There are new investors keen on developing Guyana’s long-anticipated Amaila Falls hydropower project and as such, Vice President Dr. Bharrat Jagdeo says the government will request new proposals in about two weeks’ time.
“We’re hoping that within a maximum of two weeks go out back for the request for proposals,” Jagdeo said at a People’s Progressive Party Civic (PPP/C) press conference on Thursday.
He also announced that new investors from Brazil, Austria and Korea have signalled their interest in the project. Because of this interest, the government wants to publicly request new proposals.
Jagdeo’s comments on interest in the Amaila Falls project comes as Guyana’s main power company, the Guyana Power and Light (GPL), is unable to meet the current demand for electricity. And Jagdeo said if the former APNU+AFC had supported the Amaila Falls project, there would not be challenges with supplying energy now.
This Amaila Falls project has been stalled since the company selected to construct it, the China Railway Group Limited, was unable to develop the project as the government desired.
The Chinese company was unable to secure the necessary financing for the Build, Own, Operate and Transfer (BOOT) model and instead requested to change the contract to an Engineering, Procurement and Construction (EPC) model.
The government was not keen on the EPC model since it may result in Guyana incurring greater risk.
The Amaila Falls hydropower project is particularly important to Guyana since, beyond the lower cost of electricity it promises, it will help Guyana phase out the use of about 70 per cent of the non-renewable, fossil fuels by 2027 through an energy mix of natural gas and renewable energy sources.
This is in keeping with the country’s revised Low Carbon Development Strategy (LCDS).
