VENEZUELAN INTER-PRESIDENT DELCY RODRIGUEZ SIGNS DEAL WITH GE VERNOVA

Written by Michael Thervil

VENEZUELAN INTER-PRESIDENT DELCY RODRÍGUEZ SIGNS DEAL WITH GE | PHOTO BY EFE AGENGY

[Delcy Rodriguez Venezuela GE Vernova deal] In a landmark deal for a stronger, robust, and even more efficient electrical grid in Venezuela, Venezuelan inter-president Delcy Rodríguez signed a deal with American conglomerate General Electric (GE- Vernova) that would modernize Venezuela’s nearly antiquated power grid. Often suffering from power grid failures throughout the country, Venezuelan Intern-President Delcy Rodríguez latest deal with GE appears to be promising in rectifying a decade long power issue. Calling the deal an “essential service”, Intern-President Delcy Rodríguez along with Venezuelan energy minister Rolando Alcalá, an electrical engineer, has vowed to do everything possible to ensure that Venezuelans get their power demands met.

Due to the signing of the deal with Venezuela, GE stands to gain not only exclusive market access, but it also will obtain first dibs on future contracts, control over the Venezuelan power supply sector, future infrastructure expansion and scale, as well as control within the realm of the Venezuelan national political sector. It should be noted that within this deal, GE would also obtain the exclusive rights to upgrade and create new thermal power plants in Venezuela which would serve as backup to the new constructed energy grid system within the country. President Rodríguez signed as early as today an MOU (Memorandum of Understanding) with GE to produce one gigawatt of energy available to Venezuelans within24 months and another five gigawatts within the next four years.

Intern-President Rodríguez stated today that: "This is a historic step for Venezuela, enabling us to restore a service ​as essential ​to ⁠the life of a country as its electricity ​supply," Detractors of the joint Venezuelan/General Electric deal feel as if GE will have created significant leverage within Venezuela to control politicians as well as exploit the people and other possible large scale producers of energy in terms of acquiring an unfair market advantage. But GE is not the only company that is looking to further establish themselves as a major power supplier in Venezuela as the Argentine multi-national engineering and energy producing company IMPSA formally “Industrias Metalúrgicas Pescarmona” has also acquired a contract with the government of Venezuela. IMPSA in conjunction with Corpoelec, a state power company, has pledged to generate 2,649 megawatts of power with 10 additional power units through a newly constructed hydroelectric power plant called Manuel Piar Plant also known as Tocoma. The Tocoma hydroelectric plant is located along the Caroní River in the Bolívar state.

The question of “Why now after all these decades?” is being asked. The dilapidated power grid in Venezuela is nothing new. Could it be the American energy and power giants like GE are looking to exploit the situation in Venezuela or is this just a simple case of great timing. Let us know your thoughts in the comments below.