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Texas firm to build Whales power and NGL plants for US$759 – Bharrat Jagdeo
Kaieteur News – The Government of Guyana on Thursday finalized the award of the contract for Lindsayca Inc. in joint venture with CH4 Inc. to build a gas fired power plant at Wales, West Bank Demerara.
The companies had initially submitted the highest of five international bids to the tune of US$898,764,244 in September; however, Vice President Bharrat Jagdeo revealed that the sum has now been reduced to US$759 million.
Vice President Bharrat Jagdeo announces the approval for the Texas firm to construct Guyana’s gas fired power plant
At a press conference held at the Office of the President’s media room on Friday, Jagdeo explained, “In the negotiations, because a number of things in the Lindsayca bid were, they had provisions for a number of things that were not required as part of the manufacturers requirement so those were removed and based on the original scope of the contract, the final price came down to US$759 million.”
As such, the “extremely pleased” VP announced that the contract will now be awarded.
He was keen to note that the power plant is expected to be completed by December 2024 and that “huge penalties” will be impressed on the contractor for failing to deliver on time.
“There are penalties for every single day- huge penalties- for any delay beyond that period. That was one of the attractiveness of the Lindsayca bid. They were the only one at the beginning who met the schedule and so we are extremely pleased that this week we have finally wrapped these up that the mobilization could be paid and that we are on the way to the construction of this facility that will transform Guyana,” he explained.
The former Head-of-State was also keen to note that profits from the Gas-to-Energy (GTE) project can yield over US$100 million that can be used to service and repay the infrastructure cost, maintain and operate the power plant and pay back for the pipeline.
Meanwhile, he sought to assure that Lindsayca Inc. is currently executing over US$1.1 billion in contracts contrary to claims made by the Alliance For Change (AFC) Opposition party, which said it found that this company merely has a US$10 million annual revenue.
The controversial Wales gas project will encompass three major aspects, they are, the pipeline to transport the gas to Wales, the Natural Gas Liquids (NGL) facility that will treat and separate the gas, and the power plant to generate the electricity. Notably, so far, Guyanese have been told that the pipeline aspect, which is being pursued by US oil major, ExxonMobil, will cost around US$1.3 billion and Vice President Bharrat Jagdeo, was hopeful that the Government’s aspect would cost around US$700M.
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