APNU Member of Parliament Sharma Solomon has called on President Irfaan Ali to disclose the proposed electricity tariff, financing arrangements and state guarantees for the Amaila Falls Hydropower Project before the government commits to a developer.
In a Facebook statement, Solomon also questioned how much of the project’s capacity would serve major gold mining operations and whether those companies would contribute towards the generation and transmission infrastructure needed to meet their demand.
His comments followed the President’s announcement that proposals for the minimum 165-megawatt project were being evaluated, with a preferred bid expected to be identified in the coming weeks.
Solomon, APNU’s representative on natural resources and a former Linden mayor, said growing electricity demand made reliable, affordable and cleaner power necessary. However, he argued that the project’s history required the government to explain its proposed obligations clearly.
“After all the positions taken on Amaila over the years, the President now has a responsibility to explain to Guyanese what has changed, what Guyana is buying, what we are committing ourselves to and what will Guyanese ultimately have to pay,” he stated.
He called for disclosure of the price per kilowatt-hour under the proposed power purchase agreement, the duration of the arrangement, the financing structure and any guarantees to be provided by the state. He also questioned who would bear the risk if projected electricity demand failed to materialise.
The government has been pursuing Amaila under a Build-Own-Operate-Transfer (BOOT) arrangement. According to a September 23 Department of Public Information report, Ali said the preferred approach involved design, construction, financing and operation supported by a power purchase agreement. The report also noted interest from the United States Export-Import Bank in financing the project, although no final agreement had been announced at that time.
Solomon cited reported bids ranging from approximately US$416.9 million to US$800.1 million, saying the scale and variation reinforced the need for parliamentary and public scrutiny of the commercial arrangements.
“Tell Guyanese what the PPA will cost. Tell us what the State will guarantee. Tell us what transmission investment will be required. Tell us how much of Amaila’s capacity is intended to serve mining. Tell us what the mining companies will contribute,” he said.
Referring to projected demand of approximately 85 MW each from two major gold mining operations, Solomon questioned whether all of that demand should automatically fall on the national grid.
Drawing on Linden’s experience with electricity generated by bauxite companies for industrial operations and surrounding communities, he argued that large consumers should contribute appropriately to the infrastructure required to serve them.
“The national grid belongs to the people of Guyana. It must serve the country as a whole. It cannot become an indirect mechanism for transferring the cost of industrial expansion onto ordinary consumers,” he stated.
Solomon also questioned whether transmission and distribution improvements were keeping pace with plans for new generation.
“If the present system is struggling to reliably carry today’s demand, are we building the transmission and distribution capacity required to carry tomorrow’s electricity?” he asked.
Solomon argued that Amaila could not be considered separately from the Gas-to-Energy project at Wales and the wider network needed to deliver electricity to consumers. He criticised delays and costs associated with that project and said additional generating capacity would be of limited benefit without reliable transmission, distribution and system management.
“You can generate all the electricity you want. If you cannot move it, distribute it and manage the system properly, Guyanese will not get the benefit,” he said.
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