Stop Gas-to-Energy Wales project before it becomes another failed Skeldon plant - Economist

Stop Gas-to-Energy Wales project before it becomes another failed Skeldon plant – Economist

Jan 08, 2023 News

Kaieteur News – Economist and Transparency Advocate, Ramon Gaskin is convinced that Guyanese must act now to stop the ‘sketchy’ US multi-billion- dollar Wales project less they wish to be left footing the bill of another failed government project.

The economist, who once served as Advisor to former President Cheddi Jagan believes that without the appropriate updated studies, citizens cannot just take the Government’s word that the US$2B Wales project will reduce the country’s electricity bill by half.

Economist, Transparency Advocate and former Presidential Advisor, Ramon Gaskin

He said that promises of viable, transformative projects have been made before and in the end, citizens ended up paying loans for projects that brought little to no value.

Gaskin told Kaieteur News that the Government refuses to provide an updated study on the project’s viability because it will not reduce electricity cost. He said that “any project for US$2B would not be in a position to reduce electricity rates in the country because at US$2B the loan has to be repaid, interest has to be paid, depreciation, and other factors have to be considered.”

Gaskin said that based on his assessment, to invest that massive sum of money into the Gas to Energy project, electricity rates would more than double to honour the debt. He explained too that last year the Guyana Power and Light advertised for 50megawatt of power to be supplied privately to add to the national grid by March of this year.

Gaskin said if Guyana’s power requirement is within that low bracket, then it cannot be understood why the Government would want to expend such large sums of money for more electricity than it needs. And without the financial assessments, this project, which is Guyana’s largest ever, is even more dangerous, Gaskin said. He insisted that “None of it makes sense and the project must be stopped before it is too late.”

Gaskin related that at this point, the Leader of the Opposition should be objecting to this project being approved by the Government without Parliamentary oversight. The Opposition Leader should demand from the Speaker of the House, a meeting of Parliament to discuss the viability of the country’s biggest project yet.

“We are talking about US$2B. This is not any little sum. Anytime you want to buy a motor car for the police force, an ambulance for the health sector, you got to go through a whole set of rules and guidelines. Budget sums have to be debated, tenders, procurement, where are the rules to spend US$2B?” Gaskin questioned.

He said the Parliament has not taken up the matter as they have not met to discuss the US$2B project. Speaker of the National Assembly, Manzoor Nadir in December of 2021 had thrown out a request by Opposition Member of Parliament, David Patterson, when he sought to debate certain environmental impacts from the proposed Gas-to-Shore Project, as well as the cost analysis of the initiative, when compared to alternative power generating options. The Speaker had told Patterson that he was not obliged to give reason for refusing the debates.

Gaskin is adamant however that the Wales project is more than half of the country’s budget and the spending of such sums is not allowed by law, to be utilised without scrutiny.

“The Constitution says that the Parliament must meet to discuss the Government’s business which is the People’s business and in Article 13, it speaks to inclusionary democracy, and that the People of the country must be consulted. There is nothing like that going on here. They are just going ahead doing what they want to do with Exxon and there is no consultation taking place, no documents or feasibility provided by the government.”

Gaskin reiterated that the Wales project must be stopped as the situation looks very similar to that of the failed Skeldon sugar facility. Gaskin said that like the Wales project, former Vice President Bharrat Jagdeo had touted the Skeldon investment as a feasible transformative one, especially for the sugar sector.

He said that the factory, which the Government partnered with a Chinese company to build for a massive US$200M was to grind some 450,000 tons of sugar but never worked.

Another failed project, Gaskin pointed to the Marriott branded hotel that was built by another Chinese firm and is now up for sale some eight years later.

The Vice President had also called the Marriott project a transformative one for the hospitality sector which needed a top brand hotel. Despite concerns over the ability to fill the hotel, the Government went ahead with the project only to have taxpayers’ foot the loan some two years later when the state owned company AHI, could no longer handle its debt.

Gaskin called on the Government to release the financial documents for the Marriot before it is sold so that citizens could understand how their money is being spent.

The Economist reiterated the need for the Government to provide information to the public so that citizens could have confidence in the decisions that are being made. Gaskin believes that there are more immediate needs in the country such as CT scans and other important health equipment for hospitals that warrant financing more than the exorbitant, sketchy Wales Gas to Energy project.