Guri dam, drought and the 2010, 2016 and 2019 power crises: catchment, emergency contracts and prosecutions
- Several fires burned near my 765 kV transmission lines from 6 to 8 March 2019, according to NASA imagery analysed by Carlos Portillo-Quintero and cited by the Wall Street Journal via Dialogue Earth. Dialogue Earth (Jeanfreddy Gutiérrez Torres)
- Unnamed scientists and environmentalists attribute low water levels at Guri to deforestation in my watersheds caused by alluvial gold and diamond mining since 2011, according to Dialogue Earth (2020); the article gives no named study or measurement. Dialogue Earth (Jeanfreddy Gutiérrez Torres)
- 32,024 hectares of my forest were lost.Tree cover loss in Bolívar state, Global Forest Watch workbook, 30% canopy.
- 19,330 hectares of my forest were lost.Tree cover loss in Bolívar state, Global Forest Watch workbook, 30% canopy.
- 16,457 hectares of my forest were lost.Tree cover loss in Bolívar state, Global Forest Watch workbook, 30% canopy.
- 34,039 hectares of my forest were lost.Tree cover loss in Bolívar state, Global Forest Watch workbook, 30% canopy.
- 36,042 hectares of my forest were lost.Tree cover loss in Bolívar state, Global Forest Watch workbook, 30% canopy.
- 37,197 hectares of my forest were lost.Tree cover loss in Bolívar state, Global Forest Watch workbook, 30% canopy.
- Government and regulators Government of Venezuela (Chávez, 2010; Interfax, 2016): Drought caused by El Niño; 'the biggest drought Venezuela has had in almost 100 years'. El Mostrador (EFE)
- Press and investigations Dialogue Earth (2020), citing unnamed scientists and environmentalists: Not lack of rainfall but deforestation in the watersheds caused by alluvial gold and diamond mining since 2011; no named study or measurement is given. Dialogue Earth (Jeanfreddy Gutiérrez Torres)
The Guri reservoir on the Caroní, fed by a catchment that includes Canaima National Park, fell to low levels in drought years and was followed by emergency decrees, rationing and a 2019 national blackout. Contracts with Derwick Associates, Duro Felguera and Corpoelec suppliers are on record, including guilty pleas in a US court over 2016 Corpoelec contracts and a pending case in Spain over the Termocentro contract.
Transparencia Venezuela, as reported by OCCRP, put the final bill for 11 projects at USD 5,000 million against USD 2,100 million expected; Derwick denies overpricing.
Status As of July 2023: a Spanish judge moved to send Duro Felguera, UTE Termocentro, Terca, Ingespre and 12 individuals to trial; no verdict is on record. The two US defendants' sentences were reduced on 13 October 2020.
- Derwick Associates — Contracts of more than USD 5,000 million in 14 months of 2009–2011, awarded without tender under the emergency (OCCRP) OCCRP / El Pitazo
- Duro Felguera — The USD 1,500 million Termocentro contract, won in May 2009 Vozpópuli
- Luis Alberto Chacin Haddad and Jesus Ramon Veroes — Convicted by plea in June 2019; 51-month sentences reduced on 13 October 2020 Law360 (Carolina Bolado)
- Venezuelan electricity consumers — Four-hour daily power cuts from 25 April 2016 and the national blackout of 7 March 2019 Interfax Natural Gas Daily
- Caroní catchment, Bolívar state — Tree cover loss of 34,039 ha in 2016 and 37,197 ha in 2020 (Global Forest Watch); deforestation named by unnamed scientists as a cause of low levels at Guri Dialogue Earth (Jeanfreddy Gutiérrez Torres)
What happened
Guri (Central Hidroeléctrica Simón Bolívar), on the lower Caroní in Bolívar state, has a reservoir surface of more than 4,000 km². Its catchment includes Canaima National Park (see the linked record). Interfax reported in April 2016 that the 8.8 GW plant generates 60–70% of national electricity and had fallen to 244.55 m on 4 April 2016 according to Corpoelec statistics, with 240 m the minimum for generation; Interfax wrote that dry conditions were 'caused by the El Niño weather phenomenon'. Four-hour daily power cuts began on 25 April 2016, together with a two-day work week for civil workers that ended on 14 June. On 8 February 2010 President Chávez decreed an 'electric emergency' and said 'we are living the biggest drought Venezuela has had in almost 100 years'; Energy Minister Alí Rodríguez said USD 4,000 million of investment was needed to add about 4,000 MW that year.
