Questions about the oil refinery!

Oct 16, 2023 Letters

Dear Editor,

Kaieteur News – Attention is brought to the selection of a company for construction of the oil refinery project. It is reliably informed that Lindsayca/CH4, two relatively unknown companies, jointly will be awarded this US$900M to $1B oil refinery project. One of the companies reportedly has Dominican Republic link.

President Irfaan Ali recently visited DR. There was an announcement that a DR linked company will construct a refinery in Guyana even before there was tendering. Is the VP comfortable with what is happening? Is he okay with Ali taking the lead in oil when the VP is the point person for oil and gas?

The same two companies that have been preferred for the refinery were last year awarded a government financed and operated contract to construct the gas powered plant, also for $900M. The oil refinery is contractor financed — to be financed, built, managed and operated.

It would be recalled that November last year the two stated partners were awarded the US$900M gas powered plant contract which is yet to be finalized. The project is running behind schedule. The cost is projected to grow astronomically.

The two partners, whose construction history in the related project is unknown, were awarded the gas powered plant project even though their bid was the highest among five companies — some US$424 M more overbid than the lowest bid. That is extra money that is being wasted that could go to offering cash grants of over G$100,000 to every poor family.

Investigation by KN November 11, ‘22 revealed that Lindsayca had a turnover of only US$10M and CH4’s not much different and yet awarded that huge contract.

And now the partnership entity is going is being considered for this other huge refinery project of US$1 B. This will be an unprecedented act in construction globally, raising serious questions. An entity has not displayed capacity and capability but is awarded one and possibly two contracts, and the first one was overpriced US$424M based on tendering. One question that immediately comes to mind: Is the selection of the first contract above board? Ditto the selection of the refinery project!

Guyanese should be up in arms about the first award and if the company is also given the second. The partners are awarded contract(s) when they have not shown capacity and capability. The competence and capability of the partnership should have been evaluated before awarded a first contract of $900M. And its current performance in Guyana should be evaluated before being considered for assignment of another project of $1B for the refinery.

There isn’t any project from which Lindsayca/CH4 can be evaluated. Why is a company with $10M turnover awarded a project that is $900M and another contract of a larger amount? Something smells fishy?

It is reliably learned that the person making the final selection on the Oil Refinery was the one who pressured GPL engineers last year to select rejected GE turbines that were unused for years rather than new Japanese turbines for electricity generation. Is that the reason why there are intermittent blackouts? The new Japanese turbines work out to be cheaper than the rejected used ones and more efficient as well as reliable. We would have avoided blackouts.

The oil refinery is another over cost undertaking. The oil refinery project will rob Guyanese of funds that can enrich the poor and disadvantaged giving each poor family G$150,000. If the partners lack the capacity to undertake the large project, how could they do the other one?

If they cannot perform when they are being paid to do the job as in the gas plant, how are we to expect them to perform when they have to find the funding, $900M to one billion USD. The refinery project is not paid for by Government as in the gas-powered project. The bidder has to find the money. How can a $10M company raise $1B?

This is high class nonsense that the VP should not be tolerating if he has the peoples’ interest at heart. It is time that that corrupt person with a cemetery full of baggage be removed from projects of national pride as he is foreign (Florida based) for all purposes and intents and is only looking out to further full his pockets at the expense of the nation.

Yours truly,
Edward Burrowes

Ditto the selection of the refinery project, Guyana even before there was tendering, ttention is brought

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