Guyana Power & Light (GLP)

cancelled

The government of Guyana privatized its power company by selling a 50% stake of the state-owned Guyana Electricity Corp. to a European consortium (American and Caribbean Power or AC Power), consisting of Globeleq, the power sector subsidiary of the Commonwealth Development Corporation (UK), and Electricity Supply Board International (ESBI) of Ireland. The consortium committed to a total investment of US$50 million over a five-year period in which it paid US$23 million up-front. On October 1, 1999, the consortium assumed responsibility for the management of the utility. The new utility, which started trading as Guyana Power & Light (GPL), received a 25-year license to develop and operate the electricity system throughout the country. The government's remaining stake in the company was to be divested in the following three years to local and regional institutional and individual investors. The contract was terminated in April 2003 due to discrepancies between AC Power and Guyana's legal and regulatory bodies. The relationship between the company and the government had been strained since 2001, when the operating consortium was ordered to repay US$7 million (1.3 billion Guyana dollars) for allegedly overcharging customers. In addition, increases in the costs of fuel and the number of commercial line losses contributed to the collapse of the contract. US$3.4 million held in escrow accounts was expected to be released to AC Power for their shares. The government of Guyana assumed responsibility and ownership of the company after April 2003. The government purchased AC Power's equity interest in GPL for US$1 (one US dollar). None None