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June 1 ,2022

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Kaieteur News – Almost two decades since it was first promulgated as a solution to Guyana’s energy demands but had to be shelved on many occasions, the recently resuscitated 165 Mega Watt (MW) Amaila Falls Hydro Electric Project has again been met with another snafu.
This was confirmed by Vice President Bharrat Jagdeo, who during a press engagement at the Office of the President on Monday, reported that the Chinese Contractor – China Railway First Group – had been unable to secure the finances.
According to the Vice President, the contractor had as late as April 22, last, written to the government “saying that they are having a hard time doing the BOOT (Build, Own, Operate Transfer) contract and they want to shift to an EPC (Engineer, Procure, Construct) plus finance” option instead.

He explained that under an EPC contract, it would mean that the government would have to secure the finances for the project and that they would be used as the EPC contractor.
As such, Jagdeo disclosed that in light of the developments, government may very well have to retender the project.
“We have been in discussion with the company since November last year, the discussions, the negotiations are very difficult,” according to Jagdeo who indicated that “in the negotiations, we are still trying to get them to meet the commitment that they bid.”

Qualifying his position further, the Vice President sought to remind that during its most recent incarnation, where Sithe Global of the Blackstone Group had been selected as the Project developer, the electricity was supposed to have been sold to consumers at a generation cost of US$0.10 (cents) per kilowatt hour (KwH).
The Chinese bid, he said, had committed to 7.7 Kwh but are now saying “they can’t go ahead with the BOOT they want to change the basis to an EPC.”
He was adamant, however, “if we can’t change that, if we can’t get it done under the BOOT we will have to retender, they would not be able to conclude the construction, because that is what the tender was about, a BOOT model not an EPC+ finance model.”
He told members of the press corps “…in the last six months or so we have been struggling to reach agreement and so we are now going to have to give a deadline to cancel; if they can’t proceed as the original model so we may have a set back there on that.”
Asked to provide further clarity on the contractor’s position during the ongoing negotiations, Jagdeo divulged that it was not a case of the Chinese not being in favour of a BOOT arrangement but rather “they simply can’t raise the financing, because of that.”
Under the BOOT, arrangement, he said, it “meant they had to build it, own it and supply us with power at a particular price and then 20 years after transfer it to the government for free, because that is what they bid on.”
In such an arrangement, Jagdeo said, “…we would not have any debt, there would be no debt associated so that model they are saying they can’t pursue.”
According to Jagdeo, the Chinese are requesting that government contract the debt and use them as the contractor “so we said we did not bid for that.”
He noted, nonetheless, that in such a situation, government would have started the process all over again by retendering.
Senior Minister in the Office of the President, with responsibility for Finance, Dr. Ashni Singh in January last had announced that the Chinese contractor, who was granted approval to construct the Amaila Falls Hydropower Project, would commence operations on the mega venture this year.
He was at the time presenting Budget 2022 to the National Assembly, “regarding renewable and low carbon energy, our most promising venture continues to be the AFHP (Amaila Falls Hydropower Project) with an expected capacity of 165 MW.”
He informed then that government had already requested, received and evaluated proposals for the project and negotiations were in progress with the ‘highest ranked company’ China Railway First Group (CRFG) – the same company that had previously signed a contract to build the said project several years ago.
Jagdeo in November of last year, during a press engagement, told reporters that a decision had been taken by Cabinet that government would be approaching the selected contractor to negotiate on the way forward.
The Ministry of Finance, in a subsequent public missive corroborated the Vice President’s assertions saying, that Cabinet had given its ‘No Objection’ to the company, as evaluated by the National Procurement and Tender Administration Board (NPTAB).
In this regard, the AFHP will be developed under a ‘build-own, operate-transfer (BOOT) arrangement where the developer would operate the project for a 20-year period before handing it over to the government, at no cost.
The Finance Minister had explained, “The project will be developed under a build-own operate-transfer (BOOT) arrangement within which the Guyana Power and Light Incorporated (GPL) will purchase power from the operator under a Power Purchase Agreement (PPA). We anticipate that construction will begin in 2022 and be completed by 2027. Once operationalised, the facility will reduce the cost of energy significantly for both businesses and households.”
At that time, the Vice President was of the view, “…we have a really great bid” and explained that in this iteration of the Amaila Falls Hydro Electric Project, “we are not going to put any money into the project, we are just buying power.”
Jagdeo in February this year, however, despite conceding months of negotiations with the Chinese, had in lauding the project during the International Energy Conference and Expo 2022 at the Kingston, Georgetown Marriott Hotel, said his government was currently negotiating a Power Purchase Agreement (PPA) with the Chinese contractor.
Government had earlier in the year advertised soliciting a private partner to fund and develop the project.
The administration in inviting partners had indicated two proposals, namely a BOOT option or a Design Build Finance option.
At the time of selecting China Railway First Group, it was noted that the BOOT option would be utilised.
According to the administration, a total of four companies submitted proposals, and China Railway Group Limited was identified as the most ‘capable partner’ by the Evaluation Committee after a rigorous evaluation process, following which NPTAB submitted the relevant recommendation to Cabinet for ‘no objection’.
It should be noted that checks conducted by this publication found that China Railway was in 2019 debarred by the World Bank for practices considered fraudulent on a highway project in the country of Georgia.
China Railway was established in 1950 and is a subsidiary of China Railway Engineering Group (CREG).
Jagdeo during his press engagement on Monday, in defending the move to retender the project said that the second closest bidder would not be feasible since the cost would work out to more than that of the Gas-to-Shore project.
It should be noted that under the most recent iteration of the project as presented, Guyana was to stand the majority of the major risks involved in the project.
These include those related to political force majeure, payments risks in the event that electricity sold is not sufficient to meet the PPA demands, and hydrology where Guyana stands the risk associated with the likelihood of there being insufficient water supply, meaning if the Amaila Falls runs dry, among other risks.

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Purported hiccups in hydro project might be a blessing in disguise –Dr. Jailall

…says with better oil deal, gov’t would have been able to finance project themselves

Jun 02, 2022 News  -- Source -- Kaieteur News Online -- https://www.kaieteurnewsonline...disguise-dr-jailall/

Kaieteur News- The alleged setback Chinese Contractor – China Railway First Group (CRFG) is having in securing finance for the controversial Amaila Falls Hydroelectric Project (AFHP) project might be a blessing in disguise for Guyana. This is according to Dr. Jerry Jailall.

