‘It will be criminal’ to proceed with Amaila Falls project – Finance Minister

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By Fareeza Haniff

Minister of Finance, Winston Jordan presents the 2015 budget in the National Assembly. [iNews' Photo]
Minister of Finance, Winston Jordan presents the 2015 budget in the National Assembly. [iNews’ Photo]
[www.inewsguyana.com] – Minister of Finance, Winston Jordan has made it clear that the APNU+AFC government has no intention to continue works on the Amaila Falls Hydropower project.

In his 2015 budget presentation in the National Assembly on August 10, Jordan said that it is not only irresponsible, but “a downright criminal act of deception were we to proceed with Amaila Falls.”

He told the House that investigations conducted by the new government revealed that the Guyana Power and Light Company would be required to make annual payments amounting to US$130M to the operators of the facility.

This he said will total US$2.6B over the 20 year period, according to the power purchase agreement and does not include Guyana’s contribution of at least US$160M comprising $45M for road, $80M through equity and $US45M that will have to be taken from the Inter -American Development Bank (IDB).

The access road leading to the Amaila Falls.
The access road leading to the Amaila Falls.

“It will be delusional to suggest that GPL has the competence to handle such a financial burden. The GPL is known to have a poor operational, financial and technical capability. The Company suffers from a high energy and technical losses…it would require not only tariff increases but guarantees that taxpayers, through the treasury will have to provide to meet its obligations,” Jordan told the National Assembly.

He reiterated that the cost of financing Amaila Falls is too high and government is supported in its decision by the IDB, who had considered the project to be too risky to attract the bank’s financing.

The Finance Minister noted that over the next five years, the APNU+AFC government will examine all sources of energy and will commence feasibility studies for a large hydro power development in the Mazaruni region in collaboration with Brazil.

The government also intends to promote the construction of small hydro systems across the country.

 

3 COMMENTS

  1. You know what u can’t understand people saying they have this evidence of Mr X and Co and yet,u find it not reaching into the right hands. To me it’s all froth. Nothing else,nothing more. Had this project been the coalition project then of course it would have been budgeted for. We were close to achieve cheaper electricity but the selfish cowards called the coalition “apnu/afc” just wanted to show what they can do. That’s why we will see how the cookie crumbles..

  2. Mr, Finance Minister – please advise what steps if any will be taken to bring Fip Motilall to justice for the millions of $US that he has fleeced the oppressed Guyanese tax payers of. Is the Granger Administration prepared to walk the talk in pursuing Fip Motilall ofd Synergy Holdings whom was just in Guyana a few weeks back walking around town ‘scotch free’ and in the company of certain high ranking APNU-AFC officials.

    There is video footage of him fraternising with his new found comrades-in-arms and potential partners-in-crime now occupying the corridors of power within the Ministry of the Presidency and elsewhere.

  3. Now that the Government has promised to provide all necessary information on the project, I’m looking forward to seeing the IDB analysis.

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