NO TIME FOR SILENCE

May 03, 2010 Features / Columnists, Peeping Tom

Given the revelations exposed by this newspaper in relation to the road contract awarded to Synergy Holdings Inc, it is now clear that the contract should be put on hold and a commission of inquiry launched to determine just went wrong with this deal.

Heads must roll because there have clearly been problems in terms of the manner in which this entire issue was approached. Questions can also be raised as to the handling of this matter by the Cabinet.

It is quite ridiculous for any official of the government to take refuge in the view that there are technical persons who had jobs to do and the government therefore cannot be blamed for any problems arising from the technical adjudications.

Given the size of the contract involved, Cabinet would most likely have had to give a no objection to the award of this contract. In doing so it would have needed to satisfy itself that the technical personnel evaluating this tender would have carried out the necessary due diligence and would have satisfied itself that the contractor had the requisite experience and the ability to undertake these works.

So was Cabinet satisfied that due diligence was conducted on the project? Did they request to see a copy of the due diligence done on the company? If they did not, they must answer why they did not and face the consequences of their failure to ensure that the credentials of the company were beyond reproach.

The construction of a 150 MW hydro power plant will be the largest ever project in the history of Guyana.

And it is downright unacceptable for the public to have been offered the explanations which have been forthcoming from the government in relation to both the construction of the hydroelectric dam and the building of the access roads.

In the case of the latter, there are concerns not just about the experience of the contractor but also about why the government has to find the financing for the roads and not the financial sponsors of the hydropower plant.

It means in effect that the taxpayers of this country are building roads to support a private investment which will yield returns to the investors while the access road will constitute an expense on the taxpayers of this country.

It is insulting the intelligence of the Guyanese people to be told that when completed the plant will yield electricity savings and that our total electricity needs will be met by the station. Well, if the cost is only going to be halved, does it make any sense to go ahead with this project?

Given the levels of inefficiency and losses in the electricity system at the moment, it is quite possible to achieve a halving of tariffs without having to build a 150 MW station.

If on the other hand this project will meet the future electricity needs of the country, then it makes practical sense to ensure that the best deal is possible. Has the government’s handling of this deal encouraged public confidence that the best deal is possible?

How can anyone have confidence in the government’s handling of this deal when a straight ” yes” or ” no” answer cannot be given to whether due diligence was done on the contractor awarded the road contract.

This newspaper has done some work and what it is revealing is shocking. In any other part of the world there would have been a huge uproar and pressure would have been brought on the entire government to resign.

The opposition has so far not made such a call. But while it remains weak at the moment, it must recognise how important this project is to the future of Guyana and therefore it has an interest in ensuring that the best possible deal is obtained since as has been stated, the hydro power station will satisfy the total needs of the country.

If the price is not right, and if there is long-term power sale agreement, it means that future administrations will be bound by this deal which can undermine the competitiveness of local industry.

It is therefore equally important that those leaders in the PPP who are serious about the development of Guyana, stand up and make known their views on this project which cannot be simply seen as enhancing the chances of the ruling party winning the next elections. This is not the time for fence sitting. It is no time for silence.

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