Cabinet grants “no-objection” to Amaila Falls Hydropower Project

…Chinese company awarded contract for new Demerara bridge

Cabinet has granted its “no objection” for the Office of the Prime Minister to engage China Railway Group Limited to construct the Amaila Falls Hydropower Project (AFHP).

In a statement on Monday evening, the Finance Ministry announced that the AFHP will be based on a Build-Own-Operate-Transfer (BOOT) model where the company will supply electricity to the Guyana Power and Light (GPL) Inc at a cost not exceeding US$0.07737 per kWh and where the company will provide the entire equity required by the project and undertake all the risks associated with the project.
According to the Finance Ministry, this follows the publication of a request for proposals by Government in various national newspapers during the period July 25 to August 15, 2021. Four companies, the Ministry said, submitted proposals, and China Railway Group Limited was identified as the most “capable partner” by the Evaluation Committee after a rigorous evaluation process, following which the National Procurement and Tender Administration Board (NPTAB) submitted the relevant recommendation to Cabinet for “no objection”.
The AFHP was first identified in 1976 by the Canadian company “Monenco” during an extensive survey of hydroelectric power potential in Guyana. Various studies have since justified and strongly supported the construction of the AFHP.

New Demerara Harbour Bridge
Meanwhile, the Finance Ministry also announced Cabinet has also granted its no-objection for the Public Works Ministry to engage China State Construction Engineering Corporation Ltd to construct the New Demerara Harbour Bridge (NDHB) based on a Design-Build-Finance (DBF) model with financial terms and conditions which would be no less favourable than those submitted in the preferred bidder’s price proposals. The proposal by China State Construction Engineering Corporation Ltd under the DBF model contemplates a construction cost of US$256.6 million, the lowest amongst all bidders.
Initially, the Government, through the MoPW, pre-qualified nine firms to submit bids for the construction of a two-lane dual carriageway (4 lanes) hybrid Cable-Stayed centre span bridge with Concrete Box/T Beam Girder approach bridge structure.
The pre-qualified firms were invited to submit bids to construct the bridge using a Design-Build-Finance (D-B-F) contract and Design-Build-Finance-Operate-Maintain (D-B-F-O-M) contract. At the pre-bid meeting, held on June 28, 2021, it was agreed that the closing date for submission of bids would be October 5, 2021. Only five of the pre-qualified bidders submitted bids, of which four obtained the required minimum score for the technical proposal.
The Evaluation Committee recommended that the Procuring Entity engage China State Construction Engineering Corporation Ltd using the Design-Build-Finance (DBF) model on financing terms and conditions no less favourable than those proposed by the highest ranked bidder. The NPTAB subsequently submitted the recommendation to Cabinet, and Cabinet granted its “no objection”.
The revival of the 165-megawatt Amaila Falls Hydropower Project was one of the promises made by the People’s Progressive Party/Civic in its manifesto. The project was initiated under the previous PPP/C Administration but was scrapped by the coalition Administration which had controlled the National Assembly by a one-seat Opposition majority.
The Amaila Falls Hydropower Project was the flagship of Guyana’s Low Carbon Development Strategy (LCDS).
Amaila was expected to deliver a steady source of clean, renewable energy that would have been affordable and reliable, and was envisioned to meet approximately 90 per cent of Guyana’s domestic energy needs while removing dependency on fossil fuels.