Spin Cycle – Projects lost in paperwork

Aug 29, 2008 Features / Columnists

Peter R. Ramsaroop, MBA

INTRODUCTION

With Guyana’s huge Agricultural, Mineral, and Water opportunities, an engine of growth can be created with massive job creation for Guyanese at home and the Diaspora. There is an urgent need for our Government to implement bold initiatives without further delay.

The cost of lost opportunity is high. It seems like once projects are put in the washing machine they get stuck in the spin cycle.

WHERE IS THE HYDRO-ELECTRICITY?
In the 1970s, many of us heard President Burnham’s visionary plans to build a hydro-plant in the Mazaruni area and he started to build roads and bridges.

When he did not obtain the loan the project stopped, only to have the roadway and culverts washed away after the next rainfall.

A few years ago we heard the current President talking about the Amaila Falls Hydroelectric Project. This deal was signed two years ago by a company called Synergy Inc. and the Prime Minister. Lots of promises were in this agreement, and as of this date nothing has materialized.

We cannot say the current President was visionary since it was a previous president’s idea. The government is now looking for new bidders for the project but we are already ten years behind schedule.

Today it costs approximately US$5000.00 per Kilowatt to build a hydro power station due to increased energy and equipment costs.

In the case of Guyana for Amaila Falls, a 100 Megawatt station would cost around US$500M and that does not include the cost of the transmission tower which has to be built on a rocky terrain and across two rivers as well as roadways through the jungle to transport equipment and materials to build the station.

WHERE IS THE ETHANOL PRODUCTION PROJECT?
It was recently stated that 50,000 acres have been set aside for Ethanol, which is not enough to entice any developer. Ports will also have to be built, extensive engineering carried out as well as infrastructural works.

Accessibility and maintenance of the scheme also have to be considered when calculating the cost and viability of the project.

The developer also has to take a chance that gasoline will remain above current prices per litre, bearing in mind Ethanol energy is 33% less than that of gasoline.

Last week in a West Indian local paper it was reported that Brazilian investors are building a US$35M plant in Barbados to process refined ethanol from ethanol imported from Brazil. Both of the above projects – Hydro Electric and Ethanol Production – appear to be pipedreams.

WHERE ARE OUR BETTER SEA DEFENCES?
Guyana also faces major sea defence and D&I problems in the coming years due to poor maintenance, planning and execution over the years.

I will not be surprised if major breaches in the sea defences occur in the next spring tide, despite the billions spent so far.

To date over US$100M have been spent building rip-rap sea defences that have a limited ‘shelf life’ of only 10 years and require annual maintenance that has never been carried out.

Why do we continue to waste our precious tax payer’s money on projects done by novices versus experts like the Dutch had in the 1800s.

HAVE WE REALLY FIXED DRAINAGE AND IRRIGATION?
The entire drainage and irrigation (D&I) is in a complete mess after years of poor maintenance and planning over the last 30 years.

When the previous Government nationalized the Sugar Industry in the 1970s no maintenance was carried out to the conservancy until an attempt was made in 2004 to raise the dam by four feet to hold more water.

I am not an engineer, but to put extra load on a pegasse foundation is sheer madness. Millions have been spent to date to correct this misadventure, without success. Of course, the Government is blaming heavy rainfall and global warming for the problem.

Guyana also cannot continue the present MMA Scheme because of the Abary River becoming silted due to improper operation of the Scheme.

The last stage of the Scheme to the East Demerara Conservancy cannot continue until the river is desilted, which is literally an impossible task.

The farmers in the Mahaicony area have to continue to live with the perpetual flooding whenever there is rainfall. The Government cannot continue to blame global warming and rising sea levels for their own man-made problems.

WHY DELAY THE OGLE AIRSTRIP EXPANSION?
A group of Distinguished Private Investors invested their monies for Ogle Airstrip to be an International Airport. Guyana Government wants a share in the Company for the European Grants received.

More visitors may have come into Georgetown for Carifesta if Ogle was an International Arrival Airport, with Immigration and Customs facilities. Why then do we see this standoff with the private sector?

CONCLUSION
Big projects need big investments, which can be provided by the Global Investing Community. Big projects done right will result in lots of jobs, for people at home and Guyanese in the Diaspora.

If our Government is serious about the wellbeing and development of our citizens and nation they must get out of the washing machine spin cycle and dry off and move on.

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