Dr. Jailall comment came following the announcement by Vice President, Bharrat Jagdeo on Monday at a press conference. Jagdeo disclosed that CRFG was unable to secure financing for the project which was earmarked to cost US$700 million, a decrease from its 2012 price tag which was in excess of US$1billion.

Dr. Jerry Jailall

In light of the new setback surrounding the multi-million project, Dr. Jailall stated that since the government seems to be delighted to do high-cost projects – if it use all available leverage points to review and renegotiate the oil contracts, they would have been able to obtain enough money to finance all their energy projects instead of begging companies to do the Build, Own, Operate and Transfer (BOOT) arrangement.

The Amaila Falls project was first promulgated as a solution to Guyana’s energy demands but had to be shelved on many occasions – despite this after assuming office the PPP administration resuscitated the 165 Mega Watt (MW) project.

Back in January, during the presentation of Budget 2022, Senior Minister in the Office of the President, with responsibility for Finance, Dr. Ashni Singh had told the National Assembly that the Chinese contractor, who was granted approval to construct the Amaila Falls Project, will commence operations on the mega venture this year and be completed by 2027. Dr. Singh is reported in the media as saying that the project will be developed under a BOOT arrangement within which the Guyana Power and Light Incorporated (GPL) will purchase power from the operator under a Power Purchase Agreement (PPA).

However, according to the recent announcement by the Vice President, the contractor had as late as April 22, written to the government “saying that they are having a hard time doing the BOOT (Build, Own, Operate Transfer) contract and they want to shift to an EPC (Engineer, Procure, Construct) plus finance” option instead.

Jagdeo explained that under an EPC contract, it would mean that the government would have to secure the finances for the project and that they would be used as the EPC contractor. As such, he disclosed that in light of the developments, government may very well have to retender the project. “We have been in discussion with the company since November last year, the discussions, the negotiations are very difficult,” according to Jagdeo who indicated that “in the negotiations, we are still trying to get them to meet the commitment that they bid,” Jagdeo added.

The Chinese bid, he said, had committed to 7.7 Kwh but are now saying “they can’t go ahead with the BOOT they want to change the basis to an EPC.”

He was adamant; however, that if the project cannot be done under the BOOT arrangement the project would have to be retendered due to the fact that’s what the tender was about, a BOOT model not an EPC+ finance model. As such, in a letter sent to this publication, Dr. Jailall questioned the reason for the company backing down.

“My Church folks would say that is God sending us a message, or the devil is trying to defeat us. But in Guyana one man alone decides what is good for the whole country in all things. He is some people’s little “god,”’ Dr. Jailall stated.

Dr. Jailall highlighted that the project had a false start and was scandal ridden – he questioned how did the procurement process produced a result where a man who never built anything got the contract for building an access road for Amaila back in the initial stage.

With the new snafu, Dr. Jailall stated that Guyana now have the opportunity to rethink the energy mix. To support his recommendation, he stated that Mr. Bhulai, a Guyanese nationalist, has made a good case for solar energy as the country’s best, cheaper alternative.

To further prove his point, he highlighted that the Government never responded to the question of how Barbados would be able to produce 178 MW of power that will cost US$100 million, and Guyana is spending almost a billion for the same amount of power. He referenced the article that was carried in this publication on February 23, 2022, under the title, “US$100M to produce 178MW from solar, hydrogen in Barbados.”

In contrast to what Barbados is doing, he stated that the Irfaan Ali Government is pursuing a hydro electrical project at Amaila Falls for a revised cost of US$700M. In closing, he stated, “Pray for smarter leaders to emerge in Guyana,” then adding, “It’s our wealth and our country, and we need leaders who care and will fight for the national interest, not the rights of oil imperialists.”

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T&T pursuing solar power generation while Guyana chases Hydro

Jun 03, 2022 News -- Source -- Kaieteur News Online -- https://www.kaieteurnewsonline...guyana-chases-hydro/

Kaieteur News – Trinidad and Tobago’s Minister of Energy and Energy Industries, Stuart Young said on Wednesday that solar projects and even waste-to-power are some of the new initiatives the twin island plans to incorporate into its energy mix, as the State moves towards cleaner sources of energy.

Trinidad and Tobago’s Minister of Energy and Energy Industries, Stuart Young

“Trinidad and Tobago has to find the right balance. We will do our part towards reduction of carbon, methane and harmful emission reduction. But we will do so whilst ensuring the sustainability of our energy sector. I want to put on the record that being a hydrocarbon province should not be seen as a negative. We have been blessed with oil and gas resources and our challenge is how to ensure its sustainability whilst doing our part towards cleaner energy,” Young explained during the country’s Energy Conference which concluded on Thursday.

Further, to meet climate change objectives, the Minister said that a 112.2MW solar project should undergo construction soon. The project titled ‘Lara’ will not however be the end point for Trinidad and Tobago, as while that development is being carried out, the country intends to invite more Request for Proposals of such energy ventures. “More solar allows us to do our part towards global Green House Gas reduction and allows us to monetise our valuable natural gas resources,” the Minister explained while adding that T&T will also be exploring the viability of future power generation by combining waste to energy technology and other renewables which would deliver environmental benefits.

In his bid to encourage renewables, he told oil and gas companies represented at the forum that the World Economic Forum has suggested that renewables need to increase from 14 percent of primary energy in 2018 to 75 percent of primary energy by 2050. In this regard, he explained that according to estimates by reputable energy publications, the share of renewables in the primary energy mix will at the most account for 27 percent of the global primary energy mix in 2050. As he continued to update the stakeholders on the current energy climate, Young cited a report by the International Energy Agency (IEA) which estimates oil demand will start to decline in the 2030s for the first time, based on current policy settings. This means that the use of heavy fuel oil for electricity generation could be phased out.

Importantly, he said natural gas plays an important role in the energy value chain in Trinidad and Tobago. The State depends on the production of gas for the fueling of its energy sector and to power its other downstream industries. According to Young, “Natural gas is the primary fuel in electricity generation, 99.9 percent of our electricity is generated from natural gas. Gas will remain the predominant source of electricity generation even as we include renewables in our energy mix. Renewables have a part to play”.

He was keen to point out however that the access to finance for renewable projects remains limited, natural gas will remain the transition fuel to cleaner sources but “this does not mean that Trinidad and Tobago is not pursuing the use of renewables; we are doing so,” he urged.

Meanwhile, in Guyana, the government is pursuing a hydropower project that could potentially leave the country in further debts. It was however recently announced that the contractor for the Amaila Hydropower Project is experiencing difficulties with raising financing for the project and now wants the government to take on this aspect.

