Guri Dam Essay

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The Guri Dam Case Study Analysis The Guri Dam, located on the Caroni River in Venezuela, was an idea born from the country’s necessity for economic development and reduce its dependency on its own oil rich reserves. The project was meant to aim Venezuela’s electric power generation from hydrocarbon to hydroelectric and reduce the country’s reliance on carbon based electricity, thus allowing the sale and exportation of more petroleum products. With the realization that Venezuela’s oil reserves were going to be a fundamental basis in the nation’s economic growth and stability, the Venezuelan government hired a consulting firm to develop the plan. From the start, the project had a well-defined scope, which potentially led to the project’s…show more content…
During the inception phase, the government leaders of Venezuela excelled in the finance planning department. Venezuela secured financing from the World Bank for a significant portion of the funding. The World Bank offers low interest loans, zero to low-interest credits, and grants to developing countries, and knowing that Venezuela fell into this category due to its lack of technological advancement at the time, the planners knew that a loan or financing through the World Bank would prove beneficial in the future. Once the country’s dependency on carbon based fuels was minimized, Venezuela could export a large majority of its oil reserves to easily reimburse the financial institution as well as pay for the second stage of construction. Eldeca did an outstanding job during this phase by carefully reviewing and selecting the winning bid for foreign contractors to undertake the construction of the dam. Eldeca placed several minimum requirements of contractors to be in place before even being able to bid. Contractors were required to have a minimum of five years of operations in the market, a verifiable executed work curriculum, appropritate financing measures to ensure the ability to meet the project’s financial obligations, and detailed plans for a guarantee for quality. Although, the project’s focus was on quality, Eldeca also

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