Recently, the picture of the opposition that Government likes to paint is one of being angry, bitter, vindictive, irresponsible and irrational.\u00a0 That is by no means the case, and today the AFC explains the \u201cadjustments\u201d it made to the 2013 National Budget.\u00a0 They were based on our commitment to ensure proper scrutiny of these public funds, as well as transparency and accountability of funds spent in the preceding year.
\nWe take this opportunity to remind everyone that at any time, with as little as six days notice to the National Assembly, these cuts can be resubmitted for reconsideration and approval. Last year this was done on a few occasions as more information was submitted to the Parliament.
\nTHE CHEDDI JAGAN INTERNATIONAL AIRPORT
\nWhile the AFC supports all necessary upgrades to the Cheddi Jagan International Airport (CJIA), we do not fully support the modernization project.\u00a0 In particular, we do not believe that a new terminal building is a high enough priority at this time to incur such a massive foreign debt. Our objections focus on the following aspects:
\nOur escalating national debt
\nOur external debt has trebled since 2007 and we are fast approaching the limit of $400B set out in Guyana\u2019s External Loans Act.\u00a0\u00a0 Does the government plan to ask the National Assembly to increase this limit as required by the Act? We believe that a broad consultation should be initiated on this matter and any increase in our borrowing limits should be tied to a national development plan that prioritizes large projects over specified time periods.
\nThe manner in which this project was conceived
\nWe believe that a project of this magnitude should have been conceived within the context of a larger development plan in which it would have been given a level of priority consistent with that plan.\u00a0 What has taken place in this case is the ballooning of the need to expand the runway which we agreed fully with, into a complete overhaul of the airport and its surroundings, including the relocation of residents and businesses.\u00a0 There is no study or evidence that indicates that this is a priority even within the tourism sector, much less for the entire nation.
\nThe contract and the loan agreement
\nAn agreement was entered into between the Government of Guyana and the contractor that appears to be outside of our own procurement procedures.\u00a0 This agreement only came to light through a press release carried in the Jamaica Observer. It is reported that a feasibility study for this project was carried out by the contractor.\u00a0 $4.5Bn for this project was placed in the Budget Estimates of 2012 prior to the signing of the loan agreement and prior to the tabling of this loan agreement in the National Assembly.\u00a0 The project was listed as critical and the expansion of the runway by 1000 metres was deemed to be a priority.
\nAll projects funded by ExIm Bank of China are discriminatory in the selection of goods and services to the detriment of our own economy.
\nThe capacity of the tourism sector
\nWe do not feel that the country is currently in a position to realize the potential of a modern airport.\u00a0 Such a project when completed would undoubtedly support the tourism sector, however this sector is yet to materialize, and is unlikely to do so without the successful implementation of a strategic plan to market Guyana internationally as a desirable destination, and also to transform it into such a destination.
\nIn this regard, the AFC feels that the following areas of concern should be addressed in advance of any investment in a new terminal building:
\n\u00b7\u00a0\u00a0 \u00a0Given the fact that the East Bank Demerara road is still a conduit for over ninety percent of the passengers using the CJIA, the priority should be to alleviate the traffic congestion on this road by investing in alternatives.
\n\u00b7\u00a0\u00a0 \u00a0The state of the nation\u2019s capital continues to deteriorate visibly from year to year.\u00a0 Investments in measures to halt and reverse this trend are critical if Guyana is to be marketed as a desirable destination.
\n\u00b7\u00a0\u00a0 \u00a0Public transportation in Guyana leaves a lot to be desired and will need a major upgrade if Guyana intends to venture into tourism.
\nQuestions on the CJIA Expansion project
\n\u00b7\u00a0\u00a0 \u00a0The fact that a modern airport also provides a retail experience\u00a0 \u2013\u00a0 food, perfume, gadgets, banking, parking, etc.\u00a0 \u2013 requires that concessions be allocated to various commercial entities.\u00a0 Is there a retail management plan for the new airport?
\nIn particular:
\no\u00a0\u00a0 \u00a0On what basis will a person or entity be chosen to manage this aspect of the airport\u2019s operations?
\no\u00a0\u00a0 \u00a0How many retail units will be available in the new terminal building?\u00a0 What is the breakdown between concessions in the departure, arrivals and landside areas?
\no\u00a0\u00a0 \u00a0What data is available to allow prospective concessionaires to evaluate the potential of taking up retail space in the new terminal?
\no\u00a0\u00a0 \u00a0On what basis will retail concessions be granted?
\no\u00a0\u00a0 \u00a0If these questions cannot be answered as yet, then when can we expect answers?
\n\u00b7\u00a0\u00a0 \u00a0The relocation of residents from the surrounding area is of concern.
\no\u00a0\u00a0 \u00a0What arrangements are in place for relocation?
\no\u00a0\u00a0 \u00a0What arrangements are in place for compensation?
