US envoy urges political parties to meet on Amaila - says project’s demise will damage country’s future investments
August 20, 2013, By KNews, Filed Under News, Source
The United States Ambassador to Guyana yesterday called on political parties to meet on the Amaila Falls hydro project, warning that the country’s attractiveness to investments could be badly damaged if it is killed.
A statement by Ambassador D. Brent Hardt, entitled “Op-Ed on the Amaila Falls and International Investment in Guyana” and issued by the US Embassy, also said that any future investments in the energy sector will make investments riskier and cost more.
“While the window to prevent such an occurrence is small and closing fast, we call on all political parties to come together in the national interest to support a project that all parties have long agreed is necessary to boost Guyana’s competitiveness and improve the lives of its people with less expensive and more reliable energy,” the Ambassador said.
US Ambassador to Guyana, D. Brent Hardt
Sithe Global, a US company, announced two Sundays ago that it was pulling out after the National Assembly remained divided on the US$858M project slated to be built in Region Eight.
While the Alliance For Change (AFC), backed Government on two Bills, A Partnership for National Unity (APNU) voted against it.
Sithe Global, which was partnering with Government on what would be the largest infrastructure project in the history of Guyana, had tied the issue of unanimous agreements by the Parliamentary parties to financing by the Inter-American Development Bank (IDB).
According to Ambassador Hardt, at the recently concluded Investment Conference organized by the Canadian High Commissioner with the support of the U.S., European Union, the United Kingdom diplomatic missions and an array of local private sector organizations and enterprises, participants were able to examine both the investment opportunities available in Guyana and some of the obstacles investors face in pursuing opportunities here.
“One of the most critical elements for investors is political stability and reliability over the term of an investment. They need to know that a project, once launched, will enjoy continuing support regardless of potential political shifts. Such political stability and reliability requires political leadership that is willing to pursue policies that will advance long-term national interests, create new opportunities for people, and improve the standard of living for all.”
However, the diplomat said, over the past month, the apparent demise of the Amaila Hydropower project had vividly demonstrated just how these issues can directly affect economic development and progress.
“Until recently the project, which has been under development for six years under Sithe Global, appeared to enjoy the implicit support of all political parties. In recent weeks, however, the project suddenly became enmeshed in political battles that had little to do with the potential of the project to generate cheaper, more reliable, and more environmentally friendly energy for decades to come.”
Hardt said to mitigate potential political concerns for a project that represented 25 percent of Guyana’s GDP — the biggest single investment in Guyana’s history — the investors determined that they would require a unified commitment from all of Guyana’s political parties.
“Such a commitment was necessary to ensure that the investment required would not become subject to a loss of support in the event of shifting political configurations. Sadly, the country’s political parties have thus far been unable to come together to support a project that offers all citizens — of all parties — the prospect of lower electricity rates and more reliable energy. The demise of this project is likely to diminish Guyana’s future attractiveness to international investors, and make future investments in the energy sector riskier and more costly.”
