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The needless problems with Amaila

August 3, 2013 | By | Filed Under Editorial 

Certainly the most talked about thing at this time is the Amaila Falls project. For the first time we are seeing so many challenges to what the nation originally took for granted. It also exposed the extent to which the government went to ignore legitimate queries from the people who must pay for all these things.
From as far back as 1999 there was talk about this new hydroelectric project. There were meetings in Prime Minister Samuel Hinds’ office with the then proposers of the project. Ever since, there was controversy.  Makeshwar ‘Fip’ Motilall came with a proposal to construct the hydroelectric project and to sell the current to the Guyana Government.
The project sounded good because Motilall promised to bring in all the necessary funding. In 2001 he returned with some supposed Canadian financiers and once more the government seemed inclined to support the project. On the basis of his plans, the government sold him the rights to the project which should have delivered power by 2005.
That Mr. Motilall sold his rights to Sithe Global to continue the project is not in the interest of the public. What is of interest is the fact that Guyana now seems to be saddled with the cost of the project. This fact is the major bone of contention. The government must support large loans to the point that the taxpayers would be responsible for the lifetime of their grandchildren and probably, their great grandchildren.
Meanwhile Motilall is at least US$10 million richer for merely selling a national asset to a foreign entity. The Guyana Government gave Motilall something for nothing and must now pay Motilall for that which it gave away.  The argument may be that Sithe Global is paying Motilall, but Sithe Global is affixing that payment cost to its bill to the government.
But the government went even further to indebt the nation to Motilall. In fact, this is even worse than paying for what it once gave away. It awarded a road-building contract to Motilall despite the pleas and admonitions of the nation. Motilall had no road-building experience, but people like Winston Brassington insisted that Motilall was qualified and that he could finish the work at a cost of US$15.4 million.
We now see that the road is going to cost twice as much; that Motilall was overpaid; and that long after his agreed completion date, he finished a mere 28 per cent of the work.  The additional money now being spent to complete the road is being added to the project cost. The taxpayers must pay for a decision that Brassington and the administration took, knowing that it was a reckless decision.
There is another thing that seems to be a worrying factor; each day the project is becoming more expensive. But that need not have been the case. If the contractors were serious, then they should have already signed on, and the project cost would have been fixed.
But there is more to all this. If Sithe Global is bent on having the project and the Chinese are willing to make the money available, then why should Guyana have to pay risk insurance? They are the people taking the risk and should be responsible for any such cost. Instead, this insurance is being affixed to the cost of the project and the taxpayers must bear it.
It goes without saying that the nation needs hydro power, but what the nation seems not ready to accept is the cost burden. The project’s cost without all the trimmings, some contrived by the government, and the perceived desire to help friends and comrades as was the case of ‘Fip’ Motilall and the road contract, would have been much cheaper.
And it is the cost that has people complaining. People now want a review of the project, something that President Donald Ramotar says will not happen. Some want the present project scrapped despite the large investment.
Whatever the case, it would be unfortunate to see a meaningful project collapse, and all because of arrogance and a refusal to hold meaningful discussions with the people who must pay.

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When the Hydro project is funded and completed then we will know who is bend and and who is straight. Mitwah, this thing should have agreed upon a long time ago. More delay and bickering is more time and money wasted. Your people are a bunch of no good creeps. They always want something in return for a vote. That's personal politics played by APNU/AFC. Tell them this is a national interest to all Guyanese and its not for the PPP. 

FM

August 3, 2013 | By | Filed Under Editorial 

 

. . . From as far back as 1999 there was talk about this new hydroelectric project. There were meetings in Prime Minister Samuel Hinds’ office with the then proposers of the project. Ever since, there was controversy.  Makeshwar ‘Fip’ Motilall came with a proposal to construct the hydroelectric project and to sell the current to the Guyana Government.

The project sounded good because Motilall promised to bring in all the necessary funding. In 2001 he returned with some supposed Canadian financiers and once more the government seemed inclined to support the project. On the basis of his plans, the government sold him the rights to the project which should have delivered power by 2005.

That Mr. Motilall sold his rights to Sithe Global to continue the project is not in the interest of the public. What is of interest is the fact that Guyana now seems to be saddled with the cost of the project. This fact is the major bone of contention. The government must support large loans to the point that the taxpayers would be responsible for the lifetime of their grandchildren and probably, their great grandchildren.

Meanwhile Motilall is at least US$10 million richer for merely selling a national asset to a foreign entity. The Guyana Government gave Motilall something for nothing and must now pay Motilall for that which it gave away.  The argument may be that Sithe Global is paying Motilall, but Sithe Global is affixing that payment cost to its bill to the government.

But the government went even further to indebt the nation to Motilall. In fact, this is even worse than paying for what it once gave away. It awarded a road-building contract to Motilall despite the pleas and admonitions of the nation. Motilall had no road-building experience, but people like Winston Brassington insisted that Motilall was qualified and that he could finish the work at a cost of US$15.4 million.

We now see that the road is going to cost twice as much; that Motilall was overpaid; and that long after his agreed completion date, he finished a mere 28 per cent of the work.  The additional money now being spent to complete the road is being added to the project cost. The taxpayers must pay for a decision that Brassington and the administration took, knowing that it was a reckless decision." . . .