In light of this development, government may very well have to go back to tender. On the other hand, Guyana is also pursuing a Gas to Energy Project to supply electricity to the national grid and possibly produce fertilizer for the agriculture sector. Environmentalists have however been clamoring the government to reinject the gas and pursue solar instead as this will deliver not only a stable source of energy, but also one that will have no impacts on the environment. Importantly, it has already been announced that Guyana currently receives enough sunshine every two hours to power the country’s present electricity demand for an entire year.

Demerara_Guy

Amaila hydro a ‘kick-back’ project for the PPP cronies – Opposition Leader

Jun 08, 2022 News -- Source -- Kaieteur News Online -- https://www.kaieteurnewsonline...s-opposition-leader/

Kaieteur News – Citing the cheaper options currently available for electricity generation, Leader of the Opposition, Mr. Aubrey Norton is of the firm belief that the 165 Megawatts Amaila Falls Hydropower project will serve solely as an avenue for the People’s Progressive Party (PPP) to benefit.

Norton gave this view yesterday in response to a question posed by Kaieteur News during the People’s National Congress Reform (PNC/R) weekly press conference.

The Leader explained that the former A Partnership for National Unity + Alliance For Change (APNU+AFC) government had discontinued the project on the grounds that it was not well conceived and could therefore be no use to the people of Guyana.

Leader of the Opposition, Aubrey Norton addressing members of the media during his weekly press conference.

Only last week, Vice President Bharrat Jagdeo told members of the press that the Chinese Contractor – China Railway First Group – had been unable to secure the finances. According to the Vice President, the contractor had as late as April 22, last, written to the government “saying that they are having a hard time doing the BOOT (Build, Own, Operate Transfer) contract and they want to shift to an EPC (Engineer, Procure, Construct) plus finance” option instead.

According to Norton, however, while the details of the arrangement remain sketchy at the moment, the Coalition believes that the entire project remains “misconceived, ill conceived” and a complete “waste of taxpayers’ money.”

Norton was keen to note that the APNU+AFC while in government understood the importance of solar power generation, and still believe that this method of electricity generation should be utilised, as this option remains most feasible.

“The APNU+AFC while in government, and until now, and I think well articulated by the then Minister David Patterson, believes that there should be an approach that allows us to use all options including solar based on the specifics of the area. For instance, in some areas wind might be a good option because of the level of wind. Some areas solar is a good option or generally in all areas and so we do believe solar has potential, it is cheaper and it should be utilised,” the Leader of the Opposition urged.

On the other hand, he told this publication that the present administration is not concerned about a viable option to generate electricity, but rather an avenue to siphon off funds for its cronies.

He argued, “You have a government that is interested in getting its cronies rich off of oil and gas and will not look at the options and arrive at the best for Guyana. What they do is choose that which will put more monies in their cronies pocket and so their position is understandable but unacceptable. We believe that there are many areas that solar, wind and other forms of energy, they are relevant and therefore they should be utilized.”

Jagdeo in announcing the changes of the Amaila Falls deal with the Chinese noted that under an EPC contract, it would mean that the government would have to secure the finances for the project and that they would be used as the EPC contractor.

As such, Jagdeo disclosed that in light of the developments, government may very well have to retender the project.

“We have been in discussion with the company since November last year, the discussions, the negotiations are very difficult,” according to Jagdeo, who indicated that “in the negotiations, we are still trying to get them to meet the commitment that they bid.”

He told members of the media “…in the last six months or so we have been struggling to reach agreement and so we are now going to have to give a deadline to cancel; if they can’t proceed as the original model so we may have a set back there on that.”

Asked to provide further clarity on the contractor’s position during the ongoing negotiations, Jagdeo divulged that it was not a case of the Chinese not being in favour of a BOOT arrangement but rather “they simply can’t raise the financing, because of that.”

Under the BOOT, arrangement, he said, it “meant they had to build it, own it and supply us with power at a particular price and then 20 years after transfer it to the government for free, because that is what they bid on.”

In such an arrangement, Jagdeo said, “…we would not have any debt, there would be no debt associated so that model they are saying they can’t pursue.”

It should be noted that under the most recent iteration of the project as presented, Guyana was to stand the majority of the major risks involved in the project.

These include those related to political force majeure, payments risks in the event that electricity sold is not sufficient to meet the Power Purchase Agreement demands, and hydrology where Guyana stands the risk associated with the likelihood of there being insufficient water supply, meaning if the Amaila Falls runs dry, among other risks.

Senior Minister in the Office of the President, with responsibility for Finance, Dr. Ashni Singh in January last had announced that the Chinese contractor, who was granted approval to construct the Amaila Falls Hydropower Project, would commence operations on the mega venture this year.

The Finance Minister had explained, “The project will be developed under a build-own operate-transfer (BOOT) arrangement within which the Guyana Power and Light Incorporated (GPL) will purchase power from the operator under a Power Purchase Agreement (PPA). We anticipate that construction will begin in 2022 and be completed by 2027. Once operationalised, the facility will reduce the cost of energy significantly for both businesses and households.”

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Amaila hydro a ‘kick-back’ project for the PPP cronies – Opposition Leader

Jun 08, 2022 News -- Source -- Kaieteur News Online -- https://www.kaieteurnewsonline...s-opposition-leader/

Kaieteur News – Citing the cheaper options currently available for electricity generation, Leader of the Opposition, Mr. Aubrey Norton is of the firm belief that the 165 Megawatts Amaila Falls Hydropower project will serve solely as an avenue for the People’s Progressive Party (PPP) to benefit.

Norton gave this view yesterday in response to a question posed by Kaieteur News during the People’s National Congress Reform (PNC/R) weekly press conference.

Leader of the Opposition, Aubrey Norton addressing members of the media during his weekly press conference.

Amaila Falls Hydropower project will serve the needs for Guyana and not for any political organization.

Demerara_Guy

Letter: The Amaila Falls Hydro Project is vital to Guyana’s development

https://i0.wp.com/www.inewsguyana.com/wp-content/uploads/2021/07/Amalia1.jpg?fit=500%2C318&ssl=1

An artist’s impression of the Amaila Falls Hydropower Project dam

Dear Editor,

This is good news indeed. It is that “Head of State, President Irfaan, Ali last week, declared that despite the hiccups, Government was not going to abandon the project (that is the Amaila Falls Hydro Project-AFHP).” The timely pronouncement came as he was speaking during a critical briefing held at State House. According to the President, the project is currently undergoing a process (and rightly so) but he was most firm, detailing that “… we are not going to abandon this project, if we have to go out again and again, we will”. And why not?

