Dear Editor:
When a country experiences years of power outages, there are solutions and strategies to mitigate and improve the situation. From my experience, the most important of them all remains the ability to urgently diversify away from the current situation. You cannot do the same thing over and over and expect a different outcome. Concerning the current situation regarding power outages, the Government of Guyana (GoG) is on the right path as it seeks to diversify the sources of energy. This would enable the GoG, in service to the people, to rely on multiple energy sources rather than continuing with the fragmented status quo.
Additionally, investing in modernizing and reinforcing the power grid to improve its reliability and resilience is key. There are no shortcuts to these investments. Mind you, if one is to read the National Development Strategy crafted in 1994, one would realize that the GoG always had documented solutions on this matter, but to implement them required an upfront cost which usually ran into billions of dollars. Fortunately for us as a nation, we are now better placed to conduct the required investments necessary to achieve the desired outcome. But these things take time.
When former President Bharrat Jagdeo was advocating for the Amaila Falls Hydro Power Project, Guyana was still under an IMF Program, and therefore to secure any additional loans, at that time, to advance the process, required a sign-off in Washington DC. No so today! While Guyana has approached the EXIM Bank of the United States for funding to advance the 300 MW Gas-to-Energy (GtE) Project, we must not be confused about our ability to complete this project; loan or no loan. Guyana is very capable of funding the 300 MW GtE Project, with or without a loan. Those who think they can write adversarial letters to the EXIM Bank and create a blockage are out of touch and unaware of our abilities as a nation today and our current standing in the world. They certainly need to upgrade and reboot their narrative.
There are 134GW of gas-fired power plants that are actively being constructed worldwide, which for context, is only marginally smaller than the national grid of Brazil. When that is added to what was built over the last 5 years, more than 300 GW of gas-fired power will be added to the global system over 2020-2030. Why should Guyana not benefit from such a project like many other nations? The evidence does not add up and it reinforces the position that the GoG is patently in order as it continues to push forward on this GtE Project. The risk has to be taken now to complete this project because the future economic benefits to the nation far outweigh the current financial cost and all associated risks. We can never develop an effective manufacturing sector or an efficient agro-processing industry without low-cost and reliable electricity. These strategic build-out are crucial armour to combat the Dutch Disease.
While reading an article in one of the national dailies, I noticed a school of thought that believes the United States Export-Import (US EXIM) Bank should be warned about its intention to approve Guyana’s application for a loan to support the GTE Project. For the record, while I respect the right of the owner of that school of thought to make their statement in the national newspapers, I humbly beg to differ on this point since on this question there is no room for emotions. The empirical evidence at this time proves that low-cost and reliable energy is a necessity for Guyana, as it seeks to transform itself. The project that is closest to the point of completion to mitigate our current electricity challenge and transform the systems in how we as people service our energy needs, remains the GTE Project. Therefore, come what may, it must be launched.
For the record, as stated by President Dr. Irfaan Ali, Guyana has done more than adequate to commit to the sustainability of the global environment, but it is not Guyana’s responsibility alone to save the planet. In his recent interview at The New York Times Climate Forward event, Dr. Ali highlighted the importance of Guyana’s forests and biodiversity in its global climate change efforts. He noted that Guyana’s forests, which store 19.5 gigatons of carbon and sequester 153 million tons annually, continue to play a critical role in the planet’s ecological health. Guyana has its interest and if a few individuals who appears to be seeking to abrogate the voice of the people in their quest to stall this project, then they are clearly confused. This is not a matter of a choice for a people who continue to not access low-cost and reliable electricity; it is a matter of their future survival. This GtE Project will guarantee the build-out of those new industrial estates all across the country that are designed to create new better-paying jobs for the people. Which Government will not want to do this for their people?
In summary, the people cannot wait any longer for an end to these blackouts and that is why the Hon. Vice President Bharat Jagdeo and his team must be commended for their focused effort at completing this 300 MW GtE Project and nothing must be allowed to stand in their way at this time. Not even the Banks; much less a handful of crotchety and pugilistic souls.
Sincerely,
Sase Singh, M.Sc. – Finance, ACCA
