EDITORIAL - Right move, PM

Tuesday's formal announcement of the Government's decision to revoke the licence of Energy World International (EWI) to build and operate a gas-fired power plant, and that a public/private sector enterprise team will have another go at getting a viable project off the ground is a potentially positive development that bears close scrutiny.

First, we expect there to be unease in some quarters to the appointment of Vin Lawrence to chair the group; for Dr Lawrence is a backroom operator to the governing People's National Party, who has in the past been the subject of controversy regarding oversight of government agencies/enterprises.

Yet, not even his critics would question Lawrence's intellect or negotiating skills. The fact that he not only enjoys the confidence of, but access to the prime minister could be a decided advantage in this exercise.

What will be important, however, is the balance of the committee and the transparency with which it approaches the job. That is why it is crucial that we pay attention to its terms of reference; who the Government nominates as its other three representatives; and how they are balanced by the two members who the administration says the private sector will be allowed to nominate.

How these issues unfold will indicate whether worthy political instincts and broader strategic vision shown by Prime Minister Portia Simpson Miller with her decision remain intact.

If she had miscalculated the developing public mood towards EWI continuing the project, she could have ignored the critics and push ahead on the grounds of the urgency in delivering cheaper electricity to consumers. But to have done so would have been to worsen the atmosphere of distrust in which the project developed and caused even greater damage to the reputation of the energy minister, Phillip Paulwell. For, whatever the role of the Cabinet in bringing EWI to the bidding process late in the day, the public perceives primarily Mr Paulwell's hand acting in folly, and, perhaps, worse.

Further, the administration's position was weakened when the Inter-American Development Bank (IDB) sided with the Office of the Contractor General that the tender process involving EWI was flawed, and decided not to help finance the project. For even if EWI could find alternative financing, the IDB's decision placed a heavy moral weight on the Simpson Miller administration by calling into question its quality of Governance. This happened at a time when the government is advancing necessary but painful economic reforms, requiring the support of the private sector and broader civil society.

Taken in its broader context, therefore, the PM's action was good politics, good economics and, hopefully, the start of better governance.

The opinions on this page, except for the above, do not necessarily reflect the views of The Gleaner. To respond to a Gleaner editorial, email us: editor@gleanerjm.com or fax: 922-6223. Responses should be no longer than 400 words. Not all responses will be published.