Scoping Study: Suriname and Guyana
Opportunities for increasing UK investment and trade
July 2013
Report prepared by :
Mr Chris Bennett
Deputy Managing Director
The Caribbean Council
Temple Chambers
3-7 Temple Avenue
London EC4Y 0HP
Tel: +44 (0) 207 583 8739
Fax: +44 (0) 207 583 9652
E mail:[email protected]
Website: www.caribbean-council.org
1
Introduction
In July 2013, the Caribbean Council undertook a scoping study of UK business opportunities in
Guyana and Suriname on behalf of the British High Commission in Guyana.
The scoping study was funded by the FCO Commercial Diplomacy Fund and seeks to raise awareness
amongst British companies about the opportunities which exist and provide them with key contacts
in a variety of public and private sector organisations which can help them to take new business
initiatives forward.
This report is a summary of a programme of nearly thirty meetings which the Caribbean Council
undertook in Guyana and Suriname in July 2013 with key figures in the private sector and
Government.
The report identifies particular opportunities for UK firms in the following sectors:
1)
2)
3)
4)
5)
6)
Mining
Energy and Renewable energy infrastructure
Oil and Gas
Transport Infrastructure
Construction of housing
Environmental services
The report also looks at:
- Key contacts for each of the above sectors
-
The state of play with competitors from other countries , particularly China
-
Legislation relating to the sectors identified as priorities and towards investment in general
-
Security of investment and issues surrounding good governance/rule of law
More detailed information about the projects listed in the report from the British High Commission
in Georgetown.
Ms Taryn De Mendonca, Senior Trade and Investment Officer
Tel. +592 226 5881/2 Ext 2004
Email. [email protected]
2
Contents
1) Brief Introduction to Guyana and Suriname
p.4
2) Summary of Key Findings
i.
Mining
ii.
Oil and Gas
iii.
Energy Infrastructure
iv.
Transport Infrastructure
v.
Construction / Housing
vi.
Environmental services
p.6
p.10
p.13
p.15
p.17
p.18
3) Summary table of Top Ten Infrastructure Projects
p.20
4) Map of Major Infrastructure Projects
p.21
5) Overview of the Business Operating Environment
p.22
6) Useful Contacts
p.27
7) Full Listing of Wider Opportunities
p.28
3
Brief Introduction to Guyana and Suriname
Located on the North-East shoreline of the South American continent between Brazil and Venezuela,
Guyana and Suriname have a territorial size which is around 1.5 times the size of the UK. They have
however only small populations which are mostly living along the Atlantic coast and so the vast
majority of the interior of the country is uninhabited dense virgin rainforest. Both countries are lowlying and vulnerable to flooding from the sea.
English-speaking Guyana, as a member of the Commonwealth, and with a substantial diaspora
population living in the UK, is better known in the UK than its neighbour Suriname. As a Dutchspeaking country which won its independence from the Netherlands in 1979, Suriname continues to
have a strong trade and investment relationship with the Netherlands as its primary partner in
Europe.
Key economic facts about the two countries are as follows:
Suriname
Population:
Capital:
Area:
GDP (PPP):
GDP growth:
GDP (PPP) per capita:
Exports:
approximately 534,000 (2012 census).
Paramaribo (popl. Approx. – 259,000)
156,000 sq km
US$4.735 billion (2012est.)
4.47% (2012 est.)
US$8,857 (2012 est.)
gold, oil and alumina, making up almost 95% of exports. Secondary exports
include rice, bananas, lumber, and fish.
4
Total exports in 2012: US$ 2.55 bn (UAE is Suriname’s biggest export partner due to gold exports)
Imports:
chemicals, consumer goods, industrial machinery, poultry, auto parts and
accessories.
Total imports in 2012: US$ 1.65 bn
Imports- partners:
US 25.8%, Netherlands 15.8%, China 9.8%, UAE 7.9%, Antigua and Barbuda
7.3%, Netherlands Antilles 5.4%, Japan 4.2% (2012)
Figures from World Bank
The historic city centre of Paramaribo
Guyana
Population:
Capital:
Area:
GDP(PPP):
GDP growth rate:
GDP per capita:
Exports :
Total Exports in 2012:
Imports:
Total Imports in 2012:
Imports - partners:
796,000 (2012)
Georgetown (popl. approx. – 132,000)
196,850 sq km
US$2.704 billion (2012 est.)
4.82% (est. 2012)
US$3,399 (2012 est)
sugar, gold, bauxite, alumina, rice, shrimp, molasses, rum, timber
US $1.311 bn
manufactures, machinery, petroleum, food
US$1.35 bn
Trinidad and Tobago 23.2%, US 21.3%, China 11.8%, Cuba 6.4%, Suriname
4.3%
Figures from World Bank
5
Georgetown – at the juncture between the Demerara River and the Atlantic Ocean.
Georgetown – the iconic Stabroek Market
6
Summary of Key Findings
Guyana and Suriname are both resource-driven economies with small populations which are
currently enjoying solid economic growth (Suriname 4.5% GDP1 and Guyana 3.7% GDP) principally as
a result of continuing high international prices for gold, their principal export. Buoyant gold exports
have more than off-set the sluggish performance of bauxite, their traditional main commodity
export.
Both Guyana and Suriname are also seeing substantial oil and gas offshore exploration activity as
international oil majors become convinced that there are significant commercially exploitable
deposits of oil and gas in the Guyanas basin. Suriname already has on-shore oil production and
refining capacity. The US Geological Survey estimates that there could be 15 billion barrels of
potential hydrocarbon resource in the Guyanas basin.
Strong economic growth has led to a boom in housing construction and increasing energy demands
from consumers which are being addressed by the Governments of each country through installing
new conventional and renewable energy power generation. At its most significant, this involves a
massive US$858m new hydroelectric dam planned in Guyana at Amaila Falls which if it proceeds will
generate 165 MW, dramatically improving Guyana’s balance of payments by reducing by up to 90%
the amount of oil they need to import.
Governments of both countries have also outlined their plans for major upgrades of national
transport infrastructure to capitalise on current economic growth and ensure that they have the
transport infrastructure they need to be competitive in the 21st century, particularly in terms of
connectivity for international trade with new ports, expanded airports and bridge infrastructure all
being planned.
They also both recognise the importance in the long-term of diversifying their economies out of
dependence on the extractive industries, and they are therefore looking to attract inward
investment to a wider range of sectors including agriculture, tourism and forestry.
This report finds that there are particular areas of opportunity for UK companies in terms of exports
and investment in the following sectors:
1) Mining
The prospects for both countries’ economies are, and are likely to remain, principally driven by
extractive industries (and by extension the global prices of the minerals which they have in reserve).
These industries (gold/ bauxite / manganese and potentially others such as rare earths) are
extremely capital intensive and require highly skilled and experienced personnel. These are high
value skills, products and services which the UK produces.
1
IMF estimate for 2012
7
Details of the major projects are set out below, but readers should bear in mind that there is also a
substantial small scale gold mining industry perhaps constituting as much as 50% of the total. These
small scale operations require equipment (specialised and non-specialised) for their activities. In
both countries there is a large amount of artisanal gold mining which is causing some concern
regarding the impact on the environment, particularly because of the use of mercury. Technologies
and services which help improve their environmental performance and remove the use of mercury
are badly needed.