First, I care little for the logistics and minutiae of the Amaila Falls Hydro Project (AFHP), since for me, what is vital is that Guyana simply move ahead and realise this long-overdue ambition. It is most necessary from a financial aspect, and of course, in terms of being the climate and environmentally wise, it is the way to go. I back up to December 2016, as many of us seem to forget too conveniently. Back then, the independent assessment of the Amaila Falls Hydropower Project (AFHP) did reveal that the only realistic path for Guyana moving towards an emission-free electricity sector is by developing its hydropower potential and the fastest way forward is to maintain the AFHP.

The report, compiled by Norconsult, an engineering and design consultancy firm out of Norway, and which was contracted by the Government of Norway, detailed an “objective and facts-based” assessment of the project on the agreement of the two Governments and made some telling statements.

Essentially, the go-ahead is unambiguous, and that was way back in 2016. Part of the statement says that “It is our opinion that BOOT (Build, Own, Operate, Transfer) type public-private partnership model should be maintained for the project implementation. An internationally well-merited investor and operator in the hydropower industry should be invited to take the majority position and the driving seat (main sponsor) in the project company. So, irrespective of the means of accomplishing the AFHP, the bottom line is that Guyana must not stall for too long.

Secondly, when it is all said and done, Guyana will be supplied with electricity “at a cost not exceeding US$0.07737 per kWh, as against what currently obtains, which is also largely fossil fuel-based, at $0.32 per kWh. This must not go on. We also know that power is not stable in many areas, and the current high cost of electricity continues to affect operating performance for businesses and is a major challenge to the productive sector, as profitability is severely compromised.

My hope is that the opposition and sceptics will be unbiased and quit playing politics. The well-being of all Guyanese is far too important and our leaders must be candid when it comes to the overall betterment of the country.

Yes, Guyana has oil, and even this emerging oil and gas sector is being lambasted. I remind all that renewable energy is growing rapidly around the world, but fossil fuels still make up a majority of the world’s energy use. So, Guyana has to be very prudent. In 2017, 81 per cent of the energy the world consumed as oil, coal, and natural gas.

According to the Global Material Flow Database developed by the UN Environment Programme, three countries use more fossil fuels than the rest of the world combined: China, the United States and India. Together, these countries consume 54 per cent of the world’s fossil fuels by weight. So, the capacity for renewable energy is enormous, and I repeat, that Guyana must think ahead.

In closing, even if Guyana has to shift from the BOOT contract to an EPC (Engineering, Procurement, and Construction) one, it devolves to the Government’s lead in having to secure the finances for the project, then so be it. It is the end result that matters, both locally and globally. Vice President Bharrat Jagdeo summed it up succinctly, stating the preference and that “… if we can’t get it done under the BOOT, we will have to retender…” as “it was not a case of the Chinese not being in favour of a BOOT arrangement…” but rather it is that “they simply can’t raise the financing, because of that”.

Yours truly,
H Singh

Demerara_Guy

Amaila hydro a ‘kick-back’ project for the PPP cronies – Opposition Leader

Jun 08, 2022 News -- Source -- Kaieteur News Online -- https://www.kaieteurnewsonline...s-opposition-leader/

Kaieteur News – Citing the cheaper options currently available for electricity generation, Leader of the Opposition, Mr. Aubrey Norton is of the firm belief that the 165 Megawatts Amaila Falls Hydropower project will serve solely as an avenue for the People’s Progressive Party (PPP) to benefit.

Norton gave this view yesterday in response to a question posed by Kaieteur News during the People’s National Congress Reform (PNC/R) weekly press conference.

The Leader explained that the former A Partnership for National Unity + Alliance For Change (APNU+AFC) government had discontinued the project on the grounds that it was not well conceived and could therefore be no use to the people of Guyana.

Leader of the Opposition, Aubrey Norton addressing members of the media during his weekly press conference.

Only last week, Vice President Bharrat Jagdeo told members of the press that the Chinese Contractor – China Railway First Group – had been unable to secure the finances. According to the Vice President, the contractor had as late as April 22, last, written to the government “saying that they are having a hard time doing the BOOT (Build, Own, Operate Transfer) contract and they want to shift to an EPC (Engineer, Procure, Construct) plus finance” option instead.

According to Norton, however, while the details of the arrangement remain sketchy at the moment, the Coalition believes that the entire project remains “misconceived, ill conceived” and a complete “waste of taxpayers’ money.”

Norton was keen to note that the APNU+AFC while in government understood the importance of solar power generation, and still believe that this method of electricity generation should be utilised, as this option remains most feasible.

“The APNU+AFC while in government, and until now, and I think well articulated by the then Minister David Patterson, believes that there should be an approach that allows us to use all options including solar based on the specifics of the area. For instance, in some areas wind might be a good option because of the level of wind. Some areas solar is a good option or generally in all areas and so we do believe solar has potential, it is cheaper and it should be utilised,” the Leader of the Opposition urged.

On the other hand, he told this publication that the present administration is not concerned about a viable option to generate electricity, but rather an avenue to siphon off funds for its cronies.

He argued, “You have a government that is interested in getting its cronies rich off of oil and gas and will not look at the options and arrive at the best for Guyana. What they do is choose that which will put more monies in their cronies pocket and so their position is understandable but unacceptable. We believe that there are many areas that solar, wind and other forms of energy, they are relevant and therefore they should be utilized.”

Jagdeo in announcing the changes of the Amaila Falls deal with the Chinese noted that under an EPC contract, it would mean that the government would have to secure the finances for the project and that they would be used as the EPC contractor.

As such, Jagdeo disclosed that in light of the developments, government may very well have to retender the project.

“We have been in discussion with the company since November last year, the discussions, the negotiations are very difficult,” according to Jagdeo, who indicated that “in the negotiations, we are still trying to get them to meet the commitment that they bid.”

He told members of the media “…in the last six months or so we have been struggling to reach agreement and so we are now going to have to give a deadline to cancel; if they can’t proceed as the original model so we may have a set back there on that.”

Asked to provide further clarity on the contractor’s position during the ongoing negotiations, Jagdeo divulged that it was not a case of the Chinese not being in favour of a BOOT arrangement but rather “they simply can’t raise the financing, because of that.”

Under the BOOT, arrangement, he said, it “meant they had to build it, own it and supply us with power at a particular price and then 20 years after transfer it to the government for free, because that is what they bid on.”

