An initial technical agreement for the construction of two modern ferries in Guyana has been signed between the Ministry of Public Works and Communications and a Chinese delegation, the Government Information Agency (GINA) reported yesterday.

This follows a feasibility study conducted recently by a ten-member Chinese survey team to determine the building capacity of local shipyards and meetings were held with various technical officials.

Construction of the two roll-on roll-off ferries is being pursued as part of a bilateral technical co-operation programme that originally required the Chinese to design and construct the vessels in their country.

However, according to GINA, a request was later made to have the ferries constructed locally in the interest of ensuring further development of the local ship-building capacity. This will enable local construction of vessels that are acceptable for use not only in Guyana and the region, but internationally.

Construction of the new ferries which are estimated to cost approximately US$8M is expected to be completed within two years. These were initially intended for the Rosignol/New Amsterdam crossing, but with construction of the Berbice River Bridge, the vessels will be assigned to the Essequibo crossing.

Prime Minister Samuel Hinds and Minister of Transport and Hydraulics Robeson Benn were among those who held discussions with the delegation, GINA said.

Minister Benn explained that the initial agreement provides for both parties to accept the designs and proposals to have the vessels constructed locally and other technical details for implementation of the project.

GINA said that at present, government is spending more than $570M to construct a new stelling at Supenaam, Goodhope in Region Two, to accommodate the new ferries while previous upgrading was carried out to the infrastructure at Parika.

A roll-on/roll-off vessel allows for easier and faster loading and off-loading since it connects directly to the stelling built to accommodate it.

Acquisition of the ferries will be the first phase of a plan to replace the existing ferries which have been in operation for more than 70 years and which have been costly to maintain.

Over the period 2001 to 2005, government spent approximately $2.4B to improve the services of the Transport and Hydraulics Department (T&HD), GINA reported.

Heavy operational losses due mainly to low tariffs, an over-aged fleet and competition from private operators are some of the problems facing the ferry services. These were outlined in a transport sector study conducted by European Union (EU) consultants during 2005.

The study recommended a refinement and implementation of a short-term investment programme with focus on the Essequibo crossings and a fleet development programme. It also recommended the strengthening of the legal and institutional framework of T&HD to focus on safety standards and regulations.