Deputy Premier and Crown Investments Corporation Minister Dwain Lingenfelter today announced that SaskPower Commercial will not be proceeding with an equity investment in the Guyana Electricity Corporation (GEC).

In May, 1997, SaskPower Commercial signed a Letter of Intent that gave it the right to negotiate the acquisition of a 50 per cent ownership position in GEC for $31 million (CDN). The final terms of purchase were subject to approval by the Governments of Guyana and Saskatchewan.

"We are exercising our right not to approve," Lingenfelter said. "There will be no investment by SaskPower Commercial in the Guyana Electricity Corporation."

The decision not to proceed with the investment is based on a recommendation from the Crown Investments Corporation.

"Investments in electrical utilities are long term investments - certainty and stability of the political, business and economic climate are of paramount importance," Crown Investments Corporation President John Wright said.

"SaskPower developed a solid commercial proposal and an operational plan that could have made the GEC a success," Wright said. "However, given recent events we are not sufficiently comfortable with the level of certainty required to make this investment.

"There will be no Saskatchewan equity investment in Guyana. If there is any future role for SaskPower Commercial in Guyana it will be to explore prospects for management and technical consulting."

Ted Boyle
Crown Investments Corporation
Regina
Phone: (306) 787-9039