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Guyana’s readiness for Amaila…IDB funds comprehensive review of GPL’s operations, management
Government, through funding from the Inter-American Development Bank (IDB), is moving to conduct a comprehensive review of the state’s power company.
The review will come at a time when Guyana Power and Light Inc. (GPL) has embarked on a major US$40M programme to repair its aging power lines and when the country is preparing for a 165 megawatts hydro project at Amaila Falls, Region Seven.
IDB has been approached to plug US$175M into the project which could cost Guyana at least $840M, the largest infrastructure project ever in the country.
IDB is funding a comprehensive review of the state-owned power company and its readiness for the Amaila Falls Hydro project.
IDB has, as part of the conditionalities for the loan, reportedly have been insisting that GPL’s system must be ready for the power that will be produced. The bank is currently conducting its due diligence on the project. This includes a comprehensive Environmental Impact Study and an Economic Feasibility Study.
Over the weekend, IDB representatives during a meeting with the Opposition’s A Partnership For National Unity (APNU) disclosed that it is also conducting a detailed evaluation of GPL to determine its capabilities and capacity to manage the power from the Amaila Hydro project.
Specialist assistance will have to be made available to overcome any discernible deficiencies in GPL, APNU said in a statement.
The deadline for the closing of expressions of interest for a consultant to review GPL was on Friday according to the IDB advertisement.
Among other things, the consultant will have to assess GPL’s current management and operative structures and corporate performance in key business areas, such as planning, procurement, operation, network maintenance, billing and other areas.
“The assignment will include a detailed proposal of management structure, functions and performance monitoring mechanisms, as well as a design of necessary coaching and support to help GPL’s managerial functions and staff. The contract will be signed and supervised directly by the IDB,” the advertisement said.
GPL has been struggling to keep up with demands, battling an aging network and new housing schemes, despite the periodical new Wartsila power it has been adding time and again. It is now working to have 26 megawatts of power at a new plant at Vreed-en-Hoop, West Bank Demerara. Last year, as fuel prices remained high, GPL said it recorded a $4.8B loss.
The Opposition earlier this year, cut $5.2B from a Government assistance programme to GPL, saying that there is not enough transparency in how the power company is spending the monies.
Recently, GPL announced that it is forced to increase tariff by 26.7 per cent to stave off more losses this year.
However, an unfazed Opposition remained insistent that GPL must produce a clear plan on its programmes and current financial position. The Opposition also wants the entire GPL board removed.
Last week, President Donald Ramotar placed a hold on the proposed tariff increase.
Government is hoping to have financial closure and a start on the hydro project this year in which Guyana is plugging at least US$100M with the rest coming in loans from the Chinese government, IDB and the developer, Sithe Global.
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