Amaila Falls Hydro Project unnecessary … Lethem/Linden road can lead to hydroelectric plant

By Nicholas Peters, March 22, 2015 | By KNews | Filed Under News, Source

A Brazil-backed Lethem/Linden road is essential to the development of Guyana, thus fulfilling the goals of the Initiative for the Integration of the Regional Infrastructure of South America (IIRSA) developmental plan. This road would also lead to the development of hydroelectric facilities, which would benefit the entire Guyana and regions of Brazil.

Stanley Ming presenting “An Overview of Options

and Opportunities (O3) for National Development”

, Friday last

This is according to former Member of Parliament, Stanley Ming, in a conceptual proposal entitled “An Overview of Options and Opportunities (O3) for National Development”. The proposal was presented to members of the media fraternity on Friday at the New Thriving Restaurant, Main Street Georgetown.

“The road to Brazil is eventual if Guyana is to become a transshipment port,” said Ming in his detailed presentation to the media. He explained that the premiere reason for Brazil’s interest in backing a road from Lethem to Linden is linked to the North Amazonian city of Manaus.

According to the local entrepreneur, Manaus is a significant manufacturing facility in Brazil where international companies have set up production factories. Ming explained that the manufactured goods from these companies are not exclusive to Brazil but are meant for export to the foreign market.

The biggest challenge Manaus faces is transporting the manufactured goods to the Atlantic Ocean for export.

“To get from (Manaus) to (the Atlantic), there is only one way. There is no road, no railway— there is only one way and that is the Amazon River… The only way to get those goods is by barge and that takes nine days,” said the businessman.

“The reason they have been behind Guyana for decades to get a road through Guyana to an Atlantic Port is because if they could build a modern highway… they will be able to gain access from Manaus to a port in the Atlantic whether it’s Georgetown, Essequibo or Berbice – whichever is most suitable – to the advantage of 24 hours,” explained Ming.

Currently, travel by barge through the Amazon River from Manaus to the port city of Belem takes nine days, and incurs substantial financial costs for the Brazilians and manufacturing companies.

Ming said that the reduced travel from nine days to 24 hours is the main reason for Brazil’s interest in creating a Lethem to Linden road as it would mean a significant decrease in financial charges for the country’s export sector.

Moreover, a developed road connecting Brazil to Linden, and subsequently Georgetown, was one of the infrastructures, cited in a recent feasibility study that Guyana needed to implement in order for the Marriott Hotel to receive 11 percent returns.

Due to Guyana’s “procrastination” in building such a road, Ming explained that Brazil eventually went ahead with constructing a road to an Atlantic port through Venezuela. However, this road has been met with its own difficulties as it also required the construction of a bridge to cross the Orinoco River.

While this has reduced transportation costs for Brazil, Ming said that “due to the traffic when you come to the Orinoco crossing, the travel (from Brazil to the Atlantic Port) is increased to 48 hours. So that is why they are still interested in Guyana providing an access road.”

Ming stressed that Guyana’s geographic location and relatively accessible terrain, is the reason for Brazil’s continued interest in becoming investors in an updated Lethem/Linden roadway. Talks of building a Lethem-Linden road can be traced as far back as 2009 at the opening of the Takutu River Bridge, connecting Guyana and Brazil.

“Apart from offering to build and finance the road from Lethem to Georgetown… the Brazilians have also offered to build since 2009, hydro-power in Guyana,” continued Ming. He said that the intentions the hydro-electric plant would be to provide both countries the power each needs.

At the presentation, Ming explained that due to the state of Roraima’s remoteness from the rest of Brazil, many of the cities in that region are susceptible to frequent blackouts on current power-grid. Guyana is closer to the state’s cities without any obstacles, like the Amazon River, impending development. It for this reason Ming cited Brazil still has interest in developing not one but two electrical power plants in Guyana.

In 2009, President Luiz Inacio Lula da Silva and the Government of Guyana had entered talks for a hydro-power project in the Middle Mazaruni with support from the Brazilian government. At the time Prime Minister, Samuel Hinds said that the electricity from hydro-power stations here (Guyana) could be also used in Roraima State.

Ming further detailed that the hyrdo-power stations in Guyana would collectively be able to generate 2700 megawatts. According to his estimates, Guyana needs 300 megawatts of power. He said that Brazil would be willing to invest in hydroelectric stations, while relying on the excess power to supply Roraima State.

“Brazil is still willing to fund and build hydropower so that they can get the 2400 megawatts of power. By so doing Guyana will not be indebted because Brazil will find financing and they will repay the loan by the power purchase agreement they have signed with Guyana.” said the businessman.

He added that this renders local investments into the multimillion-dollar Amaila Falls Hydro Project unnecessary.

The Amaila Falls Hydro Project was initially proposed by the Guyana Government, in collaboration with the Sithe Global Company with additional funding from the Inter-American Development Bank, and the Caribbean Development Bank.

Sithe Global has since pulled out from the project, citing the lack of consensus among the Guyanese as their reason.

However, late last year, President Donald Ramotar expressed interest in reviving the Amaila Falls Hydro Project.

When asked whether he was surprised at this move by the Head of State Ming replied, “I am not surprised that the government would invest and put the country in debt to build a plant.”