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Brazil Signs Pact for Power Plant on Guyana Border

Brazilian President Luiz Inacio Lula da Silva said Eletricas do Norte do Brasil SA plans to build a hydroelectric power plant on the border with Guyana.

The two South American countries signed a memorandum of understanding to determine where the plant will be located, Lula said during a speech in Georgetown, Guyana.

Lula also announced an optical fiber network has reached the Brazilian border with its Northern neighbor to integrate the two countries with broadband communication and government support for Brazilian companies to build a road connecting the nations.

Latin America’s largest economy will also grant tax breaks to ‘a list of products’ from Guyana, Lula said, without elaborating.

Lula said he expects Guyana to act as a “bridge” between South America and the Caribbean, helping in the negotiations between the Mercosur and the Caricom regions.

Lula made his remarks at the summit of presidents and foreign affairs where Guyana President Bharrat Jagdeo awarded his Brazilian counterpart the Order of Excellence, the highest distinction in Guyana for a head of state.

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