His comments follow the announcement by Minister of Finance, Winston Jordan that the APNU+AFC government will not proceed with the project since the Inter-American Development Bank (IDB) advised that it is too risky to do so.

But Jagdeo said this new position by the IDB was never made known to the former PPP government.

“The last time I know… in June a mandate letter was signed between the IDB and the developer.”

Amaila hydro cost “a downright criminal act of deception”

– Finance Minister says final tab at US$2.6B

Guyana’s plan to build the 165-megawatts hydropower facility at the Amaila Falls in the manner that was pushed by the previous administration was not only irresponsible but would have been “a downright criminal act of deception”. Presenting his first National Budget yesterday in the National Assembly, Finance Minister Winston Jordan disclosed that currently configured, the project which has been suspended would have cost of almost US$1B, making it easily the most expensive project ever for the country. Based on figures, it was found that the Guyana Power and Light Inc (GPL) would have been required to make annual payments amounting to US$130M to the operators of the hydro facility, costing the country a whopping total of US$2.6B over the 20-year commitment period of the power purchase agreement. “Mr. Speaker, this does not include Guyana’s contribution of at least US$160M (US$45M for the road, US$80M equity through Norway, and US$35M loans from IDB (Inter-American Development Bank); and the garnishing of US$65M of our foreign reserves.” The project, the brainchild of the Bharrat Jagdeo administration, was shelved in the last Parliament after the Opposition which had the majority raised questions over the costs and other issues. They voted a key piece of environmental legislation that was required by IDB, one of the financiers, effectively stalling the project. According to the Finance Minister, even the IDB considered the project too foolhardy to proceed over the financial structure. “We know now, that as configured currently, the cost of financing is too high, and that unless the price tag can be substantially lowered, we cannot proceed.  In this opinion, we are strongly supported by the experts at the Inter-American Development Bank, who had considered the project to be too risky to attract the Bank’s financing.” The minister insisted that Government is well aware of the importance of clean, reliable and affordable energy for development and the improved welfare of the people. “As such, we are prepared to explore every avenue to reduce the cost of energy – including examining the Amaila Falls Hydroelectric Project.” With regards to the capacity of the state-owned Guyana Power and Light Inc (GPL) to manage the hydro project, the official was convinced that it was delusional to suggest that the company had the competence to handle such a financial burden. “The GPL is known to have a poor operational, financial and technical capability. The company suffers from high energy and technical losses and fuel price volatility. It would require not only massive tariff increases, but guarantees taxpayers, through the treasury, will provide transfers to meet this obligation. It also assumes that businesses would be willing to abandon their lower cost power generation and take the chance that GPL will be able to satisfy their energy demands.  Added to this, is the fact that Guyana would be left with all the contingent risks of the project,” he warned. Jordan said it is a fact that the identification of Amaila Falls, as a potential site for hydropower, dates back some 40 years, and that his Government would welcome the diversification of the country’s energy matrix to include clean, sustainable and affordable sources. “Over the next five years, we will adopt a more integrated approach to providing for our energy needs. We will examine all sources of energy – fossil fuels, wind, solar, bagasse and, of course, hydropower.” He said that the government will commence feasibility studies for a large hydropower development in the Mazaruni region. “This will be done in collaboration with Brazil. We will encourage independent power producers and suppliers to construct energy farms and sell energy to the national grid. We will construct and/or promote the construction of small hydro systems in areas such as Moco Moco, Kato and Tumatumari, and will power all of our new townships, starting with Bartica, using alternative energy sources.”

http://www.kaieteurnewsonline....al-act-of-deception/

Amaila Falls Hydropower too expensive

• Monday, 10 August 2015 16:05
• Written by  Denis Scott Chabrol
• 1 Comment

Denis Scott Chabrol

dchabrol@demerarawaves.com

RE: According to Jagdeo, the Finance Minister is incompetent in his handling of the Amaila Falls Project, which he says disqualifies him from managing Guyana’s economy.

Jagdeo, your entire Government was incompetent in all they touched,this is why your party lost the election...suck it up and move on...loser.

Jagdeo should step into the National Assembly where his idiotic cries can be answered.

Cain, don't you think that we should have a professional study to ascertains which is correct........Amaila or no Amaila, as all we are having is no professional edict to say that Amaila is too expensive

As seen by many of Jagdeo's plans, they were not for the country they were for an elite few, this could also be one of his "plans"

Yes, Guyana needs proper study on this.

Thanks Bai, we are on the same page, an independent proper study.

Neither, I say an independent study is a good way to go.

A study was done here, but who on this board can say what it really means:

and who knows whether it was an independent study:

http://www.privatisation.gov.g...ion-study-report.pdf

We should have an independent review of the project. It cannot be supported in it's current form and cost.

It is too important of a project to be scrapped. This project will be of great benefit to Guyana.

APNU should have an independent review and reconsider this project under their terms and conditions.

While individuals would have divergent views, Amaila Falls Project is suited for development.

The repayment terms alone makes it expensive. The cost of U$1billion is net of interest and upkeep. The true cost based on the know figures such as the repayment comes to close to U$3billion. We cannot get away from the fact with a population of 500,000 that has hardly changed in the last fifty odd years the cost per individual will amount to more than the cost of the electricity most of us are likely to ever use the the whole of our life time.

Thanks for posting this.  It is an old report but it has a lot of details.

Perhaps not!

the amount of studies being done on this projects you still want to waste more tax payers money on consultation  

i think the best way to go is what Brazil is offering to help develop guyana hydro 

Your point is .. ??...talking to yourself?...Issues will become clearer as time onfolds...Actions are becoming clearer...Unfortunately, ( you)will continue to pursue that path...  babbling nonsense, incessantly
Perhaps perhaps not...Perfect expression as you stare and speak to your reflection in the mirror.
 