The main mining projects underway are as follows:
In Suriname:
Gold:
At present the only major international company which is mining gold in Suriname is Canadian,
IAMGOLD which is mining the Rosebel mine which lies approximately 85 kilometres south of the
capital city of Paramaribo and covers 170 square kilometres. Gold production in 2012 was 382,000
ounces.
There are two other companies which are currently looking to develop new gold mining concessions:
1) Newmont Mining (whose contractual terms are under discussion in Parliament). Newmont
is the project leader with partners Alcoa aluminium under the group name “Surgold”.
Surgold is planning to develop the Merian Gold Project approximately 60km south of
Moengo, in the northeast portion of Suriname. The Merian Gold Project includes the
development of three open pits, a processing plant and the associated infrastructure such as
waste rock disposal areas, a tailings storage facility and a worker accommodation camp.
Surgold has identified 3.6 million ounces of NRM (nonreserve mineralization).
2) SMMC (State Mineral and Mining Company); this is a state mining company which is
already active in Granite quarrying (formerly known as Granalco). There may be
opportunities to enter into a JV with Granalco for other gold mining areas.
Suriname is currently developing refining capacity for gold and this is an area in which they are
interested in attracting investment.
Bauxite:
The only mine which is currently operating in Suriname is run by ALCOA, an American company
based out of Pittsburgh. They have significant reduced production activity however because of a
slowdown in demand for aluminium (and by extension bauxite) and sluggish world prices.
The Suriname Government is proposing a new bauxite concession at a place called Bakhuis in the
west of the country. A study estimates that there are 300m tonnes of bauxite there.
At present the bauxite in the country is processed into alumina. The final high value stage of the
manufacturing process into aluminium still occurs outside of the country.
Suriname also has reserves of other minerals which they do not yet have concrete studies estimating
the quantities for. These include:
8





Diamonds
Manganese
Iron Ore
Rare Earths
Copper
The Ministry of Natural Resources is the lead Ministry covering the concessions and exploration
licences for these minerals and can advise on the relevant legislation.
In Guyana:
Gold:
There are currently US, Canadian, Brazilian and Guyanese companies operating in the gold sector
plus London-based Consolidated North West Resources. The foreign companies are focussed on the
larger mines – under Guyanese law, only Guyanese companies can mine in small and medium sized
concessions. In many cases, the Guyanese opt to do so with a foreign joint venture partner. The
Guyanese companies are generally mining alluvial gold which is not below 40 -60 feet below the
ground.
There are no very large-scale gold mines in Guyana comparable to those in Suriname but there is an
Australian company (Troy Resources) which is looking at setting up a mine comparable with Rosebel.
The last major gold mine in Guyana was the Omai mine which closed in 1998.
Production in 2012 was 438,000 ounces as declared (sold) to the Guyanese gold board – all gold in
the country has to be sold to the Gold Board. There is concern about how much gold goes
unreported and which may be smuggled into Brazil and Venezuela and Suriname.
They have strict regulations in place governing the way in which gold should be mined in Guyana
including codes of practice for the safe use and handling of mercury in controlled circumstances.
They also have an increased police/army presence in the gold mining areas to ensure that these
regulations are properly observed.
Guyana has signed up to the Minamata United Nations Environments Programme to remove
mercury from use and the Government is now 1) seeking alternative mechanical technologies 2)
capacity building and training 3) seeking mercury free technologies (eg. concentrators). UNEP will
ban the international trade in Mercury next year.
Bauxite:
There are currently mining operations by a Russian company RUSAL and Chinese company Bosai
Minerals Group.
The Rusal operation at Aroaima, Region 10 is producing annually over 2.2 million tonnes of bauxite.
The company is reportedly expanding its operation to start mining in two new blocks – Kurubuka 22
and Korite Block 38 -- which have a combined deposit of close to 80 million tonnes. The company
anticipates that production will peak to five million tonnes.
9
The Bosai operation at Linden, Region 10 is producing annually over 620,000 tonnes of bauxite
annually. The company is reportedly planning to invest a further US$100m to expand its operations.,
adding a new kiln and dust extraction system and building special facilities to make mullites and
proppants, new value-added products.
Unlike Suriname, there is no secondary processing of the bauxite in Guyana mainly because of the
higher cost of electricity in Guyana. If they are able to reduce the cost of electricity via the provision
of hydropower, they would like to see a smelter built in Guyana.
They believe they have reserves of Bauxite in their existing mines for another 20 years or more.
Manganese:
A Canadian company Reunion Mining is exploiting manganese resources in the country
Uranium:
A Canadian listed company (Prometheus) which has a project to produce uranium which is currently
on hold because of low world prices for uranium. According to press reports, the company states
that seven million pounds of uranium have been found in Guyana between 2007-10 and the
company is confident to find a 50m pound find. The uranium has been found in Kurupung, Region
One (Barima / Waini), and the Roraima Basin, Region Seven (Cuyuni/ Mazaruni).
Rare Earths:
There has been interest in this sector and Prospecting Licences had been issued. There is a triangle in
South West Guyana and also in Central Guyana in the Coronie area. The partners are US/Canadian.
2) Oil and Gas
In the 2001 reports of the US Geological Survey (USGS), the Suriname-Guyana basin was qualified as
one of the last remaining poorly explored, but highly prospective basins in the world, with an
estimated 15 Billion barrels of oil equivalent of reserves to be discovered. Of the 22 wells drilled
offshore over an area of 170,000 sq km, 17 had hydrocarbon shows or columns. Various consortia
are now exploring blocks offshore of both countries and there is every expectation that they will find
commercial quantities of oil or gas. There are again opportunities for UK companies to become
involved in this high tech and highly capital intensive exploratory activity, and also in the longer term
to supply expertise, goods and services for the nascent offshore oil industry and to assist in the
creation of the transport and other infrastructure necessary to support an offshore industry. In the
short-term, in Suriname in particular, there is also the opportunity to goods and services necessary
for the expansion of the Staatsolie oil refinery which is currently underway.
In Suriname:
Staatsolie is both the regulator and a market participant as they are already operating the
production of on-shore oil wells. They also have a subsidiary firm “Paradise Oil” which focuses on
exploration activity.
10
Staatsolie put new blocks up for tender through competitive tendering either via international open
bidding or short-listed round of 20 companies or more which have expressed previous interest.
They recently concluded a bidding round which closed on 26th July 2013.
Suriname operates a Production Sharing Contract Model (also used by Malaysia). This has a three
stage process:
1) Exploration phase- for 6-8 years, companies explore for hydrocarbons assuming all of the
risk. If there is a commercial find, they proceed to phase 2
2) Development phase – Staatsolie can opt to participate up to 20% (ie they pay a proportion of
the development costs)
3) Production phase – the oil which is produced first (cost oil) will be used to recompense the
contract holder for the exploration costs. Once these costs are covered, the “profit oil” will
be split between the partners which took part in the development phase.
