By Andrew Richards
A South African group has provided the Guyana government with the option of constructing the Linden-Lethem road at a US$450 million cost through private investment using the spatial development initiative (SDI).
Stabroek News
June 25, 2001
An expert on SDIs has been invited to Guyana to explain the concept.
The SDI plan for Guyana prepared by the UWP Engineers Group 5 was handed over to the Guyana government last year.
UWP was one of the companies which bid to construct the Berbice bridge and is one of the largest in South Africa.
The plan entails the construction of a paved Linden-Lethem road, including a bridge across the Essequibo river at Kurupukari, all of which will be completed in four years.
The government requested that the concept be explained and David Arkwright, deputy chief executive of Maputo Corridor Development Company, was invited to perform the task.
Arkwright was in Argentina, Paraguay and Brazil last year to advise on the development of regional infrastructure by South American countries which will serve to link the countries.
SDI is a model developed by South Africa whose objective is to unlock the economic potential of an area. One example of the success of SDIs is the Maputo initiative which links Maputo, Mozambique, to Witbank, South Africa, in a cross-border corridor which opened up the area for development. Arkwright's company was one of the major players behind the Maputo initiative.
The Guyana SDI plan was handed over to the government last year at the Foreign Officers Conference by Guyana's Honorary Consul to South Africa, Rae Hazlewood.
UWP's proposal envisages a consortium to oversee the project.
The private investment funding will come from the stakeholders, of which UWP will be a major one.
Revenue generating projects are required to repay for the funds utilised for the provision of basic infrastructure. These projects would have to be evaluated and a full financial model will be required to measure the rate of return.
Some examples of the projects earmarked are: (1) hydropower - the group envisages a 250-megawatt station along the Essequibo river; (2) eco-tourism - the group feels this industry could generate about 300,000 visitors yearly; (3) the rehabilitation of the alumina plant and associated mining at Ituni.
The group is proposing the setting up of the Takutu Regional Development Programme (TRDP) which centres around a link with Brazil, and construction of an all-weather road from Annai to Lethem. Connecting Manaus in Brazil to port Georgetown on the Atlantic Coast is a longer-term objective.
It was noted that both the Guyana government and the government of the state of Roraima are keen on establishing a transportation corridor.
The group is of the opinion that the Guyana government now needs to adopt a more innovative approach to secure the financing to instal the infrastructure which would open up the region.
Guyana has been trying to access funding for the road from the European Union (EU) and is also exploring getting it done via the development of regional infrastructure by South American countries. The state of Roraima had offered to assist in sourcing investment funding.
The idea of the road to Lethem is over four decades old. The first feasibility study was done in 1961. The group's key project identified to act as a catalyst to the process is the road from Annai to Lethem.
What is required for the government of Guyana to implement the proposal, the group said, is to accept their approach as a mechanism to promote economic growth in the south west region of Guyana.
The TRDP must be established and the government has to mobilise funding for preliminary stages such as feasibility reports.
Government must also promote investment in identified projects and implement priority infrastructure projects.
The Guyana government began to re-focus on the building of the Linden-Lethem road in 1995 and sought external aid from the European Commission. As a prerequisite, government had to submit to an environmental audit of the road. After the audit was completed, it was recommended that the existing dry weather road be upgraded.
There was some lobbying by environmentalists and Amerindian groups against some aspects of the road construction.
The Amerindian Peoples Association (APA) submitted its concerns to the EU in Brussels in June last year. Programme coordinator of the APA, Jean La Rose, has asserted that the Amerindian people were not against the construction of the road but wanted the assurance that their rights, especially concerning their land, would not be infringed.
La Rose noted the new road will open up the hinterland, where many Amerindians live, to activities conducted by non-Amerindians which would call for effective monitoring. She observed that the road will be passing through several Amerindian communities and villagers will be displaced. This issue will have to be addressed.
The APA is also concerned that the road is being constructed with emphasis being placed on servicing the needs of Brazil and little focus on the benefits for the people who live in the interior.
The state of Roraima has recently embarked on a massive industrial programme and will be looking for the best route to transport its exports.
The road through Guyana will provide a direct link for Roraima with the state of Amapa and is considered a viable option by the Brazilians.