Contending that the Irfaan Ali Administration has placed Guyana in a vulnerable situation, APNU Member of Parliament, Sharma Solomon, today said Guyanese are now left at the mercy of a foreign company – Karpowership – due to the Government’s mishandling of the country’s Energy Sector.

At a press conference, MP Solomon said at a time when the country is enjoying unprecedented oil revenues, and boasts of being one of the fastest growing economies in the world, its citizens are plagued with constant power outages.

He said to compound the situation, Karpowership – a Turkish associated company – whose vessels were contracted approximately two years ago to provide approximately 96 megawatts of electricity to the national grid, is now threatening to pull the plug if the Government does not agree to its demands for increased, standardized rates.

On Thursday, the Government said it was locked in negotiations with the company for the best possible deal in the interest of Guyanese. But MP Solomon said the Government dropped the ball on the issue, as he pointed to the “poor handling” the Energy Sector, in particular the multi-billion Gas-to-Energy Project that remains behind schedule.

“It is important for Guyanese to know where we now find ourselves, which is, with very little option of now heeding to the request and demand of a power ship company that seems to be extorting a government uncertain of when they are going to fix the energy crisis in this country,” MP Solomon said.

He said with the Gas-to-Energy Project now almost two years behind schedule, the country faces additional uncertainty with regards to the extension of the costly power ship contracts, even as critical details remain hidden from the public.

“There is a glaring lack of transparency surrounding the power ship arrangement. Guyanese do not know the cost of any contract extension, whether higher rates are being paid, how long any new agreement will last, or what commitments have been made on behalf of taxpayers. These negotiations appear to have taken place behind closed doors, with little information being provided to Parliament or the public,” MP Solomon said.

The country rented two power ships from Karpowership – a 36 megawatt facility docked in the Berbice River, and a 60 megawatt vessel stationed in the Demerara River.

Renting the two Turkish Karpowership vessels is costing Guyana a combined total of roughly US$235,000 per day.

“The continued dependence on power ships highlights the delays and shortcomings of the Government’s energy strategy. Power ships were introduced as a temporary measure. Yet years later, Guyana remains dependent on emergency generation arrangements while the promised long-term solutions continue to face delays,” the APNU MP said.

Weighing in on the issue, APNU Member of Parliament, Saiku Andrews said the Government had the opportunity to invest in permanent generation capacity. He said while the  APNU+AFC Government by the end of 2019 had invested in 46.5 megawatts of power through the purchase of gen sets, the People’s Progressive Party/Civic (PPP/C) Government on assumption to office, only added approximately 38.5 megawatts of power between 2020 and 2025. He said the Government having failed to significantly increase the country’s permanent generation capacity was forced to turn to the power ships.

“Now we are in a situation where at the end of 2026, we are going to spend as much as a US$190 million not in fuel, not in transportation but in rental of two power ships, and that is to provide a 111 megawatts of power. If the minister was up to the task and competent enough to manage that ministry, and manage that project, what he would have done is initiate the purchase of dual fuel generation sets to add to the grid 120 megawatts for that price. At this stage, if he had made the right decision, and if he had consulted with the right people, Guyana could have added 120 megawatts of dual fuel generation capacity permanent for the cost of less than US$190 million,” MP Andrews reasoned.

Given the current situation, the APNU is calling on the Government to immediately publish the full terms of any power ship extension agreement, disclose the total cost to taxpayers, and provide a comprehensive and updated timeline for the completion of the Gas-to-Energy Project.

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