Government notes SN article of May 20th entitled “Rusal, Brazil company still talking about massive Kurupung hydro project.”   Government wishes to clarify the status of discussions on this project.
In September 2009, when the Takutu Bridge was officially commissioned by President Bharrat Jagdeo and the Brazilian President Luis Inacio Lula da Silva, President Lula announced Brazil’s interest in establishing an 800 MW hydro project in Guyana.  President Lula signaled on that occasion, that a high level team will be sent to Guyana to further discuss hydro,” according to a Government of Guyana statement.
On October 1, 2009, President Jagdeo, Prime Minster Samuel Hinds, and a Government team, met Brazilian Minister of Energy and Mines, Edison Lobão, to further discuss Guyana’s hydro-electricity potential and how the two countries could work together to further the exploitation of that potential.   Minister Lobão led a 12-member delegation that included persons from Electrobras.  As part of the meeting, it was disclosed by the Government of Guyana (GoG) to the Brazilians that the Tortuba project was held by the ENMAN group, pursuant to a Memorandum of Understanding (MOU) entered into on July 31, 2001 and executed by the Prime Minister, and suggested that Brazil look at alternative hydro sites.
As part of its examination of alternatives, Brazil identified the Upper Mazaruni hydro project (the Kurupung project).  Government disclosed that this site was covered under a Letter of Intent (LOI) entered into in 2007 between the GoG and RUSAL.  Under this LOI, RUSAL had started preliminary feasibility studies for the development of an integrated aluminium complex (including a refinery and smelter).  Given the existence of this LOI, Government indicated to Andrade Gutierrez (AG), that the two parties (RUSAL and AG) could pursue direct discussions on the possible joint development of this project.
In 2010, RUSAL and AG engaged in direct discussions on the possible joint development of this hydro project.  No agreement has yet been reached by the parties. The report in SN of today, appear to present matters that are being discussed between RUSAL and AG.
Providing the two parties (RUSAL and AG) reach an agreement, this agreement will have to be presented to the GoG for its consideration and approval.  If approved by the GoG, development of this project would also require completion of all applicable feasibility studies including an environmental impact assessment (EIA).
Subject to the applicable studies, should all the parties agree on the future development of this hydro project, power from this project will be earmarked for use by Brazil northern states and Guyana, including power for an aluminium smelter.