Hydro-Electric Power (Amendment) Bill approved by National Assembly with AFC’s support – but debt ceiling reduced to $50B

AmailaGeorgetown: The Hydro-Electric Power (Amendment) Bill was approved by the National Assembly in the wee hours of Thursday morning with the Alliance For Change putting its support behind the Government.  The A Partnership for National Unity (APNU) voted against the bill that paves the way for the advancement of the Amaila Falls Hydro Power (AFHP) Project.

Increasing the penalty for the breach of regulations made under the principal Act to $1M, the Bill also confers on the President, the power to create hydro-electric offset reserve areas and rules for the establishment of the said areas, and for the conservation and preservation of the environment and ecosystem surrounding the hydroelectric resources in Guyana.

The approval of the Bill comes at a time when Guyana is preparing to welcome hydroelectricity, via the AFHP project, moving towards more sustainable development practices.

Meanwhile the Government’s motion to increase the debt ceiling on external loans to $130B was amended by the AFC to $50B. The proposed sum was to ensure the Guyana Power and Light (GPL) meets its financial obligations with the Amaila Falls Hydro Incorporated, under the Power Purchase Agreement.

Prime Minister Samuel Hinds noted that the AFHP project was worthy of the action to bring back the two items for consideration after they were voted down at the July 18 sitting, since it would be economically transformative for all Guyanese. The Bill nor the accompanying motion was not on the Order Paper but the Prime Minister through a motion sought a suspension of the Standing Orders to allow for them to be returned to the day’s agenda. The Government received AFC’s support in this regard, but on the premise that they be the last items on the Order Paper.

He explained that the project would enable the cost of generating electricity to be reduced significantly going to as low as three US cents when the plant is handed over to the Government after 20 years.  PM Hinds noted also that the lower cost would be reflected in the fact that there would be no need for the purchase of petroleum for the company to generate power. This would see a saving of US$100M within the 20 year period.

Meanwhile, Public Works Minister Robeson Benn cautioned during his presentation that should the House not support the Bill, its actions would be equal to “criminal negligence”.

The approval of the Bill was necessary to bring the local law into conformity with the environmental standards of possible Amaila Project financier – the Inter-American Development Bank (IDB).

The Prime Minister also cautioned that funds for the AFHP to be sourced from Norway through the GRIF funds could be at risk.

AFC’s Moses Nagamootoo supported the Bill observing that it should have been brought before the House long before it was.