BY STACEY DAVIDSON
Guyana Chronicle
May 10, 2001

THE Government of Guyana, Guyana Power and Light Company Limited (GPL) and the Inter-American Development Bank (IDB) have embarked on a programme for the next five years to supply 55,000 customers with electricity at a cost of about US$25M.

The Unserved Areas Electrification Programme (UAEP) will commence in Region Six (East Berbice/Corentyne) and cover 10 areas for this year. The locations are: Number 36 Village, Corentyne; Bush Lot; Farm; Chesney, Kilkoy South; Fyrish Number One; parts of Canefield East; Number 35 Village; Whim Village; Topoo Belvedere Squatting Area and Sandvoort, West Canje.

These will include some squatting areas that have been regularised under the Housing and Water Ministry's new income housing schemes, officials said.

The government will contribute $4Bln, GPL $1Bln and customers will be required to pay $10,000 each as a connection fee. An application has been sent to the IDB for the US$25M concessionary loan to cover the cost of the programme.

At a briefing at the GTV Studios in Georgetown yesterday, Prime Minister Sam Hinds, who is also responsible for the electricity sector, pointed out that hinterland areas will be included in the programme by way of a study of possible energy sources for those sections of the country.

The study will seek to establish a number of pilots, which will provide data for a subsequent assisted electrification programme for these communities.

According to Mr. Hinds, the government has resolved to keep the process of growth and development going.

Reading a statement issued jointly by the government and GPL, he said the extension of the electricity grid is costly, averaging $1M to $2.5M per mile.

For unserved areas seeking connection to the grid, the cost per household could range from $40,000 to more than $200,000 depending on factors such as distance from the grid and number of households and distance between houses in the area.

"For economic reasons the cost of provision of electricity whether by connection to the grid or by self-generation is a cost for the householder", Mr. Hinds stated.

The Prime Minister added that the costs incurred by a utility are met from the revenues received from its customers and if the utility had to bear the cost of connecting new customers on demand, unbearable tariffs may result.

"Government frequently provides assistance for infrastructure development, in whole or part, to the extent of funds that could be made available," he explained.

The programme will extend to Regions Two (Pomeroon/Supenaam); Three (West Demerara/Essequibo Islands); Four (Demerara/Mahaica); Five (Mahaica/Berbice); Six (East Berbice/Corentyne) and Ten (Upper Demerara/Berbice), where extensions of networks are feasible.

A total of 213 areas, which account for more than 40,000 households have been identified to date as being in need of assistance under the electrification programme, Mr. Hinds noted.

New Chief Executive Officer of GPL, Mr. John Lynn, explained how customers can become eligible - housing areas in need of assistance; areas agreed between the government and GPL; sequence to address areas with the greatest number of customers per unit of network first; customers eligible for Tariff A and Tariff B, which are residential or small commercial business; and network designs, which will be prepared on the basis that all existing households will be connected.

"We are trying to pick areas first where the highest tensility of buildings operate with lowest unit cost of supply to each house (that) is involved, so we get the maximum number of customers", Lynn explained.

In addition to paying the connection fee to be eligible for the service, residents are required to provide proof that they occupy the house; wire their homes to the approved standards; pay the standard security deposit that all customers pay, that is, two months projected billing; and sign the GPL contract.

Lynn added that local facilities will be set up to educate residents on what they need to do to ensure payments are made.

"...nobody should be making payments to anybody, customers will have an official representative visit or alternatively be asked to come to the office to make payment", he advised.

He pointed out that preparatory work for the 10 initial areas have begun and electricity poles are soon to be erected.

"(There is) a general proposition that we will start work after 15 per cent of pay (is made) for the first ten areas," Lynn said.

GPL employees will be operating the networks to make ensure the programme can be completed as quickly as possible. Lynn is hopeful that the project will be a success, benefit people and viewed as a positive initiative by the company and the government to meet the needs of the communities.