Guri Dam in Bolívar state, Venezuela. Photo: File photo.
Caracas (OrinocoTribune.com)—Venezuela’s National Assembly (AN) Deputy Reinaldo Sifuentes, from the opposition party Progressive Advance (Avanzada Progresista), has reported that parliament has begun drafting the Law of Emergency and Decentralization of the Electrical System. The bill aims to modernize the sector, introduce alternative energies such as solar and wind, and allow private sector participation in both the generation and marketing of electricity.
In an interview with Unión Radio this Tuesday, May 26, the opposition deputy explained that the proposal will be presented to the Parliament’s Administration and Services Committee for discussion.
“We are convinced that private investment,” Sifuentes stated, “not only national but international, is necessary for the prompt recovery of the electrical system.”
Proposed private investment
Sifuentes noted that of the country’s 30,000 megawatts of currently installed capacity, “less than half is operational.” He recalled that experts from corporations like General Electric and Siemens have estimated that an investment of between $30 billion and $40 billion is required to fully restore the system.
The project is intended to address an electrical emergency that is clearly visible “just 45 minutes from Caracas,” the deputy added. He emphasized that “the entire country, with the exception of Greater Caracas and La Guaira, is suffering from electricity rationing,” arguing that the state “has no way to immediately restore the national electrical system.”
According to the state news agency AVN, Sifuentes considers it unfeasible for the government to shoulder the recovery alone. “That is why we from Avanzada Progresista are presenting this bill that opens electrical operations to national and international private companies,” he said.
Sanctions and infrastructure challenges
Analysts have pointed out that a combination of factors lies behind the recent sharp deterioration of Venezuela’s electrical grid. These include years of criminal sanctions led by the US empire, government mismanagement, corruption, five years of economic recovery, and an excessively warm season. While the crisis has primarily impacted the interior of the country, Caracas has also faced blackouts in recent weeks.
In light of these infrastructural strains, local media outlets have recently reported that General Electric and Siemens held exploratory meetings and conducted visits to key electrical facilities in Venezuela. However, analysts claim that following these inspections, the corporations signaled that launching a new incursion into the Venezuelan market remains an uphill battle under the current US sanctions regime.
Venezuela: Record High Electricity Demand Causes Increasing Outages
Concerns over a privatization spree
This legislative push comes amid growing alarm among Chavista analysts regarding recent decisions taken by the Venezuelan government. Critics argue these moves evidence a lack of sovereign decision-making following the US empire’s bombing of Venezuela on January 3, an attack in which President Nicolás Maduro was kidnapped and more than 100 human beings were murdered, including 32 Cuban and 47 Venezuelan soldiers.
Overflights and military exercises by US military aircraft, a controversial statement regarding the US-‘Israel’ attacks against Iran, the approval of reforms to the Hydrocarbon and Mining Laws, the deportation of former Minister Alex Saab to the US entity, and the approval of an alleged US “evacuation drill” at the US Embassy in Caracas recently are viewed by analysts as just some of the many concessions granted by the administration of Delcy Rodríguez to “avoid” a full US occupation of the country.
According to experts, a potential International Monetary Fund (IMF) loan, a reform of the Labor Law, massive public sector layoffs, and a privatization spree are also on the horizon. These measures, they warn, could severely jeopardize the support that Chavismo still maintains among the Venezuelan people and the image of Chavismo’s integrity.
Special for Orinoco Tribune by staff
OT/JRE/AU
