Private Sector lobbies political parties to support hydro power project

Amid the uncertainty over the fate of two pieces of legislation key to the advancement of the Amaila Falls Hydro Power Project, the Private Sector Commission (PSC) on Tuesday urged both government and opposition to work together to have them passed. Government has tabled amendments to the hydroelectricity act and a motion to increase the debt ceiling – both critical to the project.

In a statement, the umbrella business grouping said the Amaila Falls Hydroelectric project has reached the stage where two critical pieces of legislation require parliamentary approval for the advancement of the project and to obtain Inter-American Development Bank (IDB) approval for the IDB portion of the project funding: the Guarantee of Loans (Public Corporations and Companies) Act and the Hydro-Electric Power (Amendment) Bill 2013.
The latter piece of legislation, the PSC said, which creates a protected area for biodiversity conservation, is a prerequisite for IDB board approval of the project.
“July 30 is, we understand, the deadline by which final project documentation must be available for submission ahead of the October meeting of the board.” “The Private Sector Commission wishes to stress the critical importance of moving the Amaila Falls project forward as swiftly as possible. Competitive energy pricing is essential to attract new investment in the economy particular for diversification and value-added industries that will reduce dependence on the vagaries of commodity priced exports such as sugar, gold and bauxite.”
Paramount priority
The commission said with rising fossil fuel prices, less expensive, alternative renewable energy sources such as hydroelectricity is crucial to the survival of many businesses, especially those in the manufacturing sector where growth is stymied by existing energy prices, “and we are appealing to all the parties responsible for the passage of the necessary legislation to have the national interest as a paramount priority”.
According to the PSC, from the data it has gathered on the true cost for generating and distributing electricity, it is important that the public and all the parties involved be aware of the certain consequences if the Amaila Falls project is not approved this year.
Major investment
The PSC said if the project does not go ahead this year, the cost of attempting it in the future would rise significantly and potential investors in other areas for major investment would be unwilling to take investment risks.
In addition to these consequences, all other large public-private partnerships projects would be put at risk, since its failure would lead to a lack of confidence in the country’s ability to realise these projects.