EU approves $615M hydro project for Region Eight

Jan 24, 2012 News

…but secondary school will have to be built first

A $615M hydro-power project for Kato, Region Eight, has been given the green light

A $615M hydro power project for Kato, Region Eight, has been approved, the EU announced yesterday.

by the European Union (EU) with construction to begin in a year’s time.
The 330 kilowatt micro-hydro power station will be located at the Chiung River head waterfall, located near the Kato village.
According to the EU yesterday in a released statement, the project is intended to promote the use of sustainable and climate friendly energy use.
The Financing Agreement for the project has since been dispatched by the EU Delegation in Guyana to the Minister of Finance who acts as the National Authorising Officer (NAO) for the EU-funded programmes in Guyana.
A public signing ceremony to officially launch the project is expected to follow in the very near future between the NAO and the Head of Delegation of the European Union in Guyana.
EU said that the total cost of the project is pegged at Euro 2,455,797 ($615M) with the EU contributing Euros 1,841,848 ($460M) under the 10th European Development Fund (EDF). The Guyana Government will contribute Euro 613, 949 ($154M).
As part of the Government’s broader hinterland electrification programme, the system will comprise a 330-kilowatt micro-hydropower station with its primary energy source being the 36 meters head waterfall in the Chiung River in the vicinity of Kato village.
“Sufficient generating capacity for electrical services are to be provided to a secondary school complex to be constructed by the Ministry of Education, existing government buildings such as the nursery/primary schools, the guest house, the police outpost, medical facilities, school dormitories and to also facilitate agro processing and commercial farming,” EU said yesterday. Furthermore, the system will provide electricity to Paramakatoi through a 16 kilometers transmission line which forms part of the intervention.
“It is expected that the Government will fast track the construction of the secondary school facility, which is a pre-condition for the investment to be made. The secondary school is foreseen to be the main electricity consumer and therefore forms the basis for feasibility of the investment.”
Head of Delegation of the European Union in Guyana, Ambassador Robert Kopecký stressed that “he anticipates the speedy commencement of the construction phase of the system and hopes that the construction deadlines can be achieved without any major hiccups.
He also emphasized that the project embodies initiatives under the Low Carbon Development Strategy (LCDS) while expressing hope that similar sustainable energy uses could be employed especially for the hinterland regions.
The construction phase is expected to begin in February 2013 and be completed by February 2015.
With still thousands of hinterland homes inhabited mainly by Amerindians and still without power, government has also started an ambitious project to distribute 10,000 solar units.
There are plans also to construct a 165-megawatt hydro power station at Amaila Falls, Region Seven. The idea is to bring power to the coastlands which currently depends on an expensive mix of diesel and heavy fuel oil to operate.