Latest update December 23rd, 2024 3:40 AM
Business body begs US bank to fund Wales’ Gas project
Ongoing works at Wales for the Gas to Shore project
Kaieteur News – The Georgetown Chamber and Commerce Industry (GCCI) has resorted to writing a letter to the United Stated (US) Exim Bank, pleading for it to fund Guyana’s US$2B Gas to Energy project.
GCCI
In a letter to the bank’s President, Reta Jo Lewis, GCCI wrote: “As you are aware, the Government of Guyana would have applied for a funding facility from the U.S. EXIM Bank to help finance this watershed initiative for the people of Guyana,” before adding that it’s support will contribute significantly to Guyana’s energy transition, reduce reliance on fossil fuels, and promote sustainable practices.
GCCI continued that the GTE project will reduce electricity cost in Guyana by half for its citizens and enterprises. “The GCCI sees this project as having immense potential to drive economic growth, enhance energy security, and promote sustainable development in the Western Hemisphere”, GCCI told the bank before moving to advice its president to not listen to the pundits who have been criticising the gas project.
The Guyanese business body said that it condemns “certain attempts by a small minority of individuals to discredit the project and discourage the US Bank from providing the financial support to complete the project. “…we are appalled at missives penned requesting that the loan to fund the initiative be blocked”, GCCI said.
The government has submitted an application to the US bank US$646M to build a natural Gas fire power plant and a Natural Gas Liquids facility at Wales, West Bank Demerara (WBD) but it has not been approved.
The plants form part of the Gas-to-Energy (GTE) project which also features a 12-inch 225 kilometers pipeline that connects to the two Floating Production Storage and Offloading vessels (FPSOs) in the Stabroek Block and ends at the Wales development site. This aspect of the project is being financed by ExxonMobil, the operator of the Stabroek Block.
Amid ‘uncertainty’ over the U.S loan, the Government moved to plug another US$400M into Natural gas facility because it wants to complete the project by 2025.
In January International Lawyer, Melinda Janki wrote the US-EXIM Bank urging the financial institution to “respect the rule of law in Guyana and withhold funding for the gas plants to be built at Wales, West Bank Demerara. Janki on behalf of public interest litigants Elizabeth Deane-Hughes and Vanda Radzik wrote to the Bank on January 12, 2024.
Kaieteur News had asked Guyana’s Vice-President, Bharrat Jagdeo, at one of his weekly press conferences if his government is worried that the litigants who Janki represents will be able to convince the bank not to fund the project. Jagdeo while acknowledging that the bank has to do its own due diligence to determine if Guyana is eligible for the loan said that he is confident that it will approve the funding for the project. Given that Guyana has already started plugging millions of US dollars from its oil money into the project, Jagdeo said that when the loan comes on board, it will act as retroactive financing.
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