Guyana last weekend inked a Memorandum of Understanding with the Import-Export Bank of China which would see that institution giving financial support for further modernization of this country’s power sector, the Government Information Agency (GINA) reported yesterday.
This MoU precedes the signing of a framework agreement which will enable the Guyana government to access a Chinese government concessional loan of approximately US$40 million to finance the development and expansion of the Guyana Power and Light (GPL) transmission and distribution system.
The impact of this project, according to GINA, is to provide a more reliable and affordable electricity supply while improving the livelihood of the population and enabling local industry to be more competitive.
President Bharrat Jagdeo last weekend during his current visit to China held a meeting with Li Ruogu, Governor of the Import-Export Bank (Exim-Bank) of China and updated the Governor on recent economic developments here and the main challenges to be overcome.
Also participating in the meeting was Minister of Finance Dr. Ashni Singh who signed the MoU with the Governor of the bank for further modernisation of the GPL.
Under the MOU that was signed, GINA stated, the Government of Guyana and China’s Exim-Bank undertook to advance and conclude discussions on the power sector project. Upon approval of this proposed project, GPL will develop and expand its transmission and distribution system with the construction of 110 km of single circuit 69 KV overhead transmission lines, and approximately 1.8 km of 69 kV submarine cable; seven new 69/13.8 KV sub-stations; the expansion and upgrading of two existing 69/13.8 KV sub-stations; and installation of a fibre optic network and Supervisory Control and Data Acquisition (SCADA) system for tele-metering and protection.
The transmission lines and sub-stations will serve to integrate all major load centres along the coast to permit centralised generation using cheaper heavy fuel oil fired sources, and also facilitate efficient distribution of bulk power in the future.
GINA further stated that the ongoing discussions on this proposed loan are a direct result of the Win-Win Cooperation Facility announced in September 2007 at the Opening Ceremony of the Second China-Caribbean Trade and Economic Cooperation Forum by Chinese Vice Premier Madame Wu Yi.
The Vice Premier had announced China’s intention to provide a RMB 4 Billion concessional loan facility to the Caribbean region for the next three years. It was envisaged that this facility would encourage Chinese companies to invest in Caribbean countries and to promote investment in areas such as infrastructure, resource development, industrial and agricultural production, forestry, tourism and telecommunications.
This agreement follows closely the design and supply of the co-generation plant under the Skeldon Sugar Modernisation agreement which was signed on January 25, 2005 between President of the Export-Import Bank of China and former Minister of Finance Saisnarine Kowlessar.
