a US$15.4 million contract to build the access roads to the proposed site for the hydropower plant. That contract was rescinded on January 12 last.
Synergy Holdings Inc in 2007 identified Sithe Global as a potential investor in the project.