OEC USA — linked to Brazil's Odebrecht scandal — bids for Amaila Falls hydro contract
OEC USA, the rebranded successor to corruption-tainted Odebrecht, has submitted a joint bid for Guyana's 165 MW Amaila Falls hydropower project. The Government is weighing five international proposals.
OEC USA, Odebrecht's corporate successor, joins race for Amaila Falls hydropower deal
A U.S.-linked company with deep corporate ties to the Odebrecht corruption scandal has entered the bidding for Guyana's long-delayed Amaila Falls hydropower project, Kaieteur News reports, raising questions about how the Government is evaluating contractor histories alongside financing offers and bid costs.
The company, OEC USA, has filed a joint proposal with U.S. energy giant GE Vernova and Australian engineering firm Worley. The project is expected to generate at least 165 megawatts of electricity. Four other international firms have also submitted proposals, and the Government is currently reviewing all five.
Sources familiar with the procurement told Kaieteur News that the OEC-led consortium has submitted the highest bid but is receiving substantial backing from the United States. Cheaper offers from Chinese and Indian companies are also under consideration. The U.S. Export-Import Bank has offered financing support for the project, a factor that could give American-linked companies a meaningful edge in the selection process.
Odebrecht's history and the OEC rebrand
OEC USA's corporate lineage runs directly to Odebrecht, the Brazilian construction and engineering conglomerate that became the central figure in Brazil's Operation Car Wash (Lava Jato) investigation — one of the largest international corruption probes on record.
Prosecutors found that Odebrecht had constructed an internal unit known as the Division of Structured Operations, established in 2006, which was used to manage illicit payments to secure contracts across multiple countries. The company also ran an encrypted communications platform called Drousys, which investigators said employees and intermediaries used to coordinate the payment scheme.
U.S. authorities determined that between 2001 and 2016, Odebrecht paid approximately US$788 million in bribes and generated more than US$3 billion in illicit profits. In 2016, Odebrecht and its petrochemical affiliate Braskem settled with authorities in the United States, Brazil and Switzerland, agreeing to penalties of approximately US$3.6 billion. The U.S. Department of Justice said the companies had made improper payments in multiple countries to win public works and infrastructure contracts.
Following those proceedings, Odebrecht underwent significant restructuring and rebranding. The company now operates under the OEC name across several markets. A Department of Justice-imposed independent monitorship, put in place after the enforcement case, ended in May 2020.
OEC's financial standing under scrutiny
The rebranded company's financial position has drawn its own attention. Fitch Ratings downgraded OEC to a 'CC' rating in 2024, citing a high probability of default and highlighting negative consolidated shareholders' equity of approximately BRL 16.6 billion. The company has been undergoing a major financial restructuring in Brazil, and proceedings in the United States involving its North American assets have attracted additional scrutiny.
OEC's expanding footprint in Guyana
The Amaila Falls bid is not OEC's only play in Guyana. The U.S. Embassy in Georgetown recently highlighted Citibank's announcement that it would provide financing for OEC USA Inc.'s bid to construct the new Lethem Airport in Region Nine. The U.S. Ambassador described that financing arrangement as a significant step for Guyana's integration into global financial markets.
OEC's simultaneous pursuit of both projects places the company at the heart of two of Guyana's largest current infrastructure initiatives.
Parallels with the Wales Gas-to-Energy project
The Amaila Falls procurement is unfolding against the backdrop of serious difficulties with the Wales Gas-to-Energy project, which Kaieteur News has reported on extensively. Contractor Lindsayca received a US$759 million contract with U.S. support despite facing significant financial challenges at the time of award. The project has since experienced substantial delays and cost escalations, with the overall price reportedly exceeding the initial billion-dollar figure. Guyana has also faced an arbitration dispute linked to those delays, with a reported award of nearly US$100 million against the country.
That experience has sharpened scrutiny of the Government's approach to choosing international contractors for large public works.
With a decision on Amaila Falls approaching, the Government faces competing considerations: the financing packages on offer, the relative cost of bids, technical and engineering capacity, the financial health of each bidder, and — given OEC's background — the corporate and legal track record of the companies in the running.
Source: Kaieteur News