Opposition underlines support for Amaila Falls Project

– but calls for more openness

The opposition has emphasised its full support for the Amaila Falls Hydro Project, noting that it is a necessary project based on the information being disseminated. However, it added that it will carry out its responsibility to scrutinise the project, with the aim of ensuring that the project is a successful one and free of irregularities.

Alliance For Change leader Khemraj Ramjattan

These were some of the sentiments arising out of the first in a series of debates on alleged corruption within government which was aired on the National Communications Network television on Sunday evening.
The guests included Prime Minister Samuel Hinds, People’s Progressive Party/ Civic member Manzoor Nadir, A Partnership for National Unity shadow finance minister Carl Greenidge, and Alliance For Change leader Khemraj Ramjattan.
Greenidge noted that although the opposition has embraced the concept of the project, that does not mean that more questions will not be asked, adding that Parliament and civil society have a responsibility to scrutinise projects.
He said it was the “secrecy” surrounding the awarding of contracts especially that lent an air of suspicion of corruption.
“Because Amaila is one of the largest development projects we are likely to undertake in recent times – it is extremely large relative to our GDP and therefore, it is very important that a project of this size that can impact so heavily on our indebtedness, which can impact so positively or otherwise on the cost of purchasing of electricity, and therefore, the viability of enterprises, particularly in the manufacturing sector where the cost of electricity has already largely destroyed the manufacturing sector, it is very important that this investment is one that is informed by the best information available, by defensible decision-making process and it be undertaken in a context of maximum transparency,” Greenidge explained.

A Partnership for National Unity shadow finance minister Carl Greenidge

Ramjattan argued that the project must be supported, but all the facts must be put to the public so as to remove any suspicion of corruption.
“Because of geographic advantages with our many rivers and a whole lot of water in this country and the fact that it (the project) is so environmentally positive for the country, the Alliance For Change must, as a necessity, support it, but, as we have indicated on so many occasions, the entire project commenced with a number of issues, which made it characterised as one filled with corruption,” he noted.
The opposition member was referring to the US$ 15.4 million contract awarded to Synergy Holdings Inc, headed by Makeshwar “Fip” Motilall which was pulled in January after the company failed to secure an extension to the Performance Bond from Hand-in-Hand Mutual Fire Insurance Company. Synergy Holdings was given the contract to construct an access road to the project site and a transmission corridor.
Ramjattan said the contract got off to a bad start and US$ 15 million went down the drain as a result, since the contractor was not qualified to execute any of the works. He alleged that Motilall was given the contract based on favouritism.
Prime Minister Samuel Hinds refuted these statements and noted that the process was done in a very transparent manner. In fact, he said there were several press conferences held where the public would have been briefed on developments regarding the entire Amaila Falls Hydro Project and the awarding of contracts.

Insufficient information
Hinds welcomed the debate, since according to him, government believes many of the criticisms and allegations made were as a result of persons not having enough information.

Manzoor Nadir

He explained that Guyana currently imports fuel to generate electricity which may cost some US$ 130 to 140 million per year.
“GPL imports mainly heavy fuel oil, but also diesel. Other people who may come on the grid import diesel too, and we are looking to replace this outflow with a 100, 105 million U. S. per year over 20 years in repaying for the Amaila Project and after 20 years it will be transferred to the government.”
Nadir opined that a lot of charges have been made without people analysing the reality. He explained that the road contract was put out to tender in December 2009 and four bids were received. Synergy Holdings, he said, had the lowest evaluated bill.

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