Controversial state-owned company China Road and Bridge Corporation (CRBC) is set to build the bridge over the Corentyne River, a $236 million project that will connect Guyana and Suriname, sparking significant concerns. The company’s history of irregularities worldwide, including misconduct, labor rights violations, shady practices, and shoddy work, has set off alarm bells about the risks involved in this investment, Guyanese daily Stabroek News reported.
In early December 2024, Guyana’s Minister of Public Works Juan Edghill announced CRBC’s selection, adding that construction will begin once full financing has been secured, Guyanese daily Tempo reported. The planned 3.1-kilometer bridge will link Moleson Creek in Guyana with Long Island and South Drain in Surinam. With a projected lifespan of 100 years and minimal maintenance, the bridge is expected to allow accommodations for ships of up to 47,000 tons. It will also connect French Guiana and Brazil, to unite South America in the long term.
“Chinese companies always present the lowest bids, which raises questions about how they achieve this competitive edge,” Euclides Tapia, professor of International Relations at the University of Panama, told Diálogo. “We must analyze their commercial strategy and understand how they access key information from tenders, especially the estimated costs of their competitors, in order to use it to their advantage.”
In November 2024, Suriname signed an agreement to restructure its $476 million debt, of which $140 million is in arrears, with China Exim Bank. Payments will be reorganized in two phases, Spanish news agency EFE reported. Both Guyana and Suriname are exploring loan options for their 50 percent contribution, local news site Newsroom reported.
“Suriname will only be able to fulfill its part of the bridge project by resorting to more debt with China, which aggravates its financial situation. This is a critical point that cannot be overlooked, as it reflects how China takes advantage of the vulnerability of its partners,” Tapia said. “Suriname has already fallen into the first trap after refinancing its debt.”
China’s growing interest in the region is directly linked to the discovery of oil reserves in Guyana in 2015. In addition to oil, the nation has strategic resources such as gold and bauxite, attracting Beijing’s attention, the BBC reported.
History of controversy
CRBC’s track record raises legitimate concerns as its projects worldwide are marred with problems. In Ecuador, the Guayasamín Road Solution project, which sought to connect Quito with the Tumbaco and Cumbayá valleys, has been at a standstill since 2019 due to contractual breaches and an international arbitration between CRBC and the Metropolitan Public Company for Mobility and Public Works, the Ecuadorian Institute of Arbitration indicated.
The irregularities included the lack of definitive designs, inadequate provision of goods and services, and a lack of transparency in the handling of funds, arbitration magazine Ciar Global reported. This project, signed in 2016, envisioned the execution of the works in 28 months, and its administration under a 30-year concession scheme.
In Montenegro, CRBC faced severe criticism for delaying the construction of a 41-kilometer section of the Bar-Boljare Highway, financed with a loan nearing $1 billion from China Exim Bank, nongovernmental organization Support4Partnership, based in Sarajevo, Bosnia and Herzegovina, indicated. According to Spanish daily El Confidencial, cost overruns and damage to the Tara River ecosystem have left the country with an unsustainable debt, with key resources at risk of being confiscated if payments are not made by 2035.
“The Corentyne Bridge project could expose Suriname to significant risks. The participation of CRBC and the China Exim Bank, known for their practices in projects such as the Montenegro highway, raises the possibility of falling into a ‘debt trap,’” Tapia said. “If Suriname cannot meet its share of the financing, it could resort to additional loans from China, increasing its external debt and increasing its vulnerability to ceding control over strategic assets or its critical infrastructure to Beijing.”
Broken promises
The Hambantota Port, in Sri Lanka, built by state-owned China Merchant Ports, is a recurring example of the risks associated with these investments. Initially conceived to boost trade, the project accumulated an $8 billion debt, which led the country to cede the port to China for 99 years. This financing model, known as “debt trap diplomacy,” highlights the negative impact that poorly managed agreements can have on the sovereignty of host countries, Argentine news site Infobae reported.
In Venezuela, the Tinaco-Anaco Railway Line project, financed with more than $2.7 billion from the Sino-Venezuelan Joint Fund, was left unfinished and was plagued by labor disputes and ecological damage, independent Venezuelan news site Armando Info reported. According to Venezuelan daily El Pitazo, only a third of the work was completed before it was dismantled in 2021.
Ecuador offers yet another worrying example with the Coca Codo Sinclair hydroelectric plant. Since its inauguration in 2016, the plant has suffered multiple structural failures that generate constant interruptions and millions of dollars in economic losses for the country. Ecuador filed an arbitration claim against the Chinese state-owned company Sinohydro, Ecuadorian daily Primicias reported. The thousands of cracks in the electricity generators continue to increase in size and number, causing damage with costs yet to be quantified.
Structural risks
The experience of these countries with projects led by Chinese state-owned companies highlights a pattern of cost overruns, technical problems, and lack of transparency. The Corentyne Bridge, although promising on paper, raises questions as to whether it really will be “a gateway to development or a pitfall of risks,” Tapia said.
“Strengthening oversight mechanisms and demanding compliance with international standards is essential to mitigate the risks associated with this type of investment,” Tapia concluded. Guyana, Suriname, and all countries that have deals with Chinese companies “should include arbitration clauses in their contracts, to be resolved outside of Beijing and guarantee transparency, as a key measure to reduce potential bribery.”
