Govt. evaluating fresh bids for Amaila hydro-power project – Pres. Ali

(Kaieteur News) – The National Procurement and Tender Administration Board (NPTAB) has received a number of bids from reputable companies, again interested in building a hydro-power project at the Amaila Falls in Region Eight.

President Irfaan Ali in an interview with ‘Fueledgy’ shared an update on the energy project as the country continues to suffer daily blackouts.

He said, “It’s at the evaluation stage now so as soon as that evaluation is completed I have instructed that we move to negotiate with the best ranked bidders who give us the best possibility.”

President Irfaan Ali

Back in May this year, five bids were opened at NPTAB for the hydropower project. It was reported that three Chinese firms submitted proposals to the government while the other two were headquartered in the United States of America and India.

Ali noted, “They have to agree to the terms, the terms that make economic sense for us and would meet the energy cost that we want to deliver to the people of this country.”

The government, in its revised Request for Proposals (RFP) which was issued earlier this year, stated that the hydro project will be done under a Build-Own-Operate-Transfer (BOOT) model, with a minimum installed capacity of 165 Mega Watt (MW).

In a summary of the scope of work, the RFP detailed that the project includes a 165 MW installed hydro dam, plant, and substation at Amaila site, and related works.

The project involves the creation of a 23 square KM storage reservoir consistent with the environmental reports and studies and prior permitting. Also interested parties would have to assume all geo-technical risks including guarantees relating to the structure of the reservoir and dam.

The government also stated that the transmission network will be built separately.

Under the BOOT arrangement, the Government of Guyana (GoG) will purchase the electricity from the private developer. As such, the RFP explained that government will select a suitable partner based on (i) lowest Power Purchase Agreement (PPA) price, Engineering, Procurement and Construction (EPC) price, operating cost and capital amortisation; (ii) timeframes to complete and (iii) ability to finance the project on a PPA basis.

Since assuming office in 2020 under the first Irfaan Ali-led PPP administration, government tendered twice for a contractor for the project but both were unsuccessful in materialising.

The Amaila Falls Hydro project was introduced by a previous PPP/C Administration in 2011. However, the project faced obstacles in its realisation when the A Partnership for National Unity (APNU) and the Alliance For Change (AFC) Opposition parties, stopped the project back in 2014.

In its 2020 election manifesto, the PPP-administration noted that the project will be revived. However, the PPP government was unable to do so before the end of the first term in office.

In 2021, negotiations hit a stalemate after Cabinet granted a no-objection for the Prime Minister’s office to engage the China Railway Group Limited for construction. Discussions faltered as the company sought to alter the project’s model due to financing challenges for a BOOT model, requesting a shift to an EPC model. The government was reluctant to switch to the EPC option, resulting in the talks with the Chinese contractor coming to an end.

The government later issued a revised RFP under the BOOT model for the Amaila Falls project and four local and international firms submitted proposals for the Amaila Falls project that was scheduled to begin in 2027. However, this too was stalled.

Early in 2025, the government announced that it would once again go to tender for the project.

Source: Kaieteur News