Our Energy Security; is there a viable future?

The Amaila Falls Hydropower Project was the cornerstone of Guyana’s Low Carbon Development Strategy that was launched in 2009 by then-President Bharrat Jagdeo. But the project has been on hold since August 2013. The initial delays were for good reasons; mainly to address concerns around the financial model. However Norconsult, the Norwegian Experts who did the review of the Amaila Falls Hydro Project (AFHP), has now addressed those concerns. The original 2012 financial model which was over-priced by some US million is now set in a financial framework that make sense now. Therefore, why has the PNC-led Granger government not advanced the recommendations in the Norconsult Report? Do they not know that they are failing the people by not unleashing the available US0 million in committed grant funds from Norway?

According to the National Energy Policy created by the Guyana National Energy Agency, the nation was supposed to be generating some 20% of its electricity supply by 2017 from green sources. Progress on this initiative literally died once Granger stepped into office. This benchmark is all a pipe dream without AFHP.

Instead, there is a full-scale attempt by this Granger-led government to de-emphasize the AFHP in favour of alternative smaller projects like the Tumatumari project, the Tiger Fall Project and four solar farms at Bartica, Mabaruma, Mahdia, and Lethem. But this entire plan exposes how out of touch with reality President Granger is today. Trapped in a world he invented for himself of parades, pomp, and private jet flights, he is clearly oblivious to the fact that these pet projects of his would require at least 2-3 years of additional time to conduct the pre-feasibility and feasibility study to advance to a point that is even 50% of where the AFHP is situated. In the case of AFHP, the Brassington team took the project to the point of making it a bankable project that is ready for implementation save and except for those identified weaknesses in the financial model.

I was reliably advised that the person who is most adamant against the AFHP is Minister Patterson. How can President Granger put such a big decision into the hands of such an immature mind that continue to use his personal vendetta against anything associated with the past government? In a time of unending blackout and brownouts all across the length and breath of Guyana, how can a Cabinet support such infantile and childish behavior from a sitting Minister? Isn’t it unreasonable to hold an entire nation at ransom so that you can inflict a “fracture for a fracture, an eye for an eye and a tooth for a tooth” with your political adversary?

In 2016, only about 10% of the national electricity needs were generated from green sources (mainly the Skeldon co-generation plant). However, since January 2017, that plant has been down. Therefore, achieving 10% green energy in 2017 is now impossible. This is a far cry from the desires of the Chairman of GPL, Mr. Badal who projected in a Stabroek News article that by July 2018, he foresees 15% of the national need being generated from renewable sources. The only project that can aid in this agenda is now on ice. I am again reliably advised that the Lloyd Singh Wind Farm is facing major hurdles in the approval process. Why? The facts behind this issue will illustrate how corrupted the senior leadership of the AFC has become today. I am reliably advised that they are even prepared to bleed a loyal supporter who funded most of the AFC headquarters and hence the proverbial Mexican standoff.

But the mother of all incompetence in this PNC government is exposed when one inquires about the progress on the almost G$1 billion that was set aside in the 2017 Budget to implement four solar farms at Mabaruma, Bartica, Lethem and Mahdia. The impact of this initiative, while glorious on the optics, gets an “F” Grade on substance because it fails to satisfy less than 2% of the national need and 0% of the main population centers on the coast. Upon checking with my sources in Ministry of Finance, none of these projects are ready for the procurement process. Therefore we can bet our last dollar, the people of the hinterlands will not be getting one minute of electricity from these solar farms for Christmas 2017. Another broken Granger promise!

As the Norwegian expert said in their report, “from a financial and economic point of view, developing AFHP seems to be the optimal solution needs of Guyana”. But who PNC led Granger cabinet is awake today?