Since my article of 5 August on the Amaila Falls Project, a number of important developments took place. Readers will recall that the National Assembly had previously voted down the proposed amendment to the Hydro Electric Act as well as the motion to lift the ceiling for the Government’s guarantee of loans. On 7 August, the Assembly revisited these two proposals and approved the amendment to the Act as well as a revised ceiling for government guarantees to $50 billion, with the proviso that this figure could be reviewed in three months’ time, if necessary. By this time, the IDB will have completed its due diligence on the project. The Government had proposed a lower ceiling of $130 billion but this did not find favour with the AFC. The main Opposition party, APNU, however, voted against both proposals.
It is now public knowledge that Sithe Global has withdrawn from the Project, citing a lack of political consensus for such large project. The Government has since been trying hard to lobby APNU to support the project but so far it has been unsuccessful. The future of the project therefore appears uncertain. Today,