China likely funding source for Guyana-Brazil road

Last Updated on Friday, 24 June 2016, 8:44 by Denis Chabrol

Guyana’s Foreign Minister, Carl Greenidge says that Brazil is expected to tap into China’s US$10 billion Latin America Infrastructure Fund to build the Linden-Lethem road and provide much needed transportation for goods between the two South American countries.

Speaking at the parliamentary committee on Foreign Affairs, Greenidge noted that Guyana and Brazil have agreed to collaborate on finding money to finance the feasibility study and construction of the road.

He, however, noted that until Brazil resolves its internal political problems, there was unlikely to be much progress in seeking the monies from China. “As you are aware, Brazil itself has been going through difficulties and, therefore, it has really not gone beyond the level of exchanges,” he said. “I suppose that until such time as Brazil settles down at the political level you are not likely to see much progress in that regard,” he said.

Brazil’s President, Dilma Rousseff has been suspended and faces an impeachment trial for  presiding over economic decline and turning a  blind eye to alleged corruption within her own left-wing party.

The Foreign Minister said it was agreed that Brazil would have initiated talks with China to access the “substantial” Infrastructure Fund. He noted that so far that finance source has not been tapped by the rest of Latin America.

Transportation is regarded as a major constraint in both countries trading large amounts of goods. Guyana and Brazil have long signed a Land Transportation Agreement for Cargo and People.

Evidence produced to the parliamentary committee on foreign relations shows that Brazil has been selling large amounts of goods to Guyana, while this country’s major export to its Portuguese-speaking neighbour has been rice.

The Foreign Minister noted Brazil continues to be interested in constructing hydro power stations and a deep water port in Guyana.