Over three years after government secured nearly half a billion dollars in European Union (EU) funding to build a hydropower plant at Kato in Region Eight, the project is still to get off the ground.
In January 2012, the EU had announced that the total cost of the project was expected to be €2.4 million (approximately $615 million) with the EU contributing €1.8 million (approximately $460 million) under the 10th European Development Fund (EDF) while the Guyana Government would contribute €613,949 euros (approximately $154 million).
While construction of the hydropower plant was scheduled to commence at the end of 2013, nothing has happened since, Stabroek News was told. One of the pre-conditions for the investment was the construction of a secondary school at Kato. “The secondary school is foreseen to be the main electricity consumer and therefore as such forms the basis for feasibility of the investment,” the EU had said.
Kares Engineering had won the contract for the construction of the school with a bid of $691,972,139. In April, the Government Information Agency had reported that the school was near completion. Former Regional Executive Officer (REO) for Region Eight Ronald Harsawack had previously said that the main structure will cost $780M but the cost of furnishing; lighting, fencing, and security may take the final figure to around $1B.
When contacted yesterday, former Regional Chairman Mark Crawford told Stabroek News that the school was completed but the hydropower project had never gotten off the ground. He said that Central Government never shared information with the Regional Democratic Council but he was able to make the observation when he visited the community prior to the May 11 general elections.
“Nothing has started as yet,” he said in relation to the hydropower project. He questioned how much money was spent on the project thus far. It is not clear what has become of the EU funds or the future of the project.
When announcing the project, the EU had said that as part of the government’s broader hinterland electrification programme, the system would comprise a 330-kilowatt micro-hydropower station with its primary energy source being the 36 metres head waterfall in the Chiung River in the vicinity of Kato village. “Sufficient generating capacity for electrical services is to be provided to a secondary school complex to be constructed by the Ministry of Education, existing government buildings such as the nursery/primary schools, the guest house, the police outpost, medical facilities, school dormitories and to also facilitate agro processing and commercial farming. Further-more the system will provide electricity to Parama-katoi through a 16 km transmission line which forms part of the intervention,” the statement said.
In June 2013, three companies – B.K International Inc, Farmex Technologies and Dynamic Engineering Inc. – had bid for the project. It is not clear who won the contract. The hydropower project was divided into two lots. Lot One dealt with the design and construction of the hydropower plant and Lot Two dealt with the design and construction of the irrigation infrastructure. Work was scheduled to begin at the end of 2013 and last for 20 months.
Stabroek News was told that hydropower consulting company, Sven Homscheid Hydropower + RE Consulting was providing services to the Guyana Government for the project. According to the company, it provided services to the project since its initial stage and was the employer’s engineer to the Government of Guyana during the tender and contracting phase for the works.
It said that the services provided to date comprise project identification study review, supervision of the feasibility study, assistance for application for EU grant financing, establishment of the tender documents and assistance during the tendering process and assistance during contract negotiations.
The government has been pursuing a mini-hydropower facility for the area for some time with particular emphasis on the potential for expanding crop production.
