Home Politics 10 years later, Patterson and Edghill clash over ‘facts’ of Amaila Falls...

10 years later, Patterson and Edghill clash over ‘facts’ of Amaila Falls project

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The Amaila Falls hydropower project has long been a topic of contention in Guyana’s politics, and it found itself yet again at the centre of an exchange in Parliament on Wednesday.

Minister of Public Works Juan Edghill and former Minister David Patterson both sought to address what each said were the facts surrounding the 165 megawatt (MW) project, with both sides offering different perspectives on its viability and the role of the Inter-American Development Bank (IDB).

Edghill, defending the project, cited a 2016 report commissioned by the then APNU+AFC government as evidence that the Amaila Falls initiative was sound, despite criticism from Patterson who held the portfolio as Infrastructure Minister at the time.

Edghill read from the report, highlighting that while the design aspects of the project warranted review, the report affirmed the project’s overall viability.

According to the findings, the project was deemed an “optimal solution” to meet Guyana’s growing electricity demands. The report recommended that preparations for the project be resumed, underlining its alignment with the Low Carbon Development Strategy (LCDS).

Edghill noted that Blackstone Group’s involvement, alongside a guarantee from the Government of Guyana, made it financially feasible.

However, Patterson, who has long been a critic of the project, refuted these claims. He accused the current administration of misleading the public, insisting that the IDB had never endorsed the project.

Patterson pointed to the findings of an IDB due diligence report, which he said concluded that the project was too risky to support. Patterson also claimed that the IDB had advised against moving forward with the project, warning of potential threats to Guyana’s fiscal stability. He went as far as to assert that the APNU+AFC government had “saved” the nation by shelving it, after being warned by the IDB that it was not in Guyana’s best interest.

Edghill rebuked Patterson’s stance, noting that the project had and continues to enjoy support.

The IDB, in 2010, approved a technical cooperation project to partially fund preparatory studies for the project, including an Environmental and Social Impact Assessment, a Hydrology Review, and an Off-Taker and Market Assessment.

Edghill also asserted that the project was a critical component of Guyana’s sustainable energy future. He suggested that Patterson and the APNU+AFC had consistently opposed transformational initiatives.

“They are against everything big and transformational,” the Public Works Minister said.

The Amaila Falls project has a long history, first identified in 1976 during a national survey of hydroelectric power potential in Guyana. It gained renewed attention in the early 2000s as part of Guyana’s broader effort to transition to cleaner, low-carbon energy sources.

Back in 2014, the Guyanese government allocated US$80 million from the Guyana-Norway partnership under the LCDS to fund the equity component of the project. Despite support from Norway and a positive 2016 study by the Norwegian government, the APNU+AFC coalition voted to shelve the project, citing concerns over its financing and sustainability.

Fast forward to 2020, when the Irfaan Ali-led government came to power. The current administration has reignited efforts to revive the Amaila Falls hydropower project, aiming to diversify the country’s energy mix and reduce its reliance on fossil fuels.

The project has not yet taken off though the current Irfaan Ali- led administration requested proposals for a Build-Own-Operate-Transfer (BOOT) model in 2023. However, the country’s Foreign Secretary, Robert Persaud told the La Jolla Energy Conference that the government will soon seek favouable proposals again, in hopes of getting hydropower in Guyana’s growing energy supply before the end of the decade.

The project is viewed as a key element of Guyana’s long-term energy strategy, despite ongoing political opposition and debates over its feasibility. Persaud had also noted that second hydropower venture is being seriously considered.

READ MORE: https://newsroom.gy/2024/10/16/beyond-amaila-falls-guyana-serious-about-second-hydropower-project

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