 

an oldie but goodie.... (he) prances, cries and outlines his antics!!!!

TK said go Gasahol even in today's environment when the best studies indicated break-even at 80-90 DPB. I actually believe BJ as he was privy to the entire picture.  From what I know, the finance partner pulled out due to political divisions and not feasibility or viability.

Granger is a fool to abandon this project in the face of Venezuela's threat.  This key Western financded infrastructure will be smack in the disputed territory and would have vastly reduced Guyana's dependency on imported oil.

I am convinced, the PNC is clueless, incompetent and inept and will drag Guyana back through the valley of darkness and death.  Anyway, the PPP will be back in 2020 as the people will get a big chill from the PNC.

You do not count. The idea of you being able to qualify offer a considered evaluation of what faces us is just cheap talk.

Amalia as structured is prohibitive. One can achieve similar and far more stable output using wind, solar, mini hydro, and even conventional fossil fuel  plus admixtures of /ethanol/methanol and biomas for far less and without the heavy debt burden to the Chinese.

The fear of the Venezuelans is exaggerated. Their claims are spurious and if they move it means it would highlight similar cases ie the Falklands where first world nations have serious stake. Venezuela is asking for property even the spanish did not claim.

So now you are an expert on hydro electric? Stick with milking the bulls.

Wonderful that you are stating publicly your antics as you stare in the mirror.

Your point is .. ??...talking to yourself?...Issues will become clearer as time onfolds...Actions are becoming clearer...Unfortunately, ( you)will continue to pursue that path...  babbling nonsense, incessantly
Perhaps perhaps not...Perfect expression as you stare and speak to your reflection in the mirror....Wonderful that you are stating publicly your antics as you stare in the mirror.

Mayhaps!

Where is KP?

Quite surprising that a project that initially started out at US$300 Million has skyrocket to US1 Billion with US$40 million already spent for this road;

The US$40M access roads to Amaila Falls have been built, but there is not likely to be any project anytime soon as it is too costly, Government says.

Dat aint no road, dat's a trail...something that washes away with heavy rain.

That looks more like a bad Mohican haircut than a road. It would be destroyed in the rainy season once about 100 trucks go through it.

This is not a road. It's a pathway which will soon be taken over by vegetation.

Don't think that it is washed away as yet, still there it is form as per the picture.

Yes geography and topography matter...remember they said this road would cost US$15 mill. When I saw Fip and Jagdeo announced the sum, I knew they were not estimating the true cost. Throughout Guyana's history there has been spectacular project cost overruns. This goes back over 100 years. They announced Amaila would have been US$960 mill. Imagine if there is an overrun of another 1 bill US$ which is not inconceivable. The thing was fraught with risks but the hucksters could not identify all the scenarios. But this is what you get from basemanesque mentality that says you need to be hustler and huckster to pull off these big ticket items. They better thank dem stars dis Amaila thing is put on hold until the country has the economic base to support something this grand.

Amaila Falls Access Road near completion

…only 28km left to be paved with laterite – Source

Plagued with numerous troubles from its inception, the Amaila Falls Access Road is said to be near completion. This publication has been reliably informed that only 28 km of the 162 km road is left to be paved with laterite.

A completed section of the Amaila Falls Access Road

Section seven which was taken from the local contractors and handed to China Railway First Group (Guyana) Inc, the company that has been slated to build the 840MW Hydro Electric Plant, is complete. According to reports, section three of the road which was contracted to Toolsie Persaud, has a remaining 17 km of roadway left to pave with laterite, while the section contracted out to Ivor Allen Construction Company has an additional 11 km. A decision however is yet to be made as it relates to whether the Kuribrong crossing will be bridged using a fixed bridge or pontoon crossing. At present a pontoon crossing is being utilized. Works completed so far total in excess of US$26M – a far cry from the US$15.4M in the original contract to complete the entire road which was handed to Makeshwar ‘Fip’ Motilall’s Synergy Holdings Inc. More than US$30M in contracts has been handed out over the years, with several contractors failing to make the cut. Earlier this year work on the road had ground to a halt due to bad weather conditions and observers at the time had noted that in future when Government and contractors ink contracts for roads in the interior, they must take into account the documented patterns of rain, given that they are expected to undertake works in a “rainforest.” The road project was being undertaken in a number of segments, with the Ministry of Public Works assuming responsibility for ‘Section Two.’ That section runs along the Mabura Road to the Essequibo River and has a contract price of $336,094,861. Section Three was allocated to Toolsie Persaud Quarries Inc. for $373.3M. That section of the Amaila Falls road stretches from Butukari to the Kaburi Village bypass. The same company has also been awarded a contract for Section Four of the road for $246M. Section Four runs from the Kaburi/Omai junction to the Issano bypass. Ivor Allen was awarded the $182.3M contract for Section Five of the road that runs from the Issano junction to Craig Road. Section Six of the road was awarded to G. Bovell Construction Services for $281.7M, but that contract had to be terminated. It was subsequently granted in two lots, with the first from Issano Junction to Sorrow Hill being allocated to Ivor Allen for $145M. The second lot of Section Six was awarded to Dwarka Nauth for $45M. Hassan N Pasha General Building and Civil Contractor was handed the last and reportedly the most difficult section of the road, ‘Section Seven’ with a contract price of $838M. That contract was terminated in April 2012 after only 15 per cent of the work was completed. Pasha received almost $315M. The contract was subsequently handed to China Railway First Group (Guyana) Inc. for $1.7B (US$8.5M). Only recently Head of State, Donald Ramotar, announced that government would continue to vigorously pursue the mega project which, if undertaken, would be the largest such project in Guyana.