Continued focus on hydro-power spotlighted in IMF report
Saturday, 21 December 2013, Source
THE potential benefits of a more stable and reliable source of energy in Guyana, via the advance of hydro-electricity, has been spotlighted by the International Monetary Fund (IMF) as an area for continued focus.
The IMF’s Executive Board, in its report released yesterday, called on the current Administration to continue its focus on the massive project, the Amaila Falls Hydro Power (AFHP) project.
The report, which followed the end of consultations with local officials earlier this month, said, “Directors encouraged the authorities to ensure that the large hydroelectric project under consideration remains financially and economically viable to curb fiscal risks.
“In this context, they saw merit in strengthening the project and debt management framework, and pursuing international best practices as regards public-private partnerships.”
Slated to be the nation’s most ambitious undertaking, the project is touted to be able to provide Guyanese with cheaper, reliable and sustainable power supply.
The project involves the construction of a hydropower plant in the area of west-central Guyana, where the Amaila and Kuribrong rivers meet. Electricity produced at the plant will be delivered to Guyana’s capital, Georgetown, and its second largest town, Linden.
The AFHP is expected to result in substantial savings to the nation’s coffers particularly in terms of foreign exchange and the purchase of heavy fuel oil.
President Donald Ramotar’s position on the matter is that economies must serve the people, not vice versa, and with an expected saving of $9B in electricity subsidies, as well as savings on the $40B fuel bill, enormous contributions can be made to the infrastructural development, development particularly needed in Guyana’s hinterland to aid and accelerate economic progress.
On July 18, the combined Opposition defeated the Hydro Electric Power (Amendment) Bill. In August, the government brought the issue back to the National Assembly and received the support of the Alliance For Change (AFC), but A Partnership for National Unity (APNU) voted the bill and motion down.