When implemented, the Amaila hydro project would be the single most important piece of infrastructure on which Guyana would have embarked.
The obscure company, Synergy Holdings Incorporated, was first touted to be involved in the hydro development. We are now told by President Jagdeo that Synergy would build the road to access the hydro instead. Synergy, which has never built a road before, was awarded US$15 million to complete the road. It is bizarre and defies common sense that such a critical road would be built by a company which never built one. At best, Synergy would have to be a middleman and sub-contract out the road building to another capable entity. One wonders why not award the contract in the first place directly to a company which actually knows how to build roads? That way the government circumvents the middleman.
Is Synergy doing all of this for zero profit? We doubt it. And in any case, no rational individual will award a contract to build his/her house to a contractor who never built one. We have never heard about the feasibility that went into the Hydro or the accompanying road. We need to know this, because the AFC is of the view that it is better to build localized small and medium scale hydroelectricity plants in the interim until Guyana has the capacity in about 20 years for massive hydro plants (unless the Brazilians are willing to build one for export – this we wholeheartedly support).
Moreover, the AFC prefers to link these hydro power capabilities to specific industrial clusters. We are not convinced that there is a large enough contemporary demand for electricity to justify the magnitude of the investment – over US$600 million, which excludes the cost to erect the distribution network. This means the unit cost of electricity will be very high as the large sunk cost will not spread over a large enough demand. If the unit cost is still high, many local manufacturers might prefer to stay with their current privately installed generating capacity.
While the above technical issue is important, the manner in which the contract to build the road was awarded is a serious breach of trust. The way this contract was awarded is in keeping with the PPP’s plan to control the economic space in Guyana.
The PPP has now emerged as the gatekeeper of economic opportunities in Guyana. It offers friends and family special concessions while the old business class is marginalized. Guyanese have to wait until a friend or family of members of the Central Executive Committee of the PPP emerges to take up the challenge of investment.
President Jagdeo referred to this new class of business people as the Newly Emerging Private Sector (NEPS).
In the process, the masses stay poor and linger in poverty or just above the poverty level for a long time as the trickle of friends and family emerge. The PPP could afford to have slow paced development because the members of the Central Executive Committee are rich. They can wait. But should the poor in Georgetown, Port Mourant, Linden, Leguan, Lethem, Buxton, Goed Fortuin, etc., be made to wait another thirty-five years? The AFC says no!
This so-called Marxist-Leninist party has now morphed into an oligarchy which breeds the disempowerment of the masses and opposition (and even neutral) business interests. In the process this so-called leftist party is engineering a country with deep inequality in the distribution of income and opportunities.
A major problem with this insidious strategy is it breeds inequality along ethnic lines given the way the population votes.
It appears as though the Jagdeo government is not serious about the hydro project, as recently he noted the funds from the LCDS will be used to build the hydro. Well these funds are years away, if ever. The amount received from Norway will not even come close to what is required. However, while the President’s slip of the lips noted the LCDS funds, in the recent past we were told that the Chinese and IDB will fund the Amaila Hydro project.
Well, this seems to be a typical PPP election gimmick. From 2012, the Guyanese public will hear little about hydro until around 2015, the year before the next election. Meanwhile, a friend of the Marxist-Leninist oligarchy received a hefty US$15 million to build a road.
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PAUL SLOWE’S RETIREMENT
The AFC congratulates Mr. Paul Slowe for a job so professionally performed over the last thirty-seven (37) years. The principled and disciplined manner in the execution of your duties, the fearlessness in standing up against Authority to preserve the rapidly waning tradition of protection and service, is truly inspirational in these tempting and decadent times for policemen.
Your example must be a guide to all other policemen and officers. Continue your tall walk with head held high. We in the AFC salute you!
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