Amaila Falls Project can remove need for some GPL subsidies – PM Hinds tells Economic Services Committee

Prime Minister Samuel Hinds answering questions before the Economic Services Committee today on the Guyana Power and Light (GPL) observed that the Amaila Falls Hydro Power Project has the potential of generating electricity at $42 per kilowatt hour. He explained that the current cost of generating electricity is about $75 per kilowatt hour whilst consumers pay $64. The support for the $11 difference is currently being provided to GPL by the Government.

The construction of a new 165MW hydroelectric facility at the Amaila Falls creates an opportunity for Guyana to generate its own power from a clean, natural source and with it a dependable, affordable source of electricity. The new power plant is intended to deliver electricity to Georgetown, and Linden, by an electric transmission line. It is also expected to lower costs and subsidies, the Prime Minister explained.

He noted however, that although Lethem, Mahdia and Bartica are also being subsidised with electricity costs, the only places the Amaila Falls network would support, would be Georgetown and Linden. The Prime Minister explained that the other areas are too far away to meet the transmission line, so subsidies will remain in place for them.

The joint meeting of the Parliamentary Sectoral Committees on Economic Services and Natural Resources received presentations from the Prime Minister and Minister of Parliamentary Affairs and GPL’s board of Management. The purpose was to examine GPL’s corporate governance and management structure and principles; vision and projections for the power generation and sales to its clients; plans for 2013 and 2014; economic viability for the short and medium terms, including profit projections; financing of deficits, if any; and tariffs.

The Committee also sought to examine the company’s guarantees to the consumers for reliable uninterrupted supply of quality electricity; expansion programmes, including power generation and distribution; and any other novel development programmes that the corporation may be considering, including partnerships within the industry.

During today’s examination of the principals of the Company, it was also disclosed that electricity tariffs for manufacturers are also expected to be reduced when the Amaila Falls project comes on stream. It was also disclosed that the employment trend of GPL has been reducing due to changes experienced by the company over time.

Additionally, Chairman of the Board of Directors Winston Brassington revealed however that the number of contract workers has grown. He also noted that at the senior level, it remains difficult to find and retain key technical staff. This, he explained is expected to be addressed through assistance from the Inter American Development Bank and a Corporate Development Plan.

The examination of the Power Company will continue on a date to be announced.