Government may be one step closer to accessing the US$80 million currently being held by the Inter-American Development Bank (IDB) from the forest protection deal with Norway, for alternative green energy projects.
Officials from Oslo are currently in Guyana, but government continued to be tight-lipped yesterday on specific discussions pertaining to the future of the Amaila Falls Hydropower Project (AFHP) or what alternative projects the money could be used for.
“We have indicated to the IDB our preference for certain green energy projects and we have actually communicated our ideas to the Norwegians,” Minister of State Joseph Harmon said when asked by Stabroek News for an update on talks with Norway as it pertains to the Norconsult report.
“They are here and I think we are having some very good discussions with them on how we see moving forward,” he added.
The visiting Norwegian team comprises Senior Advisor in the Norwegian Ministry of Climate and Environment Hege Ragnhildstveit and Senior Advisor of the Norwegian Agency for Develop-ment Cooperation (NORAD) Sofi Halling.
Oslo has said that if Guyana can show that the US$80 million will go towards a project that can assist the country in achieving its 2025 renewable energy goals, it will support that initiative.
“From Norway’s point of view, it is important that the funds set aside in the IDB holding account are used for projects that give transformative contributions to reaching Guyana’s goals. That is our constant – not any specific project as such,” Norway’s International Climate and Forest Initiative NICFI Director Per Pharo had told Stabroek News earlier this year.
“The important thing is that Guyana develops a comprehensive, cost-effective strategy to deliver on its pledge to get close to 100% green and renewable energy in their energy matrix by 2025. Norway stands ready to support the development of such a strategy, as agreed with President Granger in Marrakech. Norway could also provide assistance for Guyana to develop the most promising options in more detail,” he explained.
The current Norwegian team was reported as saying that it stood ready to offer additional support for Guyana’s efforts in its continued push towards environmental stewardship, including support from Norway’s Oil for Development assistance programme.
Guyana and Norway had agreed for a final study to be done of the prospects of the large scale AFHP in the aftermath of the government’s disinterest in the project, which had been a key pursuit of the former PPP/C government.
The report, which was completed in December, 2016, had said that the project was worth another look but since then the APNU+AFC government has not issued a definitive position on it despite promises to do so.
The main parties in the governing coalition – APNU and the AFC – had
been opposed to the 165 MW AFHP on various grounds including its US$858.1 million price tag. Norway appeared to favour the project and after the APNU+AFC government took office in May, 2015, the two sides agreed in December, 2015 for an “objective and facts-based” assessment of the AFHP for a decision on the way forward.
In Norconsult’s December 12, 2016 report, it was stated that the AFHP was the fastest way forward for Guyana to realize its green energy ambitions.
But Public Infrastructure Minister David Patterson had reasoned that the Norconsult report was really about how to spend the US$80 million Norway funds. “…Very shortly, this month, we do intend to say to them [the Kingdom of Norway] this is how we should utilise the funds,” Patterson said while noting that “the idea should always be to be progressive and continue moving in parallel with the other studies and interventions.”
Harmon echoed this position yesterday. Said the Minister of State, “I think we need to understand that these are funds that are held by the IDB they were earned by Guyana. It is like you put your money in the bank, and the bank is holding it there for you but all sorts of, what I would call ‘things,’ are placed in between, what I would call ‘the drawing down of this money,’ for projects. Therefore, we have to try to remove those little obstacles that exist so that the monies can be applied to these green energy projects that have been identified.”
