Berbice deepwater port will not meet 2022 deadline – CGX
News
By Kiana Wilburg
Kaieteur News – CGX Energy Inc. through its subsidiary, Grand Canal, is involved in the construction and development of the Berbice Deep Water Port (BDWP), located on the eastern bank of the Berbice River.
A critical portion of the project, the Offshore Supply Base of the port, was initially scheduled to be completed in the fourth quarter of 2022. Unfortunately, the company has informed shareholders that it would be unable to meet this deadline. It said a revised schedule for completion is being discussed with the contractor for the project.
According to the company’s financial statements, the Deepwater port facility intends to serve as an offshore supply base for the Oil and Gas industry and as a multi-purpose terminal (MPT) cargo handling base to service agricultural import/export, containerised and specialised cargo.
The BDWP also aims to enable provisioning of operators and vendors in territorial waters of both Guyana and Suriname. CGX in its latest financial report said active construction is ongoing on the rip rap flood protection (which is 96% completed), and quayside laydown yard (92% completed). It said too that an access bridge from Corentyne Highway, rehabilitation of access road, extension of electricity infrastructure to the port site and delivery of potable water to the port have all been completed.
Kaieteur News understands that requests for proposals were received for the wharf platform and access trestle, capital dredging programme, design and construction of all gates, buildings, design and construction of firefighting and first aid structures and covered storage areas. Evaluations of submitted proposals for the capital dredging and construction of the wharf platform and access trestle were completed and a local contractor selected. CGX said the successful bid incorporates an update to the design of the Wharf and Trestle to realize cost efficiencies. Taking this into account, CGX said it is unlikely that the Offshore Supply Base of the port will be fully operational in Q4, 2022 as previously scheduled. To cover expenses associated with the project, the cash-strapped company had to borrow funds from its partner, Frontera Energy Corporation, in the Corentyne Block.
On March 10, 2022, CGX had entered into a financing agreement with Frontera for a US$35 million loan, to continue to finance part of its share of costs related to the Corentyne Block, the Berbice Deepwater Port, and other budgeted costs as agreed to with Frontera. This 2022 Convertible Loan was then amended three times prior to closing. The 2022 Convertible Loan was available for drawdown in tranches on a non-revolving basis until September 10, 2023 or the date on which CGX has drawn down the maximum amount of the 2022 convertible loan.