Bank of China (Beijing Branch) contribution to EUR 160.8 million loan for New Demerara River Bridge (NDRB) Project

Bank of China branch contributions to EUR 160.8 million loan for New Demerara River Bridge (NDRB) Project On December 30, 2022, the Beijing Branch of Bank of China, the Panama Branch of Bank of China, and the Government of Guyana signed a EUR 160,852,464 facility (loan) agreement for the New Demerara River Bridge (NDRB) Project.

Then, on December 29, 2023, the parties signed a supplemental facility agreement (that amended and restated certain terms and conditions in the original facility agreement) and an account supervision agreement.

The borrower also purchased an export credit insurance policy from Sinosure.

The borrower is responsible for making 24 equal, semi-annual repayments after the expiration of the loan’s grace period.

The borrower is expected to use the proceeds of the loan to finance 85% of the cost of a $260,852,464 commercial (construction) contract (No. 2433/2020/31) between Guyana’s Ministry of Public Works and a consortium joint venture) consisting of China Railway Construction Corporation (International) Limited, China Railway Construction (Caribbean) Co., Ltd., and China Railway Construction Bridge Engineering Bureau Group Co., Ltd., which was signed on May 25, 2022.

The purpose of the project is to construct a hybrid designed bridge — known as the new Demerara Harbour Bridge — that will feature a modern four-lane structure (two carriageways), cycle lane, a total length of 2.65 kilometers, a driving surface of about 23.6 meters (77.8 feet), and a lifespan of approx. 100-years.

The current Demerara Harbour Bridge is a vital link for the transport of agricultural goods from Regions 2 and 3 into Regions 4 and beyond.

However, it is over 40-years old and connects the East Bank at Peters Hall with the West Bank at MeerZorgen, an estimated 40,000 to 45,000 people and over 20,000 vehicles each day (11,000 per direction).

The new Demerara Harbour Bridge aims to address the challenges faced by users of the current bridge by providing a safe, efficient, and effective crossing.

It is expected to offer easy connectivity to both the existing East Bank Demerara road as well as the new Diamond to Eccles bypass, the existing West Bank Demerara road, and the new Parika to Schoonord road.

According to the Government of Guyana, the new Demerara Harbour Bridge is also a key strategic investment as economic activity on both sides of the Demerara expands rapidly, with developments on the horizon, such as new and expanded shore bases, a massive gas-to-power project, and other industrial activities, alongside growth in more traditional sectors such as housing, construction, and services such as tourism.

The Government of Guyana expects the bridge to play a significant role in accommodating and propelling economic growth.

China Railway Construction Corporation (International) Limited, China Railway Construction (Caribbean) Co., Ltd., and China Railway Construction Bridge Engineering Bureau Group Co., Ltd. are responsible for project implementation. Politecnica, an Italian firm, is responsible for project supervision.

Construction began on May 16, 2023, when Guyana's Maritime Administration Department (MARAD) announced an exclusive work zone. The project had achieved a 27% completion rate by October 2023 and a 43.4% completion rate by May 2024. Construction was originally scheduled to commence in October 2023 and reach completion by the end of 2024.

As of February 2025, the bridge is 81.6% complete with a new scheduled completion date of August 31, 2025. The project has encountered a number of implementation obstacles related to right-of-way issues.

On November 24, 2021, the Environmental Protection Agency of Guyana (EPA) issued a notice to the public that the NDRB Project would be exempted from the requirement for an Environmental and Social Impact Assessment (ESIA).

Then, on April 26, 2022, the Environmental Assessment Board upheld the EPA's decision to waive the ESIA requirement, subject to the condition that there is no significant change to the conceptual design of the NDRB project and that any significant departure from the conceptual design of the NDRB project should trigger a further review by the EPA for the necessity of an ESIA.

On May 18, 2022, the EPA issued an environmental permit for the project to Guyana's Ministry of Public Works.

Then, in September 2022, the joint venture responsible for project implementation (China Railway Construction Corporation (International) Limited, China Railway Construction (Caribbean) Co., Ltd., and China Railway Construction Bridge Engineering Bureau Group Co., Ltd.) provided a comprehensive land-acquisition and relocation plan to Guyana's Ministry of Public Works, showing all the properties that fall within the right-of-way of the new bridge.

In October 2022, a team from Guyana's Central Housing & Planning Authority (CH&PA) and the Ministry of Public Works conducted a scoping exercise in order to compile a detailed report of the particulars of the properties to be acquired in the Peter’s Hall area of the new bridge.

Additionally, in October 2022, Collin Croal, Guyana's Minister of Housing and Water, and a CH&PA team invited the residents of Peter’s Hall and Republic Gardens to a public engagement to inform them of the process that will unfold leading to the acquisition of their properties for the construction of the New Bridge.

One month later, in November 2022, Guyana's Government Valuation Office was engaged to conduct the appraisal for the list of properties that were to be acquired for the new bridge.

Then, in January 2023, another engagement was held with residents of Peter’s Hall and Republic Gardens by CH&PA officers. At the meeting, the valuations were disclosed to the residents.

Most of the residents expressed their dissatisfaction with the valuations being offered and opted to have private valuations done.

One month later, in February 2023, Collin Croal held a second public engagement to reinforce the CH&PA’s commitment to ensuring that the relocation process will be a smooth and equitable process for all the project-affected persons.

Then, in March 2023, the CH&PA began the negotiation process and allocation of house lots and property to residents, commencing land-identification exercises at Peter’s Hall, Covent Gardens, and Farm.

In September 2023, Collin Croal, Guyana's Attorney General Mohabir Anil Nandlall, CH&PA staff, stakeholders, and the project-affected persons (PAPs) were engaged with the purpose of the meeting to state the Government of Guyana's position and to once again express the Government of Guyana's commitment to ensure that the relocation process is completed in a timely manner.

In the latter part of September 2023, further engagements were undertaken between the residents and CH&PA officers.

In October 2023, Collin Croal, Mohabir Anil Nandlall, and the assigned attorneys held a second engagement with the residents.

The Attorney General stated that the process has gone on for a lengthy period and that there was an urgency for residents to agree to the terms of the agreement with their attorneys.

Then, on February 10, 2024, Order 13 of 2024 was published in the Official Gazette for the Acquisition of Land for Public Purposes for the Construction of the new bridge.

Later in February 2024, Guyana's Minister of Public Works (Juan Edghill), Attorney General, Minister of Housing and Water, CH&PA staff, and lawyers assigned to each resident held a third engagement at the Princess Hotel with residents who had not accepted the compensation agreements.

The attorneys indicated that the Government of Guyana would take legal action against residents who rejected the terms of the compensation agreement.

Then, on April 6, 2024, Order 28 of 2024 was published in the Official Gazette, vesting the described parcels of land in the Government of Guyana in accordance with Section 6.

On May 7, 2024, a notice of eviction and demolition of property was dispatched to residents who did not accept the offer from the Government of Guyana.

At that point, of the twenty-one properties to be acquired in the Peter’s Hall area, six property owners had accepted compensation packages, while fifteen property owners had refused the compensation packages offered by the Government of Guyana, citing their dissatisfaction with the offer.