The profit oil will be taxed and royalties paid to the Surinamese state at a level defined in the original
contract. Offshore Suriname is virtually un-explored, with only 22 exploration wells drilled in an area
of approximately 150,000 square km.
At present, the following blocks are under exploration in Suriname.
On 13 December 2011, offshore blocks 42, 45 and 48 were signed with the American firms Kosmos
Energy and Murphy Oil for blocks 42/45 and 48 respectively.
On 31 May 2012, Kosmos Energy and Chevron Global Energy signed an agreement that made it
possible for Kosmos to transfer 50 percent of its interest in offshore blocks 42 and 45 to Chevron
In November 2012, Apache Apache has signed a production sharing agreement with Staatsolie
Maatschappij Suriname for block 53
In June 2013, RWE Dea signed a farm-in agreement with PETRONAS Suriname, acquiring a 40%
interest in the licence Block 52.
In July 2013, a consortium consisting of Norwegian StatOil and British Tullow Oil has made a bid on
Block 54 offshore Suriname. The bid follows the fifth international bidding round by Staatsolie
Maatschappij Suriname N.V.
In July 2013, Inpex Corp.’s (INPEX) subsidiary, Teikoku Oil Co. Ltd., reached an agreement to transfer
30% of its participating interest in the Block 31 offshore Suriname to Tullow Oil.
On shore, Staatsolie have 10 years of reserves estimated at 70m barrels. This oil is heavy crude
which is good quality (low in sulphur – 16 API) and can be used for various fuel uses. A map of their
blocks is below:
11
More information can be obtained from the website
(http://www.staatsolie.com/pio/index.php?option=com_content&view=article&id=23&Itemid=27)
In Guyana:
No production licences have yet been issued. A number of companies have exploration licences
including:
Shell (with Exxon)
Repsol (with Tullow)
CGX (with Pacific Rubiales)
There is no oil production on land either at present. Guyana does not have a state oil company.
A long-standing maritime border dispute with Suriname had meant that many of the companies
which had the blocks had waited until its resolution before pursuing detailed exploration. The
dispute was settled in 2007 up to 200 miles. They are still negotiating the continental shelf area of
their Exclusive Economic Zone.
All of the offshore blocks have been allocated for the time being and there is no plan to issue any
new licences/blocks for the foreseeable future.
On the potential for fracking in Guyana, they were not aware of any studies indicating that there
were strong opportunities for this. They indicated that bauxite products however are used in
fracking technology and that this growth would be positive for bauxite prices.
12
3) Energy infrastructure
Both countries are now engaged in upgrading their energy matrix. Greater economic activity has led
to more demands on existing electricity capacity which in many cases is coming to the end of its
natural life in any case. There are therefore programmes to renew power stations, upgrade hydro
and other renewable resources and improve the interconnection between Guyana and Suriname
and their neighbours to eventually introduce a regional energy grid.
The development of new and upgraded conventional and renewable energy represents a wide range
of opportunities for UK companies at many different levels from participating in investments
through to providing equipment, plant, high end design or consulting advice.
In Suriname:
The country generates a large amount of its existing power requirements from the hydro dam at
Afobaka (Brokopondo) which was built in the 1960’s. The dam has about 189MW of installed
capacity of which around 100 MW are supplied to SURALCOA for their processing operations and
also to iron ore processing. The rest is supplied to the Suriname electricity company EBS mainly to
provide power to Paramaribo.
The Hydro power is supplemented by conventional thermoelectric generators which are run on
bunker fuel (heavy fuel) which is extracted in country by Staatsolie. The existing plant however is
very old and starting to fail.
In addition, largely because of new house building, EBS is currently struggling to generate sufficient
energy to meet peak demand resulting in blackouts. EBS is now planning to install new generating
capacity. The main projects are as follows:

National electricity company EBS is installing additional capacity this year in Paramaribo. A
contract has been awarded to Danish company to install 62MW of generating capacity.

EBS is reportedly looking to install additional capacity in Coronie and Saramacca,
Commewijne Nickerie and Marowijne over the next two years

Staatsolie are installing an additional 34 MW in conventional energy generating capacity to
their refinery at Tout Lui Faut bringing capacity up to 62MW

Staatsolie additionally has a major project for ethanol production from sugarcane at
Wageningen. Construction of a new ethanol plant is due to commence in mid-2013 with
production of fuel beginning in 2015. The project reportedly has US$300 million investment
in place.

Staatsolie have been looking at the feasibility of a 64 MW hydropower project known at
TapaJai by diverting water from Tapahoni River into the Brokopondo lake to supplement the
existing hydro station at AfoBaka. The Government has decided in July 2012 to put this
project on hold because of environmental objections.
13

Ston Dansi hydro project in the Nickerie River is reportedly being looked at by SinoHydro a
Chinese company. This will provide 20MW of power and support drainage and irrigation for
rice production.
In Guyana:
Electricity provision has improved and blackouts are now much less frequent than 10-15 years ago.
There is however a need for greater electricity generation capacity. At the moment the installed
capacity is equivalent to peak demand (90MW). The Government announced in the 2012 budget
the purchase and installation of new generators for Georgetown and the expansion of electrification
for other areas of the country. Many companies have installed their own power generation
equipment off grid.
The main project which is currently under discussion is the Amaila Falls Hydroelectric dam. The 165
MW (installed capacity) Amaila Falls Hydropower Project is the flagship of Guyana’s Low Carbon
Development Strategy. The total project is estimated at a value of US$ 858m and at completion it is
envisioned it will meet approximately 90% of Guyana’s domestic energy needs while removing
dependency on fossil fuels. The project involves (i) a hydropower plant at the confluence of the
Amaila and Kuribrong rivers; (ii) an electrical interconnection facility, consisting of about 270km of
high-voltage redundant transmission line and two sub-stations and (iii) the construction of an access
road to the project, consisting of approximately 85km of new roads and an upgrade of about 122km
of existing roads.
The financing agreement requires Parliamentary approval which has recently been withheld leading
to the withdrawal by the main project manager for the project, US company, Sithe Global. In the
absence of Sithe Global, it is not clear whether the project will now be able to continue.
4) Transport infrastructure
To safeguard their long-term economic prospects and improve their access to international markets
Guyana and Suriname recognise the need to improve their transport infrastructure, both to improve
their connectivity with the wider region (flight connectivity to Brazil, US and Europe remains
extremely limited); and to improve their own regional integration between them.
At present, there are no road bridges between Guyana, Suriname and French Guyana and only very
limited flight connectivity. A bridge to Brazil was finally inaugurated in 2009 but the connecting road
is not asphalted and is therefore not passable throughout the year for commercial traffic.
There is also a need to improve the port infrastructure in both countries. In Guyana, only smaller
ships are able to dock and this entails higher shipping costs for international business as the goods
are ultimately being transhipped elsewhere. In Suriname, the main port has undergone five years
of expansion but there are plans to expand further – with an ambition to service international trade
for both French Guiana and Guyana in addition to Suriname.
In terms of new infrastructure provision, the most significant projects for international companies
are as follows:
14
In Suriname:

A feasibility study is currently underway for a second East-West bridge crossing the
Suriname River at Carolina.

