Way cleared for Local Government Elections, hydro development
The Sitting of the National Assembly on August 7, 2013, saw the Alliance For Change giving its support for the four Local Government Bills and the Bill and Motion pertaining to the Amaila Falls Hydroelectric Project. The AFC expects that, with the passage of the Bills, the way is now cleared for the holding of Local Government Elections under a reformed system. The AFC looks forward to the early assent of the President to the Bills and subsequent Gazetting.
The Alliance For Change has always maintained its support for the development of hydroelectric power in Guyana, and in this context, supported the re-tabling of the Bill to amend the Hydroelectric Power Act. This Bill clears the way for additional protection of the environment surrounding the Amaila Falls Hydropower Project that is necessary to secure the support of the Inter-American Development Bank and its contributors.
Mindful of the many concerns raised by various groups and individuals in relation to the Motion on the Guarantee of Debt by Public Corporations, but cognisant of the importance attached to this measure by the developers of the project, the AFC sought a compromise position. This necessitated the Party support the re-tabling of the original Motion, which allowed the AFC to make amendments that are more discretionary. In this regard, the Party amended the original motion to raise the level of debt that can be incurred by a public corporation from $150 billion, as was originally suggested by the Government, to $50 billion. In addition, the Party also tied the increase specifically to the Guyana Power and Light and the Amaila Falls Hydropower Project.
The Alliance For Change, positioned as it is as a βthird forceβ, sought to take a nationalistic approach that would keep the project alive, at least in so long as the IDB needs to complete its due diligence and report on the feasibility of the project. The AFCβs support for the legislative arrangements related to the Amaila Falls Hydropower Project in no way diminishes its position β that the Party awaits the report on the feasibility study being done by the Inter-American Development Bank.
Apart from the environmental impact of the project, the IDB study will, more critically, determine the economic viability of the project and the capacity of the Guyana Power and Light to efficiently and effectively manage electricity generated by Amaila. This of critical importance when the AFC looks to make a final pronouncement on whether it will (or not) support the Project.
Though the AFC has given its support for the legislative arrangements relating to the project, many concerns still remain. These range from the final dollar figure for a completed project , inclusive of all interests payable on loans and other fees chargeable until the project is wholly owned by Guyana; what will be the cost of electricity charged to consumers, capacity of the project to satisfy total demand on a year-round basis; what will become of communities, including Amerindian communities which do not presently form part of the national grid; will GPL still buy electricity from GuySuCo and at what rate, as this revenue stream is critical to the failing sugar industry.
What is important for public consumption is that the original Motion brought by the PPPC Government on July 18th sought to raise the debt ceiling for public corporations to $150 billion. By August 7th, the same PPPC had reduced that ceiling to $130 billion when the Motion was re-tabled. By the end of the day, they were going along with $50 billion, a mere one-third of the amount they had originally demanded.
As we go forward, it is clear that much more scrutiny has to be done and many more questions asked. However, given that the development of hydropower was being touted since the 1970s and the hope of all Guyanese to one day be able to access affordable and reliable electricity, the AFC believes that it would be premature to kill the project without giving it a fair chance.