Wrong timing for setting up geothermal power plant – Eustace
Leader of the Opposition and President of the New Democratic Party (NDP) Arnhim Eustace thinks that setting up a geothermal power plant here at a time when oil prices are the lowest ever is a bad idea.
Eustace, an economist, said on Saturday that the price of oil, which is below US$30 a barrel, makes it foolhardy to invest in geothermal energy at the moment, as it will not benefit the country.{{more}}
He was at the time speaking at the Layou Playing Field, where the NDP held a âVictory Rallyâ as part of protest action against the results of the December 9, 2015 General Elections.
On Tuesday, Prime Minister Dr Ralph Gonsalves signed a US$15 million loan agreement with the Abu Dhabi Fund for Development (ADFD) that will go towards the establishment of a geothermal plant here.
But on Saturday, speaking ahead of the signing, Eustace said that the PM should have sat down with the investors and reviewed the initial deal, because of declining oil prices, among other things.
The Opposition Leader said that to drill one geothermal well would cost US$5 million and signing this agreement could see the country ending up âwith another white elephant.â
Eustace also thinks that the investors have their eyes set on the local St Vincent Electricity Services (VINLEC) and if we are not careful, we can lose VINLEC to foreign businessmen.(LC)
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