Opposition fails to identify corrupt practices on Amaila Falls Hydro project - as first debate on  corruption  kicks off

Georgetown, GINA, August 19, 2012 -- Source - GINA

In spite of repeated claims by opposition parties A Partnership for National Unity (APNU) and the Alliance for Change (AFC) about rampant corruption, specifically corrupt practices surrounding the awarding of Synergy Holdings Inc., the contract to execute the Amaila Falls Hydro Power Project, they failed to identify such cases when given the opportunity this evening.

Noting the widespread controversy that has been generated by the opposition over projects  initiated by government, a series of debates on corruption, comprising both members of the opposition and government was organised to analyse controversial issues and to inform the public on them.

From Left: PPP/C MP Manzoor Nadir, CEO Guyana Power and Light Bharat Dindyal, Prime Minister Samuel Hinds, moderator Al Creighton; APNU MP Carl Greenidge; AFC Leader and MP Khemraj Ramjattan and representative of Guyana Manufacturers and Services Association- Mahendra Neil Chand during the NCN debate

The first of this series was aired tonight on the National Communications Network, and addressed the issues related to the Amaila Falls Hydro Power Project.

The project entailed the construction of a new 165 megawatt hydroelectric facility at Amaila, Region 8 and will create an opportunity for Guyana to generate its own power from a clean, natural source and bringing with it a dependable, affordable source of electricity fostering growth and economic development in the country. When constructed, the plant will deliver electricity to Georgetown and Linden.

Government in March, 2010 awarded Synergy Holdings Inc., a US$15.4M contract for the construction of an access road leading to the facility. However in January last, government  quashed the company’s contract because it had failed to honour one of the terms of a completion agreement agreed to on the project. At that time, the contractor had completed 40% of the works.

The project comprises three components;- the hydropower plant where a dam would be constructed at the point where the Amaila and Kuribrong rivers meet to create a reservoir upstream of the dam; Transmission Lines: the building of a high-voltage 230-KV transmission line along with electric substations in Linden and Georgetown; and ano access road: approximately 65km of road to be built connecting the project site to the existing Bartica-Potaro road along with the construction of a 20 km road from the existing Mabura Hill highway to the Essequibo River.

Opposition parties accused government of awarding an incompetent contracting company, (whose president they claimed  was a friend of Former President Bharrat Jagdeo), the contract because of kickbacks.

A section of the live audience

These and other claims of corruption the opposition failed to show evidence during the debate on the issue.

Leader of the AFC Khemraj Ramjattan conceded that the project is something that must be supported and campaigned for the release of information to the public so that a project of such magnitude could be scrutinised, with the aim of delivering a quality facility for the benefit of all Guyanese.

Whilst Ramjattan indicated that millions of dollars of taxpayers’ money had to be spent for the construction of the Amaila Falls access road, he failed to produce evidence of corrupt practices on the part of government or its officials on the award of the contract.

PPP/C MP Manzoor Nadir indicated that Synergy Holdings was not awarded the contract because of favouritism but, because of the fact that they submitted a bid, with the lowest evaluation for the execution of the project.

This statement by Nadir dispelled APNU’s point man on Finance Carl Greenidge’s argument that the contract was illegally awarded. Greenidge however, held fast to his position that a project of such magnitude which can be classified as the country’s largest investment should be properly supervised and the technical experts should continue to review the final cost of electricity that will be delivered, in light of the threat of external issues such as inflation and the rising cost of fuel prices.

President of the Guyana Manufacturers and Services Association Mahendra Neil Chand called for all parties to come together to work on the project as it is a signature one, that will see Guyanese, not only paying a much cheaper rate for the provision of electricity, but the project will also amass economic fortunes for the country.

Prime Minister Samuel Hinds quashed all arguments posited by opposition members when he informed the public that the project has been transparent from the inception, with information being made available.

“Fip (Motilall) was one of five who expressed interest and started doing some work…we need to separate the handover of the power plant from the road,” Hinds said.

The Prime Minister added that whilst some amount of work was completed by Synergy Holdings they were only paid for what was finished.

Mr. Hinds asserted that in these sorts of project government could refer to the Upper Mazaruni project being executed under the PNC regime, where US$300M was spent and the project never came to fruition.

GPL’s CEO Bharat Dindyal said the project will address two major issues; the cost of electricity and the lower price to consumers. With rising fuel prices, GPL spends millions of dollars for fuel to be used for the provision of electricity. The project which will see power being generated from natural sources (water) will see less money being spent to procure fuel for electricity, and over time, will see government spending less to purchase fuel to provide its citizens with electricity.

Dindyal added that even though the project will see the provision of cheaper electricity, the  culture of electricity theft still remains. He asserted that a technological approach, which would see the upgrade of GPL’s system, would serve to reduce technical losses experienced through electricity theft.

The Amaila Falls Hydro Power Project falls under government’s Low Carbon Development Strategy (LCDS) as it will reduce generating costs, thereby lowering the retail cost of electricity to the consumer.

It advances the government’s goal committed to through the LCDS, by taking advantage of a key natural resource in the country (flowing rivers) to generate clean and reliable electricity. Amaila when constructed will replace older existing thermal power plants, which use fossil fuel oil, thereby eliminating carbon (greenhouse gas) and other air quality pollutant emissions.

The project will also help stimulate the local economy during its four- year construction and beyond as it will provide the country with a reliable source of electricity.