Despite hitting a stumbling block, the government’s much-touted Amaila Falls Hydropower Project (AFHP), will become a reality, Guyana’s President, Dr Irfaan Ali has assured the nation.
The President said Thursday that the government is committed to ensuring electricity costs are cut by half in the near future.
“Let me be very clear. We are not going to abandon this project even if we have to go out [to tender] again and again…because we know the studies and everything, including the independent review by Norway has pointed to this project as being good for Guyana, being good for the environment and bringing greater prosperity,” the Head of State explained.
In May, Vice President Dr Bharrat Jagdeo announced that the construction of the US $700 million AFHP project could go back to tender after the current executing company claimed they were unable to operate under the Build-Own-Operate-Transfer (BOOT) model it initially agreed to.
The Vice President explained that the company had requested to change the BOOT contract’s arrangement to an Engineering, Procurement, and Construction (EPC) contract.
Like the President, Dr Jagdeo affirmed that notwithstanding the delay, the government will still be moving ahead with the project, albeit with an extension of the timeline.
“If we can’t get it done under the BOOT, we will not be able to conclude the EPC finance model. We are stuck with the possibility of having to retender. That might be a bit of a setback but on the other hand, we are moving full steam ahead [with the project],” the VP had explained.
The AFHP project was expected to commence construction in 2022 and be completed in 2025, adding 165 megawatts (MW) of energy to the national grid.
The AFHP was first identified in 1976 by a Canadian company during an extensive survey of hydroelectric power potential in Guyana. Various studies have since justified and strongly supported the construction of the AFHP.
