Financial woes halt work on Tumatumari hydropower project

Work on resuscitating the Tumatumari hydroelectricity station in Region Eight (Potaro/Siparuni) halted early this year owing to financial difficulties.

Work had begun in 2010 and by the time it stopped early this year, a preliminary test run had been done while parts sourced from overseas were installed, according to someone who was close to the project. The source said that electricity was provided for two days during the test run. However, earlier this year, work halted as financial difficulties were encountered, Stabroek News was told.

Local engineering company, Dynamic Engineering Company Limited of Eccles had spearheaded the rehabilitation of the long-defunct hydroelectricity station as part of a wider plan for industrial development in the area.

Extensive repairs had been carried out. In December 2010, a preliminary test was done to demonstrate that the hydroelectricity station can operate with the main equipment that had been installed over the years; namely, the water turbine, gear box and other civil infrastructure. But it could not continue owing to the need for critical parts which were later sourced and installed before the project dovetailed.

Principal of Dynamic Engineering, Lloyd Rose had said in an interview with Stabroek News in February last year that full rehabilitation of the hydroelectric station would have started later that year and was scheduled to be completed within a year of commencement. His company spearheaded the hydroelectricity component of the Tumatumari Industrial Development Project and apart from this core project, three other industries, on the basis of reliable, affordable power from the hydro, were envisioned. These are lumber processing, mineral processing and the production of dimension stone or block granite.

Rose had said the hydroelectricity station has the capacity to generate 2 MVA (mega volt ampere) of power, which is close to 2MW.

The hydroelectricity station at Tumatumari Falls on the Potaro River was the first hydropower station in Guyana and was constructed by British Guiana Consolidated Goldfields Limited to power two large dredges for gold mining there and at Konawaruk in the mid-1950s. It was said that it had an installed capacity of 1500kW and used 2 x 750kW Francis turbines. Following a prolonged workers’ strike, the operations were closed in the early 1960s but put back into use in 1976 by the Guyana National Service (GNS) to supply power to its administrative centre and other activities. Up to 1987, one turbine functioned. It is 241 feet above sea level.

Rose had told Stabroek News that based on the successful completion of the first test; they would have moved to acquire the necessary financing to fully rehabilitate the station. He had said that some financing would be coming from the group of initial investors already involved in the project but they are also looking for other strategic investors as well as loan financing from the capital markets. Rose had declined to say what the estimated cost of the rehabilitation would be but revealed that just under US$100,000 had been invested up to February 2011. However, he had said it was anticipated that the total investment in the entire industrial project would be in excess of US$3 million.