Guyana, unfortunately for too long, has been dependent on fossil fuels for providing electricity, and this has been a drain on extremely scarce foreign exchange. A lack of a reliable and cheap electricity supply severely cramps the growth and expansion of the manufacturing sector, which is key to breaking out of the vicious circle of being merely a producer of primary products and raw materials.

A case in point is the bauxite industry. For decades, Guyana has been exporting refined bauxite which is the raw material from which aluminium is produced, which in turn is used in the construction of aircraft, spacecraft, automobiles, cooking utensils and a host of other value added goods.

Guyana has not been able to develop much from being a producer of bauxite ore, mainly because of the absence of a cheap and reliable source of electricity, which is essential for the establishment of an aluminum smelting plant. So it continues exporting bauxite and buying back items such as cooking utensils which have been produced from its own bauxite.

In the early 1970s, there was the much touted Upper Mazaruni hydro electricity project which was supposed to bring an end to Guyana's energy problems. That scheme, unfortunately, turned out to be an excursion into a huge financial and management disaster and came to an abrupt end.

In the context of globalisation and trade liberalisation and reduction in the levels of pollution, competitiveness is not an option but the key for survival and advancement. Hence the demand for a cheap, reliable and clean source of electricity is imperative.

Against this background, the recent granting of an interim licence and environmental permit to Synergy Holdings and Harza International Development Company (HIDCO), partners in the development of the Amaila Hydro-Electric project, is more than a welcome step and shows that despite the political troubles and the dramatic upsurge of violent crimes and the apparent link to politics, there are still many investors who have confidence in the governance and future of this country.

One of the encouraging statements by Mr. Frank Dickerson, President of HIDCO, was that the Government has been very cooperative and helpful in the process of getting the project on stream.

He said: "HIDCO is involved in development of hydropower throughout the world and we have seldom seen such a high degree of cooperation from the government as we have found here in Guyana."

And head of the Guyana National Energy Authority, Mr. Joseph O'Lall correctly observed that Guyana has tremendous hydro-power potential - more than 6,000 Megawatts - which is affordable and sustainable and very importantly is "green power." He also noted that there is a correlation between electrical power and the standard of living.