There are continuing discussions about a new bridge between Guyana and Suriname over
the Corentyne River. It is understood that this will not happen now until after the next
elections but it is believed that preliminary designs are already in place. The bridge may be
financed through a Build Operate Transfer model or more likely, there will be Chinese
involvement.

There are also continuing discussions about a bridge between Suriname and French Guyana
over eth Marowijne River to replace the current ferry service. A new ferry to service the
traffic across the river has recently been bought and it will therefore be some time before
either Government will wish to displace this investment.

The International Airport has been partially expanded recently with a new arrivals terminal
and there are now plans for further expansion to take place. This will include a new
departure terminal, air walks and an enlarged apron to include a taxiway. At present, the
airport cannot operate with very frequent flights because of the absence of this taxiway. All
of these improvements will also necessitate substantial investments in new equipment.
In Guyana:

Demerara Harbour Bridge. Across the mouth of the Demerara River is the Demerara
Harbour Bridge which connects West Demerara to East Demerara. It is a two-lane floating
toll bridge located at Peter’s Hall, 4 miles south of Georgetown port, and was commissioned
in 1978. The Government is looking to build a new bridge and is currently waiting on a
feasibility study to identify the best location. The study is expected to be complete by the
end of July. The bridge will be a four-lane vehicular path of 20m wide with an estimated cost
of US$331 million. The financing is thought to be either be from a public/private partnership
or from the Chinese EXIM Bank.

Upgrade of Road to Brazil and Deep Water Harbour Port. A road and deep water port
project would enable Brazil’s northern region of Roraima to access the Atlantic coast via
Guyana, a route much shorter at 640 miles and cheaper than accessing it via Brazil’s own
Atlantic coast which is more than 2,500 miles away. Reports state that with a paved road,
products could be moved from Manus to the Guyanese coast in one day. It is expected that
a cost analysis of improving the 454 km road from Lethem to Linden will be conducted first
and once road planning is underway, activities could begin on planning the deep-water port.
Thus far the Government has reportedly allocated an 80 acre parcel of land in the border
town of Lethem for construction of a huge transhipment facility. The total estimated cost for
the all-weather road is about US$40 million but the financing arrangements are still to be
announced.
15

Expansion and upgrade of Cheddi Jagan International Airport. Signed with China Harbour
Engineering Company in November 2012, the Guyanese Government has agreed to contract
them with US$130m in finance from the China EXIM bank to upgrade the airport including
“geotextile work” for the terminal building and taxi ways and a 1000-metre runway
extension which is reportedly already complete. Further plans include construction of a new
terminal building, acquisition of eight boarding bridges, and installation of other state-ofthe-art equipment, such as elevators, escalators, and x-ray scanners, using threedimensional technology, along with flight information and security monitoring systems.
5) Construction of housing
Both countries have been suffering serious housing shortages which their Governments are seeking
to address through new construction programmes and widening access to credit for mortgages to
lower-income households. It is evident in both countries that housing construction is contributing
significantly to GDP and there is therefore a good market for British goods or services relating to
construction, particularly for housing.
In Suriname:
There is a huge need for more housing in Suriname – house prices are high and beyond the reach of
the average household. There is a general trend towards smaller household formations which has
exacerbated existing housing shortages. Land largely remains in the hands of the state although
there is an active market in leasehold land/properties typically with 40 year (renewable) leases.
In its 2012-16 policy statement for the development of the country (Ontwikkelingsplan), the
Government allocated significant funds towards providing more social housing, particularly in the
area to the South of the city towards Paranam. The Government promised 18,000 units. They have
major contract with a Chinese company to build 1000 homes and a second contract (also with a
Chinese company) to build a 150 homes on a pilot project with the option to expand. These
contracts are financed with 100% Chinese credit and will have Chinese design, labour, materials and
equipment. The houses are sized between 45 and 85 square metres.
They are also developing a range of smaller developments (together around 200 new homes) with
local Surinamese contractors.
In Guyana:
The Government has had a particular policy objective of increasing private home ownership and has
made large amounts of Government land available and put the necessary infrastructure in place for
this land to be used. Approximately, 100,000 houses/parcels of land have been released. The
government in its 2013 budget announced that in 2013, 5,900 house lots will be distributed and
4,000 land titles processed. A further 210 houses will be constructed.
They have also made specific financial interventions to support mortgage lending to low income
households by removing the tax on interest on these loans and further introducing income tax reliefs
16
for mortgage payments by first time buyers. Guyanese low and middle income household formation
has been higher than ever before as a result. Many Guyanese with surplus cash are also investing in
property because it is one of the only ways to hedge against inflation.
Construction in the wider sense has played an important part of GDP over the last 8 years
contributing between 28 and 30% of GDP.
6) Environmental Services
Guyana in particular offers opportunity for companies providing environmental services or
equipment both because of its global leadership role in preventing climate change and also because
of the serious investment being made by the Government in adapting to rising sea levels.
i.
Guyana Renewable Investment Fund
Prominent in global discussions about mitigating climate change via protecting the rain forest as
carbon sinks. Guyana signed a ground-breaking deal with the Government of Norway to fund some
US$250m of projects for low carbon development over the five years between 2012 and 2015.
The implementation of the strategy is supervised by a multi-stakeholder steering committee which
includes actors from across the Guyanese political divide plus civil society. It also includes
representatives from the Governments of Guyana and Norway.
In addition to the Amaila Falls project which is discussed above, the fund (known as the Guyana
Renewable Investment Fund) has a number of projects such as the Cunha conservancy canal. The
proposed physical works for the Cunha Canal will include the widening of the canal, the
rehabilitation of the former outlet structure, rerouting the canal to re-establish its original alignment
and construction of a bridge on the East Bank of Demerara Public Road where the canal intercepts
the road. Rehabilitation of the Canal will increase its discharge capacity and contribute to reducing
the risks of the embankment overtopping and flooding of areas along the East Bank of the
Demerara.
Other projects will become available and the Guyana Government is expected to seek renewal of the
GRIF post 2015.
ii.
Rising sea-levels
In the 2013 Budget, the Government of Guyana committed to investing as follows:
Maintenance and upkeep of the seawall which protects Georgetown and wider coastal strip from
sea-level rises. US$9.4m
Investing in drainage and irrigation systems. In 2013, this will include acquisition of fixed irrigation
pumps, construction and rehabilitation of pumps and pump stations and other infrastructure works
to support drainage structures. Part of this is funded through the REDD project with Norway.
