American companies being trained to compete with Chinese for contracts in Guyana – outgoing U.S. Ambassador

Sep 02, 2023 News

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Kaieteur News – With most of Guyana’s major infrastructural projects being awarded to Chinese companies, outgoing United States Ambassador, Sarah-Ann Lynch, has disclosed that American companies are being trained on Guyana’s tendering process to better compete for contracts here.

On Thursday, Ambassador Lynch hosted her final press briefing at the Herdmanston Lodge, Georgetown.

The Ambassador was asked about China’s increasing presence in Guyana.  “Clearly, the China footprint is growing in Guyana as well as the broader Caribbean,” she responded.

She underscored that there are many opportunities, not just in Guyana’s oil and gas sector but across the other sectors.

“Whether it be agriculture, IT [Information Technology] services, tourism, manufacturing, and many, many nations are exploring these opportunities,” Lynch said.

To this end, she noted that the U.S. has been working “very hard” to bring American companies to Guyana to explore the potential and take part in some of the opportunities the country has to offer.

The Ambassador explained that her goal has been to educate U.S. companies on the opportunities Guyana has to offer.

She also stated that she has been involved in a matchmaking role, bringing American companies to Guyana and connecting them with local companies to be able to benefit from the bountiful opportunities available in the different sectors.

“U.S. companies bring some unique things to the table. I think they bring some unique things to any country in which they invest, and that’s quality, excellence on time, on budget projects, and high standards of safety,” Ambassador Lynch said.

She added that those are things Guyanese companies should think about when considering which U.S. company they want to partner with.

She added, “And it’s important for the Guyanese people to know U.S. companies and what they bring to the table.”

Moreover, Lynch highlighted that in partnership with the Guyanese people, the U.S. tripled their bilateral trade over the past four years.

“We’ve hosted huge trade missions this year, Louisiana was the biggest trade mission that the U.S. has ever had, (and) in Florida a huge trade. Those trade missions have resulted in deals. We are working hard to make phone calls, do webinars, attend conferences, again host trade missions so that relationship grows,” the Ambassador stated.

She continued, “So I think we are here; we are strong, and we will remain here.”

Moreover, Lynch was questioned on whether Guyana’s national procurement and tender administration process favours Chinese companies, to which she responded by stating that they have embarked on educating U.S. companies on the tendering process, adding that some are still learning to navigate that process.

She stated that the U.S. has worked closely with the Government of Guyana on issues of transparency, and accountability.

She added, “We have excellent partners throughout the government and so we are seeing the procurement process that continues to improve here and we think that’s very important.”

Ambassador Lynch underscored, “It is important to modernize systems that will be very attractive to investors. Guyana’s been able to attract many investors already but at the rate at which companies are coming here to look at the opportunities, I think the more the country can do, to modernize, to digitize to have a process that’s easy to navigate for companies that would be in Guyana’s favour.”

In Guyana, the majority of the major infrastructural projects are awarded to Chinese companies.

The decade-old Cheddi Jagan International Airport (CJIA) expansion project was awarded to Chinese contractor, China Harbour Engineering Company (CHEC) for the sum of US$150 million: $138 million from the China Exim Bank and $12 million from the Consolidated Fund – taxpayers’ money. While CHEC has since completed its part of the work on the airport, millions more are still being invested by the government to modernize the airport.

Out of the two Chinese contractors that bid for the US$184M East Coast of Demerara (ECD) railway and highway expansion projects, China Railway First Group Co. Limited was awarded the contract last October to execute the works.

Also, Chinese Company – China State Construction Engineering Corporation Ltd was awarded the US$260M contract to build a new four-lane, high-span fixed bridge across the Demerara Harbour Bridge (DHB).

Another major project that is upcoming is the Corentyne River Bridge project.

While the contract for this project is expected to be awarded in October 2023, it should be noted that four out of the five contractors/ joint ventures who have been shortlisted for the Corentyne River Bridge project are Chinese-owned.

According to the Ministry of Public Works, the list of pre-qualified contractors for the project are: China Road and Bridge Corporation (CRBC) – (China); China Railway Construction International Ltd (CRCCI) in a joint venture with China Railway Construction Caribbean Co Ltd (CRCCCL), and China Railway Construction Bridge Engineering Bureau Group Co Ltd (CRBG) – (China); Ballast Nedam Infra Suriname B.V.; China Harbour Engineering Company (CHEC) – (China); and China Overseas Engineering Group Co Ltd (COVEC) in a joint venture with China Railway Eryuan Engineering Group Co Ltd (CREEC), and China Railway First Group (CRRG).

Meanwhile, an American company, Houston-based Lindsayca and CH-4 of Puerto Rico was able to secure a US$760 million deal to build two plants for using natural gas from offshore Guyana to produce electricity. The American and Puerto Rican companies have partnered to construct a 300-megawatt power plant at Wales, West Bank Demerara (WBD).

Also, recently a Memorandum of Understanding (MoU) was inked between the Central Housing and Planning Authority (CH&PA) and South Atlantic Logistics and General Services Inc., an American company for the construction of 200 three-bedroom flat houses at Leonora on the West Coast of Demerara (WCD).

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• American, Chinese, companies, Georgetown, Herdmanston Lodge

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