In such an arrangement, Jagdeo said, “…we would not have any debt, there would be no debt associated so that model they are saying they can’t pursue.”

It should be noted that under the most recent iteration of the project as presented, Guyana was to stand the majority of the major risks involved in the project.

These include those related to political force majeure, payments risks in the event that electricity sold is not sufficient to meet the Power Purchase Agreement demands, and hydrology where Guyana stands the risk associated with the likelihood of there being insufficient water supply, meaning if the Amaila Falls runs dry, among other risks.

Senior Minister in the Office of the President, with responsibility for Finance, Dr. Ashni Singh in January last had announced that the Chinese contractor, who was granted approval to construct the Amaila Falls Hydropower Project, would commence operations on the mega venture this year.

The Finance Minister had explained, “The project will be developed under a build-own operate-transfer (BOOT) arrangement within which the Guyana Power and Light Incorporated (GPL) will purchase power from the operator under a Power Purchase Agreement (PPA). We anticipate that construction will begin in 2022 and be completed by 2027. Once operationalised, the facility will reduce the cost of energy significantly for both businesses and households.”

Bring in vice to interview the players.

Mitwah
@cain posted:

Since when the Chinese cannot raise cash for a project?

Since they got...busted by Vice.

A lot of PPP cronies will be disappointed if/when this project is placed in the dust bin. Why are they not looking at cheaper alternatives like Solar and /or Wind Turbines?

Mitwah

Talks with China Railway over Amaila Hydro have been terminated

-Jagdeo says emphasis now on gas to shore project

July 12, 2022

Source

After months of negotiations, discussions for the  Amaila Falls Hydropower Project (AFHP) between the government and China Railway First Group Limited (CRFGL) have ended in deadlock.

The parties, according to Vice President Bharrat Jagdeo, could not arrive at a mutually agreeable financing model.

Jagdeo told Stabroek News yesterday that government had no other choice but to terminate the months-long negotiations as CRGL was unable to put up the financing for the controversy-ridden project.

“It’s ended. We have to go back to the drawing board and possibly re-tender at some point in time in the future… right now we are still deciding whether we will go out to tender and in what form, but most likely it will be BOOT (Build, Own, Operate and Transfer) again…” Jagdeo said while responding to questions on the sidelines of the opening of the National Toshaos Conference at the Arthur Chung Conference Centre.

Jagdeo also said that there is no commitment at this point in time to re-tender for the project as the government is now focused on getting the Gas to Shore Energy project off the ground.  Nonetheless, he stated that government will continue to work to have the hydropower project actualized as part of its energy generation. The country’s energy mix included AFHP along with solar farms and the gas to energy project to aid government’s goal of achieving the cutting of carbon emissions by 70% by 2030. “We hope to get it and it is still on the cards but currently not moving,” he said of the project.

In May, Jagdeo had disclosed that CRFGL had advised they were “having a hard time doing the BOOT Contract and they want to shift to an EPC (Engineering, Procurement and Construction) plus financing, where the government finances the project and they will be the contractors.” The suggested model of financing by CRFGL was not in compliance with the terms under which the company bid for the project. Jagdeo had said “they simply can’t raise financing,” when asked about the challenges in the negotiations. The project would have cost roughly US$1B. Since last November government has been in negotiations on the project, which has been on and off its agenda for over 15 years.

“The last six months we have been struggling to reach an agreement. We will have to give a deadline and cancel if they can’t proceed with the original model…The tender was about Build, Own, Operate, Transfer, not a EPC Plus finance model…so we may have a setback on that,” Jagdeo said in May during a Press Conference.

Jagdeo responded in the negative when asked if there are considerations to engage the second most competitive bidder, stating that that bidder proposed a higher retail selling figure per kilowatt per hour – US 9.9 cents. CRFGL, in their bid, proposed to sell electricity to the government at US$0.07737 per kWh. With the gas to energy project set to come on stream some years from now, Jagdeo said it would not be feasible to lock in an agreement to purchase electricity higher than US 6 to 7 cents per kilowatt hour. He stated that when the project was initially conceptualised and undertaken by Sithe Global, a subsidiary of Blackstone, government was prepared then to purchase electricity at US 10 cents per kilowatt per hour since Guyana was generating electricity at twice that cost.

At the May press conference, Jagdeo, when questioned on whether government is prepared to engage in an EPC financing model should they return to tender, said there has been no consideration regarding the utility of that model and extensive discussions will have to be undertaken before a commitment can be made. The contention then was that the BOOT model chosen for the construction of the AFHP was well thought out since government did not want to incur any debt. Under the BOOT arrangement, CRGL would have operated the project for twenty years before transferring it to government. CRGL was awarded the contract on Cabinet’s no-objection after being deemed the “most capable partner” for the project. A release from the Ministry of Finance had said that the Chinese company will provide the entire equity required and undertake all the risks associated with the project without Guyana investing any finances.

Jagdeo last November had said “Amaila still remains the best option for meeting baseload renewable energy for Guyana. That is the only way you can decarbonise, so the only way to achieve renewable energy is through the construction of the hydropower,” while making reference to a Norway study done after the former David Granger-led administration took office. He explained that despite the delays and shelving of the project by the APNU+AFC coalition-led government in 2015, Guyana stood to benefit from a better deal. According to Jagdeo, in the initial deal, electricity would have been purchased at US 10 cents per kWh, but under the new deal GPL will be purchasing electricity at US 7 cents per kWh or lower. The hydro project, previously pegged at US$858.1 million, was the pre-2015 PPP/C government flagship project. However, then opposition A Partnership for National Unity (APNU) and the Alliance For Change (AFC) used their joint one-seat majority to effectively halt the project. Once in government in 2015, the APNU+AFC coalition scrapped the project, citing costs and other concerns, while signaling that it was focusing on an energy mix with natural gas as a prime component.

CRFGL has recently been caught up in the controversy swirling around VICE News broadcasts about the activities of Chinese businesses here.

In a statement on Sunday, it said  that it abides by the laws of Guyana and it expressed  “strong indignation” at claims made in the recent broadcast by VICE News.

On Thursday, US-based VICE News relayed an extended version of its video report on ‘Guyana For Sale’ which examined the operations of Chinese businesses in the country and challenged Vice President Jagdeo on government corruption. Jagdeo has vehemently denied the insinuations against him and has said that he intends to sue the middleman, Su Zhirong who made the claims in the programme.

