US, Canada signal interest in Amaila Falls Hydro Project – Pres Ali

– says “a lot of bilateral talks” underway

Guyana is currently in bilateral talks with its North American neighbours – the United States and Canada – on the Amaila Falls Hydropower Project (AFHP).
This was revealed by President Dr Irfaan Ali on the sidelines of an event on Wednesday, during which the Head of State told reporters that the Government has received a lot of interest and proposals from different bilateral partners.
“When I was in the US, I had a meeting with the Energy Secretary [Jennifer Granholm] and her entire staff, and I mentioned this project and the importance of the project, and opening it up to the US and investors – just as it is opened up to for any other investor. The Canadians have [also] expressed some interest,” President Ali has indicated.
According to President Ali, his administration is currently in the process of conducting assessments in order to ascertain the best possible way forward.
“We are doing assessments now… There’s a lot of bilateral talks that are going on, and then we have to make a structured decision on how we go forward,” the Guyanese Leader stated.
Back in October, Canadian High Commissioner to Guyana, Mark Berman, had disclosed that the Canadian Commercial Corporation (CCC) has held discussions with the Guyana Government on the Amaila Falls Hydropower Project.
Canada is well known for its hydropower infrastructure. In fact, the clean and renewable energy supplied by hydropower accounts for over 60 per cent of all the electricity generated in Canada, and Berman has said this is an area in which Canada could provide assistance to Guyana.
“The most obvious projects are the large infrastructure projects, of which there are many in Guyana. And that’s one of the things the oil and gas sector will allow the Government to strengthen: the infrastructure in the country – bridges, roads, hospitals and energy infrastructure. So, we’ve had discussions about potentially, for instance the Amaila (Falls) Hydropower project, which Canada has significant experience. Canadian companies may be interested in some bridge projects,” Berman had said.
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 A Partnership for National Unity/Alliance For Change (APNU/AFC) Coalition regime.
AFHP is expected to deliver a steady source of clean, renewable energy, which 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 would be based on a Build-Own-Operate-Transfer (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.
Construction on the hydropower project was supposed to start this year, with an expected completion date being in 2027.
The AFHP was awarded to China Railway First Group in November 2021, but the contract negotiations were stalled and the company indicated to Government its inability to execute the project in keeping with the BOOT model – an arrangement that Government insists on keeping.
In fact, back in May, Vice President Dr Bharrat Jagdeo had revealed that the AFHP is at risk of being delayed and possibly retendered, as CRFG – the firm that had won the contract – has difficulties in meeting the contract obligations and wants the financing model changed. CRFG wanted to enter into an Engineering, Procurement, and Construction (EPC) contract with the Government, but this was not facilitated.
Meanwhile, President Ali has already made it abundantly clear that Guyana will not give up on the flagship AFHP.
“Let me be very clear: 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 pointed to this project as being good for Guyana, being good for the environment, and bringing greater prosperity… So, this project will get underway,” the President affirmed.
In fact, during his visit to the US in July of this year, the Head of State had held a number of engagements with top US officials on the two countries’ cooperation on climate change issues, including protection of the environment and sustainable development. To this, a $2 billion Memorandum of Understanding (MoU) was signed between Guyana and the US EXIM (Export/Import) Bank that would allow for funding for a range of projects, including those in the renewable energy sector.