Amaila Falls only realistic path for Guyana – Norway report

The independent assessment of the Amaila Falls Hydropower Project (AFHP) has revealed that the only realistic path for Guyana moving towards an emission-free electricity sector is by developing its hydropower potential and the fastest way forward is to maintain the AFHP.
The report, which was compiled by Norconsult, an engineering and design consultancy firm out of Norway contracted by the Government of Norway, detailed an “objective and facts-based” assessment of the Project on the agreement of the two Governments, and was released on Wednesday.
According to the report, which was handed over to the Government of Guyana (GoG), the first needed step for revitalising the Project is a decision by the Government to maintain the AFHP as the priority project in the transition to a green generation regime, as recommended in the “Initial Study on System Expansion of the Generation & Transmission System” of 2014, and reiterated and embraced by Government in “Guyana’s Power Generation System Study” of June 2016.
“It is our opinion that BOOT (Build, Own, Operate, Transfer) type public-private partnership model should be maintained for the project implementation. An internationally well-merited investor and operator in the hydropower industry should be invited to take the majority position and the driving seat (main sponsor) in the project company. The main sponsor and the EPC Contractor (Engineering, Procurement, and Construction) should not be associated in any way.”

Importantly, the independent assessment team noted that by restructuring the current financial model, the risk for Guyana’s economy can be reduced. “The annual payments from GPL may possibly be reduced by 20 per cent, which are significantly lower than the current fuel costs paid by GPL for its oil-fuelled generation. The risk to Guyana’s economic stability would be at the same level with other projects generating the same amount of energy, as the investment would be of a similar magnitude,” the team concluded. In their opinion, the EPC tenders from 2008 are outdated and need to be replaced by a new EPC tender process, noting that before that, certain technical features of the Project should be reviewed and the EPC tender documents updated.
The report noted that to get on with these activities, the Guyana Government will need continued support by the Inter-American Development Bank (IDB), or a similar institution, and the Guyana Power and Light will need technical and management support by a highly-qualified engineering company with extensive experience in the international hydropower industry.
“We may suggest that the cost for buying out Sithe Global from the project company and expenses for services by an engineering company engaged for support until a new main sponsor is established are covered from a portion of the US$80 million deposit in IDB for later being turned into equity contribution from GoG to the project company,” the report noted.
In the report, it was estimated that three years would be required from a decision being taken to resume project preparation for the AFHP until Financial Close and Notice to Commence to the EPC Contractor. “From this point in time, we estimate another 3.5 years for construction until start of commercial operation of Amaila Falls Hydropower Project.”

The goal is to sell power to veneduels and brazil

you being very shortsighted. when you build you build looking 100 years in the future.