GUYANA’s hydro-electricty potential was once again underscored last Friday evening by Secretary-General of the Caribbean Community (CARICOM), Ambassador Irwin LaRocque, who was clear on the many returns on an investment in this area.

“Investment in renewables will reduce the cost of energy to consumers. It will also free up much needed foreign exchange, and create opportunities for export of electricity,” he said, while making remarks at the Guyana Manufacturing and Services Association’s (GMSA) annual awards dinner.
According to him, energy costs as well as transportation costs can account for as much as 40 per cent of the cost price of a product exported by CARICOM member states, a factor that constrains regional trade.
“Analysis done by the IDB (Inter-American Development Bank) suggests that if we could address those and other constraining factors, intra-regional trade could almost double in the long run,” the CARICOM Secretary-General said.
He added that, “…the high cost of energy adversely affects competitiveness (in the private sector). The average cost of electricity across the Region, is more than 30 US cents per kilowatt hour. The bench mark is 10 cents. This is among the highest in the world, according to an Inter-American Development Bank study. The cost is driven by the heavy reliance on imported fossil fuels, which is estimated at 10-15 per cent of total regional GDP.”
LaRocque stressed that in addressing energy costs, economic integration will also be strengthened, in the interests of developing the Community.
CARICOM’s role in supporting this effort, LaRocque noted, is outlined in its energy policy.
“The Community has developed an Energy Policy that emphasizes energy efficiency, and development of renewable energy alternatives, for both domestic use and export. There is significant potential for this in our Community – as you in Guyana would know, given this country’s hydro-electric power potential,” LaRocque said.

PARLIAMENTARY FIGHT
The CARICOM Secretary-General’s comments on sustainable energy sources come at a time when the current Administration is involved in its own fight to advance the much touted Amaila Falls Hydropower Project (AFHP).
Slated to be this nation’s most ambitious undertaking, the Amaila Falls Hydro Project (AFHP) is expected to be able to provide Guyanese with a cheaper, reliable and sustainable electricity supply. It involves the construction of a hydropower plant in the area of West-Central Guyana, where the Amaila and Kuribrong Rivers meet.
Electricity produced there would be delivered to Georgetown and Guyana’s second largest town, Linden. The AFHP is anticipated to result in substantial savings to the nation’s coffers, particularly in terms of foreign exchange and the purchase of heavy fuel oil.
The allocation of $1.3B for the provision of the Amaila access road and related structures was effectively given the green light from the Parliamentary Committee of Supply, in its review of the Ministry of Public Works’ 2014 budgetary allocation in April this year.
When the vote was put to the Members of Parliament, the Government voted in support of the Ministry’s capital expenditures, which included the Amaila project, A Partnership for National Unity (APNU) voted no and the Alliance for Change (AFC) abstained. It was this abstention that allowed the project to go through.
On July 18, 2013, the combined Opposition in Parliament defeated the Hydroelectric Power (Amendment) Bill in the National Assembly, and in August the Government took the legislation back to the House and received the backing of the AFC but APNU voted down the bill and motion.

COMMITTED
President Donald Ramotar’s consistent position on the matter is that economies must serve the people, not vice versa, and with an expected saving of $9B in electricity subsidies, as well as savings on the $40B fuel bill, enormous contributions can be made to the infrastructural development, which is particularly needed in Guyana’s hinterland to aid and accelerate economic progress.
At one of his press conferences, the Head of State disclosed that the Inter-American Development Bank (IDB) is “still on board” for the Amaila Falls Hydropower Project (AFHP). “We are working very hard to bring this back on stream,” he said.
Mr. Ramotar stressed that the project is not dead, despite the challenges in the National Assembly relative to securing support for funding for the project. “We are very close to taking a decision on what direction to go to put Amaila back on stream,” the President said.

SIMILAR CALLS
In July, the Prime Minister of Antigua and Barbuda, Gaston Browne, at the Caribbean Community’s (CARICOM) 35th meeting of the Region’s Heads, underscored the renewable energy potential of Guyana.
Also, the President of the Caribbean Development Bank (CDB), Warren Smith, at the Bank’s 44th annual meeting in the latter part of May this year, noted the possibility of Guyana being able to export surplus hydropower to the Caribbean, as well as the potential benefits for the local economy.
Chairman of the Private Sector Commission (PSC), Ramesh Persaud has also been vocal on the issue and recently called for the development of Guyana’s hydropower capacity, particularly given that cheap energy supply can increase Guyana’s competitiveness in the several emerging sectors, since it is more economical to establish “energy farms” as compared to paying “significant costs” for fossil fuels.
Additionally, the potential benefits of a more stable and reliable source of energy through the advancement of hydroelectricity was also targeted by the International Monetary Fund (IMF) last December as an area for continued focus.