Derwick Associates received 'more than 5,000 million dollars' in contracts with state companies in 14 months in 2009–2011, including 11 new power plant projects, 'awarded without tender' because of the emergency, according to OCCRP and El Pitazo (12 June 2019). Transparencia Venezuela's 2018 report, as reported by OCCRP, put the final bill for the 11 projects at USD 5,000 million against an expected USD 2,100 million (138% overprice), with the plants producing 827 MW of the 3,516 MW contracted; a National Assembly commission in 2017 said Derwick billed USD 1,500 million for projects costing USD 551 million (173%). Derwick said there were no overprices in its contracts. A civil suit filed in 2013 by Otto Reich, a former US ambassador, against Derwick was dismissed, and Venezuelan prosecutors took statements in 2013, according to OCCRP; no criminal conviction of Derwick over power contracts is on record. Transparencia Venezuela also reported, via Dialogue Earth, USD 14,658 million of overprice across 40 generation projects (17,513 MW), with 4,360.5 MW in operation, and the National Assembly estimated USD 26 thousand million in losses on unfinished or never-started works for 16,000 MW.
The USD 1,500 million Termocentro contract for Caracas electricity demand was won by Duro Felguera in May 2009. In July 2023, on the request of the Anticorruption Prosecutor, the judge of Central Examining Court no. 2 of the Audiencia Nacional in Spain moved to send Duro Felguera, UTE Termocentro, Terca, Ingespre and 12 individuals to trial, charged with international corruption, falsification of commercial documents and money laundering. Prosecutors allege that at least USD 105,627,600 was paid to former Energy Vice-Minister Nervis Villalobos through Terca and Ingespre in three payments. No verdict is on record. In the United States, Luis Alberto Chacin Haddad and Jesus Ramon Veroes pleaded guilty in June 2019 in the US District Court for the Southern District of Florida to one count of conspiracy to violate the Foreign Corrupt Practices Act in connection with bribes to Corpoelec officials; their 51-month sentences were reduced on 13 October 2020 for cooperation. Law360 described a scheme of about USD 60 million involving 2016 Corpoelec contracts to Search Trading LLC for forklifts (USD 6.4 million), transformers (USD 9.8 million) and generators (about USD 894,000), and two further contracts through Headline LLC for light bulbs worth a combined USD 41.5 million.
On 7 March 2019 a national blackout followed a fire on the high-voltage lines from Guri. The government attributed it to US sabotage, including a 'cyber attack'; Winston Cabas, president of the engineers' association, cited lack of maintenance and non-functioning thermal plants. Carlos Portillo-Quintero of Texas Tech analysed NASA satellite imagery, as cited by the Wall Street Journal via Dialogue Earth, and found several fires from 6 to 8 March near the 765 kV lines from Guri; Dialogue Earth attributed such fires to lack of pruning of vegetation around the lines.
Dialogue Earth reported on 15 January 2020 that unnamed 'scientists and environmentalists' attribute the low levels at Guri not to lack of rainfall but to deforestation in the watersheds caused by alluvial gold and diamond mining since 2011; no named study or measurement is given. The government explanation is drought caused by El Niño. Global Forest Watch recorded tree cover loss in Bolívar state of 32,024 ha in 2009, 19,330 ha in 2010, 16,457 ha in 2015, 34,039 ha in 2016, 36,042 ha in 2019 and 37,197 ha in 2020.
