Luncheon denies reports of investor pullout from GPL
Stabroek News
January 16, 2003
Cabinet secretary Dr Roger Luncheon has dismissed as rumours any suggestion that the overseas investors in Guyana Power and Light (GPL) are about to walk away from the utility.
Luncheon at his post-cabinet press briefing yesterday said, "the engagement that gave rise to GPL and specifically the nature of the shareholding, calls for dedicated input from the shareholders one of whom is the Government of Guyana, in overcoming the difficulties that face the firm. I don't believe we have given justice to efforts being made to address those difficulties and have arrived at anything vaguely resembling stalemate and a withdrawal of the firm."
He further denied that it was one of the options, consideration or menu of measures put up by shareholders to arrive at a way forward.
He however acknowledged that one of the proposals identified dealt with the funding capital of GPL and the fact that since it is a commercial operation they would not be approaching government for funding. He said instead that investment would have to come from the commercial sector as government is in no position to put funding into a commercial organisation as prescribed by its obligations.
He confirmed a report in Stabroek News that meetings are underway between shareholders over issues crucial to the power company.
According to Luncheon, Cabinet at its Tuesday meeting "reviewed the report of its special committee established to deal with the problems of GPL in the sector."
"GPL as you know, has encountered difficulties in complying fully with its obligations and undertakings particularly with respect to service to consumers and its inability to do so has led to ...... complaints and more recently action by the independent regulator, the Public Utilities Commission."
The company, Luncheon told reporters, has responded with a menu of measures designed to maintain its viability while continuing to provide services to consumers.
According to the Cabinet Secretary, the special committee which examined the menu of measures and also reviewed the current state of operations of the company, advised cabinet about its own findings and its intended position for future engagement with the company.
Government, he reiterated, "will continue to insist that consumers receive a reliable and affordable supply of electricity and that the firm gives content to its commitment under the unserved areas electrification programme to supply power to many of the emerging housing estates that are being created by government."
The special committee chaired by Minister of Housing and Water, Shaik Baksh, is said to comprise Dr Luncheon as cabinet's representative, Minister of Tourism, Industry and Commerce, Manzoor Nadir and government directors Winston Brassington and Ronald Alli. (Oscar P. Clarke)
