Latest update February 7th, 2025 2:57 PM

Guyana's largest selling daily and New York's most popular weekly

Latest News

Govt. says safeguards in place

Apr 17, 2010 News

…local investment will reduce overall repayments – Brassington

Finance Minister, Dr Ashni Singh, in a recent press briefing said that they are satisfied that the interest of Guyanese will be protected as it relates to the US$15M award for the construction of the roads and related infrastructure paving the way for the Amaila Falls Hydro Electric Project (AFHEP).
This was disclosed by Dr Singh who said, “We have the customary safeguards built into contractual arrangement.”
This, he said, include mobilisation and performance guarantee bonds to the tune of some US$3M which was posted by Hand in Hand Group of Companies to back Makeshwar Fip Motilall, the Head of  Synergy Holdings Inc. who received the US$15.4M contract.
Repeated efforts to contact Chief Executive Officer of that company, Keith Evelyn, proved futile while Company Secretary, Shaheed Essack, deferred calls to a company manager, Howard Cox, who also could not be reached.
According to Dr Singh, the bonds were part of a standard arrangement that secures and protects “our interest”
He added, too, that the project will be continuously monitored and supervised to ensure that it is implemented successfully.
“We will work in earnest with the contractor…so that the project can be realised in the national interest of the people of Guyana.”
But for all that, it has been discovered that the US$3 million bond has not been reinsured by London. This means that any loss would have to be born by Hand in Hand.
Dr Singh said that the government is committed to ensuring that the AFHEP becomes a reality, stressing that the project is still envisage as a public private partnership.
He added, though, that a greater part of the capital will be from private funding, pointing out that, “We will play a significant facilitative role in ensuring project is realised.”
Dr Singh said that the Government at present has the opportunity available to help to catalyse the project “as is the case with the road.”
He suggested that should the road be completed in a timely manner, “Then we are willing to make interventions.”
Head of National Industrial and Commercial Investments Limited (NICIL), Winston Brassington, who was also present at the press briefing, took the opportunity to stress that the more money that is injected into the overall project by Guyana will reduce the overall tariff that will have to be paid in the long run.
He explained that the more money injected by the government will reduce the amount of money that will have to be paid back in interest and tariffs.
“This is what we are looking at…the Government has said as part of the LCDS ( Low Carbon Development Strategy) that the development benefits that will come from LCDS monies will be channeled to projects like this so that we can lower the cost of electricity.”
Brassington stressed, also, that if the roads are not built ahead of the substantive project, then when all of the money is committed the overall payments will be higher, given the fact that the contractor building the project would have had to incur that cost and as such, the Guyana Government would have to repay a higher amount.

Similar Articles

The Glenn Lall Show | February, 3rd, 2025

Follow on Tik Tok @Glennlall

THE BLUNT OF THE DAY

Sports

Corbin century, fast-bowlers give CCC lead as champs face stern Day 3 test

Corbin century, fast-bowlers give CCC lead as champs face stern Day 3...

Feb 07, 2025

2025 CWI Regional 4-Day Championships Round 2…GHE vs. CCC Day 2 -Eagles (1st innings 166-6, Imlach 58*) trail CCC by 209 runs  Kaieteur Sports- Combined Campuses and Colleges (CCC) owned Day 2...
Read More
Powerlifting to kick off year with Novices/Juniors on February 16

Powerlifting to kick off year with...

Feb 07, 2025

North Essequibo cart off ECB Busta-sponsored T20 trophy

North Essequibo cart off ECB Busta-sponsored T20...

Feb 07, 2025

Construction progress of five New Stadiums, Palmyra leading the charge

Construction progress of five New Stadiums,...

Feb 07, 2025

Inclement weather forces BCB to halt cricket competitions in Berbice

Inclement weather forces BCB to halt cricket...

Feb 07, 2025

EBDCA/D&R Construction 40-Over Cricket Competition continues

EBDCA/D&R Construction 40-Over Cricket...

Feb 06, 2025

Features/Columnists

Publisher’s Note

Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.

Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]