\no\u00a0\u00a0 \u00a0What assurances are there that lands vacated on the basis of safety concerns will not be developed for private enterprises once the residents have been relocated?<\/p>\n
AMAILA FALLS HYDROPOWER PROJECT
\nThe AFC has stated before and continues to support this important transformational project, and in fact approved funding for the completion of the road to the project, despite the many construction problems the road has faced.\u00a0 That is testimony to our commitment.\u00a0 A total of $19B was not approved at this point in time simply because the IDB, the agency conducting the final due diligence on this project, has not signed off totally on the project.
\nThe AFC stated in parliament and publicly that once the IDB gives final approval, the funds will be approved for the project when resubmitted to the National Assembly by the Minister of Finance. Of course NCN and GINA would never report that! The AFC was most concerned that if we approved these monies they would be available for spending regardless of whether the IDB granted final approval. Please note that one billion dollars was approved for a series of development projects for Amerindian Communities.
\nGPL
\nThe AFC recognizes the need to increase generating capacity to meet current and anticipated future demand.\u00a0 We also recognize the need for upgrading our transmission and distribution systems. We fully support the move towards prepaid metering and the strengthening of legislation to allow for prosecution of those caught stealing electricity.
\nOur concerns are with GPL\u2019s failure to meet loss reduction targets and the implications of this for the Guyanese consumers and for our economy on the whole.\u00a0 We are unhappy with the fact that high compensation levels are not tied to tangible results in this regard, and we feel that Guyana cannot afford to encourage a culture of non-achievement in such an important sector.
\nWe are concerned that the procurement process is being increasingly subverted by the terms and conditions of loan agreements hinged to Chinese contractors and equipment.
\nGPL has spent more than $25B over the past decade in infrastructural projects and at an ever increasing rate. It is not unreasonable for the opposition to be concerned and to seek assurances before approving more expenditure.
\nQuestions:
\n1.\u00a0\u00a0 \u00a0In\u00a0the 2013 budget estimates, a total subsidy of $10,255M was proposed for GPL. We would like to know where the $8,255M of unspecified foreign funding is coming from and whether these funds have already been secured and if so, the terms and conditions of this funding. We would also like to know what precisely this part of the estimates is for since, apart from Provision for metering, plant, machinery and equipment, we see nothing new in the description of projects for this year.
\n2.\u00a0\u00a0 \u00a0Has the company been meeting its loss reduction targets over the last five years? If not what NEW measures are in place to ensure that these targets are met over the next five years?
\n3.\u00a0\u00a0 \u00a0What are the technical loss reduction targets for the short, medium and long-term?
\n4.\u00a0\u00a0 \u00a0What is the estimated current cost to the company of its non-technical losses and what are its targets for improvement in the short, medium and long-term?
\nThese were the concerns that guided our budget \u201cadjustments\u201d in the National Assembly.\u00a0 The AFC remains committed to stamping out corruption and the misuse of public funds. We look forward to moving Guyana forward acknowledging that all stakeholders \u2013 the Private Sector, Government, other Political Parties and Civil Society each have an invaluable role to play. This \u201cGuyana\u201d belongs to ALL of Us!<\/p>\n","protected":false},"excerpt":{"rendered":"
Recently, the picture of the opposition that Government likes to paint is one of being angry, bitter, vindictive, irresponsible and irrational.\u00a0 That is by no means the case, and today the AFC explains the \u201cadjustments\u201d it made to the 2013 National Budget.\u00a0 They were based on our commitment to ensure proper scrutiny of these public […]<\/p>\n","protected":false},"author":1,"featured_media":7134,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","ngg_post_thumbnail":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10],"tags":[],"class_list":["post-4585","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latestnews"],"jetpack_featured_media_url":"http:\/\/afcguyana.com\/afcnew\/wp-content\/uploads\/2021\/05\/image001-2.jpg","jetpack_shortlink":"https:\/\/wp.me\/p4F7T1-1bX","jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"http:\/\/afcguyana.com\/afcnew\/index.php?rest_route=\/wp\/v2\/posts\/4585","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/afcguyana.com\/afcnew\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/afcguyana.com\/afcnew\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/afcguyana.com\/afcnew\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/afcguyana.com\/afcnew\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4585"}],"version-history":[{"count":1,"href":"http:\/\/afcguyana.com\/afcnew\/index.php?rest_route=\/wp\/v2\/posts\/4585\/revisions"}],"predecessor-version":[{"id":4586,"href":"http:\/\/afcguyana.com\/afcnew\/index.php?rest_route=\/wp\/v2\/posts\/4585\/revisions\/4586"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/afcguyana.com\/afcnew\/index.php?rest_route=\/wp\/v2\/media\/7134"}],"wp:attachment":[{"href":"http:\/\/afcguyana.com\/afcnew\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4585"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/afcguyana.com\/afcnew\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4585"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/afcguyana.com\/afcnew\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4585"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}