In the Thursday segment, VICE News reporter Isobel Yeung recorded a number of Chinese businessmen operating in Guyana admitting to laundering money and paying bribes to the government in order to gain priority access to lucrative contracts as well as to be able to further their investments here. A report on this segment was carried in Friday’s edition of Stabroek News.

On Sunday, the statement by China Railway traced its presence here since 2008 – when it made a bid for the Amaila Falls Hydropower Project – and accused VICE News of spreading untruthful information. It also distanced itself from Su.

“CRFG hereby solemnly states that CRFG has never signed any agreement with Su Zhirong, nor has it conduct(ed) any actions that were shown in the foot-age”, the statement said.

Django

Govt to “go back to the drawing board” on Amaila Falls project – Jagdeo

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Vice President Dr Bharrat Jagdeo

The Guyana Government has decided to retender the contract for the Amaila Falls Hydropower Project (AFHP) as the current agreement with China Railway First Group Limited (CRFG), has come to an end.

This is according to Vice President Dr Bharrat Jagdeo who spoke with reporters on the sidelines of an event at the Arthur Chung Conference Centre today.

The Vice President explained that government is looking to significantly cut carbon emissions locally by 2030 and the AFHP would have been a critical project in achieving this target.

“Amaila was part of the energy mix to allow us to cut our emissions by 70 per cent and still triple in capacity. So we’re moving forward in the solar component, the gas component, we had the setback on Amaila, we’d expected it to go through but we’ll have to go out back [to tender],” Jagdeo said.

He added, “70 per cent by 2030 because we hope to get it in by 2030 so we still can achieve. It’s still on the card, but currently the project is not moving forward.”

In May of this year, Jagdeo had disclosed that the AFHP is at risk of being delayed and possibly retendered, as CRFG had difficulties in meeting the contract obligations and wants the financing model changed.

CRFG had indicated to the government that it is unable to execute the project in keeping with the Build-Own-Operate-Transfer (BOOT) model and instead wanted to enter into an Engineering, Procurement and Construction (EPC) contract with the government for the project’s development.

Today, Jagdeo explained that the agreement with CRFG has ended and that the government is yet to decide when the project will be retendered and what model will be used in the new contract.

“That’s ended because, as I said a couple months ago, they want to change the model and we can’t change the model.”

“So, we have to go back to the drawing board and then possibly retender at some point in time in the future. So, right now we’re still deciding whether we’ll go out to tender and in what forms but most likely it will be BOOT again…we’re going to try for another BOOT arrangement,” he added.

Nevertheless, he indicated that the government will direct its focus now on the gas-to-energy project.

“We’ve been busy trying to move forward the gas-to-energy project as you could see…the President made some announcements recently so now that we have gone out to tender, we’re expecting bids to come in by September and also by the end of August to get bids in for a project management crew that will oversee that project.”

President Dr Irfaan Ali had recently made it clear that the government will continue to pursue the Amaila Falls Hydropower Project (AFHP), even if it means it has to keep retendering “again and again”.

“Let me be very clear: we are not going to abandon this project,” the Guyanese Head of State told a gathering of Private Sector officials and diplomats during an event at State House. “If we have to go out again and again, we are going to, because we know the studies and everything, including the independent review by Norway, has point to this project as being good for Guyana, being good for the environment, and bringing greater prosperity,” he reasoned. “So, this project will get underway,” President Ali had affirmed.

The revival of the 165-megawatt AFHP was one of the promises made by the People’s Progressive Party/Civic in its manifesto. The project was initiated under the previous PPP/C Administration, but was scrapped by the Coalition Administration which had controlled the National Assembly by a one-seat Opposition majority.

AFHP is expected to deliver a steady source of clean, renewable energy that is affordable and reliable, and is envisioned to meet approximately 90 per cent of Guyana’s domestic energy needs, while removing dependency on fossil fuels.

It is expected that the AFHP will be based on a BOOT model, wherein the company would supply electricity to the Guyana Power and Light (GPL) Inc. at a cost not exceeding US$0.07737 per kWh, and wherein the company would provide the entire equity required by the project and undertake all the risks associated with the project.

The AFHP was first identified in 1976 by the Canadian company Monenco during an extensive survey of hydroelectric power potential in Guyana. Various studies have since justified and strongly supported the construction of the AFHP.

One such study is an independent assessment conducted by Norconsult, a Norwegian engineering and design consultancy firm that was contracted by the Government of Norway. That report had concluded that the only realistic path for Guyana moving towards an emission-free electricity sector is by developing its hydropower potential, and the fastest way forward is through the AFHP.

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Canada engaged in talks on potential Amaila Falls partnership

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An artist’s impression of the Amaila Falls Hydropower Project dam

The Canadian Commercial Corporation (CCC) has held discussions with the Guyana Government on the Amaila Falls Hydropower Project (AFHP).

This was disclosed by Canadian High Commissioner to Guyana Mark Berman during a recent interview.

Canada is well-known for its hydropower infrastructure. In fact, the clean and renewable energy supplied by hydropower accounts for over 60 per cent of all the electricity generated in Canada. This is an area in which Berman said Canada could provide assistance to Guyana.

“The most obvious projects are the large infrastructure projects of which there are many in Guyana. And that’s one of the things the oil and gas sector will allow the Government to strengthen, the infrastructure in the country. Bridges, roads, hospitals and energy infrastructure.”

“So, we’ve had discussions about potentially, for instance the Amaila (Falls) Hydropower project, which Canada has significant experience. Canadian companies may be interested in some bridge projects,” he said.

The revival of the 165-megawatt AFHP was one of the promises made by the People’s Progressive Party/Civic in its manifesto. The project was initiated under the previous People’s Progressive Party/Civic (PPP/C) Administration, but was scrapped by the coalition Administration which had controlled the National Assembly by a one-seat Opposition majority.

AFHP is expected to deliver a steady source of clean, renewable energy that is affordable and reliable, and is envisioned to meet approximately 90 per cent of Guyana’s domestic energy needs, while removing dependency on fossil fuels.

It is expected that the AFHP will be based on a BOOT model, wherein the company would supply electricity to the Guyana Power and Light (GPL) Inc at a cost not exceeding US$0.07737 per kWh, and wherein the company would provide the entire equity required by the project and undertake all the risks associated with the project.

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Wind, solar projects cheaper than hydro – new UN report

Oct 28, 2022 News --- Source --- https://www.kaieteurnewsonline...hydro-new-un-report/

By Renay Sambach

Kaieteur News – At a time when Guyana is pursuing the US$700 million Amaila Falls Hydroelectric Project (AFHP) – a October 2022 United Nations (UN) report revealed that not only are wind and solar options cheaper but also pointed out that there will be a decrease in the hydro projects in the coming years.

