Latest update November 29th, 2024 1:00 AM

Guyana's largest selling daily and New York's most popular weekly

Latest News

Govt. looking to borrow $134B from USA for gas-to-energy project

Jan 22, 2023 News

Kaieteur News – The Irfaan Ali Administration has said that the cost for the Gas-to-Energy plants, to be set up at Wales, is US$759 million. But what it has not been frontal in saying is how much of this massive sum will be funded with a loan.

The Ali Administration intends for $134.7B (US$646M) of the cost of this project to be handled through foreign financing, specifically from the United States of America, according to budget documents.

The Government has also said little about the additional work to be done that will drive the cost up further. The US$759M sum is for the contractor, CH4-Lindsayca, to construct the natural gas-fired power plant and natural gas liquids plant at Wales. The additional cost includes estimates to upgrade the transmission network and pay for a series of Consultants to make sure the project is successful.

The project will therefore cost $199.2B (US$955.5M) in all, literally the most costly project in Guyana’s history. This is nearly US$200M more than the US$759M price tag that the Government is emphatically repeating. Don’t believe it? Check the estimates for the 2023 budget.

The loan finance would therefore represent two-thirds of the cost of the project that the government is responsible for.

Vice President Bharrat Jagdeo had said last year that the Government will plug some money into the project, and in addition, “we are trying to structure this maybe through a loan. We will be approaching EXIM Bank-US.”

It was President Irfaan Ali who signed a memorandum of understanding (MOU) last year with the EXIM Bank-US for US$2B in potential funding for infrastructure and energy projects, among other things. Ali had said he wants to see greater participation from the US Government and the Private Sector in Guyana’s development affairs.

When Kaieteur News said that the Gas-to-Energy project would place Guyanese taxpayers in debt, the Vice President sternly rebuked this claim. But if Guyanese taxpayers would not have to repay this US$646M debt, who would?

Some $24.6B was expended to meet start-up costs associated with the project last year. This year, the Government budgeted $43.3B for the project. It plans for most of this to come from the monies it will approach the US for.

Construction on the project is expected to begin this year on the US$2B project. The Government hired CH4-Lindsayca to handle the natural gas-fired power plant and natural gas liquids plant. ExxonMobil subsidiary, Esso Exploration and Production Guyana Limited (EEPGL), is responsible for the pipeline, which will cost more than US$1B, to be funded with cost oil. The Environmental Protection Agency (EPA), after reviewing the Environmental Impact Assessment (EIA), has given the go ahead to all parties.

Similar Articles

The Glenn Lall Show | November, 20th, 2024

Follow on Tik Tok @Glennlall

 

THE BLUNT OF THE DAY

Sports

Guyana Beverages Inc. partners with GFF for Maid Marian Wheat Up Women’s Cup

Guyana Beverages Inc. partners with GFF for Maid Marian Wheat Up...

Nov 29, 2024

  (GFF) — Guyana Beverages Inc (GBI) in an effort to contribute to the development of women’s football has partnered with the Guyana Football Federation (GFF) as a sponsor of the Maid Marian...
Read More
GFF provides support to EBFA U14 Boys’ League

GFF provides support to EBFA U14 Boys’ League

Nov 29, 2024

Athletics scores big at NSC National Sports Awards

Athletics scores big at NSC National Sports

Nov 29, 2024

St. Theresa’s Primary triumph in Republic Bank ‘Five for Fun’ National Finals

St. Theresa’s Primary triumph in Republic Bank...

Nov 29, 2024

Wakenaam Masters to face Parika Defenders in T20 softball affair on Saturday night

Wakenaam Masters to face Parika Defenders in T20...

Nov 29, 2024

Bakewell supports Kashif and Shanghai Futsal tourney

Bakewell supports Kashif and Shanghai Futsal...

Nov 28, 2024

Features/Columnists

Publisher’s Note

Freedom of speech is our core value at Kaieteur News. If the letter/e-mail you sent was not published, and you believe that its contents were not libellous, let us know, please contact us by phone or email.

Feel free to send us your comments and/or criticisms.
Contact: 624-6456; 225-8452; 225-8458; 225-8463; 225-8465; 225-8473 or 225-8491.
Or by Email: [email protected] / [email protected]

Weekend Cartoon

Bridge Watch

Demerara Harbour Bridge

> Berbice Bridge […]