Kaieteur News refuses Sithe Global advertisement

Jun 19, 2011 News

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– After company declines to answer questions

The publisher of Kaieteur News has refused to publish advertisements requested by Sithe Global, the developers of the Amaila Falls Hydro Project, as a principled position given the company’s refusal to answer questions posed by this newspaper.
“If neither the government nor the opposition would take a stand, Kaieteur News will take a stand in the interest of this nation and its people,” Glenn Lall, publisher of Kaieteur News said in explaining the decision of the newspaper.
In determining not to ask questions, Sithe Global is breaching its own stated intention “to continue an open dialogue to keep members of the public informed.”
Lall said it is a shame that the company, which is developing what the government touts as the single-largest project this country has ever seen, would refuse to answer legitimate questions about the project. Further, Lall said it is inconceivable that a company which is developing such a project, on which tax payers dollars will be spent, does not have a local office from which information can be accessed and questions asked.
Further, the advertisement, carried in other media, and under which Sithe Global seeks to provide generalized information about the project, lists a number which no one answers. In fact, the advertisement does not say who it is that persons would be speaking to when they dial the number.
Calls to the number, 695-3246, are automatically directed to a voice mail which says: “Thank you for calling Amaila Falls Hydro Inc. Please leave a message at the sound of the tone and we’ll return your call soon.”
Messages were left by Lall, and Editor-in-chief Adam Harris, but to date the calls have not been returned.
“This newspaper would not be used as a football for Sithe Global,” Lall said, explaining that Kaieteur News would not be used conveniently by Sithe Global. He reasoned that Sithe Global is seeking to meet requirements for funding, and a necessary part of this deals with public awareness and consultation, hence the placement of the advertisements.
“Sithe global is saying you have no right to ask questions, but whatever they want to say to this nation, to fulfill their own selfish ambitions, they would do so by way of advertisements, but Kaieteur News will have none of that!” Lall declared.

Towards the end of May, James McGowan, Senior Vice President of Sithe Global, said via email, that the company had already spent “several million dollars” on developing the project.
Kaieteur News then emailed McGowan, asking him to say exactly how much money was spent and to say what this amount of money was used for.
McGowan did not respond, and instead, the Kaieteur News reporting following the story was sent an email by the Sithe Global team stating: “Thank you for your interest in the Amaila Falls Hydropower Project. We will not be commenting further at this time. For more information, please see www.amailahydropower.com.”
Financing for the project, estimated by Sithe Global to cost between US$650 million and US$700 million, has not yet been finalised.
The Kaieteur News publisher said that it is this newspaper which has championed the cause of Guyanese tax payers by asking legitimate questions about the project, and it is this newspaper which has exposed inconsistencies.
Lall stressed that this newspaper is not against the development of the project, but would seeks to ensure that it is done in way that demonstrates transparency and accountability.
Sithe Global only received permission 18 months ago to develop the project, after the original developers, Synergy Holdings lost its licence.
Prime Minister, Samuel Hinds, has claimed that in the 13 years Synergy Holdings held the licence it spent US$5 million, which chartered accountant and civil society activist Christopher Ram has questioned, given that this is not accounted for in the company’s accounts.
Less than six months after Synergy Holdings, under Makeshwar “Fip” Motilall, realised he could no longer develop the Amaila Falls Hydro Project and agreed to have the licence granted to Sithe Global (October, 2009), Government handed him a US$15.4 million contract to build roads and bridges leading to the project site.
The government announced the award of the contract to Motilall on March 26, 2010.
Synergy Holdings was given the first notice to proceed on October 5 last year for some sections of the road, while the green light for the other section through virgin rainforest was given on January 11, this year.
Those bidding for the contracts were asked to provide their experience in similar large scale projects together with references and credentials, and detail the equipment he owns and would require to carry out the project.
It is Kaieteur News which has called into question Synergy Holdings’ experience and its ability to execute the project.
Both the head of Synergy, Fip Motiall, and the government has left many questions unanswered regarding the award of the project.
“Kaieteur News has shown beyond a shadow of a doubt that the award of the contract to Synergy Holdings was a bad deal, and that has come to past,” Lall stated.
Sithe Global claims that its executive team collectively has over 30 years experience in “implementing large scale, socially responsible power generation projects around the world and they have a track record of successfully bringing projects from concept to completion at a competitive price.”
The fact is that Sithe Global has never undertaken a hydro-electric project before, and the one it is currently implementing in Uganada is fraught with concerns, including that it could eventually add up to double the original cost.
Sithe Global is building the Bujagali Hydroelectric Project, a 250 MW station currently under construction on the Nile River in Uganda.
On October 13, 2009, the National Association of Professional Environmentalists in Uganda (NAPE-Uganda) website reported that “The Ugandan Minister of Energy, Hon. Hillary Onek said the Bujagali project is expensive and a bad project for Uganda.
According to the Bank Information Centre, a Ugandan government document projects that the Bujagali project will in fact raise power costs despite claims by the project sponsor  that power tariffs would decrease once Bujagali becomes operational.
“With a price tag of $860 million and climbing on news that unforeseen engineering challenges will further delay the project, Bujagali is now among the most expensive hydropower plants in the world,” it was stated. The project had been originally slated to cost some US$530M.
Lall said that by not providing answers to legitimate questions, the development of the Amaila Falls Hydro Project could end up the same way the road project did.”
“The mere fact that Sithe Global is refusing to answer questions posed by this newspaper is clear that they want to tell this nation what they want by way of advertisements,” the Kaieteur News publisher said, noting that what the company should be doing is answering legitimate questions which this newspaper could then report to the citizens of Guyana.
“This newspaper will not be used by the company to say what they want to say, whether they pay or not,” Lall declared.

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