Dear Editor,
About three months ago, President Dr Irfaan Ali rightfully “…made it clear that the Government will continue to pursue the Amaila Falls Hydropower Project (AFHP), even if it means it has to keep retendering “again and again”. His direct words were quite forceful, saying that “…we are not going to abandon this project… If we have to go out again and again, we are going to, because we know the studies and everything, including the independent review by Norway, has point to this project as being good for Guyana, being good for the environment, and bringing greater prosperity… So, this project will get underway.”
So, I do not know when the AFHP will get cracking, but, like President Ali, I am very much behind it. I recall quite vividly, back in December 2016, when the Norway report stated that the AFHP was the “…only way for Govt to fulfil its LCDS commitment to UN.” This independent assessment of the Amaila Falls Hydropower Project (AFHP), at that early time, did reveal that the only realistic path for Guyana’s moving towards an emission-free electricity sector is by developing its hydropower potential, and the fastest way forward is to maintain the AFHP.
Let me really emphasise that this kind of talk came from Norconsult, an engineering and design consultancy firm out of Norway, contracted by the Government of Norway, and therefore there was no kind of political gamesmanship whatsoever.
Editor, I remind all of us that hydropower is a clean, domestic, and renewable source of energy. It provides inexpensive electricity, and produces no pollution. Unlike fossil fuels, hydropower does not destroy water during the production of electricity. Hydropower is the only renewable source of energy that can replace fossil fuels’ electricity production while satisfying growing energy needs. I further inform readers that because hydropower plants can generate power to the grid immediately, they provide essential backup power during major electricity outages or disruptions. Hydropower provides benefits beyond electricity generation by providing flood control, irrigation support, and clean drinking water. It is plus and more plusses when it comes locally to the AFHP.
A second reminder is that the high cost for electricity generation indeed has a negative impact on Guyana, and the rest of the region too, in terms of economic and social development. The cost factor negatively affects import bills, worsens terms of trade, erodes competitiveness, and stymies investment by the business community. Then, at the personal level, high electricity cost affects economically disadvantaged people, who spend a greater share of their disposable income on energy. Need I say more?
As of now, China Railway First Group (CRFG) indicated a while back that it is unable to execute the project in keeping with the Build-Own-Operate-Transfer (BOOT) model. This means that AFHP is being delayed and may even be retendered, as CRFG, the firm that won the contract, is having difficulties in meeting the contract obligations and wants the financing model changed. CRFG wants to enter into an Engineering, Procurement and Construction (EPC) contract with the Government. However, thus far, Government is not in agreement with any attempt to change the basis of the tender that is already out. The bottom line is that if China Railway cannot get the contract done under the BOOT model, then the contract would have to be scrapped and retendered. This I do know, that irrespective of the logistics and elapsing of time, the AFHP, one of the promises made by the People’s Progressive Party/Civic in its manifesto, will be realised, even though it was scrapped by the Coalition Administration when they enjoyed control of the National Assembly by a one-seat Opposition majority between 2011 and 2020.
My final word is that we need to be patient but hopeful, as, when completed, the AFHP is expected to deliver a steady source of clean, renewable energy that is affordable and reliable, and is envisioned to meet approximately 90 per cent of Guyana’s domestic energy needs, while removing dependency on fossil fuels.
Yours truly,
H Singh
