Government has announced that the construction of the Amaila Falls Hydro Power Road Project will continue, despite reports to the contrary in some sections of the local media. Head of the Presidential Secretariat, Dr Roger Luncheon, at a post Cabinet press briefing told the media that there have been much “half-truths and misinformation” in the press.
Head of the Presidential Secretariat, Dr Roger Luncheon
He noted that “Cabinet’s position on Amaila Falls Hydro Power and its implementation remain undaunted by the representations, much of it half the truth, much of it misinformed and under informed in the press, and as such, making the role of renewable energy, Amaila Falls Hydro Power misrepresented or not fully understood by the public. The road will continue to be constructed notwithstanding what was described in some parts of the media as a fall out between the government and synergy”. The reports in the media followed after government rescinded Synergy Holdings’ US$ 15.4 million contracts earlier this month.
After three deadline extensions, Synergy Holdings Inc headed by Makeshwar Fip Motilall, the contracting company was only able to complete 40 per cent of the work as of late last year.
Government stated that the inability of the contracting firm to complete the project on time was one of the many reasons given for the cancellation of the contract.
That aside, it was also said that Synergy Holdings’ inability to secure a performance bond was also a major bone of contention.
Sections of the road were to be subcontracted and a valid performance bond given to the government to cover the period of the execution of the remaining works, and the defects liability period, given that the original performance bond provided would not have covered the entire period of the revised schedule.
The new performance bond was required to be supplied on or before January 10, 2012. The Amaila Hydropower Project consists of a hydropower dam, to be built at the confluence of the Amaila and Kuribrong rivers. The electricity will be generated by specially-designed turbines and delivered to substations in Linden and Georgetown by a new 270km long, 230-kilovolt high voltage transmission line.
In 2010, the Guyana government signed off on a loan deal to build the project and formalise the cooperation between the Guyana Power and Light Company, Sithe Global, China Development Bank and China Railway First Group Company Limited.
According to Dr Luncheon, Cabinet examined in its entirety the issues surrounding Guyana becoming a green economy as part of its developmental thrust.
“Important considerations included the inputs that would arise from the resolution of the global climate change imperative. This would be in the context of our LCDS and the financing of mitigation and adaptation of climate change. The pivotal pace of renewable energy in Guyana’s developmental thrust was reiterated at Cabinet as developments surrounding the Amaila Falls Hydro Power project were examined.”
He continued: “The commitment to financial closure remains strong, one can advance this on the basis of the most recent engagement with the CEO Sithe Global and the president, and there continues to be the need for us , the government, Cabinet, administration to publicise the obvious benefits of the project and all aspects on our economy, and particularly national life and the most basic of those being the input and cost of energy and power in Guyana.” He stressed that Cabinet will continue to support the project as well as continue its outreach with stakeholders to ensure that the project is implemented.
