Dear Editor,
I write in response to reports that US EXIM loan and the rising cost of the gas to energy project. The US$567 M is only for the costs associated with the generator plant and related costs, but not other expenses associated with the complete electricity package. Government already spent some US$400 M on the project. As you noted, the cost of generating power from the Wales complex keeps rising and inevitably so too would be the cost paid by consumers per KW of power.
Initially, when announced by Vice President Jagdeo, it was to be under US$800 millions in total for the entire project inclusive of delivery of gas from ocean to shore and from shore to the power plant at Wales as well as the cost of the power plant itself. That cost of the project keeps going up and has more than doubled since first announced by VP Jagdeo, and one does not know where the cost will end.
Based on your estimate, it is about US$2.1 billions for the project and when it is all finished, based on estimates of experts, it would be about US $2.3 billions. It is not clear if government has to pay for transportation of the gas which will add to the costs of operations. The initial cost promised by Bharrat Jagdeo was between seven and fourteen American cents per KW. With the costs almost tripled and factoring in maintenance and other costs, the cost per KW unit would exceed twenty five cents. That is more than current cost if power generated from diesel.
At that hefty cost, is the project worth it? Wouldn’t it have been cheaper for government to develop solar and wind power for less? There should be an independent audit of the projected cost and of what was already spent in order to determine whether fraud or corruption played any role in rising costs. How much was paid to acquire land and who owned the land? What is their relationship to officials of the government? An audit would reveal they have very close affiliation with government officials and some are also officials of government.
Yours truly,
Philomen Mann
