WE are living in exciting times, one, in the words of President, Dr. Mohamed Irfaan Ali, that is full of promise and opportunities. It is for us as a government and as a people to seize the moment by working together and believing in our collective strength. Never in our history have there been such high levels of hope and optimism about the future development of Guyana.

The PPP/C Government, for its part is doing an excellent job in providing a framework for sustained development. It is creating the enabling environment for development to take place.  Gone are the days when the government was seen as the sole agent of economic growth. The private sector is now the main driver of economic growth and under a Private-Public-Partnership (PPP) arrangement several new mega-projects are soon to come on stream.

The government, of course, has a critical role to play in ensuring that the foundation is laid to create a supportive and facilitating environment. This is why it is so necessary for the physical and social environment to be upgraded and modernised to foster a climate for business to flourish and the growth momentum to be accelerated.

This is exactly what the current PPP/C administration is doing with the implementation of several mega-projects such as the new Amalia Falls Hydro-electric power plant and the construction of a new high span, four-lane bridge across the Demerara River. According to a release from the Ministry of Finance, Cabinet has granted its no-objection for the Office of the Prime Minister to engage the China Railway Group Limited to construct the Amaila Falls project based on a Build-Own-Operate-Transfer (BOOT) model. In its current formulation, the project will require no equity contribution from government which is much more advantageous to the country when compared to the previous configuration which was based on a government contribution of US$100M. Further, the current cost structure anticipates a much lower unit cost than envisaged under the previous arrangement.

Under this model, the company will supply electricity to the Guyana Power and Light (GPL) Inc at a cost not exceeding US$ 0.07 per KWH. This is much lower than current rate which is roughly US$ 0.35 per KWH which is relatively high by regional standard. The cost of electricity is likely to decrease further with the realisation in a few years time of the gas-to-shore pipeline project which forms a major component of the PPP/C administration’s efforts to reduce the cost of energy by at least 50 per cent through an energy mix which includes the conversion of natural gas to electricity.

The BOOT mechanism is seen as a preferred model, both from a financing and management standpoint. That model is now an integral component of the Public-Private-Partnership (PPP) development paradigm and is widely regarded as a creative and innovative model that could catalyse development in a financially viable manner while at the same time minimising the impact on the national debt.

A BOOT arrangement will also be used in the construction of the New Demerara Harbour Bridge (NDHB). This new bridge will have a positive impact on the flow of traffic along the East and West Bank of Demerara. When completed, it will replace the current aging Demerara Harbour Bridge and will offer easy connectivity to both the existing East Bank Demerara road as well as the new Diamond to Ogle bypass on the eastern side of the river and to the existing West Bank Demerara road and the new Parika to Schoonord road on the western side of the river.

These are all forward looking and transformative projects which will have a modernising impact on the entire road infrastructure on both the East and West Banks of the Demerara River and the main corridor to the city of Georgetown which, for several years, have been problematic in terms of the ease and convenience of the travelling public.

These two projects, apart from their utility value, will provide, during the construction phase, significant employment opportunities for Guyanese. The construction sector is expanding at a rapid rate and already the sector is challenged to obtain labour, especially with the required skills set.

Guyana is on course to become a modern economy. The development train is picking up momentum. It is for us to seize the moment and become part of this exciting journey to a new destination where there is prosperity for all. Full credit must be given to the visionary leadership of President Ali and his PPP/C administration. Under the previous Granger administration, there was a hiatus in the growth momentum due to short-sighted and vindictive policies. All of that is now behind us and the country is once again on the road to economic growth and development.