A Chinese state-owned firm is to carry out a preliminary study on the possibility of locating a deep water harbour at the mouth of the Berbice River, Prime Minister Samuel Hinds has announced.
In a statement, Hinds said that the study will be carried out at the company’s expense and without any obligations on the part of the government. “The government has advised that if a deep water port on a BOOT (Build, Own, Operate and Transfer) basis was to appear to be feasible, government at that stage would proceed by way of an open invitation for proposals,” Hinds said.
It is not clear what impact this will have on an Inter-American Development Bank (IDB) grant approved in 2013 to fund studies required to prepare a road link to Brazil and a deep-water port project that could eventually be financed through a public/private partnership. The IDB’s US$1.5 million technical cooperation will cover the necessary market, engineering, environmental, social and financial studies required to prepare the road link and deep-water port project for eventual financing through a public/private partnership, according to the IDB. The IDB had sent out procurement notices for consultants to undertake the studies in November last year.
Hinds, in the statement said that Zhile ‘David’ Zhang, the Chief Representative of the Overseas Operations of China State Construction Engineering Company Ltd (CSSECL), in the Latin American and Caribbean Region will be in Guyana next week to follow up on a Memorandum of Understanding entered into between the government of Guyana and CSSECL for the Chinese firm to carry out a preliminary- a “pre-pre-feasibility” study of a deep water harbour in Guyana in the area of the mouth of the Berbice River and with an associated Development Park/Export Processing Zone.
Zhang will be followed by a technical team from his company which will carry out the preliminary study, at the company’s expense and without any obligations on the part of the government, Hinds said.
According to his statement, in the mid-1990s, the Aroaima operations of Reynold’s (ABC/AMC) Bauxite Operations constructed a deep water shipping facility in the mouth of the Berbice river which could have been seen as the first step towards a traditional PANAMAX (65 000 ton) sized port.
He said that over the years, there have been a number of interests in a deep water port in Guyana. A number of preliminary studies/proposals were put to Government by Boskalis, a team sent by the Government of India and Oldendorff, the Germany-based shipping and barging company contracted to the Berbice bauxite operations, BCGI/RUSAL.
The Prime Minister noted that during the recent visits of the President of China to CARICOM and the subsequent BRICS meeting in Brazil, there were announcements that China had committed large funds for infrastructure development in the Caribbean, Central and South American area. Chinese firms, aware of this financing and always on the search for new business opportunities have been proposing to be partners in desired economic developments. The desired deep water harbour in Guyana is one such, Hinds said.
“Government at this time is welcoming and facilitating offers to carry out and present preliminary studies/proposals at no costs to and no obligations on the part of the Government,” he said. He added that government has advised that if a deep water port on at BOOT basis “was to appear” to be feasible, government would proceed by way of an open invitation for proposals.
The Prime Minister said that a team from Dalian Port Corporation visited Guyana during the week of 15th September 2014 and he led a team on a return visit to Dalian over 10th to 13th October 2014.
