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Amaila Falls hydro financing to be finalized in latter part of 2011 President Jagdeo of Guyana

President Bharrat Jagdeo stated that the agreement to finalise financing for the Amaila Falls hydropower project will be completed during the latter half of 2011 with equity financing coming from the China Development Bank, Sithe Global and the Government of Guyana.

President Jagdeo speaking at a press conference at the Office of the President today, explained that the reason for closing the deal at that time would reduce the amount of interest that Guyana would have to pay since the interest will be attached as soon as the deal is closed whether or not the road to the falls is completed.

“So if you close on $500M of $600M and the construction has not commenced, the interest would still have to be paid, so it is best to close when the road is near to completion,” he said.

Addressing the question of a hydrology risk, President Jagdeo said that there are several risks including a hydrology risk which are included in the risk assessment of the project.

He further explained that if the global temperature keeps rising to 5 degrees Celsius there may not be any forest in the world to preserve as these will all die and then there will be bigger problems than hydro power.
He assured however, that a hydrology risk assessment was conducted.

He added that it is for this reason that there must be an adequate reserve so that if there is an extremely dry season where there may be a shortage in the amount of energy generated, the reserves would be used to make up the required supply.

The President made reference to Venezuela’s Guri Dam which is that country’s largest hydroelectricity source where the water level dropped so low in the dry season that the country had to ration power.

Category/ies:Guyana News.
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