Thursday, April 29, 2010

Electricity Cost to be Drastically Reduced

All electricity needs will come from renewable energy PDF Print E-mail
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Thursday, 29 April 2010 03:38
Within three years…
- President Jagdeo
The Amaila Falls Hydropower Project (AFHP) is the next major development undertaking for Guyana that will revolutionise the electricity sector, making it more reliable and cheaper to the business community and domestic consumers.
Projected to be completed within the next three years, the project, located at Amaila Falls in the Kuribrong River, a tributary of the Potaro River, will have enough capacity to be the source of the country’s entire electricity needs.
With a height of approximately 200 feet, flowing down a series of rapids and falls for almost two miles before reaching placid water, the Amaila Falls Project holds the potential to produce some 140 megawatts of electricity which can produce 70 percent of the country’s electricity needs.
Ahead of the actual construction however, Government has begun facilitating arrangements for access to the site with a US$15M contract award for construction and upgrade of 110 km of new roads coupled with upgrades to 85 km of existing infrastructure.
Among the interventions is the construction of bridges across the Kuribrong River, a pontoon to cross the Essequibo River, and the cutting of some of the pathways for the transmission main.
Such an undertaking is likely to take eight to ten months, during which time financial closure with Sithe Global, the lead financing group for the Amaila Falls hydropower project, will be reached. With Government’s pre-financing of the road, it is expected that the interest cost would be reduced.
Government has engaged the Inter-American Development Bank, the China Development Bank and other investors in discussions on securing the financing so that the project could advance.
At an interview in 2009 with Kaieteur News journalist, Adam Harris, and Editor- in-Chief of the National Communications Network , Michael Gordon, President Jagdeo said, “It will cost us three times more to build the hydro and to transmit the electricity from the long distance than if we were to go to the fossil type of investment”.
“But in the long run, it will assist tremendously, because the cost of generation will come down. Secondly you don’t have to pay because it is a renewable resource.”
Speaking at Tuesday’s Champion of the Earth award welcome home ceremony at the Cheddi Jagan International Airport, the Head of State said the commencement works on the project will begin by the end of this year.
Referring to the controversy which surfaced after the contract was awarded, the President said such a reaction has been evident in every big project undertaken by the Government.
Nevertheless, he said, “We went out to a public tender and we awarded the contract to the best bidder.”
The hydropower project is just one of many major investments which government will undertake with the financial flows coming from the country’s Low Carbon Development Strategy (LCDS). Among these are Education and Health, Information Communication Technology (ICT) related services, and strengthening sea defences. (GINA)


  1. The process to develop the country's vast hydro-power resources is picking up momentum. Funding for harnessing electricity from Amalia Falls, about 40 kilometres north-west of the Kaieteur National Park, has been obtained. The project has been upgraded to produce 154MW of electricity and work is scheduled to start soon for completion within three years, an example of more public/ private sector partnerships being encouraged by this administration.

  2. wen i see this happening then will i believe it,otherwise is pure bullshit.

  3. With the GoG efforts to develop this little country of ours we see they Amalia Falls taking shape which will reduce the cost of electricity in the country and this come with the use of renewable energy.And this is just one of the investment that the government is undertaking.

  4. The Amaila Falls Hydropower Project is definitely one that everyone would surely support, being that the president address it position, it more than likely to happen without the influx of the opposition interruption...this project will surely make everyone happy being that is renewable and free will certainly lessen the burden on citizens, so far The LCDS has delivered positive reward and expectations so far and so will the Amaila Falls

  5. Lower cost of electricity would contribute significantly to the major sectors and also for the domestic consumers...we have to keep our fingers cross and support him as he makes the project possible and hope for the best