The construction of the deep water port in Guyana is dependent on a road to northern Brazil, according to Vice President Dr Bharrat Jagdeo.
He was on Wednesday asked for an update on this development project by reporters to which he stated that several proposals have been submitted. Still, those must be assessed for the financial capability and competence of the intended builders.
“Part of the revenue stream to make this project sustainable has to be the integration with Brazil and the business in and out of Brazil because on its own. We may not be able to generate enough of a revenue stream to pay back the capital cost and to give a decent rate of return to the equity investor(s),” he said at his weekly press conference.
“That revenue stream that will come from the use of the port for goods going into Brazil and goods coming out of Brazil will help to justify this cost,” he added.
Based on meetings with industry stakeholders, the Vice President had disclosed that the best model for the project appears to be the ‘causeway model’ which builds out into the Atlantic. This would allow for large vessels to dock and would be more sustainable in the long term since the need for dredging and associated costs can be eliminated.
“So we’re inclined to go down that route but if the developer comes up with a model that is sustainable, that could be done in a different way, we’re open to that,” he noted.
A deep water port is used by large and heavily loaded ships as the depth of water helps ships which may require the water to be 30 feet deep or even more to dock. The Government is looking at a Build, Own, Operate model for this project.
With the gas-to-shore project expected to come onstream shortly, cheaper electricity will also see an increase in manufacture of local products.
This major energy project coupled with the deep water post will contribute to making Guyana’s exports more competitive and imports cheaper, the Vice President pointed out.
“The cost of freight out of Guyana is enormous and sometimes it affects everything…And then the import cost too, for products coming here, if you have a huge vessel coming in here, you can significantly lower the cost of containers coming here so instead of our goods going to Jamaica, and staying there for two months and then being transshipped to Guyana…they can come directly here and we can become a hub,” Jagdeo explained.
The Government will also continue works in other sectors including agriculture, tourism and ICT to become a major link between South America and the Caribbean.
