The Georgetown Chamber of Commerce and Industry (GCCI) yesterday expressed confidence in the feasibility of the government’s planned gas-to-energy project, based on an independent analysis it had conducted.
During a press briefing, Senior Vice President (VP) of the Chamber, Richard Rambarran in his address to the media emphasized the importance of the gas-to-energy project in lowering electricity costs, improving reliability, and enhancing energy security in the country. He also underscored the significance of securing financing and prompt action for the project’s success, especially for small businesses and women entrepreneurs.
Amid a delay in the financing of what will be the largest ever public sector project, GCCI recently wrote the US EXIM bank expressing support for the bank’s financing of the gas-to-shore project.
Rambarran yesterday led the discussions on the gas-to-energy project and was joined by members of the executive team, past presidents of the Chamber, and other key figures. They all expressed their full support for the project, highlighting its importance for future generations and the country’s economic development.
During the Q&A segment of the briefing, the question arose of whether or not feasibility projects from the government or elsewhere were examined to determine if the project was workable. In response to this, the executive members stated that the GCCI has conducted its own independent analysis and will be standing on the results of that analysis.
When questioned further on what would be the basis for comparison to this analysis, businessman Clinton Urling said that there is no need for comparison.
“They don’t have to compare anything against any government. I Clinton can establish my own methodology and pursue such a data analysis and say, look, from my data analysis the project is feasible, post-construction. I don’t have to compare that analysis that I’ve done, and in fact, my analysis might be better than the government’s because it’s more independent… You can accuse it of being infused or biased or… some sort of methodological deficiencies. But… when you look at several independent studies, including the one being done by the George-town Chamber of Commerce, it says the project overall is fiscal post-construction, so there’s no comparison that will be needed in this case,” Urling argued.
Former president of the GCCI, Timothy Tucker also said that the private sector umbrella organization has conducted comprehensive analysis in the past, consulting with government officials and international partners like the Japanese and Mexicans to explore options such as solar energy and battery backup systems.
Informed decisions
Tucker added that the organization has evaluated the costs and benefits of different projects and technologies to make informed decisions. Further, Rambarran argued that the information that the government put forth in the public domain was sufficient to assist with the firm’s independent analysis.
“We have sufficient information to be able to do our analysis from the publicly available information. I can tell you as a trained economist, we have that publicly available information that we have done the analysis on,” he said while promising to make the information available to the press in a few days.
The executive members further explained that during the process of the independent analysis, the relevant government authorities (both past and present) were engaged on “many occasions”. Additionally, senior members of the GPL were also engaged during meetings with the Minister within the Ministry of Public Works, Deodat Indar, and the GCCI.
“So, it’s not just us pulling information from something that the government would have presented”, he said.
The discussion also delved into the potential need for government subsidies post-construction to achieve a 50% reduction in electricity costs, a notion that was refuted by the Chamber. On this note, the importance of operational efficiency in determining costs post-construction was stressed upon and the Chamber’s commitment to independent analysis and evaluation of the project was reiterated.
The media probed further into the Chamber’s assessment of the project’s financial viability and its potential to generate power at US five cents per kilowatt hour. In response, Rambarran expressed confidence in the project’s ability to meet these targets, with potential minor adjustments in cost projections.
In highlighting the cost structure of the project, the senior VP was unable to give an actual final figure but emphasized its potential to act as a base for future modular additions. He then mentioned that the initial phase of the project is estimated to cost around US$100 million, with subsequent phases bringing the total project cost to approximately US$1.7 billion. Despite potential cost increases, Rambarran stated that their analysis showed the project to be within an acceptable cost range.
In response to questions about the projected 50% reduction in electricity costs, the executive members said that the project could lead to significant cost savings, especially in commercial and industrial sectors. They also discussed the unreliability and high costs associated with the current electricity infrastructure, highlighting the broader economic impact that the project could have.
The project is seen as a long-term investment with the potential to boost manufacturing, create jobs, and improve the quality of life for citizens, both current and future. The briefing, which was held at the Pegasus Executive Suites, aimed to clarify misconceptions, address the Chamber’s position on the project and provide a platform for discussion and questions from the media and stakeholders.
In its letter to the US EXIM Bank, the GGCI voiced “deep concern” and “strong condemnation” of certain attempts by a small minority of individuals to discredit the project and discourage the EXIM Bank from providing financial support for the project.
“The GCCI is especially disheartened to see the vilification of a project that holds significant potential benefits for our nation and its citizens, we are appalled at missives penned requesting that the loan to fund the initiative be blocked. Though the GCCI respects the importance of public discourse and right to differing opinions, it is essential to acknowledge that the comments and actions by these dissenting voices do not reflect the interests of the business community in Guyana which has stated in multiple public forums that we will support any project that helps to lower the cost of electricity,” the letter added.
