Venezuela proposes to build road to G/T

Jul 18, 2008 News

– willing to reduce oil payments if price reaches US$150

By Leonard Gildarie
The Venezuelans are proposing to build a 430-kilometer road that will provide a major trade link between Georgetown and that country.
Speaking during an interview with Kaieteur News yesterday at the Thomas Street embassy, Venezuela’s Ambassador to Guyana, Dario Morandy, said that the money is available for the building of the road through the International Regional Initiative of South America (IIRSA).
The Venezuelans have had meetings with the government already and are set to meet again soon with the local authorities to decide the way forward.
Already plans are underway to build a road linking Georgetown and Brazil and, according to Morandy, the road will start in Region One near the Venezuela border.
Trade between the two countries has been increasing with Guyana benefiting from the Petro-Caribe deal initiated by Venezuela.
With an estimated 50,000-plus Guyanese living in Venezuela, Morandy sees the road as one of the many areas of increasing cooperation between the neighbouring countries.
Recently, the Venezuelans announced that they were interested in building an oil pipeline that will link Guyana and Suriname to a number of other South American countries.
Over the weekend, Guyana’s Prime Minister Sam Hinds was in Suriname where the issue was discussed again.
Should Guyana give the green light, Venezuela can have the pipe-line operational within a year.
Under the US$1 billion project, Guyana will be linked to Suriname and will see the building of an oil refinery here as well as a distribution network.
According to Morandy, with his country being the largest oil supplier in the region, it is in a strategic position to assist countries.
Under the Petro-Caribe deal with Venezuela, Guyana has 90 days to pay 50 per cent of each shipment of oil with the remaining 50 per cent repayable over a 25 years period at one per cent interest. This soft loan, under the agreement, can only be used for social development projects.
The Ambassador announced that his country stands prepared to even reduce this 50 per cent further should the price of oil touch the US$150 mark per barrel, a scenario that is not unlikely.
With Guyana bordering Brazil also and one of the largest states there, the Roraima State, without access to ready oil, Venezuela would be more than anxious to capitalise on the opportunities of an oil pipeline through this country.