THE Private Sector Commission yesterday issued an appeal to the government and the parliamentary opposition to work together to ensure the smooth passage of required legislation, by July 30, to allow the advancement of the Amaila Falls Hydroelectric Project
Following is a release from the Commission yesterday:

The Amaila Falls Hydroelectric Project has reached the stage where two critical pieces of legislation require parliamentary approval for the advancement of the Amaila Falls project and obtain IDB Board approval for the IDB portion of project funding:

   a. Guarantee of Loans (Public Corporations and Companies) Act and,
   
   b. Hydro-Electric Power (Amendment) Bill 2013

The latter piece of legislation, which creates a protected area for biodiversity conservation, is a prerequisite for IDB Board approval of the project. July 30 is, we understand, the deadline by which final project documentation must be available for submission ahead of the October meeting of the Board.

The Private Sector Commission wishes to stress the critical importance of moving the Amaila Falls project forward as swiftly as possible. Competitive energy pricing is essential to attract new investment in the economy particular for diversification and value added industries that will reduce dependence on the vagaries of commodity priced exports such as sugar, gold and bauxite.

With rising fossil fuel prices, alternative, less expensive, renewable energy sources such as hydroelectricity is crucial to the survival of many of our businesses, especially those in the manufacturing sector, where growth is stymied by existing energy prices; and we are appealing to all the parties responsible for the passage of the necessary legislation to have the national interest as a paramount priority.

From the data we have gathered on the true cost for generating and distributing electricity, it is important that the public and all the parties involved be aware of the certain consequences if the Amaila Falls project is not approved this year. Among those consequences is the fact that the cost of electricity for end users could rise to a true cost of approximately US$0.40 per kilowatt hour. Apart from visiting untold hardships upon the people of Guyana, this would in effect serve to wipe out our struggling manufacturing sector.  The country would also forego significant savings and would have lost a major private sector investment project which would create jobs and have a positive trickledown effect on the economy. If the project does not go ahead this year, the cost of attempting it in the future would rise significantly and potential investors in other areas for major investment would be unwilling to take investment risks. In addition to these consequences, all other large public-private partnerships projects would be put at risk since its failure would lead to a lack of confidence in the country’s ability to realize these projects.
We therefore appeal to both the government, the parliamentary opposition and the Attorney General’s Office to work together, regardless of time, to ensure the smooth passage of the required legislation before July 30.