Guyanese Online

The economy Guyana inherited at Independence in 1966 has remained largely unchanged. Throughout the period Guyana was a primary producer of bauxite, sugar, rice, timber and gold. The fortunes of some industries have improved while those of others have declined, and a few added, like fisheries.

The absence of cheap, adequate and reliable electricity was recognized as one important reason for the failure to industrialize.   In this new era, as in the past, Guyana can never attain its full economic potential unless the production and delivery of electricity is vastly improved.         

In 1973, Forbes Burnham, as part of the election campaign, announced plans for the Upper Mazaruni Hydro Project to deliver electricity for an alumina plant at Linden and elsewhere. For those who were not yet around and for those who have forgotten, millions of dollars of equipment were purchased and sent into the area to clear the dense forest. Hundreds of students from Guyana and overseas volunteered to the Mazaruni to supplement the work of the machinery. However, objection by the Venezuelans closed off the possibility of aid from the IDB and World Bank. The equipment was overtaken by the bush.

In the midst of this, Guyana experienced its first major electricity blowout with the collapse of the GEC in the mid-1970s due to lack of maintenance. Blackouts began then and continued with great intensity over two decades. The consequence of the Guyana’s failure to acquire the capacity to supply electricity in adequate quantities for industrialization specifically, and economic development generally, has retarded Guyana’s development over the period.

The Amaila Project was immediately opposed by civil society opponents of the Government. They argued that the government could not be trusted with such a large project having regard to the alleged failure of the US$200 million Skeldon Project. They also complained, among other things, about the alleged failure of the government to release authentic information in a timely manner. The opposition joined in opposing the Amaila Project. By the time the Ramotar administration came to office in 2011, all possible information had been released and later an internationally credible consultant, Norconsult, employed by Norway, had approved the project. However, because the project failed to attract majority support in the National Assembly, in which APNU+AFC had a majority, the developer pulled out and the project had to be cancelled.

Those who lived through Amaila, and are now living through Gas to Shore, would be excused for feeling a sense of déjà vu. But the electricity situation is direr today than it ever was, even ten years ago. Guyana is now expected to need 465 megawatts of electricity in 5 to 7 years. To achieve this, it would need the production from the Gas to Shore facility to supplement GPL’s production. Amaila and other projects, such as Upper Mazaruni, would be needed for replacing GPL’s diesel and increasing demand. Natural gas is used for electricity in large proportions in the US and EU.

Guyana cannot afford to lose the opportunity offered by the availability of gas to expand its production of electrical power. It’s not clean but it’s far cleaner than diesel. In deploying gas, the Government, EPA and other agencies must satisfy the expectations of environmental activists and address the concerns of civil society. It is expected that due diligence studies will be carried out, full disclosures will be made and all facilities and structures will conform to the highest environmental standards. Any shortcuts will meet stiff resistance and jeopardise this project and Guyana’s future.

This column is reproduced, with permission, from Ralph Ramkarran’s blog, www.conversationtree.gy