Blackouts are now beyond explanation. People in every part of the country experience hours-long power outages daily. And this is happening in the fastest growing economy in the world. The Coalition Government had put a structured approach for power generation. Equipment was being bought even as the government demitted office. The plan was shelved because the present government does not believe in the continuity of government.
This was never clearer than when the PPP exclaimed that the coalition government had reached an agreement with the teachers but that the PPP government never did. The reality is that if someone sues a government, regardless of whether it remains in office or not, the succeeding government is liable. It is the same with scholarships. A scholarship granted by the government is valid for the succeeding government. There can be no excuse that the sitting government never granted the scholarship.
Nevertheless, there is this blackout situation that has overwhelmed the nation. Work is halted unless the place of employment has large generators or solar panels. In the days leading up to the Christmas holidays the government announced measures that would guarantee a continuous power supply throughout the holidays. It set out to buy seventeen containerised generators from Central America. The generators have come. It is now four months into the new year, but all have not been installed. In fact, people in the power company are reporting that already some of them—and the number being given is seven—are beginning to fail.
What is most frustrating is that the government has said that it is spending billions of dollars on infrastructure that includes social services. Unless power generation is not considered part of the social infrastructure then one must wonder what is.
Billions of dollars have already been spent on the electricity sector and on sugar. There has been no return. And surprisingly, the power company is refusing to answer any question on the state of affairs. The nation does not know how much power is in the system at its peak.
There is no word on the state of the equipment. So it is back to rhetoric. President Irfaan Ali told a supportive social media post that he will read the riot act to Guyana Power and Light early Tuesday. That has to be a joke. He can do nothing to the staff responsible for the power. Well not exactly. He could fire them and replace them with Bangladeshis and Sri Lankans. He was scheduled to read the riot act early Tuesday morning—about daybreak.
Within minutes of the riot act being read the blackouts became even more pronounced. Perhaps the GPL management was showing the Head of State who was boss. President Ali then said that the coalition government did not invest in the electricity sector. He said that the PPP inherited a system that was in total collapse.
How is it then that there were not so frequent blackouts? Why have the generators imported to boost the electricity system in December failed? Is that money down the drain? Was the contract given to a middleman who was more concerned about making a dollar? The quality of the equipment imported would suggest that the best was not had for the money spent.
Former Minister David Patterson had from time to time detailed the steps the coalition had taken to bring in equipment for the power company. He spoke of the specialized staff that was let go. Many are now working overseas even as Guyana is trying to get them back. Patterson said that in 2015, the former PPP administration had lost confidence in the then CEO Bharat Dindyal, refusing to renew his contract. In a report prepared by the GPL board, dated December 22, 2014 – his performance was listed as “below expectations”.
On assuming office, the Coalition administration’s appointed board of GPL launched an international recruitment exercise, spearheaded by the internationally renowned firm of Price Waterhouse Coopers Advisory Services Ltd. They, after extensive interviews, recommended the appointment of Albert Gordon – a Caricom national with extensive experience in the power utility sector.
On assumption of duties, Mr. Gordon commenced reorganizing and revitalizing the then ailing company. On their return to office in 2020, the PPP dismissed Mr. Gordon with immediate effect, and returned the previous “below expectations” CEO. Talking about doing the same things, yet expecting different results.
Patterson noted that during the next four years, GPL under the coalition administration procured 63MW of brand-new generating sets, increasing the generating capacity of the company by 50%, a never-before-seen expansion in generating capacity in such a short period – with no oil revenue. Contrast that to the PPP’s four years. The company has procured 17 third hand containerized sets of unknown quality and procurement methodology. Five months after this purchase, only four sets are operational, it is understood the remaining sets have several defects, which have rendered them ineffective.
in 2018, via the then Ministry of Finance, Guyana gained access to a US$900M line of credit from the Islamic Development Bank (IsDB). The first request to utilise these funds was a loan of US$110M for GPL to construct new substations, a new additional transmission and distribution network, as well as upgrading the existing power infrastructure. As expected, on assuming office, the PPP canceled the loan application without reason. Without a doubt, if this application was allowed to progress to implementation, several of the challenges now facing GPL would have been eliminated.
But that isn’t the only unaddressed issue. Everyone has been clamouring for a parent company guarantee in the event of an oil spill. Some private individuals took the matter to court and secured a favourable decision. To the horror of everyone, the government joined with the oil company to appeal the decision. A man destroys your property. You go to court and the court orders him to fix his damage. Then you appeal to the court against the decision.
In opposition, Vice President Bharrat Jagdeo, and more latterly, President Irfaan Ali, vowed to revisit the oil agreement with Exxon with a view to renegotiating a better deal. Ali insisted that the coalition had signed a bad oil deal. He ignored the fact that the late President Janet Jagan had initiated the oil deal. The coalition was left with no other option, especially since the Janet Jagan agreement remained in force. It had to see if it could get a bit more. It did. That is what is in force and what both Jagdeo and Ali had vowed to change. They got into power and decided to accept what was there.
This was reminiscent of the late President Cheddi Jagan vowing to reduce the powers of the President as stated in the constitution. He got into office in 1992. To this day there has been no move to modify the powers of the president. It is so birçok to have it. It worked for President Irfaan Ali when he had seventeen fraud charges against him discontinued because of his accession to the presidency.