–    Claims Ram’s analyses are always negative
THE Ministry of Finance last night issued a statement in which it said it was necessary to  respond to the latest negative ‘analyses’  and speculative statements done by Mr. Christopher Ram, and which was published in the Stabroek News on Sunday last. The following is the full text of the statement issued by the Finance Ministry:
“Once again, it has become necessary for the Government to respond to the usual negative and speculative statements made by certain sections of the media on the Amaila Falls Project — this time by Mr. Christopher Ram in Stabroek News’ article of Sunday 18th, entitled “The economics of the Amaila Falls Project do not add up.”

As much as it would be a miracle for Mr. Ram [accountant, lawyer, journalist and now economist]  to say something positive about the Government or its actions, it is necessary to correct Mr. Ram on what amounts to be his latest journey of speculation and misleading statements.

Award of Contract to Synergy

In his article, Mr. Ram states “that Synergy did not meet any of the pre-qualification criteria for the contract…”

This is, simply put, a complete fabrication. The proposals for this Project were evaluated by personnel with engineering and procurement experience from the Office of the President, the Ministry of Public Works and Communication and the Ministry of Finance. 

Based on their expertise, it was determined that all of the four firms that submitted proposals met the pre-qualification criteria, and upon final evaluation, Synergy was determined as having submitted the best overall proposal detailing their plans to execute the scope of the project. 

Mr. Ram posits  further fabrications by stating that Synergy “has zero experience in such a project”. In terms of experience, Synergy along with its project managers have considerable experience in road building (both highways and forest roads) in the USA.  While local firms also have road rehabilitation  experience,  few have substantial experience in designing and constructing new roads through forests.

Financing
Our 2010  national budget made reference to a budget of G$4.1B for the construction of the road and other infrastructure to improve access to Amalia Falls for the hydro project estimated to cost in excess of US$600M. 
Mr. Ram’s references to NICIL are his usual digressions and speculation without gathering the facts.  The contract for the job is between the Government of Guyana, via the Ministry of Public Works and Synergy Holdings Inc. and not NICIL, as Mr. Ram speculates. 

As Amaila Falls has always been one of the lead projects under the umbrella of the LCDS, the economic cost of tree clearing and CO2 emissions have been fully anticipated within the LCDS framework.

The allowable per annum rate of deforestation under the Norway-Guyana MOU  would comfortably allow for the Amaila Falls Hydro Power Facility  to be built in addition to the Country’s historic rate of deforestation with no penalty under the agreement to Guyana. Mr. Ram’s reference to a penalty is therefore either a deliberate attempt on his part to misinform or evidence of his lack of comprehension of the LCDS and MOU.

NICIL
The fact that NICIL, as agent for Government, led the process to advertise the project is not unusual.  NIICL/Privatisation Unit is a Government owned entity that typically leads in such public-private partnerships as this hydro project or previously in the Berbice Bridge project.

Mr. Ram should be reminded that each of “his” so-called controversial projects in which NICIL has been involved have either been successfully implemented or are in the process of  being completed. 

The Berbice Bridge project has been successfully completed  and the bridge has dramatically improved access across the Berbice river to the benefit of all of the citizens of Guyana.

Mr. Ram was one of the most vocal critics of this project and sought actively to undermine it yet when it was completed and was in receipt of public acclaim he flip-flopped and went on to laud the project (how hypocritical can one be?).  

The QAII compound has transformed the landscape of the Ruimveldt area and currently employs over 300 Guyanese with various skills, with additional investments currently underway to increase this progress to over 1200 employees.  This compares to the dilapidated, costly to maintain, crime haven that the former Sanata complex was immediately prior to handover to QAII. 

RUSAL, along with their subcontractor Oldendorff, have invested in excess of US$80M to resuscitate the Berbice bauxite operations (both AMC and Bermine), after several failed attempts to privatise Bermine. 

Today, RUSAL Guyana operations employ over 500 employees.  Few, including Mr.  Ram choose to recall the days in 2000, when ALCOA proposed a merger with Bermine, which was roundly opposed by political groups, the bauxite union of the day, and special interest groups.

Yet all of these groups faded into obscurity when ALCOA indicated to Government in mid 2000, that due to falling bauxite prices, it would close the company at the end of 2000.

It is only because of the initiative and persistence of the GoG to maintain as many jobs as possible, that the Government took over the company in late 2000 and kept it open.  A similar experience occurred in 2001, when Bermine (under the board chairmanship of Mr. Lincoln Lewis) became virtually bankrupt and employees appealed to the Government to merge Bermine with AMC.  

Almost a decade later, the merged business is now owned by a large internationally recognized investor and contributing to investment, employment and the maintenance of the bauxite communities of upper Berbice.

It is only due to the tenacity of Government that it has been able to maintain the industry without any subsidies to AMC or Bermine (except at the time of the merger for writing off GoG debts and funding employee related liabilities on separation of their employment from Bermine).  

Today, when the global bauxite-alumina industry is facing one of the worse downturns, Mr. Ram and the minority of his ilk conveniently choose to forget the efforts of Government to keep this industry open.

If the recent utterances of the Ram-like critics are anything to go by, this tiny cabal will continue to be negative and disparage every transformative development project that underlies the vision of this administration.

They should be put on notice however that this Governments resolve to realize its vision and achieve our Country’s developmental goals will not be daunted by a disgruntled and narrow-minded few.

Guyanese can rest assured that their Government remains committed to the realization of the Amaila Falls hydro-electric development project, and to the achievement of the economic benefits of this project for the Country.”