THE importance of cheap, reliable and clean energy to propel national development is all too obvious and does not require any justification, except for the pessimists in our midst and those who see obstacles in every opportunity. Had it not been for the abrupt and ill-conceived termination of the Amaila Falls hydro-electric power project initiated by the PPP/C administration, Guyana would have already benefitted in substantial ways from the supply of cheaper and cleaner energy. Amaila Falls is located on the Kuribrong River, a tributary of the Potaro River in west-central Guyana.
The PPP/C administration is once again seeking proposals to restart the project. The Office of the Prime Minister has already issued a Request for Proposals (RFPs) to design, build and finance the project. The projected completion date is 2025 with a commencement date set for the second half of 2022. The project will be constructed on the basis of a Build-Own-Operate-Transfer (BOOT) investment model.
The Amaila Falls project was conceived by the PPP/C administration as a transformational project which, apart from providing cheap electricity, would have linked three regions of Guyana, namely Regions Seven, Eight and 10. The road project which had commenced was roughly 80 per cent completed until it was aborted by the APNU+AFC administration, immediately on its ascension to power in May 2015. The project was aimed at incorporating sustainable and cheaper electricity into the national grid as part of the government’s low-carbon development strategy.
As to why the previous administration chose to terminate the project, especially given its manifest benefits to the country and its people, will forever remain a mystery, but it does speak to a level of shortsightedness and lack of vision, especially when seen against the background of the growing energy needs of an expanding economy.
It is an established fact that Guyana, through its dependence on imported fossil fuel, remains at a disadvantage in terms of economic competitiveness. Cheap and reliable power continues to be an impediment to accelerated economic and social development. As pointed out by Minister with responsibility for Finance, Dr. Ashni Singh in his 2021 Budget presentation, the dependence on aged fossil-fuel-based generation capability, along with inadequate generating capacity has resulted in supply shortfalls, a porous transmission and distribution network and high technical and commercial losses.
The Guyana Government must be commended for its decision to re-commence the 165-MW Amaila Falls hydro-electric project. In all likelihood, the project will now become a reality under the presidency of Dr. Mohamed Irfaan Ali which will be a flagship project when completed. In addition to the Amaila Falls project, the government is also exploring other smaller hydro-projects. According to Prime Minister Mark Phillips, who has oversight responsibilities for the energy sector, data has already been collected for other sites such as Paruima and Waramadong in Region Seven, Monkey Mountain in Region Eight and Eclipse Falls in Region One. In addition, the government through the Guyana Energy Authority (GEA) is conducting energy-needs assessments in several hinterland communities across the country. It is the expectation of the government that it will be in a position to provide more than 4000 megawatts of newly installed capacity for residential and commercial industrial users over the 2020-2025 period.
These initiatives and policy interventions, when completed, will further add to the existing mix of power-generating capacity, which together with that of oil and gas will catapult the growth trajectory of this country to new and higher levels.