US$32m
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Summary Top 10 Near-term Infrastructure (Energy and Transport) Projects
Sector
Value
Description
Timescale US$
Major Transport Infrastructure Projects (opportunity for civil engineering / contractors/ project management /consultants
/other services as well as provision of equipment and materials)
1
Suriname
2
Suriname
3
4
Suriname
Guyana
Second East-West bridge crossing the Suriname Rivera at Carolina. A feasibility study is
currently underway.
next 5
years
45m
next 5
years
>60m
Upgrade of Johann Pengel International Airport to include a new departures terminal and
expanded apron with taxiway for aircraft to use. The airport will additionally require
major investment in new equipment (eg. security screening equipment / bag handling
etc.)
next 5-10
years
70m
A pre-feasibility study is underway to look at a new overhead bridge across the Demerara
River to replace the existing harbour bridge. The Government is expected to request
expressions of interest very soon. The two location options identified for the bridge is
further down the river at Houston/Versailles and Good Hope/ Patentia. The bridge will be
a four-lane vehicular path of 20m wide with an estimated cost of US$331 million. The
financing is thought to be either be from a public/private partnership or from the Chinese
EXIM Bank.
next 5
years
331m
Construction of a bridge over Corentyne River between Suriname and Guyana under a
BOT model. The concept is still under discussion between the two Governments. It is
rumoured the Chinese may already have offered concessional finance. Both countries
have requested support from the IDB for a feasibility study
5
Guyana
The private sector is pushing for the immediate dredging to a minimum of 6.5 metres of
the port of Georgetown so that larger ships can call at the port.
next 2
years
10m
6
Guyana
Expansion and upgrade of Cheddi Jagan International Airport. Signed with China Harbour
Engineering Company in November 2012, the Guyanese Government has agreed to
contract them with US$130m in finance from the China EXIM bank to upgrade the airport
including “geotextile work” for the terminal building and taxi ways and a 1000-metre
runway extension which is reportedly already complete. Further plans include
construction of a new terminal building, acquisition of eight boarding bridges, and
installation of other state-of-the-art equipment, such as elevators, escalators, and x-ray
scanners, using three-dimensional technology, along with flight information and security
monitoring systems.
next
5years
130m
Upgrade and asphalting of road to Brazil (from Linden to Lethem) from the current allweather surface. IDB paid for an Environmental and Social Impact Assessment in 2011.
Next 5-10
years
300m
underway
300m
10 years
plus
Not
known
On Hold
858m
7
Guyana
Energy infrastructure (opportunities for equipment provision / services/ consultancy)
8
Suriname
9
Guyana
10
Guyana
Staatsolie has a major project for ethanol production from sugarcane at Wageningen.
Construction of the plant is due to commence in mid-2013 with production of fuel
beginning in 2015. The project reportedly has US$300 million investment in place.
Interconnector project for creation of an electricity grid between Guyana, Suriname,
Venezuela, French Guyana and Brazil. Prefeasibility studies are about to take place for a
dam with installed capacity of between 1.5 and 4.5GW. The project would be powered
by a large scale hydro dam in Guyana at Mazaruni in the Amazon and also the Potaro
A new 165MW hydroelectric dam at Amaila Falls. This major project will be built by
Chinese contractors and project managed by US firm Sithe Global. It is receiving finance
from the China Development Bank. The US partners Sithe Global pulled out of the
project in August 2013 citing concerns that the project could not continue without
national consensus. The project had been held up in the Guyanese Parliament.
18
Map of Major Projects in Guyana and Suriname
An interactive version can be seen at:
https://mapsengine.google.com/map/edit?mid=zMueSkybsBLI.ky3attEnO5sU
19
Overview of the Business Operating Environment
Companies looking at investing or doing business in Guyana and Suriname should bear in mind the
following points:
Economic structure:
The economies in both Guyana and Suriname are currently buoyant, in large part because of the
thriving gold sector, both formal and informal. There is as a result (at least in Paramaribo and
Georgetown), growing demand for a wide range of consumer goods and a strong construction and
house-building boom. This represents wider opportunities for UK companies which are interested in
supplying goods and services to the region.
In the medium-term however, should the gold price decline significantly, there is a risk that the two
economies would be very badly affected, particularly if there is not a corresponding increase in the
world prices for bauxite, their second main export. The Surinamese Government in particular is
extending its exposure to the gold sector by issuing US$600m of Government debt to be able to buy
equity in a new major gold mine.
One of the on-going challenges for Guyana is its high level of indebtedness with a debt to GDP ratio
of around 65%. Guyana is therefore very exposed to an increase in the relative value of the dollar
which would see its debt repayments skyrocket. Concern over the level of public debt has been one
of the key reasons cited by the Opposition for opposing the Government to take on more debt
associated with the Amaila Falls project. This issue does not affect Suriname which has a low level
of national debt at around 20% debt to GDP ratio.
In spite of its small population, Suriname has a very large public sector (consuming some 46% of
GDP). Land ownership also largely remains in the hands of the State and most utilities and many
corporations are still state-owned (eg. banks, electricity, water, bananas, rice, airline). The current
Government has discussed implementing a programme of privatisation to divest some of these
assets but it now appears unlikely to do so ahead of the next election (expected in 2015). As such
foreign investors will likely find themselves dealing with the state as their main local partner. Some
argue that this large public sector is excessively bureaucratic and stifles the dynamism of the local
private sector.
Good Governance and Legal certainty:
The World Bank’s Ease of Doing Business Report classes Guyana and Suriname respectively at 114th
and 164th in the world ranking. This low position in the ranking however should be treated with
some caution as the actual picture on the ground is much more positive:
Suriname:
Suriname suffers from a weak legislative process and a constitutional arrangement which leaves
many small parties forming coalitions. These coalitions in Government often find it difficult to draft
and pass significant pieces of legislation. Suriname is also faced with being the only country in
South America with a Dutch legal system which is becoming less and less relevant to its needs.
20
A new investment act was drafted in 2001 and is still waiting approval by the legislature. As such, at
present, companies are left using old legislation which is out-of-date and often not fit for purpose.
At times, it is difficult to find out what the correct regulation actually is.
Local companies recounted that frequently rules which are in practice applied to corporations are
much more flexible than the original legislation might have intended. The manufacturers association
for example are confident that it is possible to set up a company within a month (compared to four
years ago when it would have taken years).
Whilst this creates unwelcome uncertainty, international investors and local companies interviewed
all felt that there had been a significant improvement in the investment climate for international
investors over the last few years. Suriname’s ranking on the Ease of Doing Business Report however
is classed according to the specific investment legislation which is in place and as such reflects
negatively on the country.
As part of this, the current Government has created a new institution, the Investment Development
Corporation of Suriname (ICDS – details below) which is tasked with supporting inward investors to
the country, and helping guide them.
It also plans to pass as a priority the investment legislation originally proposed in 2001 and is looking
at other business related legislation such as an anti-bribery and corruption law. International
companies also would like to see the introduction of a clear accounting standard which they are
required to follow.
The Surinamese Government is also looking at different approaches to Public Private Partnerhsip
legislation and determining where this might be an appropriate policy approach for delivery for
future projects. At present there is no PPP legislation in place.
The government accepts binding international arbitration only if it is stipulated in the contract or
agreement and if it does not contradict any local laws. International arbitration is an accepted
means for settling disputes between private parties, but only if local alternatives are exhausted.
Most agreements involving foreign companies have clauses that clearly stipulate the laws applicable
to the agreement.
Suriname has been a member of the 1958 New York Convention on the Recognition and
Enforcement of Foreign Arbitral Awards since 1964, when the country was still a Dutch territory. At
independence in 1975, Suriname automatically continued its membership in international
conventions and treaties.2
Guyana:
In Guyana , the political landscape is complex with a party political system which is strongly
polarised.
