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Mismanagement of electricity sector to cost Guyana US$ 373.6M – Patterson
Kaieteur News- The mismanagement of Guyana’s electricity sector will result in US$373.6 million in losses by the time the Gas-to-Energy (GTE) project is ready to supply power to the country.
This is according to Chairman of the Alliance For Change (AFC), David Patterson. In a statement on Saturday, the former Minister of Public Infrastructure, who held responsibility for electricity between 2015 and 2020, said the government has now embarked on a number of reckless spending activities to cover up their incompetence.
AFC Chairman, David Patterson.
He argued, “When the PPP announced that they had earmarked on what they claimed would be the single greatest “transformation” project in the country’s history, the gas to power project in Wales – the project budget was listed at US$810M with a completion date of two years, meaning that this project was slated to be completed by 2024.”
Further, Patterson noted that as per its own projections on receiving power from the project by 2024, the government sat on their hands and did nothing for three years to address the rising demand for electricity.
After being faced with the reality of a “grossly mismanaged” power sector, he said they then embarked on several reckless emergency spending activities to cover up for their shortfall. This included the purchase of 27 third-hand containerized generating sets, the rental of a 36MW powership, and another 75MW powership. These temporary measures were intended to address the country’s energy deficit.
According to Patterson, “Having finally admitted that the gas to shore project will not be operational, if ever, until the end of 2025, the cost of their incompetence is staggering.”
He went on to explain that the container sets were procured for US$27M. “By 2025, the cumulative cost to the taxpayers (procurement costs + fuel + transportation) will be US$95.1M. Two years of rental and operational costs for the 36MW powership will be US$130.7M, and one year rental and operational costs for the 75MW powership will be US$147.8M. So, in total, their mismanagement has cost the country an additional US$373.6M,” the Opposition Parliamentarian reasoned.
He was keen to note that the US$373.6M could have been used to procure new generating sets for the Guyana Power and Light (GPL) Inc, which would remain on stand-by if the gas plant developed a fault or has to be taken offline for maintenance purposes.
Moreover, the former Minister highlighted that the US$373.6M and counting, being spent on temporary measures is nearly half of the original cost of the Gas-to-Energy (GTE) project.
He urged the government to inform the nation of the contingency plan to supply stable electricity, should the gas project encounter difficulties.
“On the expiration of the rental period for the two powerships, how will they replace the 111MW required as backup electricity for Guyanese in the event of any issue that is normal with operating plants? Despite all the fluff and bluff, it is evident that as with other sectors, the government’s management of the power sector has been nothing short of gross incompetence and Guyanese, both in their homes and businesses continue to suffer the consequences with no one held accountable outside of the cinematic PR displays,” Patterson contended.
Turning his attention to the loan approved by the United States Export Import (US EXIM) Bank, he said the Vice President was rather gleeful in confirming that his announcement was premature in November.
He said while the People’s Progressive Party (PPP) and its “cheerleaders” may be boastful, claiming the final approval as an achievement, the citizens of Guyana should know the full details behind what is now the single largest loan taken by this country.
(Mismanagement of electricity sector to cost Guyana US$ 373.6M – Patterson)
- AFC, cost, Electricity, GTE, loan, mismanagement
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