Senior Minister in the Office of the President with Responsibility for Finance Dr. Ashni Singh yesterday condemned what he termed a misinformation campaign targeting the Amaila Falls Hydropower project and other major development projects.
“I want to express in the strongest possible terms my grave disappointment and indeed our government’s grave disappointment at the campaign of misinformation that is being waged in relation to major developmental projects and in particular, most recently, in relation to the Amaila Falls Hydropower project,” the Minister said in a press release, contending that the project was subjected to detailed studies and analysis by international technical experts and it was examined by international development agencies and bilateral partners such as Norway.
“In fact, if we were to cast our minds back to the pre-2015 period, we (the then PPP/C Government) had brought the project to a point where we had a major, large, credible international investor who was ready and willing to invest in this project. It would be recalled that the then APNU and AFC used their one-seat majority while in opposition to derail and ultimately to frustrate the project. Had the then APNU and AFC not done so… not only would construction have commenced but construction by now would have been completed and Amaila would have been providing electricity to the National Grid,” Singh argued.
He noted that what was particularly significant was that the APNU+AFC Government upon assuming office in 2015 commissioned a study to be done by an international consultancy entity (Norwegian Consultancy Agency) Norconsult for a final opinion on the project.
“Norconsult did an extensive study and concluded in very favourable terms that the Amaila Falls project was the best option for Guyana to transition to clean renewable energy”, he said. That report is publicly available Singh further emphasized while reminding that in spite of it the APNU+AFC government did not proceed with the project, nor did they produce an alternative project.
Singh contended that since the Energy Conference held recently, there have been a series of articles on the Amaila Falls Hydropower project that are either fabrications, erroneous, or lacking in balance and objectivity.
He said that the February 22 edition of the Kaieteur News published an article headlined `GPL liable when Amaila Falls run dry’—Winston Brassington.
“Firstly, the above was never said by Winston Brassington and therefore the headline was a total fabrication and an erroneous statement. Winston Brassington referred to hydrology risk being assumed by GPL, as off-taker, a position reviewed and supported by consultants, as articulated below. No reasonable extrapolation can equate the KN headline to what was stated by Mr. Brassington. The fact is Amaila will have a 23 (square kilometre) reservoir to hold water and this reservoir allows the hydro optimized delivery of energy on an annual basis. Secondly, dating back to 2012, all Parties considered the hydrology assumption that Amaila can deliver 1,050 GWH energy on average per annum, a reasonable number (if not conservative). These number were relied on by the IDB in their due diligence in 2012. By way of illustration, at 165 MW, without factoring hydrology risks, the project can generate as much as 1,445 GWh, at full capacity. Assuming 1,050 GWH/annum, assumes a capacity utilization of 72%. It is at this capacity, that the price of 7.7 cents/kWh is calculated over a 20-year period. In some years, there may be more than 1,050 GWH generated; in others, it could be lower. Under all scenarios, Amaila delivers a significant reduction in power generation costs and a minimum annual level of energy. Amaila, in essence, is a clean renewable project”, Singh said.