2
US Dept of Commerce Country Guide
21
The Constitution grants the President very substantial executive powers meaning that under normal
circumstances the Government of the day is able to enact and implement its policy programme
without difficulty. At present however this situation has been overturned as a result of the minority
government in place since 2011. The minority Government is now struggling to get approval by the
legislature of some of its flagship projects, such as the Amaila Falls Hydropower project because the
opposition has blocked them.
Since 2004, Guyana has had an Investment Act which regulates foreign direct investment and gives
equal rights to foreign investors, allows full repatriation of funds and protects assets against
compulsory acquisition. Prior to the adoption of this Act, there had been no specific investment
legislation. Other relevant laws include the Income Tax Act, the Customs Act, the Procurement Act
of 2003, the Companies Act of 1991, the Securities Act of 1998, and the Small Business Act. There is
however concern that implementation of the legislation is sometimes inadequate, with for example
outstanding regulations needed for the Procurement Act to become properly operational. 3
Local companies comment that there is a lack of a clear policy framework from the Government.
There are also calls from the Private Sector Commission for greater transparency in decision making.
The state has a major role in the domestic economy and there has been a tendency to centralize
decision-making because of the executive’s extensive powers. As a result, major foreign
investments receive intense political attention, often from the highest political level. This was
particularly the case under the Government of former President Bharrat Jagdeo. Under the current
Government, individual ministries are operating with greater autonomy.
Guyana’s Government has a inward investment agency to support foreign companies, the Guyana
Office for Investment (GO-INVEST). GO-INVEST focuses primarily on the agro-processing, tourism,
manufacturing, information technology, fishing, and wood processing sectors.
Decisions relating to oil and gas exploration blocks are now the responsibility of the Ministry for
Natural Resources and the Environment.
Separately, there is an office of Climate Change within the Office of the President which has
responsibility to attract and vet potential foreign investors in sectors complimentary to the
US$250m Low Carbon Development Strategy which the Government of Guyana has agreed with
Norway. These policies include all areas relating to clean energy, deforestation and climate change
adaptation (eg. sea defences etc).
Details for both the Project Management Office and GO-Invest can be found below in the useful
contacts section.
Guyana is a signatory to the Convention on the Settlement of Investment Disputes between States
and Nationals of Other States. International arbitration decisions are enforceable under the
Arbitration Act of 1931. Guyana is also a member of the International Center for the Settlement of
Investment Disputes (ICSID).
3
US Dept of Commerce Country Report
22
Companies exploring business opportunities in both countries should be aware that there have been
reports in the media in both countries of corrupt practices and bribery, as in many other parts of
South America. Guyana ranks 133 out of 174 countries on Transparency International’s index (equal
to Russia) and Suriname ranks 88 (equal to Thailand).
International competition:
It is noticeable how absent UK companies currently are in both countries. This is perhaps not
surprising in Suriname where for reasons of history and common language, Dutch companies remain
the dominant European presence. In Guyana, many UK companies left the country during the 1980’s
when the then Government followed an extensive programme of nationalisation and economic selfsufficiency.
Chinese Presence
Today there is a heavy presence of Chinese companies in both countries which are often operating
with the backing of the Chinese Government. This represents a very difficult hurdle for UK
companies to get past when competing for infrastructure projects as frequently Chinese companies
are able to count on heavily discounted finance from the Chinese state or political agreements are in
place between the Government of Suriname or Guyana under which China provides generous
concessional loans for new infrastructure projects on the basis of China providing the labour and
construction services.
Dutch presence in Suriname
There continues to be a strong Dutch business presence in Suriname. With common language,
similar legal systems, and common history, business from the Netherlands understandably has a
built-in advantage. Many Dutch companies now include staff or principals which are of Surinamese
heritage and which therefore have a natural understanding of the country and its opportunities. The
second generation of Surinamese diaspora in the Netherlands is very large (estimated at around
350,000)
In Suriname, for new engineering projects, the engineers in Suriname who work for the Government
tend to have been trained in the Netherlands or in the US. As a result, they tend to be comfortable
with standards in use in US/Netherlands and would draft terms of reference to reflect these
standards.
The last major international tender took place last year (2012) to dredge the Suriname River. This
was won by a Dutch group.
Market access and the EU:
Both Guyana and Suriname are signatories to the Economic Partnership Agreement with Europe
which was signed in 2008. This provides enhanced market access for EU firms for their goods and
services with tariff reductions being set in place over a twenty year timeframe. It also guarantees
permanent duty free quota free access for goods from Guyana and Suriname into Europe making the
import of agricultural and forestry products particularly attractive.
23
The EPA also offers new frameworks to provide additional guarantees for investors.
More information about the Economic Partnership Agreement can be found at:
http://ec.europa.eu/development/icenter/repository/cariforum_eu_epa_information_paper_overvi
ew.pdf
Guyana and Suriname also have a range of other Free Trade Agreements in place which allow
investors wishing to site production in these countries to gain free market access to the rest of the
Caribbean (via CARICOM), with the DR (via CARIFORUM). Both have formally applied to become
associate members of Mercosur and this is pending them joining ALADI, the Latin American
Integration Association. They are not members of the US Caribbean Basin Initiative.
Both Suriname and Guyana are both members of the Organisation of Islamic Countries.
A Hindu temple in Paramaribo
24
Useful contacts in Georgetown and Suriname
1. UK Trade and Investment (covering both Guyana and Suriname)
Ms Taryn De Mendonca
Senior Trade & Investment Officer Guyana & Suriname
British High Commission
44, Main Street P.O. Box 10849
Georgetown
Guyana
Tel: +1592 226 5881/2 Ext 2004
Mobile: +1592 664 2028
Fax: +1592 226 2513
E-mail: [email protected]
skype ID: ukti.guyana
2. Investment Development Corporation Suriname
Ms Astra Singh
Chief Communications Officer
Investment Development Corporation Suriname
Brokopondolaan # 97 / Mr. J. Lachmonstraat
Paramaribo
Suriname
T: (+597) 49 43 74
Email: [email protected]
3. GoInvest Guyana
Mr Dhanpaul Dhanraj
Officer in Charge,
Go Invest,
190 Camp and Church Streets
Georgetown.
Tel. 592 226 8526.
Email. [email protected]
4. Project Management Office, President’s office
Office of Climate Change/ Office of The President
Shiv Chanderpaul Drive
Georgetown
GUYANA
Tel:+592-223-5205
Email. [email protected]
25
Full Listing of Wider Opportunities in Suriname
Sector
Timescale
Value
US$
Current
Current
Current
N/A
N/A
N/A
Staatsolie’s oil refinery is in the process of being expanded to increase the volumes of oil it can refine.
There may be opportunities to provide services/equipment in this upgrade process
Current
N/A
Staatsolie currently drills around 16,000 b/d of oil onshore in Suriname. There will be opportunities to
provide the necessary equipment and services to ensure maximum productivity.
Current
N/A
Description
Mining:
Equipment for gold mining – including mercury free technologies and/or alternative chemical solutions /
metal detectors / panning equipment / diggers and other heavy machinery / generators/ high pressure
water pumps /hoses.
