The Trinidadian conglomerate, ANSA McAL, is inviting companies and consultants to indicate their interest in providing services as the company moves ahead with its proposed ethanol/sugar project here.
“The ANSA McAL group is currently conducting an in-depth feasibility study for the development of the first ‘green field’ ethanol project in the Co-operative Republic of Guyana. It is envisaged that the project (subject to a successful feasibility) will have the capacity to produce up to 2,000,000 tons per year of high sucrose sugarcane and the ethanol plant will produce up to 40 million gallons of anhydrous ethanol per year,” an ad in the Sunday Stabroek yesterday said.
ANSA McAL invited companies to indicate their interest in conducting an environmental and social impact assessment; providing a full spectrum of project management and construction oversight services; providing services to develop an Agricultural Plan, engaging marketing experts to contribute to a feasibility study and engagement of a turnkey solutions provider (plant and technical services).
The company’s plan was the focus of intense scrutiny earlier this year after it was reported upon by the Trinidad Guardian based on a statement by ANSA McAl. The Memorandum of Under-standing (MoU) between government and the company was signed on September 30 last year but was never announced publicly here.
The government later denied that the biofuel MoU was “secret” and said that the Trinidadian conglomerate was selected after their proposal was scrutinized by technical experts in the field of bio-energy. “To suggest this was a secret deal is not only misleading but a gross misrepresentation of the reality and part of the continued campaign to cast aspersions on the PPP/C Government,” the statement issued through the Government Information Agency said.
Opposition Leader David Granger said at the time that the agreement is another that should be added to the list for review. The opposition parties have expressed concern about the secret signings of commercial deals in the previous Bharrat Jagdeo administration, particularly in the waning days of his term in office and they have raised the issue in tripartite talks with the Donald Ramotar administration. They had asked that a task force be set up to review these deals.
In its statement, the government said that in July 2010, the GoG through public tendering awarded a contract to NUMARK Associates Inc of the United States for the Service Consultancy to expand bio-energy opportunities in Guyana. As part of the Terms of Reference, NUMARK was tasked with compiling a list of potential bio-energy investors who may be interested in investing in Guyana. “Based on the NUMARK’s report and the proposals received from investors, ANSA McAl was selected after their proposal was scrutinized by technical experts in the field of Bio Energy, which was subsequently approved and signed on September 30, 2011 and witnessed by representatives of the Government and ANSA McAL,” the statement said.
The proposed biofuels project is to be undertaken on lands in the Canje Basin. The agro-energy industrial project will be built on 110,000 hectares of virgin land.
Back in 2009, Jagdeo had said that the cost of infrastructure in the East Canje Reservoir Scheme is high, thus making the project’s economics “a little bit on the low side.” He had said that funds arising out of engagements with Norway and others could catalyze larger scale investment. He explained that small investments of about US$10M or US$20M in infrastructure can catalyze larger investments in projects.
Jagdeo, at the time, indicated that in the development of a local biofuel sector, Guyana will likely pursue next-generation biofuels, which are not made from food crops. For a decade or so, biofuel has been on the agenda but the Guyana government has made little progress on a deal until the announcement with ANSA.
