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Former Member

Chinese Construction Company places bid for Amaila Falls road

April 12, 2012 | By KNews | Filed Under News

Under the Ministry of Public Works, three bids were submitted yesterday for the Amaila Falls road and transmission line clearing project (Section Seven) – Kuribrong River Bank to Amaila Falls Approach- at the National Procurement and Tender Administration Board (NPTAB).

Sithe Global, the developers of the Amaila Falls Hydropower Project, had chosen the China Railway First Group Company Limited to build the hydro plant in northwestern Guyana. This same contractor has also now placed a bid for a section of the road leading to Amaila Falls. This section involves virgin forest and is deemed the most challenging aspect of the road.

With an engineer’s estimate of $979,491,800 which was submitted by SRKN’gineering Consultants, the bids are as follows:

*Bidder*	*Amount*
China Railway First Group Company Limited	$2,435,077,722.91
In a Joint venture – B&J Civil Works in collaboration with Ivor Allen Construction and Dynamic Engineering Company Ltd	$2,059,413,700
Hassan N. Pasha	$837,367,013

The Amaila Falls Hydropower project is being vigorously pursued by the administration on the basis that it would significantly reduce Guyana’s US$350M fuel import bill and minimise the impact of fuel price movement on the cost of generating power.

The project which has the capacity to provide over 140 megawatts of electricity is to be located along the Kuribrong River in Potaro, Region Eight.

The contract awarded to Makeshwar ‘Fip’ Motilall of Synergy Holdings Ltd was terminated by government in January after months of delays.

Since Motilall’s US$15.4M contract was terminated, for failure to honour one of the terms of a completion agreement, Toolsie Persaud Quarries Inc. was awarded the contract to build the Kurupukari junction and it also holds the contract for section four. The project, which will now be executed in lots, will see other contractors being recruited.

Section five has been allocated to Ivor Allen, while section six is yet to be allocated.

Meanwhile, under the Guyana Revenue Authority (GRA), the NPTAB received six bids for the completion and modification of the CLICO building, Camp Street, Georgetown.

The engineer’s estimate is $253,997,117 and the bids:

*Bidder*	*Amount*
G. Bovell Construction Services	$213,004,132
Andrew Howard Construction Services	$220,599,302
Pacific Service System	$424,849,865
Cummings Contracting & Construction Services	$180,179,297
Aura Engineering Company	$215,112,370
Cummings Electrical Company Ltd	$227,157,135

Replies sorted oldest to newest

Former Member

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Does it cost US$350 mill per year for fuels to operate the caterpillar engines at GPL? I doubt it. The US$350 mill includes importing gasoline and diesel.

4/12/1212:56 PM

Former Member

Simply, as usual, your personal opinion and doubts.

4/12/121:01 PM

NehruBig Mouth Member

bHAI, rEADING AND UNDERSTANDING IS LIKE iLE AND wATA FOR SOME.

4/12/121:03 PM

Former Member

Originally Posted by Demerara_Guy:

Simply, as usual, your personal opinion and doubts.

This is not opinion...the BOG has the data of the annual fuel import bill. Check it out.

4/12/121:09 PM

Former Member

Originally Posted by PRK:

Originally Posted by Demerara_Guy:

Simply, as usual, your personal opinion and doubts.

This is not opinion...the BOG has the data of the annual fuel import bill. Check it out.

Dat us true gurl...de numbah can't lie.

4/12/125:22 PM

Former Member

Originally Posted by Tar_K:

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Does it cost US$350 mill per year for fuels to operate the caterpillar engines at GPL? I doubt it. The US$350 mill includes importing gasoline and diesel.

It looks like you are not in favor of the Hydro project. Everyone knows that it is the right move except you and the AFC who reject this project just because it is being carried out by the PPP. Granted that the bill seems high when compared to return but regardless it will payoff for the future generations and posterity.

