Some sections of the media are deliberately misrepresenting the facts on the Amaila Falls Hydropower Project

Dear Editor,

At first glance, one would feel that many people have misunderstood the issue of the Amaila Falls Hydropower Project which saw some changes recently, especially with the licence being changed from Synergy to Sithe Global. However, it seems that some sections of the media are deliberately misrepresenting the facts in an effort to create confusion in the minds of Guyanese.

Prime Minister Samuel Hinds recently clarified the issue in a statement when he explained the conception of the Amaila Falls project and the circumstances under which the licence was changed. I believe that the prime minister’s statement was very straightforward, and I fail to understand why some persons are still “confused”. This is the only word I can associate with these persons, who continue to offer misrepresentations on the issue.

The prime minister rightly explained that this is the way big projects get done, and he provided examples relating to the mining sector and the way companies work to get the projects done and recover their investments.

Government has been encouraging investments in alternative power sources for a long time now, and the prime minister has explained that Motilall began considering and pursuing development of the Amaila Falls project since 1997. He has sought assistance from various companies along the way, and has continued to refine the project and has sought new partners.

The prime minister, in his statement addressing the issue, said the “government was satisfied with their periodic reports, and from time to time judged that it was reasonable to extend the Interim Licence. Eventually, Synergy won the interest and attention of Sithe Global, now a part of the Blackstone Group. In time, as Sithe Global worked its way into the role of leading partner to take the Amaila Falls Hydropower Project to construction and operation, on the request of Synergy and on the government’s own consideration and demand, a new Interim Licence was issued in the name of Sithe Global, in October 2009.”

There was nothing illegal in all of this. Anyone who invests money and time into a project would expect to be compensated, and Motilall and his partners have invested a lot of time and funds into the development since 1997, and have put a cost to their efforts. This cannot be seen as unreasonable, as no one works for free. Quite rightly, as the prime minister said, “It is quite standard practice that a pioneer, having developed a project to a certain point, finds a bigger, stronger partner to take the project forward. The pioneer is rewarded in part or in whole with a cash payment at the time, and some equity interest in the realised project. Depending upon the profitability of the project, the pioneer would receive a multiple on his investment in cash and time. Of course, the many more times when the project dies before realisation, the pioneer receives nothing.”

Sincerely,

Sharon Mc Donald