Speaking at the signing ceremony, Finance Minister Dr. Ashni Singh described the occasion as a historic moment for Guyana and for Guyana-China relations, alluding to the strong historic relations between the two countries and the increasing role that Chinese enterprises are playing in the development of Guyana.
Minister Singh stated that the Amaila Falls project presented an opportunity for these relations to enter a new phase as the project represented the single largest investment in Guyana and, one of the largest Chinese investments in the Caribbean.
The execution of the agreement was witnessed by Minister Singh, Guyana Power and Light Chairman Winston Brassington, Office of the President Advisor Steven Grin, along with representatives of the Province of Shaanxi, the China Development Bank, China Export and Credit Insurance Corporation, the Inter American Development Bank (IDB), and other representatives of Sithe Global and China Rail.
“This transformational project is the single largest investment in Guyana and will allow Guyana in one single step to move from being almost entirely dependenton costly fossil fuels to being supplied almost entirely by renewable energy. We are delighted to have such credible partners recognize the importance of the project and be ready to invest private capital in Guyana,” Minister Singh said.
CEO of Sithe Global, Mr. Bruce Wrobel, stated that, “We are pleased to be associated with this project, long in the making, that will make a huge difference to the people of Guyana and is representative of the globalised world that we inhabit, a project with many important players, such as the CRFG, CDB, IDB, the Government of Norway, and the GoG).”
The EPC contract, valued US$506 M, is the largest infrastructure contract ever executed in Guyana. The signing signals an important milestone in the development of the US$840 M Amaila Falls Hydro project which is expected to start by mid 2013.
Minister Singh concluded his remarks stating that, “I am delighted to represent Guyana at this historic milestone and I urge all partners to recommit their efforts to seeing the timely realisation of financial close and implementation of this project all the way to its coming into operation.”
CRFG was founded in 1950 and is a state-owned entity, with over US$9 B in annual revenue. It is part of China Railway Engineering Group, a company with over US$90 B in revenue and the third largest construction company in China and, one of the top 100 construction companies in the World. CRFG is headquartered in Xian, China.
Sithe Global is a fully owned subsidiary of the Blackstone Group. Blackstone is one of the largest private equity funds in the world with over US$120 B under management.
China Development Bank is one of the largest commercial banks in China with assets in excess of US$900 B. The project is being led by the Shaanxi branch of the CDB, in Xian.
IDB is one of Guyana’s oldest development partners in the energy sector and an institution with over US$171 B in capital. (GINA)