4/13/126:51 AM

Former Member

Da man TK gatt wan point, datt 350 mil cyaat be only fa GPL catapilla, datt muss be all abie gyass and diesel. But TK, yuh muss rememba, datt falls gon gi abie nuff mo powah dann dem GPL catapilla. We gon ga nuff nuff powah fuh set up factry and tings.

Mi gatt mi queshuns thoo, dem seh abie gatt nuff gyass, wy abie nah mek cupple gyaas turbine. Anyway, mi tink dem smaart bais at free-dumb house knoo wah dem ah do. Dem gon gi di Chinee company, bring 10k Chinee wukmen and mek dem citizen foa nex elekshun. Dem bais wutliss no ass.

4/13/127:40 AM

Former Member

Originally Posted by Nehru:

bHAI, rEADING AND UNDERSTANDING IS LIKE iLE AND wATA FOR SOME.

Ah wenn yuh gon invite abie to yuh qwe qwe nah?

4/13/127:41 AM

Former Member

Originally Posted by BGurd_See:

Originally Posted by Tar_K:

-------------------------------

TK: "Does it cost US$350 mill per year for fuels to operate the caterpillar engines at GPL? I doubt it. The US$350 mill includes importing gasoline and diesel."

DRUGGIE: "It looks like you are not in favor of the Hydro project. Everyone knows that it is the right move except you and the AFC who reject this project just because it is being carried out by the PPP. Granted that the bill seems high when compared to return but regardless it will payoff for the future generations and posterity."

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My concern stems from the sustainability of this project and I doubt whether it will reduce the price of electricity. I am not against hydro, especially since it is a renewable source of energy. Anyhow...why don't you write down your calculations here showing us it will pay off? What is posterity from a project appraisal standpoint? What is your IRR and your discount rate? Tell us druggie.

4/13/1210:06 AM

WallySenior Member

I disagree with DG when it comes to hydro only because it is expensive to build and maintained. I think we as a nation can get electricity rates reduced by using wave generators and Wind power around the Atlantic Ocean and rivers. This can be done particularly around Georgetown, New Amsterdam and Essequibo islands.

4/13/1210:37 AM

Former Member

Originally Posted by Tar_K:

Originally Posted by BGurd_See:

Originally Posted by Tar_K:

-------------------------------

TK: "Does it cost US$350 mill per year for fuels to operate the caterpillar engines at GPL? I doubt it. The US$350 mill includes importing gasoline and diesel."

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We are going to end up with the highest cost per Kh for electricity with this Hydro scheme.

4/13/1211:01 AM

Former Member

Originally Posted by Wally:

I disagree with DG when it comes to hydro only because it is expensive to build and maintained.

I think we as a nation can get electricity rates reduced by using wave generators and Wind power around the Atlantic Ocean and rivers.

This can be done particularly around Georgetown, New Amsterdam and Essequibo islands.

You have the opportuinty, as a private individual, to build your projcts at the locations for your clients, plus negitiate to supply excess energy to the Guyana Government.

4/13/1212:41 PM

Former Member

Originally Posted by Tar_K:

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In fact your concerns stems from your fear that Guyana will benefit from this project. The mantra of the AFC is "what is bad for Guyana is good for the AFC" in line with its political ambitions and desire to see the PPP fail.

It is not for me to provide these numbers, they have already been debated by the aFC boys via their favorite method of analysis of guessing and bottom house research. If the Chinese and other investors see promise in this investment then it must be viable contrary to AFC claims. The gog would not get the financing if this project was a bad investment. ahhahaha

4/13/126:29 PM

Former Member

Originally Posted by BGurd_See:

Originally Posted by Tar_K:

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The average consumer might not be better off with electricity from Amaila than they are under the current tariff system

Posted By Stabroek staff On April 13, 2012 @ 5:03 am In Letters | No Comments

Dear Editor,

As the National Assembly considers the 2012 Budget, including the significant proposed government contribution to the Amaila Falls Hydropower project, we have undertaken an exercise to calculate, based on publically available information, the estimated electricity cost arising from the project. This exercise involved calculating the Levelised Cost of Electricity, a technique that factors in both capital and operation and maintenance costs, and computes a break-even figure for the plant in terms of $/KWh.