- 2009Termocentro contract won by Duro Felguera (May); Dialogue Earth dates the emergency decree to this year
- 2010Chávez decrees an electric emergency over drought (8 Feb); USD 4,000 million of investment announced as needed
- 2016Guri at 244.55 m (4 Apr); rationing from 25 Apr; two-day work week ends 14 Jun; Search Trading LLC receives three Corpoelec contracts
- 2019National blackout after a fire on the lines from Guri (7 Mar); guilty pleas in the US District Court, Southern District of Florida (Jun)
- 2020Sentences of the two defendants reduced for cooperation (13 Oct); Dialogue Earth report on Guri (15 Jan)
- 2023Spanish judge moves to send Duro Felguera and 12 individuals to trial (Jul)
What was said
“we are living the biggest drought Venezuela has had in almost 100 years”
“If the level reaches 240 metres we will have to apply certain operative measures.”
“There are no overprices in the contracts between Derwick and its clients”
“We are already at the lower end of the emergency level range.”
“The Venezuelan government has not released any power sector data since 2013 and only publishes statistics on water levels at Guri.”
“no administrative responsibilities were determined”
Where accounts differ
Each party's account, side by side, with its source. The record does not settle these points; it shows them.
Drought caused by El Niño; 'the biggest drought Venezuela has had in almost 100 years'.
El Mostrador (EFE)Not lack of rainfall but deforestation in the watersheds caused by alluvial gold and diamond mining since 2011; no named study or measurement is given.
Dialogue Earth (Jeanfreddy Gutiérrez Torres)US sabotage, including a 'cyber attack'.
OCCRP / El PitazoLack of maintenance and deficient infrastructure; the thermal plants built to back up Guri were not working.
OCCRP / El PitazoNASA imagery showed several fires from 6 to 8 March near the 765 kV lines from Guri.
Dialogue Earth (Jeanfreddy Gutiérrez Torres)The 11 projects should have cost USD 2,100 million and the final bill was USD 5,000 million (138% overprice); the plants produce 827 MW of the 3,516 MW contracted.
OCCRP / El PitazoDerwick billed USD 1,500 million for projects costing USD 551 million (173%).
OCCRP / El PitazoThere are no overprices in the contracts; its price per MW installed is among the cheapest in Venezuela.
OCCRP / El PitazoHow it looked
Shown
- Drought caused by El Niño as the explanation for low Guri levelsGovernment of Venezuela, as reported by EFE (2010) and Interfax (2016) · El Mostrador (EFE)
- US sabotage, including a 'cyber attack', as the cause of the March 2019 blackoutGovernment of Venezuela, as reported by OCCRP and Dialogue Earth · OCCRP / El Pitazo
- Derwick's plants were all delivered operational and its price per MW installed was among the cheapest in VenezuelaDerwick Associates, email to OCCRP (translated from Spanish) · OCCRP / El Pitazo
Recorded
- Guri at 244.55 m on 4 April 2016; 240 m is the minimum for generation
- Contracts to Derwick Associates of more than USD 5,000 million in 14 months of 2009–2011, awarded without tender under the emergency
- Two defendants pleaded guilty in the US District Court, Southern District of Florida, in June 2019 to conspiracy to violate the FCPA; sentences of 51 months reduced on 13 October 2020
- Spanish judge moved in July 2023 to send Duro Felguera, UTE Termocentro, Terca, Ingespre and 12 individuals to trial on charges of international corruption, falsification of commercial documents and money laundering; no verdict on record
- Tree cover loss in Bolívar state: 34,039 ha in 2016 and 37,197 ha in 2020 (Global Forest Watch, 30% canopy)
- Interfax: the government has released no power sector data since 2013 and publishes only statistics on water levels at Guri
Who gained
Reached nature or the ground
Gained elsewhere
Responses on record
- derwick-associates (2019): There are no overprices in the contracts between Derwick and its clients; its price per MW installed is among the cheapest in Venezuela and all plants were delivered operational (email to OCCRP, translated from Spanish). A Derwick representative told Venezuelan prosecutors in 2013 that Derwick paid above-market prices because of immediate 'premium' purchases during the crisis. · OCCRP / El Pitazo