An artist’s impression of the original iteration of the Amaila Falls Hydro Project.

On Tuesday, the United Nations Environment Programme (UNEP) launched its report titled, ‘Is natural gas a good investment for Latin America and the Caribbean?’ The UNEP’s report assessed the implications in Green House Gas (GHG) emissions, costs and job creation of the different power sector options (natural gas and renewable energy). With the Region having some of the world’s best conditions in term of solar radiation and wind power, the report pointed out that wind and solar technologies are winning the year-by-year race to be the cheapest sources of new electricity generation. As such, the UNEP report pointed out that wind and solar make the renewable pathway a no-regret option.

However, the report showed that some renewable energy options are way more cost-effective than others. It showed that if countries in the Region pursue wind and solar powered projects over hydro-powered projects a lot of money can be saved as it relates to construction costs.

President Irfaan Ali

To this end it was stated that wind and solar projects adapt more quickly to demand changes and also that the electricity production percentage from hydropower plants will decrease over-time. In fact, it was reported that the share of electricity production from hydro-powered projects will decrease from 45 per cent in 2019 to 41 per cent by the mid-century.

Further, it stated that new developments are primarily based on wind and solar-powered plants, along with geothermal plants in countries with reported potential, and small-scale hydro power plants (mainly run-of-river units).

Another factor the report pointed out, is the transmission cost for hydro, wind and solar projects. The transmission cost means the amount spent in excess of the fixed costs of operation for the electricity to be taken from the power-plant to cities and other areas. Notably, it was highlighted that not all transmission costs apply equally for a given power plant in the model. A table showed that distributed solar projects does not have any transmission costs whereas wind and hydro projects have a 100 per cent transmission cost per plant.

Vice President Bharrat Jagdeo

A reference that can be made based on what the UNEP’s report pointed out is between Guyana’s proposed US$700 million hydroelectric project, and Barbados US$100 million solar project. Earlier this year, the Government of Barbados signed a deal that will see the country realising some 178 MW of electricity using hydrogen and solar energy at a cost of some US$100 million. Notably, Barbados is now leading the Caribbean region with the announcement that it will be building the largest clean hybrid power plant in the Caribbean, producing base load power for 16,000 Barbadian households from solar and locally produced green hydrogen.

On the other hand, Guyana’s US$700 million hydroelectric plant will supply some 165MW to the national grid.

The Amaila falls project was introduced several years ago by the then Bharrat Jagdeo-led PPP administration but was shelved. Back then it carried a higher price tag.  When the PPP administration came back into office the project came back on stream. The contract was awarded to a Chinese contractor but it was disclosed in July 2022, that the company was having a hard time raising the money for the project.

Despite this, Guyana’s President, Irfaan Ali later declared that despite the hiccups Government was not going to abandon the project. For his part, Jagdeo, who is now Vice President was reported in the media saying that solar is simply too expensive for Guyana. It was during a June 2022 Press Conference when Jagdeo, who was one of six persons back in 2010 to receive the United Nations Environment Programme (UNEP) Champion of the Earth, claimed that the generation of power in Guyana through renewable options such as solar, wind and even hydro is “very, very expensive” but the administration is still adamant to go ahead with the Amaila hydro falls project.

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Canadian firms want to help Guyana deliver major hydropower project

By OilNOW 0 --- Source --- OilNOW

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Canadian High Commissioner to Guyana, Mark Berman

Canadian High Commissioner to Guyana, Mark Berman, has confirmed that companies from his homeland are interested in sharing their expertise for Guyana to realise its landmark Amaila Falls Hydropower Project (AFHP).

Berman said these interests have been channelled through the Canadian Commercial Corporation (CCC) which has held discussions with the Guyana government on the project following the signing of a Memorandum of Understanding (MoU) in April 2022.

Founded in 1946, CCC is a Canadian federal Crown corporation mandated to facilitate international trade on behalf of Canadian industry, particularly with governments of foreign countries.

Guyana says its energy use can increase fivefold by 2030 while emissions stay at 2018 levels | OilNOW

The possibility of a Canadian partnership on the project is already seen as an ideal fit since Canada is the fourth-largest hydroelectricity generator in the world. It possesses a formidable suite of more than 500 clean energy assets. Water power also accounts for over 60% of the total electricity generated in Canada, making it the largest source of electricity in the country.

Speaking with members of the media on Monday, Berman said, “Canada is looking at a number of infrastructure projects. As you know, one of them is Amaila Falls…There are a number of companies that have significant experience working in this field. So, what we can do is advise them and the companies will need to make a decision, but there is interest.”

Berman was keen to note that the April-signed MoU with CCC is going to be critical in helping to advance several interests, adding that it is a benefit for Guyana since it offers a government-to-government guarantee. “It is an ongoing process but let’s see what happens in the next few weeks. No matter what, the Guyana government would be involved every step of the way,” the High Commissioner stated.

Guyana evaluating sites for second hydropower project | OilNOW

Guyana’s Vice President Dr. Bharrat Jagdeo had said back in June that government will “definitely have to revise timelines” for the delivery of its major hydropower project at the remote Amaila Falls. After six months of negotiations with the contractor, China Railway Group Limited (CRGL), he had said no consensus could be reached on the financial model for the project.

Guyana may retender for the project since the company informed the government that it has been unable to source financing under the initially agreed-to Build-Own-Operate-Transfer (BOOT) model. Dr. Jagdeo said the company had instead proposed the Engineering, Procurement and Construction (EPC) model, where government is the sole financier. The Vice President indicated that this is not an option.

In 2020, Guyana Prime Minister, retired Brigadier Mark Phillips had placed the cost of the 165 Megawatts (MW) project at US$840 million. Inflation could push the cost higher.

Demerara_Guy

US$12.8M to put down 1-1/2 Megawatt hydro in Region 9, upgrade Moco Moco plant

Dec 06, 2022 News --- Source --- https://www.kaieteurnewsonline...ade-moco-moco-plant/

Kaieteur News – The Government of Guyana has entered into an agreement with a Sri Lankan firm, Vidullanka PLC to build a new 1.5 megawatt (MW) hydropower project at Kumu, Region Nine.

The contract was signed on November 22 last to the tune of US$12.85 million between the Guyana Energy Agency (GEA) and Vidullanka PLC.  This newspaper understands that the EPC project is being funded by Guyana through financing from the Islamic Development Bank (IsDB).

