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Editorial
CARICOM Summit CARIBBEAN Community (CARICOM) Heads of Government are meeting in Georgetown for the yearly Inter-sessional Summit but in a different global landscape. The Heads have advised that on their agenda are issues of regional security, crime, information communication technology, tourism, energy efficiency and the Single Market Economy. That these issues are of critical importance to the safety, growth and development of member states and their peoples none can deny. Juxtaposing these deserving attention are the new political and social dynamics in the United States (U.S) and United Kingdom (UK), two countries the region shares deep relations. Last June the UK voted to exit the European Union (EU), an organisation CARICOM and the Dominican Republic share an Economic Partnership Agreement with, and where Britain was the EU’s biggest trading partner. Last November the US voted to change the country’s direction and newly-elected President, Donald Trump, in his Inauguration Address, laid out his America First Policy. Both countries whose prior leadership pursued compassionate and inclusionary policies – national and foreign – were rejected by the electorates. And the best way to confront matters of such nature is to be prepared for it, where the regional agenda is not pursued in isolation of the international dynamics that will inevitably impact. Immigration will be affected and likewise trade, which will impact the region’s growth and development. Where the U.S has intensified rounding up illegal immigrants for deportation, among this group will be Caribbean people. This will impact the support this group provides for those at home via remittances and challenges such as resettling and families being torn apart. Though President Trump’s Executive Order banning immigrants from six predominantly Muslims countries from entering the U.S has been rejected by the U.S Court, his de-
termination to pursue this policy could possibly impact the region, where we have significant populations in Trinidad and Tobago, Guyana, and Suriname. Caribbean governments must plan around these realities. The region still suffers from widespread poverty, unemployment and under-employment. There remains a far way to go to maximise its productive endeavours and ensure the productivity of its people. It would be a welcomed position if the region’s security could expand beyond crime to include food, education, health, environment and alternative energy. Taking a wide-angle view can see the enlisting of strategic approaches to empower the people with requisite skills and competences to respond and compete to challenges faced in reducing crime, eradicating poverty and unemployment through increasing production of goods and services. The region continues to spend billions of US dollars yearly on food import, which poses a threat to its Food Security and country’s sovereignty. Redirecting such scare resources could cause the region to capitalise on the new direction in organic food production. In addition to enhancing the GDP, HDI, new employment and economic opportunities are created, and could minimise forced migration. Getting the elusive Single Economy going is critical to realising the spirit and intent of the CARICOM Single Market and Economy (CSME). The Single Economy is a necessity to recognising the Economic Partnership Agreement. Consequently, it may be necessary for the Heads to look at addressing its implementation by way of a Regional Economic Plan. This could see the maximisation of resources and talents where countries cooperate among themselves to strengthen their competitive advantage in the international market. The concept of co-operating regionally to compete internationally is not new to the region. The Founding Fathers (Forbes Burnham, Eric Williams, Errol Barrow and Norman
GUYANA CHRONICLE Friday, February 17, 2017
Editor-In-Chief
Nigel Williams Editor
Godfrey Wray
Editorial: 227-5216; 227-5204 guyanachronicle.com wnigel10@hotmail.com gnnleditorial@gmail.com
Editorial
Manley) mooted this idea in the formative years. Each country has unique resources and collectively applied can bring about complete products. For instance it was deliberated upon that the region would have engaged in aluminium production. Guyana and Jamaica would have produced the bauxite, and Trinidad and Tobago the energy, using a smelter to produce the final product. Where concerns are expressed and discussions centred around reducing CARICOM’s Food Import Bill, which the Food and Agriculture Organisation (FAO) fears will create increase burden on our economies, and attendant socio-economic ills should such not be reversed, it is opportune to seriously look inward to addressing this problem. Surimane, Guyana and Belize have vast landmass, with Haiti and Jamaica large populations, relative to their country’s sizes. CSME could examine creating a special category for free movement to pursue organic farming and production. Where in 2014 the world organic food industry reached US $80 billion and is growing, preferential focus and treatment should be explored. The world has changed since the last summit and CARICOM Governments have to adapt to the changing realities, as a matter of necessity, to ensure the safety, growth and development of its people.
Patterson slams Edghill’s statements on Wartsilla’s operation in Guyana
Dear Editor,
Reference is made to a letter published in the February 16, 2017, edition of the Stabroek News, under the headline “Patterson statements on electricity were misleading” and penned by Mr. Juan Edghill, Opposition M.P. Reference is also made to an article published in Feb. 16, Kaieteur News under the headline “Opposition warns of US$4M scam with company that replaced Wartsila”, which used the erroneous comments made in the aforementioned letter by Mr. Edghill as its foundation. On behalf of the Government of Guyana, I wish to strongly denounce and deem erroneous the state-
ments made by Mr. Edghill on Wartsila’s operations in Guyana. According to Mr. Edghill, he was informed by the former Chairman of the Guyana Power and Light Inc. Board, Mr. Winston Brassington, and former CEO, Mr. Bharrat Dindyal, that the contract between the Government of Guyana and Wartsila was to the tune of approximately US$7.5M per year, or about US$20,500 per day. He further intimated that the new contract with the Power Producer and Distribution Inc. (PPDI) made less financial sense than that that of Wartsila’s. However, the figures stated by Mr. Edghill are grossly inaccurate. Below is an accurate breakdown of
the amounts paid to Wartsila from 2008 to 2016: Year Contract sum (USD) 2008 $6.2M 2009 $6.8M 2010 $6.7M 2011 $7.8M 2012 $7.8M 2013 $8.5M 2014 $9.5M 2015 $9.6M 2016 $10M Furthermore, it must be noted that, going forward, Wartsila was proposing an average cost of US$20.51 per megawatt hour. This would have equated to approximately US$13.3M per annum, based upon a consumption of 650,000 megawatts per year. Compare this figure to the proposed fee of US$16.78 megawatts
per hour from PPDI. This would equate to savings of US$2.4M, based on the same consumption rate for an enhanced service. With savings of this magnitude, it would be possible to buy a brand new 5.5MW Wartsila engine every three years. Additionally, when it came to spare parts prices, the agreement was that GPL would be charged at a discounted price. However, the records show that GPL was paying the global list prices up until the contract termination with Wartsila. PPDI will be purchasing spares for all parts at equal or better prices. It is certainly an indictment on the previous administration that they were clearly in the dark for years
on the amount of monies that was being paid out to Wartsila; Mr. Brassington served as Chairman of the Board from 2010-2015 while Mr. Dindiyal was CEO in 2015. Yet, neither of them, it would appear, was aware of what was transpiring in regards to Wartsila’s operations. The shift from Wartsila to PDDI is a needed move. Upon its entry into Guyana, Wartsila had no prior successful operations and maintenance of power plants and its management was unwilling to offer any guarantees of its services. It must be emphasised at all times that Wartsila was managed wholly and solely by Guyanese and PPDI intends to main-
tain this model, coupled with drastic financial savings. In fact, PPDI’s top management comprises of Guyanese with more than 60 years of combined experienced with Wartsila both locally and regionally. Furthermore, I must once again urge that the Opposition takes up its seat on the Board of GPL so that they can be properly informed. The other equally inaccurate matters raised by Mr. Edghill in his letter will be addressed at a later stage in a more appropriate forum. Regards David Patterson Minister of Public Infrastructure