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House approves over $2.9 B to subsidise fuel cost for power plants in Linden, other regions
Kaieteur News – The National Assembly on Monday approved over $2.9 billion as part of an end-of-year request by the Government of Guyana to withdraw sums from the contingency fund.
The amount represents more than half of the $4.7 billion the government is seeking for supplementary provisions for developmental projects countrywide. Among the sums approved is $1.7B for additional resources to support the Linden Electricity Company Inc (LECI) in Region Ten in Upper Demerara- Berbice. Prime Minister, Brigadier (Ret’d) Mark Phillips who presented the request was tasked with defending the sum as Leader of the A Partnership for National Unity + Alliance For Change (APNU+AFC) Opposition Aubrey Norton and Opposition Members of Parliament (MPs), Volda Lawrence and David Patterson questioned the reason for the hefty sum.
Prime Minister, Brigadier (retd) Mark Phillips
Lawrence noted the sum represents almost 50% of the voted provision included in the National Budget. She noted too that the Prime Minister’s Office received more than $3.5B for subsidies and projects when the national budget was presented earlier this year. The Opposition MP’s questions were supported by her Leader, Mr. Norton, who asked to be supplied with details of how the money for the LEC will be spent. Norton noted too that while the opposition is not against the government subsidising the cost of electricity for Lindeners, the sums to be expended must be open for scrutiny.
In response to the questions, PM Phillips explained that the additional $1.7B was expended to subsidize the rise in fuel cost to ‘keep the lights on in Linden.’ “As a caring government, we have decided that notwithstanding the increased cost of fuel, the government will absorb that cost and not pass it on to the people. “That is the only reason we have requested these monies,” the Prime Minister stated.
He further explained that the electricity is generated by the Bosai Minerals Group, which requested the additional sum due to the rise in fuel costs. “The LECI has a contract with Bosai…This is based on an invoice submitted by Bosai; cheques were written and paid to Bosai,” he noted.
In response to questions from Patterson on the cost of fuel, the Prime Minister explained that the government has a responsibility to ensure that the necessary resources are made available for adequate electricity supply in the mining town. “We don’t want to have a situation where Bosai cannot supply electricity and then we are running to get money or asking Bosai to continue to provide electricity while we try to get the money and the people of Linden suffer for a period of time without electricity,” he said.
Minister within the Ministry of Public Works
In addition to this, the Minister within the Ministry of Public Works, Deodat Indar pointed out that electricity projects in Region Nine will benefit from $110.7 million; Mabaruma, Region One will get $106 million and Kwakwani, Region Ten will receive $103.238 million. He said the electricity company in Port Kaituma, Region One will receive an additional $76.809 million, while Mahdia, Region Eight will get $49.020 million and Matthews Ridge, Region One, $20 million.
The minister told the House that there has been a 65 percent increase in fuel costs, as such, additional sums are needed. “These power companies operate on subsidies and the original subsidies earlier this year did not foresee that type of market fluctuation,” Minister Indar explained. He reminded the House that there is an entire programme under the Hinterland Electrification Company Inc. for the maintenance and surveillance of the utility companies. Additionally, approval was granted for $85.8 million in supplementary funding for the Guyana Power and Light Inc’s Power Utility Upgrade Programme (PUUP). The approved sum will facilitate the project’s closure.
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