THE PRESIDENT SHOULD EXPLORE ALL OPTIONS

Aug 22, 2013 Features / Columnists, Peeping Tom

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The President should act like a President and not like an Opposition Leader. He is the elected Head of State and it is for him to find a solution to the impasse that has developed around the hydroelectric project.
There has to be a surefooted and positive approach to this issue rather than the government constantly bemoaning the lack of support by APNU for this project. Crying and complaining will not aid in bringing APNU on board. What is needed is considered action.
The President should weigh his options and decide on which to pursue. He should make some proposals based on these options. If none of these enjoy the support of APNU, then he should sign off on the project because it is no use wasting time if there is little hope that the project will enjoy the support of APNU.
That support was always going to be problematic. The PNC when it was in power failed to construct a hydroelectric project. It was out of its depth as regards this project. The concept was bad and the government lacked the ability to execute this project. The Upper Mazaruni Hydroelectric Project was always going to be too big for the PNC government.
The failure of the project had nothing to do with Venezuelan opposition. It was the failure of the project designed which was dependent on Venezuela purchasing excess power. With no power purchaser for the excess generation, the World Bank was never going to touch this project. In a subsequent column, the failure of this project will be elaborated on because many of the lessons of that undertaking can inform the present impasse.
The PNC could not even save the trail which it constructed in preparation for the Upper Mazaruni Hydroelectric Project. The PPP’s main priority at this stage should be to ensure that the jungle does not encroach on the road that it is building to construct this project because that would be a disaster and would mean millions going down the drain.
One thing should be clear. The combined opposition is not going to approve Budget support for the maintenance of that road. The government therefore has to find innovative ways of saving that road and this can only happen if they revisit the model of the project in order to avoid it being dependent on Budget support in the future.
The failure of the government to gain the support of APNU for the project should be seen as a blessing in disguise. It allows for them to now restructure the model of this project and in so doing to divest government of any equity participation in this project. In short, one of the options that should be considered is for this project to be put entirely in the hands of the private sector.
By removing itself from this project, the government does not have to worry about opposition support. There will of course be political risks but that is something that the investors will have to consider and which more than likely will mean higher tariffs. But at least what will happen is that Guyana will enjoy foreign exchange savings.
If the government does not wish to go that route then it has to explore other options for funding, including asking the Indian government to take over this project. India has expertise in constructing these small hydroelectric plants and may be willing to absorb the political risks involved.
There seems little hope of APNU ever supporting this project. The President should therefore not waste his time in calling for them to put the national interest first. The PPP ought to be aware by now of the countless occasions when the PNC and the PNCR sacrificed the national interest in order to further their own ambitions for power in this country.
The PNCR is not a party that should be expected to place the national interest above its own quest for political power and in the present political configuration the PNCR knows that should this hydroelectric project be constructed, its chances of winning political power will disappear and the attainment of political power has always been for the PNC and the PNCR more important than what is good for the country.
If, however, the President of Guyana feels that redesigning this project is beyond his administration or is not a realistic option at this stage, then it is for him to negotiate a truce with APNU. But this certainly cannot be successful if while seeking to court this support, the opposition is being publicly attacked from all quarters. You cannot win someone’s support in this way.
If in the end there is no end to the impasse, then it is time to move on. In that case, the people of Guyana should demand that the Opposition support the subsidization of electricity so that everyone pays the same tariff as that of Linden.

 

 

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