KATO, Region 8, Guyana 1/26/12 (PennWell) -- The European Union (EU) will provide funding for a new 330-kW hydroelectric plant along Guyana's Chiung River, with the stipulation that the country construct a new secondary school first.
The anticipated cost of the new hydropower facility is US$3.11 million. Of that, the EU has said it will contribute about $2.39 million under the 10th European Development Fund (EDF), while the Guyana government will contribute the remainder.
The EU says construction of the school is essential before finalizing its investment because the school is anticipated to be the new plant's primary beneficiary.
"The secondary school is foreseen to be the main electricity consumer, and therefore as such forms the basis for feasibility of the investment," an EU release says.
Officials say they hope construction on the Kato hydropower plant can begin by February 2013, with completion coming in February 2015.
Guyana has previously expressed interest in the Chiung River site and announced hydropower feasibility studies in October 2006, but a tender calling for further study was dropped a month later.