Latest update November 24th, 2024 12:15 AM
World Bank was never approached for financing – Country Rep.
World Bank Country Representative, Giorgio Valentini
With the lack of financial closure delaying the Amaila Falls Hydro Electric Project, World Bank Country Representative Giorgio Valentini yesterday disclosed that Guyana never approached the bank.
Valentini yesterday met with members of the local media in a bid to increase cooperation between the media and that entity.
He was asked about the World Bank’s position on the project, given the fact that as part of its support in Guyana in the short term it will focus on Climate Change.
“We never received a request from Guyana,” said Valentini, while explaining that the World Bank would only get involved in a project if it is asked to.
He said that following receipt of a request, the bank would conduct an assessment and necessary studies. The magnitude of the project in turn would determine the length of time for execution.
President Bharrat Jagdeo, in November last year, told media operatives that the Amaila Falls hydropower project would likely commence by the middle of this year, and is currently awaiting the approval of loans from the Inter-American Development Bank (IDB) and China Development Bank.
“We are looking at the loans for the project and we’re looking at the IDB and China Development Bank for that. We need to move to financial closure. Once that’s done, we can go ahead with the project,” the Head of State had indicated.
The Government of Guyana, Synergy Holdings Incorporated and the Guyana Power and Light Incorporated (GPL) entered into a Memorandum of Understanding on May 23, 2006, for the development of the power station at Amaila Falls hydro-electric project on the Kuribrong River in Region Eight.
At that time it was stated that financial closure and ground-breaking was targetted for August 1, 2007, with commercial operation by December 15, 2010.
At that time, the then developer of the project, Makeswhar Fip Motilall, President of Synergy Holdings Inc., had told Guyanese in the presence of President Jagdeo that the project enjoys the support of international financial institutions and its feasibility study is in compliance with the World Bank.
The global financial meltdown that subsequently followed was blamed for the lack of financial closure.
The World Bank provides financial and technical assistance to emerging market countries.
This usually has occurred when their economies are in danger of default through overspending, extensive borrowing, which often leads to hyperinflation, and currency devaluation.
The World Bank is not actually a bank in the common sense. Instead, it is made up of two development institutions owned by 186 member countries—the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
The World Bank provides low-interest loans, interest-free credits and grants to developing countries.
In return, the country must adhere to strict budgetary reforms. It must agree to cut back on spending and support its currency. The World Bank loans are usually to invest in education, health and infrastructure. The loans can also be used to modernize a country’s financial sector, agriculture, and natural resource management.
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