The PPP/C’s flagship hydropower project at Amaila Falls, which was canned by the APNU+AFC administration back in late 2017, will be resuscitated, Vice President Bharrat Jagdeo says even as the new government forges ahead with the construction of the Kato hydropower project as part of its future energy mix.
“We are going to go back to hydro and an energy mix – hydro, wind, solar; all of them. Amaila would be part of that too,” Jagdeo told Stabroek News.
“Not just Amaila but there are also some mini ones and we have to review if they are feasible,” he added.
The 165 MW, US$858.1m Amaila Falls Hydropower Plan (AFHP) had been the flagship project of the PPP/C government when it was in power pre-2015. But while in opposition, both A Partnership for National Unity (APNU) and the Alliance For Change (AFC) had had deep reservations about it over cost, feasibility and other matters. This opposition to the project had resulted in the main investor, Sithe Global pulling out of the Region Eight project on August 9, 2013. APNU and AFC had a one-seat majority in the 2011 Parliament and were therefore able to successfully oppose the project.
Although Jagdeo had pleaded with the APNU+AFC government, when it took office in 2015, to continue a conversation on the project and ensure that it was restarted, Minister of State Joseph Harmon made an announcement in October of 2017 that the project had been canned. He had told this newspaper in an exclusive interview that his government was focusing on an energy mix with natural gas as a prime component.
Harmon had said the AFHP was too costly to explore and the government did not have the financial wherewithal or Sithe’s intellectual property documents at its disposal. Given those circumstances, he said it would be virtually impossible to enlist a new investor and as such a decision was taken to look at other energy alternatives.
Asked specifically if that meant that the government was not prepared to go out and find another investor, Harmon replied. “No. The point is are you going to give us money to do that?”
The then Minister of State had explained that with an estimated “US billion-dollar” AFHP project, government could not fund it on its own even if it accessed the US$80M that the Inter-American Development Bank (IDB) was then holding through an agreement with Norway as Guyana’s equity in the project.
For the Government of Guyana, he explained, the case for producing energy through AFHP, was not as easy as many believed since there were myriad questions left unanswered and a fact-based assessment by consulting company, Norconsult, highlighted these facts.
The Norconsult report, which was meant to be a final study of the AFHP and commissioned under the Guyana-Norway partnership, was generally favourable towards the AFHP but the APNU+AFC government interpreted it differently.
Engaging
Jagdeo told Stabroek News last week that the Irfaan Ali government will re-engage in discussions with Norway soon but would not say if it would be to help find funding on the project. “We will be speaking to Norway shortly,” he said, as he explained that last week government had been engaging a number of countries and multinational agencies.
He did, however, reveal that discussions on another climate change agreement with Oslo is “definitely on the cards…We just want to get the budget out of the way,” he said
Jagdeo’s announcement was followed by Minister of Public Works Juan Edghill echoing that the energy mix will be a sustainable one, as he declared the restart of the 150KW hydropower project at Region 8.
“It is one that we had initiated when we built the school (Kato Secondary School) and there would be extra [power] for the community. So it is continuing,” Edghill told Stabroek News.
With financing from the Global Environment Facility under the sustainability energy programme for Guyana, a US$2.2M contract for the “Design, Supply and Installation of a 150KW hydropower plant on the Chiung River, at Kato Village, in Region Eight” was signed by the APNU+AFC government in September of last year.
This contract was awarded to B & J Civil Works and then Minister of Public Infrastructure David Patterson had said that it would be a “win-win” for the Region, since upon its completion it would make Kato the first Indigenous village and only community within the country to be powered by 100% renewable energy.
But the project was paused due to the political impasse and a signal of its restart came yesterday with the advertising for a Clerk-of-Works by the Ministry of Public Works.
Edghill said that the project was “one of several that were committed to and had funding”.
The project is expected to run for a period of 18 months with a 12 months defects liability period after the completion of the project, the Ministry had explained.
The project comprises three components: The construction of 150KW hydropower plant on the bank of the Chiung River. Inclusive of wire, intake, headrace canal with sand trap, forebay, penstock and power house; the construction of 13.8KV Transmis-sion Network (Kato Hydro Station, Secondary School and Kato Village); and the construction of 120V Distribution Network in Kato Village.
According to the ministry, the objective of the project is to provide Kato and government facilities and the Kato Secondary School with a relatively cheap and reliable source of power that will result in livelihood enhancements.
It added that homes that are located within the proximity of the distribution grid are expected to receive power in the initial stage of the project. Additionally, at the school, electricity will be available in the evening for the students to read, write and study. It was also noted that power will be available during the day at the school to facilitate the use of power tools and equipment for technical and vocational training. Power will also be used for the pumping of water to ensure proper sanitation in the dormitory facilities.