As part of its scope of works, the Sri Lankan firm will also rehabilitate and upgrade the defunct Moco Moco hydropower plant to some 0.7MW capacity. The main objectives of the project are to support the Government’s drive for a low-carbon, climate-resilient economy by providing affordable, stable and reliable electricity using Indigenous energy sources, reducing fossil fuel consumption and CO2 emissions.

The key results of the project are to increase access to electricity to the population in Lethem and the nearby villages of Kumu, Moco Moco, St Ignatius and Quarrie, the Office of the Prime Minister said.

Government is building a new 1.5 megawatt (MW) hydropower project at Kumu, Region Nine

The hydro projects will be executed by the GEA. It was explained that a Project Management Unit (PMU) comprising key technical and administrative staff assisted by other senior staff from the GEA will oversee the execution of the project. Bids for the projects were retendered on February 28 of this year with the issuance of the Specific Procurement Notice (SPN). The closing date for the submission of bids was April 28, 2022. Three bids were received and following a review, negotiation, no objection and approval process, the EPC contract was awarded to Vidullanka PLC of Sri Lanka.

A team from Vidullanka PLC is expected in Guyana by December 15, 2022, to commence preliminary works at the Kumu and Moco sites. The expected completion date for the project is December 2024.

Public consultations with key stakeholders, including the RDC, Town Council, LMPC and Village Councils and residents of Moco Moco, Kumu, Quarrie and St. Ignatius, were held to provide updates on the status of the project, address all concerns/issues and to seek their views and advice. The most recent consultations were reportedly held on February 22-25, 2020 and February 28, 2021. A follow-up consultation is scheduled for this month.

Prime Minister, Brigadier (Ret’d), the Honourable Mark Phillips, who has responsibility for the energy sector and who has been working to enhance the electrical capacity of the region, had visited the Lethem Power Company and the Moco Moco hydropower sites in late October.

According to its website, Vidullanka PLC has over two decades of experience in the renewable energy power generation sector in Sri Lanka. It has completed about 14 projects with a total capacity of 36 MW. The company also completed renewable projects in Uganda.  The People’s Progressive Party/Civic (PPP/C) Government has committed to transitioning towards a greener economy utilising renewable energy such as solar and hydropower, and to move away from the use of fossil fuels such as hydrocarbon powered electricity generation plants.

In pursuing this agenda, however, the government has resorted to borrowing hundreds of millions of dollars from a number of bilateral partners and international financial institutions to fund a number of small hydropower projects in some hinterland areas. This is in addition to a number of other small projects such as small wind and solar farms to be constructed as part of the administration’s Energy Diversification Matrix. Oil revenues however, 100 percent of which is being put towards budgetary support for the 2022 biggest budget ever – $552.9B – will be going towards the construction of a 300 megawatt hydrocarbon fired gas plant at Wales, West Bank Demerara.

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A visit to Sky Valley Waterfalls at Moco Moco

The Sky Valley Waterfalls

By: Andrew Carmichael

Waterfalls are always intriguing and mesmerising, especially when they are accessible. One such beauty is the Sky Valley Waterfalls, located in the Rupununi Savannahs at Moco Moco, Region Nine (Upper Takutu-Upper Essequibo).

Just one hour’s drive from the township of Lethem, the water can be heard pounding on the rocks.

The waterfall brings its own music and lacy white to the travelling stream. However, this music of the natural world is soft enough for one to enjoy. This waterfall is just one aspect of the attraction when visiting the area.

There are 999 stairways to the top of the mountain but before you reach the top, the Moco Moco Hydro project sits below.

The hydro station was hit by a mudslide in July 2003 which forced work on the project to discontinue. Efforts were being made to resuscitate to facility but a fire a few years later destroyed the power plant.

The building still stands and it is a part of Sky Valley tours which takes you 999 stairs up; if you can make it.

After climbing to the top of the mountain which does not have a known name, visitors can spend the night. It would take six hours to get to the top of the mountain from the base.

However, whilst there, the beauty of the Rupununi Savannah is witnessed in abundance along with an overhead view of some parts of the Pakaraima Mountain range.

The waterfall at Sky Valley Creek gives you a sense of tranquillity and peace with the magnificent roar of the water splashing. The mountain contains several aquifers (bodies of porous rock or sediment saturated with groundwater) where villagers of Moco Moco go to fish. There is enough fish in the mountains for the village of about 1500 people.

Visits to Sky Valley Waterfalls and experiencing the Sleeping Giant tour also bring additional benefits to the community in that proceeds garnered from tourists help to purchase fuel for the bus which takes about 100 children to school.

Moco Moco Village is an indigenous community at the foothills of the Kanuku Mountain range in the Rupununi Savannahs and provides excellent relaxation and tranquility for visitors.

The village is known for the beautiful and refreshing Moco Moco Falls, the dangerous 100-steps hydro dam, the famous black rock, its lagoons and beautiful scenery.

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Intense bilateral talks ongoing to resuscitate Amaila Falls project – Pres. Ali

By OilNOW 0 --- Source --- OilNOW

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The Amaila Falls, Region 8 is the intended site for Guyana's first largescale renewable energy project.

Months after a contract for the construction of the Amaila Falls Hydropower Project (AFHP) collapsed, the government is working on reopening tenders. This is according to President Dr. Mohamed Irfaan Ali.

“We’re doing assessments now. We have quite a lot of interests and proposals from different bilateral partners. When I was in the US, I had a meeting with the Energy Secretary and her entire staff, and I mentioned this project and [its] importance…”

Firms from Canada, Ali reminded, known for its own hydropower infrastructure, have also expressed interest in the project.

The President said the government must make a structured decision as to how it moves forward on the project. Both President Ali and Vice President Dr. Bharrat Jagdeo, on Tuesday, gave assurances that government has not given up on the project. They made the comments at the signing ceremony for the award of contract to CH4 and Lindsayca for the Gas-to-Energy plants. The government expects the project to accelerate its energy transition master plan.

Construction on the 165-megawatt AFHP, which has been in the pipeline for some time under successive governments, was expected to begin this year.

The government had prepared a Build Own Operate and Transfer (BOOT) contract, in which the winning company would agree to supply electricity to the grid at no more than US$0.07737 per kWh under a Power Purchase Agreement (PPA).

Guyana’s major hydropower project delayed, but Gas-to-Energy still on track | OilNOW

However, China Railway First Group (CRFG), having emerged as winner of the contract, pulled out earlier this year over its refusal to conform to the BOOT model. AFHP is the largest renewable energy project to be undertaken in Guyana.

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