Vehicles for accessing gold mining areas in the interior. Possibly ex-British Army trucks.
Exploration and extraction possibilities for other minerals:
o bauxite
o iron ore
o manganese
o rare earths
o diamonds
Oil and Gas:
There are a number of blocks currently under exploration and a new round to award further licences was
concluded at the end of July 2013.
Round underway
N/A
Exploration activity offers opportunities for UK companies in terms of provision of services (seismic
surveys, other geological surveys, health and safety, environmental research etc).
Current
N/A
Major Transport Infrastructure Projects (opportunity for civil engineering / contractors/ project management /consultants /other services as well as provision of
equipment and materials)
Second East-West bridge crossing the Suriname Rivera at Carolina. A feasibility study is currently
underway.
next 5 years
45m
26
Highway upgrade between Paramaribo and Johann Pengel International Airport (under construction by
Chinese contractor CDIG/Dalian with Chinese finance).
Underway
Not
known
Major rehabilitation of road from Paramaribo to French Guiana (under way with funding from EU (9th
EDF) and IDB finance and French Development Agency)
Underway
>100m
Construction of a bridge over Corentyne River between Suriname and Guyana under a BOT model. The
concept is still under discussion between the two Governments. It is rumoured the Chinese may already
have offered concessional finance. Both countries have requested support from the IDB for a feasibility
study
next 5 years
>60m
Upgrade of Johann Pengel International Airport to include a new departures terminal and expanded
apron with taxiway for aircraft to use. The airport will additionally require major investment in new
equipment (eg. security screening equipment / bag handling etc.)
next 5-10 years
70m
Not
known
Upgrade of the Suralcoa port at Paranam to service a new industrial park which could be built there.
Construction of a bridge between Guyana and French Guiana over the Marowijne River to replace the
current ferry service. Reportedly the Chinese have offered concessional finance for the project.
Construction of a new football/athletics stadium in Paramaribo
Construction of an offshore harbour to act as a deep sea port for Suriname. The aspiration is that this
would link with a road or rail link to Brazil through the interior of the country.
10 years plus
10 years plus
10 years plus
>60m
Not
known
10 years plus
Not
known
Energy infrastructure
(opportunities for
equipment provision /
services/ consultancy)
National electricity company EBS is installing additional capacity this year in Paramaribo. A contract has
been awarded to Danish company to install 62MW of generating capacity
EBS is reportedly looking to install additional capacity in Coronie and Saramacca, Commewijne Nickerie
and Marowijne over the next two years
Staatsolie are installing an additional 34 MW in conventional energy generating capacity to their refinery
at Tout Lui Faut bringing capacity up to 62MW
Underway
2015
40m
Not
known
Underway
Not
known
27
Staatsolie has a major project for ethanol production from sugarcane at Wageningen. Construction of a
new ethanol plant is due to commence in mid-2013 with production of fuel beginning in 2015. The
project reportedly has US$300 million investment in place.
Staatsolie have been looking at the feasibility of a 64 MW hydropower project known at TapaJai by
diverting water from Tapahoni River into the Brokopondo lake to supplement the existing hydro station
at AfoBaka. The Government has decided in July 2012 to put this project on hold because of
environmental objections.
Ston Dansi hydro project in the Nickerie River is reportedly being looked at by SinoHydro a Chinese
company. This will provide 20MW of power and support drainage and irrigation for rice production
Staatsolie are upgrading their oil refinery at Tout Lui Faut in a major expansion project to double capacity
15,000 b/d. A total of 24 modules have been constructed by Italian firm SAIPEM for the project including
a 700 tonne hydrocracker reactor and 180 tonne vacuum tower. A temporary jetty has been built to
unload the modules.
underway
300m
On hold
1.3bn
Next two years
Not
known
Underway –
August 2014
US$450m
The World Bank has funded a US$10m study into the feasibility for Suriname of adopting a similar
approach to Guyana to pay the country for preserving the rainforest to assist with climate change
mitigation. Suriname is a member of the Forest Carbon Partnership Facility
Current
N/A
Delivery of investment in low-income housing. 18,000 units have been promised. They are looking at
costs of around US$31,000 per unit (85 sq. m)
next 5-10 years
>500m
Suriname is a middle-income country with a GDP per capita of around US$7,245. Because of the large
informal sector, Suriname still largely has a cash economy but there is growing demand for high end
consumer products.
Current
N/A
There are a large number of casinos in Paramaribo and outside. There may be opportunities to supply
these with specialist equipment.
Current
N/A
Environmental
(opportunities for
equipment provision /
services/ consultancy)
Construction/housing:
Other Areas:
28
Suriname has a significant timber industry. It needs investment and equipment in sawmills and other
manufacturing for wooden manufactured items (eg furniture).
Current
N/A
Suriname has a major rice industry which needs expertise and new equipment to allow it to move up the
value chain into packaged and prepared products.
Current
N/A
Suriname has potential to develop its tourism industry much further both by investing in new hotel and
tourism related infrastructure but also by tapping into new tourism markets outside of the Netherlands
and Belgium.
Current
N/A
The University of Suriname has strong links with academic institutions in the Netherlands, US, Belgium,
University of West Indies. Better academic links would be beneficial to both sides
Current
N/A
The Government of Suriname has been looking at reform of the public sector including possible
privatisations of assets currently in state hands (eg. utilities, airline, banks etc). There may be
opportunities for advisory services relating to this reform and its implementation.
Current
N/A
International companies in Suriname cited concern about the need for a standard international
accounting standard to be introduced to Suriname. There may be interest in support for this.
Current
N/A
29
Full Listing of Wider Opportunities in Guyana
Sector
Description
Timescale
Value
US$
Mining concessions available for gold mining
Equipment for gold mining – including mercury free technologies and/or alternative chemical solutions
(eg concentrators)
Continuing
N/A
Continuing
Continuing
Continuing
Continuing
N/A
N/A
N/A
N/A
Current
N/A
Mining:
Other equipment such as metal detectors / panning equipment / diggers and other heavy machinery /
generators/ high pressure water pumps /hoses.
Heavy vehicles for accessing gold mining areas in the interior.
Supply of machinery and equipment to the bauxite mining sector and alumina processing sector
Exploration and extraction possibilities for other minerals:
o bauxite
o iron ore
o manganese
o uranium
o rare earths
o diamonds
Oil and Gas:
There are two blocks which include onshore (Demerera and Berbice). These have both been issued to
subsidiaries of CGX (Canadian company). The company is still doing evaluative work. Reportedly the
work program on Berbice will be an airborne survey of at least 1,000 sq km and either 100 sq km of 2D
seismic or drilling one exploratory well within 4 years. Demerara will require 3D seismic to enhance to
prospect status.
30
There are a number of offshore blocks currently under exploration. They do not have any new blocks to
allocate. Existing companies with blocks include Repsol (Spanish) and Tullow (UK company); CGX /Pacific
Rubiales(Canadian).
Current
N/A
Exploration activity offers opportunities for UK companies in terms of provision of services (seismic
surveys, other geological surveys, health and safety, environmental research etc).
