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US EXIM Bank yet to approve loan request for Gas-to-Energy Project- David Patterson
Kaieteur News- Chairman of the Alliance for Change David Patterson on Friday disclosed that the US EXIM Bank is yet to approve Guyana’s loan request to fund the Wales Gas-to-Energy project.
Patterson’s claim follows Thursday’s announcement by Vice President Bharrat Jagdeo that the loan was approved. Jagdeo told reporters that the loan was approved and was with the U.S. Congress for a 30-day period commencing November 21, 2024.
“For a few weeks now, we had this information, but we wanted the announcement to come from EXIM Bank, but since it has now been forthcoming, let me say to you that the loan has been approved,” Jagdeo told reporters at his weekly press conference.
Chairman of the Alliance for Change, David Patterson.
The Vice President also told reporters that though the government of Guyana applied for a US$660M loan to fund the project, it will not receive the entire amount.
“No, the amount will not be $660 million, it will be less than that, and it will only cover the exports out of the United States of America. So, it would be upwards of $500 million, upwards of 500 million.”
However, on Friday, Patterson told reporters at his party’s weekly press conference that he forwarded the Vice President’s statement to officials at the US EXIM Bank whom the AFC has been in touch with for about a year. He described the response received as “interesting.”
Reading from an email Patterson said, “No approval was given by the EXIM Bank at their last meeting in November. The next meeting date of the US EXIM Bank is January 9, 2025, and they have, if it comes up for discussion, I mean, and if, in capital letters only, then can a final decision be made. If, again, in capital letters, such a decision is made, it is then sent to Congress for approval.”
Further, the AFC executive said, “I think the… the sub-committee on international trade and finance, they go on to say that, however, Congress is now in what is termed their ‘lame duck’ session, which is the period between the transition of administrations. When Congress is fully functional, the new Congress, the new sub-committee Congress, is normally tied up in matters required by the new administration, and it is not anticipated that this matter can reach discussion or approval before March 2024, as I’ve always said.”
Patterson reminded that his source said if the US Congress does give its approval, the matter will to return to the Board of the EXIM Bank for further vetting by the legal and procurement departments.
“It normally takes six to nine months before any [approval is given] … once everything has been vetted and approved by both of these departments. Before any disbursement can be made on the question of retroactive finances, the statement goes, we are informed,” Patterson said.
He stressed that the VP’s statements appeared strange as this is not the normal practice of the US EXIM Bank. Patterson said that financing is based on their laws and have to comply with specific regulations.
“Since they [the bank] played no part in the procurement process, retroactive finances would be unlikely. In fact, they cannot recall if the EXIM Bank ever approved retroactive financing for a process in which they did not play a part in the procurement process,” he said.
The AFC Chairman told reporters that the only part of the Vice President’s statement that appears to be factual is that sections of the loan application are ineligible “because of procurement challenges of no information”.
He said the AFC has received no information on what the final sum on the review is.
“We have 41 days until the next US EXIM Bank meeting, so the nation will soon learn more and soon learn the truth,” Patterson noted.
Meanwhile, Patterson who was a former Minister of Public Infrastructure under the APNU+AFC Coalition government said that the gas-to-energy project is limping along despite the amount of money already spent by the government. He said he recently visited the location for the project and noticed that the foundation for the plants is yet to be completed.
(US EXIM Bank yet to approve loan request for Gas-to-Energy Project)
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