Brazilian investors are among those interested in the development of the long-anticipated Amaila Falls hydropower project, Vice President Dr. Bharrat Jagdeo said at a press conference on Thursday.
This project has been stalled since the company selected to construct it, the China Railway Group Limited, was unable to develop the project as the government desired.
So the government has been eyeing other investors who could construct this hydropower project that promises to significantly reduce the cost of electricity locally while adding to the amount of power Guyana generates.
“Brazil was very interested in the hydro… since we terminated China Railway (Group’s contract).
“We’ve now gotten at least two proposals from Brazil to do the hydro… so soon you may see us going back into another process (of bidding),” Dr. Jagdeo told reporters at a People’s Progressive Civic (PPP/C) party press conference.
The Chinese company was unable to secure the necessary financing for the Build, Own, Operate and Transfer (BOOT) model. Resultantly, the Chinese company requested to change the contract to an Engineering, Procurement and Construction (EPC) model.
The government was not keen on the EPC model and is seeking an investor who will deliver the BOOT arrangement. With BOOT, Vice President Dr. Bharrat Jagdeo explained previously, the government would be assuming a low amount of risk.
Previously, it was reported that a visiting delegation from Korea expressed an interest in submitting a proposal for this project.
The Amaila Falls hydropower project is particularly important to Guyana since, beyond the lower cost of electricity it promises, it will help Guyana phase out the use of about 70 per cent of the non-renewable, fossil fuels by 2027 through an energy mix of natural gas and renewable energy sources.
This is in keeping with the country’s revised Low Carbon Development Strategy (LCDS).