US$12.8M to put down 1-1/2 Megawatt hydro in Region 9, upgrade Moco Moco plant

Dec 06, 2022 News

Kaieteur News – The Government of Guyana has entered into an agreement with a Sri Lankan firm, Vidullanka PLC to build a new 1.5 megawatt (MW) hydropower project at Kumu, Region Nine.

The contract was signed on November 22 last to the tune of US$12.85 million between the Guyana Energy Agency (GEA) and Vidullanka PLC. This newspaper understands that the EPC project is being funded by Guyana through financing from the Islamic Development Bank (IsDB).

As part of its scope of works, the Sri Lankan firm will also rehabilitate and upgrade the defunct Moco Moco hydropower plant to some 0.7MW capacity. The main objectives of the project are to support the Government’s drive for a low-carbon, climate-resilient economy by providing affordable, stable and reliable electricity using Indigenous energy sources, reducing fossil fuel consumption and CO2 emissions.

The key results of the project are to increase access to electricity to the population in Lethem and the nearby villages of Kumu, Moco Moco, St Ignatius and Quarrie, the Office of the Prime Minister said.

Government is building a new 1.5 megawatt (MW) hydropower project at Kumu, Region Nine

The hydro projects will be executed by the GEA. It was explained that a Project Management Unit (PMU) comprising key technical and administrative staff assisted by other senior staff from the GEA will oversee the execution of the project. Bids for the projects were retendered on February 28 of this year with the issuance of the Specific Procurement Notice (SPN). The closing date for the submission of bids was April 28, 2022. Three bids were received and following a review, negotiation, no objection and approval process, the EPC contract was awarded to Vidullanka PLC of Sri Lanka.

A team from Vidullanka PLC is expected in Guyana by December 15, 2022, to commence preliminary works at the Kumu and Moco sites. The expected completion date for the project is December 2024.

Public consultations with key stakeholders, including the RDC, Town Council, LMPC and Village Councils and residents of Moco Moco, Kumu, Quarrie and St. Ignatius, were held to provide updates on the status of the project, address all concerns/issues and to seek their views and advice. The most recent consultations were reportedly held on February 22-25, 2020 and February 28, 2021. A follow-up consultation is scheduled for this month.

Prime Minister, Brigadier (Ret’d), the Honourable Mark Phillips, who has responsibility for the energy sector and who has been working to enhance the electrical capacity of the region, had visited the Lethem Power Company and the Moco Moco hydropower sites in late October.

According to its website, Vidullanka PLC has over two decades of experience in the renewable energy power generation sector in Sri Lanka. It has completed about 14 projects with a total capacity of 36 MW. The company also completed renewable projects in Uganda. The People’s Progressive Party/Civic (PPP/C) Government has committed to transitioning towards a greener economy utilising renewable energy such as solar and hydropower, and to move away from the use of fossil fuels such as hydrocarbon powered electricity generation plants.

In pursuing this agenda, however, the government has resorted to borrowing hundreds of millions of dollars from a number of bilateral partners and international financial institutions to fund a number of small hydropower projects in some hinterland areas. This is in addition to a number of other small projects such as small wind and solar farms to be constructed as part of the administration’s Energy Diversification Matrix. Oil revenues however, 100 percent of which is being put towards budgetary support for the 2022 biggest budget ever – $552.9B – will be going towards the construction of a 300 megawatt hydrocarbon fired gas plant at Wales, West Bank Demerara.

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