- venezuela-gov (2010–2019): Attributed the low Guri levels to drought caused by El Niño (2010, 2016) and the March 2019 blackout to US sabotage, including a 'cyber attack'. · OCCRP / El Pitazo
In court and with insurers
Lawsuits and rulings
- 2020Guilty pleaCorpoelec bribery case: guilty pleas of two businessmenUS District Court, Southern District of Florida · Criminal · United States → Luis Alberto Chacin Haddad and Jesus Ramon Veroes
Both pleaded guilty in June 2019 to one count of conspiracy to violate the Foreign Corrupt Practices Act in connection with bribes to Corpoelec officials; this is a conviction by plea. Their 51-month sentences were reduced on 13 October 2020 for cooperation. Law360 described a scheme of about USD 60 million involving 2016 Corpoelec contracts to Search Trading LLC and two contracts through Headline LLC. Law360 (Carolina Bolado)
- Ongoing$105.63m at least, alleged payments by prosecutorsTermocentro case: Duro Felguera and othersAudiencia Nacional, Central Examining Court no. 2 · Criminal · Anticorruption Prosecutor → Duro Felguera, UTE Termocentro, Terca, Ingespre and 12 individuals, including former chairman Juan Carlos Torre Inclán, former CEO Ángel Antonio Suárez del Valle and former Energy Vice-Minister Nervis Villalobos
In July 2023, on the Anticorruption Prosecutor's request, Judge Ismael Moreno moved to send the defendants to trial, charged with international corruption, falsification of commercial documents and money laundering. Prosecutors allege that at least USD 105,627,600 was paid to Nervis Villalobos through Terca and Ingespre in three payments after the USD 1,500 million Termocentro contract was won in May 2009. No verdict is on record. Nervis Villalobos has always defended the legality of his work and the real provision of the services, according to Vozpópuli. Vozpópuli
Insurers
What nature saw
Nature's report opens this page. Below: further outcomes measured on the ground.
What we don't know
Nature
- Disputed Cause of the low water levels at Guri
Money
- None on record Value of harm to the Caroní catchment — No monetary figure is on record.
Accounts
Record
- None on record None on record: a named study or measurement linking catchment deforestation or mining to the low levels at Guri; Dialogue Earth attributes the explanation to unnamed scientists and environmentalists.
- None on record None on record: administrative responsibilities or a criminal investigation following the Comptroller General's report of irregularities in equipment purchases, according to Transparencia Venezuela via Dialogue Earth.
- None on record None on record: a court proceeding linking catchment deforestation or mining to Guri's water levels.
- None on record None on record: a verdict in the Spanish case against Duro Felguera and the other defendants.
- None on record None on record: a criminal conviction of Derwick Associates over power contracts.
- Not disclosed Not disclosed: Venezuelan power sector data since 2013; Interfax wrote that the government publishes only statistics on water levels at Guri, that water inflow data is not available, and that it "is illegal in Venezuela to divulge information about the country's power sector without permission".
- Disputed Disputed: the cause of the low Guri levels, El Niño drought according to the government and catchment deforestation from mining according to unnamed scientists and environmentalists.
- Disputed Disputed: whether Derwick's contracts were overpriced; Transparencia Venezuela and a National Assembly commission say they were, Derwick says they were not.
- Disputed Figures differ: Law360 says the 51-month sentences were reduced 'by nearly two years' to 30 months, while the ruling text it quoted speaks of a '40 percent reduction'.
- Disputed Figures differ: one Vozpópuli article gives the third alleged payment as 26.7 million euros and another as 26 million dollars.
- Disputed Figures differ: Dialogue Earth dates the emergency decree to 2009 and EFE to 8 February 2010.
- Unclear Unclear: Interfax (5 April 2016) gives 244.55 m both for the level on 4 April 2016 and as the 2003 low point, and 248.36 m for 2009.