Using estimates on capital structures released recently in the media, and along with assumptions regarding capacity, distribution and transmission losses available from secondary literature, we have estimated that the break-even tariff will not be significantly below the tariffs currently facing GPL customers, especially those in the residential sector.

This analysis did not consider the wider system costs of integrating Amaila Falls into the GPL system nor did it make provision for future national electricity needs. Indeed it generally adopted a best-case scenario to give a most conservative estimate of the break-even tariff.

Hence these estimates indicate that the publicised financing structure of the project would not leave the average consumer significantly better off than under the current tariff system.

This is in sharp contrast to the claims being made that the Amaila Falls project would transform the Guyanese economy by offering significantly lower electricity tariffs. We shall be presenting the findings of our exercise on April 18 at 11am at a seminar in the Education Lecture Theatre of the University of Guyana. We hope that many stakeholders will be able to attend as we shall welcome discussion from all sides on the assumptions and results of the analysis, and the possible implication that we need to proceed cautiously on the use of public resources in this project.

Yours faithfully,

Tim Laing

Thomas Singh

4/14/129:40 AM

Former Member

DRUGGIE: "It is not for me to provide these numbers, they have already been debated by the aFC boys via their favorite method of analysis of guessing and bottom house research."

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So you do not possess the ability to analyze numbers. You parrot as a dunce.

4/14/129:42 AM

Former Member

Originally Posted by Tar_K:

The average consumermight not be better off with electricity from Amaila than they are under the current tariff system

Might not is quite different from will not.

4/14/121:44 PM

MitwahSenior Member

Originally Posted by Demerara_Guy:

Originally Posted by Tar_K:

The average consumermight not be better off with electricity from Amaila than they are under the current tariff system

Might not is quite different from will not.

How long it took you to come to this conclusion?

4/14/121:53 PM

Former Member

Originally Posted by Tar_K:

--------------------------------------------

The average consumer might not be better off with electricity from Amaila than they are under the current tariff system

Posted By Stabroek staff On April 13, 2012 @ 5:03 am In Letters | No Comments

Dear Editor,

Hence these estimates indicate that the publicised financing structure of the project would not leave the average consumer significantly better off than under the current tariff system.

Yours faithfully,

Tim Laing

Thomas Singh

This is your evidence that the hydro project is a bad investment? An unsubstantiated letter writers comments on an analysis without quotations and evidence to support his claims???

Would you accept this as a proper research paper from your students? I suggest that you hold yourself to the same standards as you hold your own students. hahahahah

4/14/121:57 PM

Former Member

Originally Posted by Tar_K:

DRUGGIE: "It is not for me to provide these numbers, they have already been debated by the aFC boys via their favorite method of analysis of guessing and bottom house research."

----------------------

So you do not possess the ability to analyze numbers. You parrot as a dunce.

I will leave the analysis to the experts, my contention is that if the financiers are comfortable with investing their money then the cost is justified. I will not engage in bottom house analysis, I will defer to the experts. hahahaha

4/14/122:01 PM

Former Member

Originally Posted by BGurd_See:

Originally Posted by Tar_K:

DRUGGIE: "It is not for me to provide these numbers, they have already been debated by the aFC boys via their favorite method of analysis of guessing and bottom house research."

----------------------

So you do not possess the ability to analyze numbers. You parrot as a dunce.

It is the "comfort zone" of the financiers that bothers us. They see us as prey and the PPP are more concerned with graft than with their fiduciary responsibility to prudent managers.

4/14/122:37 PM

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Chinese Construction Company places bid for Amaila Falls road

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