Current
N/A
Major Transport Infrastructure Projects (opportunity for civil engineering / contractors/ project management /consultants /other services as well as provision of
equipment and materials)
A pre-feasibility study is underway to look at a new overhead bridge across the Demerara River to
replace the existing harbour bridge. The Government is expected to request expressions of interest very
soon. The two location options identified for the bridge is further down the river at Houston/Versailles
and Good Hope/ Patentia. The bridge will be a four-lane vehicular path of 20m wide with an estimated
cost of US$331 million. The financing is thought to be either be from a public/private partnership or from
the Chinese EXIM Bank.
next 5 years
331m
The road between Georgetown and Cheddi Jagan airport at Timeheri is being upgraded to four lanes of
traffic, principally because of the large volumes of additional traffic which are now using the road as a
result of the extensive new housing developments on the East Coast of the Demerara River. The first
phase of the project is being funded by the IDB.
Underway
19.7m
The private sector is pushing for the immediate dredging to a minimum of 6.5 metres of the port of
Georgetown so that larger ships can call at the port.
next 2 years
10m
Construction of a bridge between Suriname and Guyana under a BOT model. The concept is still under
discussion between the two Governments. It is rumoured the Chinese may already have offered
concessional finance. They are advertising for bids for pre-feasibility studies at present.
next 5 years
Not
known
next 5 years
Not
known
Oil company, CGX is developing a port and wharf facility in Berbice. The company declared in 2011 that it
had acquired 55 acres of land in the mouth of the Berbice River and that construction was underway with
plans for phase one, a dock and storage area. It is unclear how far developed the project is currently.
31
Expansion and upgrade of Cheddi Jagan International Airport. Signed with China Harbour Engineering
Company in November 2012, the Guyanese Government has agreed to contract them with US$130m in
finance from the China EXIM bank to upgrade the airport including “geotextile work” for the terminal
building and taxi ways and a 1000-metre runway extension which is reportedly already complete.
Further plans include construction of a new terminal building, acquisition of eight boarding bridges, and
installation of other state-of-the-art equipment, such as elevators, escalators, and x-ray scanners, using
three-dimensional technology, along with flight information and security monitoring systems.
next 5years
130m
Construction of cruise port in Georgetown. Studies are currently been undertaken with funding by IDB to
look at the benefits of a new port in terms of cruise tourism.
next 5-10 years
Not
known
The private sector is pushing the Government to identify and establish a modern container terminal,
preferably on the west bank of the Demerara River.
next 5-10 years
Not
known
Upgrade and asphalting of road to Brazil (from Linden to Lethem) from the current all-weather surface.
IDB paid for an Environmental and Social Impact Assessment in 2011.
10 years plus
300m
Construction of a deep sea port as part of a wider access route for trade to Brazil’s North East corner.
The location of the port is still up for discussion although initial reports have indicated sites near the
mouth of the Berbice River near New Amsterdam, or possibly closer to Georgetown.
10 years plus
Not
known
the Government has reportedly allocated an 80-acre parcel of land in the border town of Lethem for
construction of a huge transhipment facility which would be part of the wider plans should a the road
from Brazil be fully paved and a deep sea port built and operationalized.
10 years plus
Not
known
Installed capacity is equivalent to peak demand at 90MW. Many companies are installing their own
generators so that they can operate off grid leading to requirements for generating equipment /
servicing and spare parts.
Continuing
N/A
Energy infrastructure
(opportunities for
equipment provision /
services/ consultancy)
32
Interconnector project for creation of an electricity grid between Guyana, Suriname, Venezuela, French
Guyana and Brazil. Prefeasibility studies are about to take place for a dam with installed capacity of
between 1.5 and 4.5GW. The project would be powered by a large scale hydro dam in Guyana at
Mazaruni in the Amazon and also the Potaro
10 years plus
Not
known
On Hold
858m
2012-13
160m
They are interested into diversifying into production of biofuels such as ethanol from sugarcane,
biodiesel from palm oil and other crop production for biomass (cogeneration).
Continuing
N/A
Large scale housing developments are underway following large-scale sell off of state lands for housing
development. Some 100,000 plots of land have been sold since 2007. The government in its 2013
budget announced that in 2013, 5,900 house lots will be distributed and 4,000 land titles processed. A
further 210 houses will be constructed.
2013-14
15m
There are opportunities for low cost modular housing manufacturers and also for producers of
construction materials/ sanitary ware /ironmongery /wiring /paint / DIY etc.
Continuing
N/A
The urban planning process in Guyana could benefit from improvement and there are opportunities for
consultants/planners to provide advice /support to Government.
Continuing
N/A
Continuing
N/A
2013
9.4m
A new 165MW hydroelectric dam at Amaila Falls. This major project will be built by Chinese contractors
and project managed by US firm Sithe Global. It is receiving finance from the China Development Bank.
The US partners Sithe Global pulled out of the project in August 2013 citing concerns that the project
could not continue without national consensus. The project had been held up in the Guyanese
Parliament.
Government has purchased and is installating new generators (26MW) at Vreed en Hoop (Wartsila) with
substations and transmission lines. 16.4Bn GYD in 2013 and 15.9bn GYD in 2012.
Construction/housing:
Environmental:
(opportunities for
equipment provision /
services/ consultancy)
Capacity building and training for environmental control of the gold mining industry
Maintenance and upkeep of the seawall which protects Georgetown and wider coastal strip from sealevel rises. (2.4bn GYD in 2012/ 1.9bn GYD in 2013)
33
Guyana Governmnet is investing in drainage and irrigation systems. In 2013, this will include acquisition
of fixed irrigation pumps, construction and rehabilitation of pumps and pump stations and other
infrastructure works to support drainage structures. Part of this is funded through the REDD project with
Norway. (7.1bn GYD in 2012 and 6.5bn in 2013).
2013
32m
Guyana is interested in renewing the Low Carbon Development Strategy which it has agreed with Norway
beyond the initial five year term which they have agreed. There are consultancy opportunities
potentially to provide advice on how this might be done.
Current
N/A
A new business hotel (Marriott) is under construction with Chinese labour and finance, but it is
understood to have a Guyanese ownership behind it.
Underway
51m
Current
N/A
Other areas:
As a geographically large country with limited transport infrastructure, there is significant growth in the
aviation sector, particularly for smaller light aircraft.
Construction activity in the country has led to massive demand for plywood which cannot be met by
domestic production. There are opportunities to supply plywood or invest in plant in –country to
produce plywood to supply domestic and international market.
Current
N/A
They are trying to improve the variety and quality of hotel stock in Guyana. There are opportunities to
invest in this sector.
Current
N/A
Rice is one of Guyana’s leading exports. They however still export mostly commodity plain white rice.
They are keen to add value to their activity in-country and are looking for inward investment to support
new processes such as packaging and par-boiling rice.
Current
N/A
For larger infrastructure and capital intensive projects, banks based in Guyana do not have sufficient
capital. There are therefore opportunities for international banks to finance these projects.
Current
N/A
As Guyana seeks to mechanise its sugar industry to become more efficient, they require more canecutting machinery, vehicles and specialised equipment (eg combine harvesters) to harvest the cane.
Current
N/A
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