Gold boom, rising power demand renew focus on Amaila Falls hydro

As part of Guyana’s energy transition and sustainable development plans, the Government is looking to reduce the carbon footprint of the local mining industry and is hoping to use the Amaila Falls Hydropower Project (AFHP) to do this.

During a press conference earlier this month, President Dr Irfaan Ali disclosed that two large-scale gold mining projects are scheduled to come into full operation as early as next year, taking the country’s annual gold production above one million ounces.

However, these two mining projects alone would require approximately 85 megawatts (MW) of power each.

Speaking about Guyana’s energy future in a recent interview, President Ali indicated that while these projects can self-generate the power they need, that would be done using heavy fuel or diesel – something which the country is trying to wean off from.

The Head of State touted the possibility of the operations being powered by natural gas from the highly anticipated Gas-to-Energy (GtE) project or even the pending 165-MW Amaila Falls Hydropower initiative.

“Gas gives an opportunity to reduce the carbon footprint on mining. So, that’s an opportunity there. Now, that 160 MW can also be linked to the Amaila Falls project. But that is just two [projects], and we have other exploration that is going on. So, it tells you that even in the mining sector, the need for power is growing,” the Guyanese leader stated.

The Ali-led People’s Progressive Party/Civic (PPP/C) Administration has been keen on reviving the Amaila Falls Hydropower Project, which has been on the cards since 2011.

5 foreign companies in race

Some five foreign companies are in the race for the Amaila Falls Hydro project after responding to the Government’s call for proposals, which closed in May. A senior Government official had told this publication last month that a technical team was being put together to review the bids received.

But according to President Ali, that evaluation process has already commenced with a final decision expected soon.

“As soon as that evaluation is completed, I have instructed that we move to negotiate with the best-ranked bidders who give us the best possibility… This is a design-build-finance [model] and a power purchase agreement. They have to agree to the terms – terms that make economic sense for us and will meet the energy costs that we want to deliver to the people of this country,” the Head of State emphasised during his recent interview.

Among the bidders vying for the project is a joint venture (JV) between United States-based OEC USA and GE Vernova, and Worley out of Australia, which submitted the highest proposal to the tune of US$800,060,842.

The OEC, GE Vernova and Worley grouping had previously tendered to be pre-qualified for this project in 2023 before the Government eventually decided to reissue the Request for Proposal (RFP) last year.

Coming in second with a US$668,000,000 proposal is a consortium of CAMCE-CMEC out of China. China CAMC Engineering Co, Ltd (CAMCE) and China Machinery Engineering Corporation (CMEC) have individually done construction projects in Guyana’s public sector and have also bid for major gas-related projects here.

Another Chinese company, China Gezhouba Group Company Limited-HYI, submitted a bid to the tune of US$432,338,377 – the third highest proposal. In addition, Chinese state-owned Sinohydro Corporation Limited came in fourth with a US$416,866,949.21 proposal.

The fifth company that bid for the project was a JV comprising India-based Afcon Infrastructure Limited and Scandian Infrastructure AB from Sweden. However, no figure was listed for this JV in the tender document seen in this newspaper.

Back in October 2025, the Office of the Prime Minister (OPM), which has responsibility for the energy sector, published the invite for the Amaila Falls Hydro project under a Build-Own-Operate-Transfer (BOOT) model.

According to the RFP document, the project is expected to deliver a minimum installed capacity of 165MW, including the hydro dam, powerhouse, substation, and a 23-square-kilometre storage reservoir, consistent with environmental studies and permits.

However, it was noted that the size of the hydro may be re-engineered to take into account changes in turbine technology, thus allowing more than 165MW to be generated and transmitted.

Under the revised RFP, developers are required to assume all geotechnical risks associated with the project and must demonstrate proven capability and financial capacity to deliver large-scale hydro projects. Only firms or consortia that have successfully built at least three hydro projects of 100MW or more in the last 10 years will be considered.

The 165MW project was the flagship initiative of the Bharrat Jagdeo-crafted Low Carbon Development Strategy (LCDS) but was blocked by the A Partnership for National Unity+Alliance For Change (APNU+AFC) Coalition both in and out of office.

At the time, the Government had a developer in the United States-based Sithe Global, which was backed by investment major Blackstone Inc. But in 2013, Sithe Global pulled out of the project, citing the lack of consensus in Guyana’s Parliament.

Today, however, the Ali-Administration has managed to secure the backing of major international partners, including Qatar and the United States Export-Import (EXIM) Bank.

In fact, the US EXIM Bank, which is already funding the Gas-to-Energy Project, has signalled interest in financing the hydropower project – one of several major infrastructure initiatives discussed during a September 21 meeting between President Ali and the bank’s President and Chairman, John Jovanovic, in New York.