China Railway says it strictly abides by Guyana’s laws, regulations

– “strongly condemns” VICE News for defaming Chinese businesses in Guyana

State-owned China Railway First Group Co Ltd (CRFG), the firm that won the contract to revive the highly-touted 165-megawatt Amaila Falls Hydropower Project (AFHP), has contended that it strictly abides by the laws and regulations of Guyana in conducting business here.
This is in response to the controversial broadcast by VICE News titled “Undercover in Guyana: Exposing Chinese Business in South America”. Already, the current Guyana Government has previously criticised the news agency for attempts to paint top Government officials and the country at large as corrupt, specifically accepting bribes from Chinese investors following the release of parts of the broadcast prior.
But in an extended video released just last week, VICE News journalist Isobel Yeung went undercover and spoke to several Chinese citizens operating businesses or managing large projects here on alleged corruption deals. The spotlight was shown on the Amaila Falls Hydropower Project – a flagship initiative of the governing People’s Progressive Party/Civic regime.
In the more than 24 minutes broadcast, the journalist mentioned being shown a contract between embattled Chinese businessman Su Zhi Rong and China Railway for a major road project. CRFG had won the contract for “East Coast Demerara Public Road Widening and Improvement Project-Better Hope to Belfield Village” back in 2014.
But according to China Railway in a statement over the weekend, the news piece is “misleading the public… on the groundless fabrication of so-called factors in an attempt to defame Chinese enterprises here in Guyana.”
The state-run Chinese construction firm solemnly stated that it has never signed any agreement with Su, nor has it conducted any actions that were shown in the footage.
“Since its presence in Guyana from 2008, CRFG strictly abides by the laws and regulations of Guyana in conducting its business operations in the country. We express strong indignation on the behaviours that VICE News and Su Zhirong deliberately fabricated stories and spread such untruthful information on the internet to mislead the public and damage the reputation of our company. We strongly condemn such behaviours of defaming Chinese enterprises,” the company said in the statement.
CRFG further declared that it reserves the right to seek legal actions against both VICE News and Su Zhi Rong for their “reputation-damaging behaviours” and the right to claim compensation for loss so incurred to the company’s business.
China Railway had been involved in the AFHP since 2008 when the initiative was first conceptualised under a previous PPP/C Administration.
At that time, Sithe Global, a United States-based company, as the investor of the project and beneficiary of the concession rights, publicised the invitation to bid for the project across the globe in May 2008, and CRFG participated in the bidding process.
In November 2008, CRFG was announced the successful bidder for the Engineering, Procurement and Construction (EPC) Contract of Amaila Falls Hydropower Project, which was officially signed between CRFG and Sithe Global in September 2012. But in August 2013, Sithe Global, due to the expiration of the concession rights for the project, exited the development of Guyana Amaila Falls Hydropower Project resulting in the project being set aside.
However, the current Government of Guyana in July 2021 publicised the Request for Proposal (RFP) to revive the Amaila Hydropower Project. Among all the Proposals submitted by the companies in September 2021, CRFG’s Proposal presented the lowest price. Therefore, in November 2021, the Guyana Government expressed that it would proceed to next round of negotiations for the project preferably with CRFG.
According to China Railway, similar procedures were followed for the fulfilment of the “East Coast Demerara Public Road Widening and Improvement Project-Better Hope to Belfield Village”. In November 2013, the Guyana Government publicised the notice for pre-qualification for this project, and eight companies including CRFG participated in the pre-qualification process.

Later on, CRFG and other five companies were shortlisted to enter the official bidding as the second stage. The bids were opened in May, 2014, and CRFG, with its lowest price (lower than the Engineers’ estimates), was announced as the successful bidder among all four companies who have submitted the bids. In December, 2014, CRFG signed the contract of this project with the Ministry of Public Works and according to CRFG it has “delivered to Guyanese people so far the best roadway in Guyana with the highest quality at the lowest price, which is highly commended by local residents”.
However, even as China Railway has been placed on the spotlight for its involvement with the Amaila Falls Project, there is a possibility that the company could lose the contract after it indicated to Government its inability to execute the project in keeping with the Build-Own-Operate-Transfer (BOOT) model.
Back in May, Vice President Bharrat Jagdeo had disclosed that the AFHP is at risk of being delayed and possibly retendered, as CRFG has difficulties in meeting the contract obligations and wants the financing model changed. CRFG wants to enter into an Engineering, Procurement and Construction (EPC) contract with the Government instead of the BOOT model.
It is unclear whether a decision will be taken or has been taken to move the project forward, but the Vice President had posited that the Government is not in agreement with any attempt to change the basis of the tender that went out last year. He had also made it clear that if China Railway cannot get the contract done under the BOOT model, then the contract would have to be scrapped and retendered.
Meanwhile, President Dr Irfaan Ali earlier this month made it clear that Government will continue to pursue the Amaila Falls Hydropower Project even if it means it has to keep retendering “again and again”.
“Let me be very clear: we are not going to abandon this project… because we know the studies and everything, including the independent review by Norway, has point to this project as being good for Guyana, being good for the environment, and bringing greater prosperity… So, this project will get underway,” President Ali affirmed.
The revival of the 165-megawatt AFHP was one of the promises made by the People’s Progressive Party/Civic in its 2020 election manifesto. The project is expected to deliver a steady source of clean, renewable energy that is affordable and reliable, and is envisioned to meet approximately 90 per cent of Guyana’s domestic energy needs, while removing dependency on fossil fuels.