The new Board comprises Mr. Ronald Alli, a Chartered Accountant and head of the accounting firm Jack Alli Sons & Company; Mr. Errol Cheong, retired Managing Director of the Guyana and Trinidad Mutual Fire & Life Insurance Companies (GTM); Mr. Narvon Persaud, Technical Services Manager, Guyana Sugar Corporation (GUYSUCO); Mr. Carvil Duncan, President of the Guyana Trades Union Congress (TUC) and Mr. Winston Brassington, Executive Head of the Privatisation Unit.

Mr. Alli has been appointed Chairman of the Board.

AC Power at the end of last month took a decision to give up its shares in the troubled power company, paving the way for the Government to become the sole owner of the entity.

Prime Minister Hinds had announced at the end of last month that steps were being taken by the Government to appoint a new Board of Directors, a Chief Executive Officer and other new managers to secure the necessary financial and administrative arrangements to maintain the operations of GPL.

Under the agreed terms between the two sides, the Government has acquired the equity interest in GPL for US$1 and an agreement to release its claim on the final payment of US$3.45M, and will assume control of the company from April 30 this year, after which the sub-contracted managers the Electricity Supply Board of Ireland (ESBI) will leave.

Mr. Hinds who has responsibility for the electricity sector, said the Government had entered into negotiations with AC Power to restructure GPL, replacing the management and refinancing the company's operations, since August last year, as a result of its concern since 2001 over the failure of the management to deliver on its obligations to provide an efficient and economical service in accordance with operating standards and performance targets.

In particular, was the Government's concern at the inability of AC Power to reduce technical and commercial losses which were passed on to the consumers.

On March 28 this year the Government and AC Power signed a preliminary understanding of the fundamental terms for AC Power to transfer its shares in and management responsibility for GPL to the Government, bringing to an end the shareholder agreement between the Government and AC Power which established GPL.

He said the challenge to return GPL to an efficient and viable operation is formidable, noting that it will take substantial capital investment and time and about another five years to refurbish the distribution and transmission systems thereby reducing the technical losses to an acceptable level.

The Prime Minister had noted that the task is not one only for the Government, but will require the commitment and ingenuity of the public and private sectors, the trade unions, the consumers associations and the entire country.

He had also announced that it is the Government's firm intention to secure private investment in GPL - local/foreign - adding that it has already received indications of interest from some local and foreign potential investors.