Guyana will not abandon Amaila Falls Project – Pres Ali

President Dr Irfaan Ali on Thursday 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”.
“Let me be very clear: we are not going to abandon this project,” the Guyanese Head of State told a gathering of Private Sector officials and diplomats during an event at State House. “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,” he reasoned. “So, this project will get underway,” President Ali affirmed.
His remarks come on the heels of China Railway First Group (CRFG) indicating to Government its inability to execute the project in keeping with the Build-Own-Operate-Transfer (BOOT) model.
It was Vice President Dr Bharrat Jagdeo who had revealed in May that the AFHP is at risk of being delayed and possibly retendered, as CRFG – the firm that won the contract – has 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.
It is unclear whether a decision will be taken or has been taken to move the project forward, but the Vice President posited last month that the Government is not in agreement with any attempt to change the basis of the tender that went out last year. He had also made it clear that if China Railway cannot get the contract done under the BOOT model, then the contract would have to be scrapped and retendered.
The revival of the 165-megawatt AFHP 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.
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.
It is expected that the AFHP will be based on a BOOT model, wherein the company would supply electricity to the Guyana Power and Light (GPL) Inc. at a cost not exceeding US$0.07737 per kWh, and wherein the company would provide the entire equity required by the project and undertake all the risks associated with the project.
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.
One such study is an independent assessment conducted by Norconsult, a Norwegian engineering and design consultancy firm that was contracted by the Government of Norway. That report had concluded that the only realistic path for Guyana moving towards an emission-free electricity sector is by developing its hydropower potential, and the fastest way forward is through the AFHP. (G11)