___________________________________________

 

This is what you see in the dictionary when you search for "INFAMY"

FM

Let us not be fooled that Amaila Falls hydropower is a unique opportunity

August 5, 2013 | By | Filed Under Letters 

Dear Editor,
Effective emancipation must allow us to make genuine choices. This means we must have alternatives to choose from. Let us not be fooled that Amaila Falls hydropower is a unique opportunity; that if we miss this window of opportunity, we will miss the boat to take us out of the backwaters of civilization.
There are plenty solar ‘boats’ available, of all sizes from 2 kW for an average family house to 220 MW from the Charanka Solar Park in India for a lot of people. An accomplished energy consultant just a few months ago at a seminar at Red House put the cost of solar photovoltaic (PV) energy presently available to Guyana at US$4-5 per installed watt (W) for household or industrial use. On checking with a longstanding and knowledgeable local supplier of solar panels, this US$4-5 included the cost of the panels which after 20 years would only degrade 20%, sufficient deep cycle batteries to keep it for 10 years before replacement, inverter, controller, and the installation and commissioning of the whole system.
Comparing this with the 165 MW of Amaila hydropower for US$858M, the same 165 MW from the above described solar PVs @ US$5 per W, reckoned from five of our sunlight hours per day, would cost US$825M at today’s prices.
We are being terrorized by scenarios of escalating costs if we delay the Amaila hydro. This is not so with solar power. Costs have dropped from US$25 per installed W in 1980 to US$4 per installed W in 2009. As time goes by they will get even cheaper. Evidence for this is that the abovementioned Charanka Solar Park in India achieved its 220 MW in 2012 with an investment of US$280M in thin film solar technology, ie, at just over US$1 per installed watt. With the technology available today, hydropower should become an aspect of history, no longer to be considered feasible for tropical countries close to the equator.
It is instructive to consider how India can get that kind of value for money in 2012, while we can only access a quarter in 2013. It has a lot to do with transparency, knowledge, understanding, and yes, wisdom – things that are not even recognized here by our ruling politicians, much less valued – above party loyalty and greed.
The report that the Prime Minister suddenly revealed that “a review” of GPL indicated that it needs foreign managers and US$250M irked me no end. He revealed the bankruptcy of that revelation when he mixed up his tenses: the foreign managers and US$250M are supposed to be in preparation for Amaila (which is the future), but he proceeded to congratulate the GPL management for having already provided electricity without the foreign managers and US$250M (which is the past). The venerable gentleman continues to demonstrate he is long past his sell-by date and should retire with his pension, but leave the energy sector in the hands of the young fellows of the GEA instead of another confused politician to bankrupt the country further.
If they want to throw that kind of money somewhere let them cast it without strings at UG to educate the nation in science, technology and mathematics, under someone like Prof Clive Thomas who understands development and Guyana, and with whose analysis and recommendation for the Amaila Falls Project I agree. A sufficiently educated electorate might be more discriminating in choosing its politicians to not be the source of its troubles. And we Guyanese must learn to stand or fall by our own experts and not live beyond our means by begging from other countries or the IDB or awaiting their blessings.
The great advantage of solar power is that with wise administration it can be tailored to what we can afford at any time. The Amaila Falls Hydro reservoir would cover 27 sq km of land with water and render that area unproductive for much else. At a very conservative 100 W per sq metre we would need only 1.65 sq km of useful sheltered land area for 165MW of solar energy. Had we wise administration at UG some years ago, we might even have been on the way to manufacturing solar PVs from our own abundant high quality silica sands.
Alfred Bhulai
Energy technologist

Mitwah
Originally Posted by Cobra:

When the Hydro project is funded and completed then we will know who is bend and and who is straight. Mitwah, this thing should have agreed upon a long time ago. More delay and bickering is more time and money wasted. Your people are a bunch of no good creeps. They always want something in return for a vote. That's personal politics played by APNU/AFC. Tell them this is a national interest to all Guyanese and its not for the PPP. 

The people ain't buying any snake oil.

Mitwah
Originally Posted by Mitwah:
Originally Posted by Cobra:

When the Hydro project is funded and completed then we will know who is bend and and who is straight. Mitwah, this thing should have agreed upon a long time ago. More delay and bickering is more time and money wasted. Your people are a bunch of no good creeps. They always want something in return for a vote. That's personal politics played by APNU/AFC. Tell them this is a national interest to all Guyanese and its not for the PPP. 

The people ain't buying any snake oil.

 

Yes the people are no longer buying Mr Nehru's snake oil.

FM

We are being terrorized by scenarios of escalating costs if we delay the Amaila hydro. This is not so with solar power. Costs have dropped from US$25 per installed W in 1980 to US$4 per installed W in 2009. As time goes by they will get even cheaper. Evidence for this is that the abovementioned Charanka Solar Park in India achieved its 220 MW in 2012 with an investment of US$280M in thin film solar technology, ie, at just over US$1 per installed watt. With the technology available today, hydropower should become an aspect of history, no longer to be considered feasible for tropical countries close to the equator.

Mitwah

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