Govt delegation updates Chinese bank on Amaila Falls Project

A government delegation recently visited China, to provide an update on the progress of the Amaila Falls Project, which is receiving funding from the China Development Bank. Speaking at his weekly post-Cabinet press briefing on Wednesday, Cabinet Secretary Dr Roger Luncheon said the status of the project is of concern to its financiers, thus, a government delegation accompanied by other stakeholders involved, travelled to China, to inform officials there of progress made so far.
“You are aware of the considerable role played by the Chinese government and specifically the China Development Bank in financing the Amaila project and it is of concern, understandably so, to major financiers, the developments as they take place, the status of the project and it is in that light that one can appreciate the latest visit to China by a government delegation,” said Dr Luncheon.
The Cabinet secretary said it is expected that participants would be keen on the development of the project as they approach financial closure, noting that Guyana has never undertaken a project of such magnitude and complexity.
He pointed out that the road component is one of the more important elements of the project, as it provides for the construction of an all weather road that spans a number of geographic regions through flat surfaces, and forested riverine communities.
Dr Luncheon noted that considerable attention is being paid to the eastern section of the project, and assured that some comfort has been accumulated about progress, noting that it is likely to be completed by its deadline, sometime close to year-end.
The Cabinet secretary added that the level of confidence is now building with entry of additional contracting power at the western section of the project.
Guyana could very well face penalties if it is not ready to construct the Amaila Falls Project dam by the deadline for financial closure, which is this year-end.
Following a number of delays since a 2011 deadline, the financial closure of the project has been pushed back as the financiers await the completion of the road. Dr Luncheon had previously said the road access to the facility and the actual construction of the power plant have to be completed in a timely manner, even as financial closure is met.
The US$ 840 million Amaila Falls Project is designed to reduce Guyana’s dependence on fossil fuel for power. Its framework agreement was signed on July 15, 2010 by the Guyana Power and Light Company (GPL); Sithe Global’s Amaila Holdings, China Development Bank, and the China Railway First Group.