Dear Editor,
Is Berbice proposed oil refinery dead or being deferred? Are Berbicians fooled and taken for another ride? And what is the latest on the Wales power station? How about the man-made island shore base at the mouth of the Demerara River – is it collapsing as engineers assert and will it be abandoned? Will it, the power station, and the oil refinery be more white elephants like several others of the head honcho?
The government stated last year that the proposed oil refinery (at mouth of Canje River) for Berbice will be announced at the end of 2023. Now in mid-January in 2024, there is no announcement. The government was considering giving the proposed project to its favoured Dominican contractor CH4/Lindsayca but after media exposure and haggling over money, you get the gist, it appears that government is backing down. It is noted that CH4/Lindsayca was awarded the contract for the 300-megawatt (MW) power station at Wales. That project is running behind schedule; in fact, the main work has not started as Lindsayca is at arbitration seeking another US$50 M for the project arguing that the soil is not appropriate for the work and needs the additional funds to shore up the project. More wasted money! Another white elephant?
On failed projects, is the island at Demerara River mouth collapsing? Is it stable for a shore base? Is Exxon going ahead with the project? As a reminder to readers, the shore base is owned by private partners (local partners being a son of a hardware company, son of money changer and gold miner, and son of another gold miner and coconut oil producer). But almost all of the money is paid for by the government through Exxon. Exxon is paying to construct the shore base – as advanced payment (paying up front) of rental fees for future use of the base. It is Guyana government money being used by Exxon (as expense) from its current sale of oil for a shore base to be owned by three (now two because one pulled out) local partners and a Belgium company. Since it is Guyana’s money and not private investment money, shouldn’t the base be owned by the government?
As it is, engineers say the project is failing because the soil around the island is not holding up. There is a need for constant and continuous revetment. The revetment is not holding up as expected. There is continuous topping up of soil, sand, mud. Is the base stable? Is it usable? Can large, heavy ships dock? Is it usable? Is a disaster in the making? Is Exxon moving away from it? As it is, over US $300M was already spent on constructing the island. How much more of Guyana government money through Exxon will be spent on it? Is this another white elephant like the one at Skeldon, Amalia Falls, roads, highways, power generators, and so many others?
On the failed Skeldon project where US $200 millions went down the drain and with the future of GUYSUCO and faith of sugar workers, the government was advised to select the Indian company but it went with the Chinese. The factory failed. Roads are collapsing. Complaints abound! The government went for old rehabilitated generators from Trinidad rather than new cheaper ones from America that would perform more efficiently. Blackouts are prevalent.
On the proposed Canje oil refinery, players are not coming up with an acceptable offering and “the right tax” if you know what I mean. Lindsayca had expressed interest in the refinery project and government touted it. But government is constrained from giving it to that company because of media exposure and the fact that the power station that is running behind schedule. With no suitable partner, does government plan to re-tender it?
Is the country being sacrificed for the greed of one man or a handful of government functionaries? Word on the ground is that ministers and government functionaries have become the real contractors for over 75% of projects paid for by the state. This is very troubling!
Yours truly,
Edward Burrowes
