Clement Rohee
The Peoples Progressive Party/ Civic (PPP/ C) has accused the opposition of misleading the public about the Amaila Falls project. Finance Minister Dr Ashni Singh, speaking at a PPP/ C press conference on Monday, said the joint opposition continues to engage in disseminating false information about the project as they attempt to justify their non-support.
Referring to comments made by Alliance For Change (AFC) leader Khemraj Ramjattan that his party was unaware of the interest rate for the project, Dr Singh said the AFC member’s comment is absurd.
Well known fact
The AFC leader in a media report said the Inter-American Development Bank (IDB) would normally make loans available to Guyana and other countries at concessional rates in the vicinity of one or two per cent.
The loan to the Amaila Falls Hydro Electric Project was set at a whopping 9.5 per cent.
Ramjattan was reported as saying too that the revelation that the IDB was asking for 9.5 per cent has illustrated the “deceptive nature of government”, given that all along, stakeholders were of the impression that the loan was at a concessionary rate of 1.5 per cent.
However, Dr Singh debunked that statement saying that the information was provided to both the AFC and the A Partnership for National Unity (APNU) a year ago, clearly indicating the interest cost, or cost of financing.
He noted that both parties had an opportunity then, to ask questions, but they did not. The finance minister further stated that it is a widely known fact that concessional financing is only available to countries that meet certain criteria.
The minister reiterated that the Amaila Falls project is a private sector initiative, with the government involved in no borrowing as private developers, or special purpose companies are the borrowing entities.
The lending, he reiterated is private sector lending at private sector rates. “So to treat this now as some fact that has been now discovered and to manufacture a controversy surrounding this matter, is nothing short of an attempt to mislead the people of Guyana.”
The finance minister said too that he strongly believes that “the opposition by their parliamentary action delayed the progress of the project”.
He added that it was an established fact that private developer said from the inception that unless there is parliamentary consensus, they will not be prepared to spend any more money on the due diligence process.
However, members of the APNU, he noted are now claiming that they were not aware of that information, which was critical to the project’s continuation.
