Part 5
In this week’s column and the next I shall wrap up my discussion of the financing arrangements through which the Amaila Falls Hydropower Project (AFHP) is being executed. In pursuit of this, I draw readers’ attention to two finance-related concerns considered as pivotal to the future success or not of the project. These are 1) the valuation of Guyana’s resources utilized in the project and the legitimate equity interest, which should flow from this; and 2) the pivotal role allotted to Guyana Power and Light (GPL) in the project’s financial structure.
Hidden subsidies
When considered carefully, the two items cited above refer directly to the named position of the Government of Guyana (GoG) as the project guarantor in the project’s promotional literature. If the GoG holds this position it requires that the project fully acknowledges the GoG’s significant contributions in both its equity distribution and economic accounting, especially in regard to 1) the contribution of Guyana’s natural resources to the project; and 2) the valuation of the public policy support (especially financial subsidies) the GoG affords the project.
At this point readers should recall that the AFHP is being executed as a private-public partnership (PPP). If it were an
