Mientras tanto, le pedimos capitán Gouveia sea suficiente para responder a las siguientes preguntas tipo:
Ramón Gaskin y Cristóbal Carnero
Captain Gouveia’s widely publicised open letter on Amaila in the dailies juxtaposes extracts from statements by Drs. Clive Thomas and Anand Goolsarran and the two signatories to this letter on the one hand, and statements made by the Government on the same or similar issue on the other. The Captain then requests the four of us to answer four critical questions. Ignoring the contribution to the debate by such committed Guyanese as Janette Bulkan, Alfred Bhulai, Tarron Khemraj and Sase Narine Singh, Carl Greenidge, Lincoln Lewis, Charles Sohan and M. Ali, GHK Lall and others, Mr. Gouveia sees the four as “the ones who killed the project”.
For the benefit of readers, we address the issues under five headings: debt, tariffs, subsidies, fuel and savings, and cost. We now address those issues, make a brief conclusion and raise some questions to Capt. Gouveia.
Additionally Mr. Gouveia refers to a Government statement that “even if GPL was not modernised, Amaila would see a reduction in consumer tariffs of 20% by 2017.” The proposition that anyone would spend US$858 million to deliver power to a utility that is totally inefficient is astounding. A GPL that is not modernised and which maintains the same level of system losses and other inefficiencies will never be able to pay an annual all-in tariff of US$122 million.
But even if we assume Mr. Gouveia’s statement to be correct, our concern is that the project is too costly. The cost of the project is inflated by a series of add-on charges, some of which are specified, such as Lenders’ Fees and Advisory Costs (US$33.3 million) and Political Risk Insurance (US$57.7 million), and others which are not, such as Development (US$27.2 million) and Other ($16.7 million). Part of the reason for this high cost is lack of proper tender procedures, lack of transparency and the incompetence of those who are negotiating on behalf of Guyana. We suspect that significant amounts of the add-on costs are to be paid to Sithe.
In the meantime we ask Captain Gouveia to be kind enough to answer the following questions:
Ramon Gaskin and Christopher Ram