Vice President (VP), Dr. Bharrat Jagdeo recently disclosed that the government will soon move to issue a new Request for Proposal (RFP) for the Amaila Falls Hydro Project.
With several parties already expressing their interest, he said government has decided to have an open process before a company is selected.
To this he added, “So most likely you will see us reengaging the public through an ad to get these proposals and then they can all be adjudicated side by side, against each other to see which is the best deal.”
During one of his previous press engagements this year, Jagdeo had disclosed that two Brazilian companies, as well as entities based in the United States, have shown interest in the 165-megawatt hydropower project.
Notably, the project is a flagship initiative under the esteemed Low Carbon Development Strategy (LCDS) 2030. It was conceived to advance Guyana’s sustainable energy objectives by reducing reliance on fossil fuels and promoting clean energy generation.
The project was obstructed over the years by the failure to secure the essential financing needed for the Build, Own, Operate and Transfer (BOOT) model. China Railway Group Ltd., chosen in 2012 for its construction, was once again granted approval in 2021 to begin execution. However, those plans faltered after the company encountered financing difficulties.
Upon their request to restructure to a Engineering, Procurement and Construction (EPC) model, the administration had decided that the renewable energy project would be more effectualised by an organisation able-and-willing to pursue the BOOT arrangement. As equity is transferred to the local investor in due course as part of the scheme, it was critically assumed that this is the best fit for the government to remain with a low degree of risk.
The hunt for a suitable company continues.