- Unclear Unclear: the date the 2016 rationing ended; the AP text republished by Fox News carries a December 2016 header while its content implies mid-2016.
Did the harm stop?
The blackout of 7 March 2019 followed a fire on the lines from Guri; tree cover loss in Bolívar state was 37,197 ha in 2020, the latest year in the Global Forest Watch workbook.
Who paid?
None on record for harm to the catchment. Two defendants pleaded guilty in the US in June 2019; the Spanish case against Duro Felguera and 12 individuals had no verdict on record as of July 2023.
Sources
Government and regulators
- VEN.xlsx country tree cover loss and carbon statistics 2001-2020Global Forest Watch / WRI (UMD GLAD data) · 2021-07-16
Press and investigations
- Gas cannot rescue desperate VenezuelaInterfax Natural Gas Daily · 2016-04-05
- President Maduro of Venezuela says he's lifting power rationingFox News (AP) · 2016
- Hundiendo a Venezuela en la oscuridad (Plunging Venezuela into the dark)OCCRP / El Pitazo · 2019-06-12
- Guri / sector eléctrico de Venezuela (Guri / Venezuela's electricity sector), Spanish special report, part 1Dialogue Earth (Jeanfreddy Gutiérrez Torres) · 2020-01-15
- Venezuelans Get Sentences Reduced In $60M Bribery SchemeLaw360 (Carolina Bolado) · 2020-10-14
Researchers
- Indigenous firefighters: the important role of the Pemón indigenous brigades…Biodiversidade Brasileira 10(1) (Millán and Bilbao) · 2020-07-27
Connected cases
- Canaima National Park: fire suppression for the Guri catchment, mining pressure and the UNESCO decisions Venezuela · 1981–2026 Related matter
- CORPOELEC (CORPOELEC-EDELCA) (Public authority) — here: State power utility; operator of Guri; contracting party in the US and Spanish cases; there: State power utility; runs the Vegetation Wildfire Control Program
- Government of Venezuela (Government) — here: Decreed the electric emergency; attributed the 2019 blackout to sabotage; there: State Party to the World Heritage Convention
- Brisas gold-copper project: 2008 revocation of the environmental permit in Imataca and Gold Reserve's ICSID award Venezuela · 2007–2026
- Government of Venezuela (Government) — here: Decreed the electric emergency; attributed the 2019 blackout to sabotage; there: Respondent
- Cosmos 1408 anti-satellite test (Russia) Russia · 2021
- NASA (Government) — here: Satellite imagery analysed for fires near the transmission lines; there: Statement on the test; ISS crew sheltered
- Fengyun-1C anti-satellite test China · 2007–2026
- NASA (Government) — here: Satellite imagery analysed for fires near the transmission lines; there: Publisher of Orbital Debris Quarterly News
- Gold mining in Yapacana National Park and the 2023 military evictions Venezuela · 2021–2025
- Government of Venezuela (Government) — here: Decreed the electric emergency; attributed the 2019 blackout to sabotage; there: Ministry of Defence statements; National Guard post at the park entrance
- Gold mining inside Canaima National Park Venezuela · 2016–2026
- Government of Venezuela (Government) — here: Decreed the electric emergency; attributed the 2019 blackout to sabotage; there: Park authority and responsible state
- Harita Nickel, Kawasi chromium-6 water and sago loss (Obi Island) Indonesia · 2012–2026
- Organized Crime and Corruption Reporting Project (OCCRP) (NGO) — here: Reported on Derwick contracts and the 2019 blackout; there: Investigative network; co-published the April 2025 investigation
- Iran associated-gas flaring and flare-gas recovery contracts Iran · 2012–2026
- NASA (Government) — here: Satellite imagery analysed for fires near the transmission lines; there: SO2 point-source catalogue
- Iridium 33 and Cosmos 2251 collision Low Earth orbit · 2009–2026
- NASA (Government) — here: Satellite imagery analysed for fires near the transmission lines; there: Publisher of Orbital Debris Quarterly News
- ISS battery pallet debris hits a Florida home United States · 2021–2024
