Guyana has signed an agreement with a Canadian company to undertake feasibility studies on a 60 megawatt hydropower plant fed by the Kurupung River.
Prime Minister Samuel Hinds signed a Memorandum of Understanding with Canada's Sandsprings Resources Incorporated and subsidiary CM Power of Guyana. The companies will also undertake to develop the facility if found to be feasible.
CM Power is affiliated with ETK Inc. Both companies are subsidiaries of Sandsprings Resources.
The Canadian company intends to initiate operations at Toroparu where it has another energy project.
Prime Minister Hinds said that under the Kurupung agreement, CM Power will study the project site and develop project plans. The company would have to apply for a licence for the plant.
"Along the way there will be of course an environmental impact assessment to give opportunity to persons who may be involved or affected, to get them to know what is intended, to give them an opportunity to raise their concerns and to seek ways in which reasonable concerns may be ameliorated or mitigated," he said.
Sandsprings Resources Chief Executive Officer Rich Munson said he was pleased with the project, which is located in the area called Region 7.
"Having an electrical power supply of this nature in Region 7 will certainly attract other industries, as well as other mining companies, so this is a very significant event obviously not only for Sandsprings, but for Guyana also," said Munson.