IDB promises continued support for Amalia project

Published on Sunday, 12 February 2012 21:02
Written by Super User
Source

The Inter American Development Bank and the Government of Guyana will continue to work towards the realization of the Amalia Falls Hydro Power Project.

This assurance was given by President of the Bank Luis Alberto Mareno after he and a team met with President Donald Ramotar, Finance Minister Dr Ashni Singh and Cabinet Secretary Dr Roger Luncheon at the Office of the President yesterday.

Moreno pointed out that even though the project poses some challenges, the bank is prepared to continue supporting the Amaila Falls Hydro Power Project.

President Ramotar expressed satisfaction with the bank’s support to Guyana’s development over the years. He also pledged continued close engagements with the bank that will see the continued development in the years ahead.

Finance Minister Dr. Ashni Singh pointed to the bank’s support in the country’s development programme with investments in infrastructure, social services and institutional strengthening.

The Minister noted that the government and the IDB will continue to be engaged in discussions on the Amaila Hydr power project. Currently the IDB supports a project portfolio of US $250M in Guyana covering a wide range of sectoral interventions, including infrastructural development, competitiveness, justice reform, health, education and agriculture among others.

The bank also granted Guyana debt relief amounting to US $365M in the context of the multilateral debt relief initiative in march 2007. The granting of the debt relief showed the IDB’S confidence in the management of Guyana’s economy and the strong and stable macro-economic environment which government has been able to create and maintain.

In these times no bank is going to give US$840 million to build a medium size Hydro way out in thick jungle. So these talks will be interesting.

quote:

Originally posted by Wally:
In these times no bank is going to give US$840 million to build a medium size Hydro way out in thick jungle. So these talks will be interesting.

Wally:

This is how Sithe Global says the project will be financially structured:

quote:

The IDB is being sought after for US$175M while China Development Bank will be providing some US$413.2M. Guyana’s equity is expected to be US$100 while Sithe Global will be providing US$152.1M bringing the total project cost to US$840.3M

LINK

If the IDB decides to partake in the financing---the project will be a go.

Rev

Rev, Guyana's real equity investment in the Hydro will be about 1.1 Billion dollars. That is the 840.3 million borrowed to build the Hydro plus interest. Guyana will have to eventually pay back that money by hook or by crook.

quote:

Originally posted by Wally:
Rev, Guyana's real equity investment in the Hydro will be about 1.1 Billion dollars. That is the 840.3 million borrowed to build the Hydro plus interest. Guyana will have to eventually pay back that money by hook or by crook.

Wally:

Guyana currently spends nearly 500 million dollars(US$) on oil yearly. If they could save 10-20% per year on energy costs by having a hydro then Amalia would be a worthwhile investment.


HERE'S THE THE PROBLEM:

The chinese built that 200 million skeldon sugar factory and it has been nearly useless thus far--major technical problem.

Would the chinese built 800+ million hydro also have severe technical difficulties ?


BOTTOM LINE:

The Rev doesn't trust Sithe global---but if the IDB agrees to provide $175 million in financing---it means they would have evaluated the financial and technical feasibility of the project----and in that case I'll support the project.

Rev

I see your point Rev. Thanks for explaining it.

quote:

Originally posted by Wally:

In these times no bank is going to give US$840 million to build a medium size Hydro way out in thick jungle.

So these talks will be interesting.

Of the more than 67 hydroelectric power sites studied, which proposal to meet Guyana's needs is not in the jungles of Guyana?