- NASA (Government) — here: Satellite imagery analysed for fires near the transmission lines; there: Operator of the ISS equipment; respondent to the claim
- Lake Maracaibo chronic oil leaks Venezuela · 2010–2026
- Government of Venezuela (Government) — here: Decreed the electric emergency; attributed the 2019 blackout to sabotage; there: Announced the July 2023 clean-up plan and pipeline replacement
- Lake Valencia: rising level, sewage and compensation for flooded homes Venezuela · 1976–2023
- Government of Venezuela (Government) — here: Decreed the electric emergency; attributed the 2019 blackout to sabotage; there: Funded the clean-up programmes and the Pao-Cachinche transfer
- Las Cristinas gold project: 2008 permit denial in the Imataca reserve, Crystallex ICSID award and court-ordered sale of CITGO's parent Venezuela · 2008–2026
- Government of Venezuela (Government) — here: Decreed the electric emergency; attributed the 2019 blackout to sabotage; there: Respondent; judgment debtor
- Long March 5B uncontrolled reentries China · 2020–2022
- NASA (Government) — here: Satellite imagery analysed for fires near the transmission lines; there: Government space agency; its Administrator commented on the reentries
- Mazut burning in Iranian power plants, 2020–2025 Iran · 2020–2026
- NASA (Government) — here: Satellite imagery analysed for fires near the transmission lines; there: Satellite SO2 point-source catalogue
- Nissos Amorgos tanker spill, Gulf of Venezuela, 1997, and the US$60 million environmental-damage judgment Venezuela · 1997–2014
- Government of Venezuela (Government) — here: Decreed the electric emergency; attributed the 2019 blackout to sabotage; there: Claimant State; awarded US$60 million
- Nornickel Sulphur Programme: SO2 targets, spending and measured emissions at Norilsk and Kola Russia · 2015–2026
- NASA (Government) — here: Satellite imagery analysed for fires near the transmission lines; there: NASA Goddard publishes the global SO2 point-source catalogue
- Orinoco Mining Arc: decree, state gold business and measured harm Venezuela · 2011–2026
- Government of Venezuela (Government) — here: Decreed the electric emergency; attributed the 2019 blackout to sabotage; there: Issued Decree 2.248; mining ministry and state companies
- Rusoro Mining award for the El Callao gold mines: Venezuela's unquantified natural-resource counterclaim and Rusoro's role in the CITGO sale Venezuela · 2008–2026
- Government of Venezuela (Government) — here: Decreed the electric emergency; attributed the 2019 blackout to sabotage; there: Respondent; counterclaimant
- Siembra Minera: the merged Brisas–Cristinas area in the Orinoco Mining Arc, the 2022 revocation and Gold Reserve's new arbitration Venezuela · 2016–2026
- Government of Venezuela (Government) — here: Decreed the electric emergency; attributed the 2019 blackout to sabotage; there: Respondent
- South Pars and Assaluyeh: sulphur dioxide emissions and the pollution levy Iran · 2005–2026
- NASA (Government) — here: Satellite imagery analysed for fires near the transmission lines; there: Satellite SO2 point-source catalogue
- Tumeremo killings and armed control of gold mines in Bolívar Venezuela · 2015–2026
- Government of Venezuela (Government) — here: Decreed the electric emergency; attributed the 2019 blackout to sabotage; there: Responsible state; Public Prosecutor, security forces
- Unpaid Venezuelan contributions to the IOPC Funds, 2019–2026 Venezuela · 2019–2026
- Government of Venezuela (Government) — here: Decreed the electric emergency; attributed the 2019 blackout to sabotage; there: Member State of the 1992 Fund; Ambassador in London approached by the Director
- Venezuelan gold exports to Turkey and the UAE and US sanctions on Minerven and the Central Bank Venezuela · 2018–2026
- Government of Venezuela (Government) — here: Decreed the electric emergency; attributed the 2019 blackout to sabotage; there: Exporting state