Latest update December 28th, 2024 2:40 AM
Latest News
- Jagdeo dodges question on whether Exxon formally said it will not renegotiate 2016 contract
- Gas-to-Energy contractor submits new claims to arbitration panel over soil conditions
- Israeli soldiers burn Gaza’s Kamal Adwan Hospital, force hundreds to leave
- 100 not out!
- US EXIM Bank approves US$527M loan for Gas-to-Energy project
Gas-to-Energy contractor submits new claims to arbitration panel over soil conditions
…ruling likely by end of January- Jagdeo
Kaieteur News- The joint venture hired by the government of Guyana (GoG), CH4- Lindsayca, to construct two gas plants at Wales, West Bank Demerara (WBD), has submitted new claims to the Dispute Adjudication Board (DAB).
This was revealed by Vice President Bharrat Jagdeo on Friday during his weekly press conference.
He explained that there is presently one issue before the DAB for which oral presentations have been made. However, Jagdeo said, “There have been some additional claims by CH4 and Lindsayca, particularly as they relate to the soil conditions and those would have to go through the technical process to see whether they are justified or not.”
The first claim by the contractor is for some US$50M and is expected to be resolved soon. Following the submissions by the contractor to the Board, there were presentations made by Guyana’s lawyers in Miami.
The site where two gas plants are being built by CH4- Lindsayca. (Gas-to-Energy contractor submits )
“They have I think the 15th of January (2025) to make some supplementary presentations and thereafter I think by the end of the month they will rule on the matter, so if the parties accept that their claims will be settled, if they accept the ruling; if the parties decide not to then you go to full arbitration,” the Vice President noted.
He was reluctant to comment further on the issue, highlighting that Guyana will now have to evaluate the new claims made by the contractor.
He said, “I don’t want to comment on those, because those matters could end up in arbitration, that has to go through a technical process when they submit the claims, we have an engineering company that oversees the contract and they would have to give their views on the claim, whether it merits addressing or not.”
When asked how much the new claims totaled, Jagdeo said he did not want to make it known at this time, although he is aware of the information. In fact, he said he did not want to push the case of the contractor.
So far, Guyana has already incurred a legal bill of $13.6 million for the arbitration process, according to Prime Minister, Mark Phillips.
In April this year, Reuters first reported that CH4-Lindsayca initiated legal proceedings against the GOG for US$90 million in cost overruns for the project.
Notably, at that time, it was stated that the first phase of the 300-MW power plant was running six months behind schedule and full operation is not expected until the fourth quarter of 2025.
Days later, VP Jagdeo blamed ExxonMobil Guyana Limited (EMGL) for the construction delays in the Wales gas plants.
Jagdeo said that ExxonMobil was responsible for the site preparation, the road, the Materials Offloading Facility (MOF) and the lay-down yard.
“We were supposed to hand over the site to the contractor by June, we did not hand over the site, that is, Exxon did not hand over the site until September and it was still incomplete and they handed over an additional US$14M from the US$1B that they set aside to the contractor to complete the site, so a three months delay,” he said. Guyana Shore Base Inc (GYSBI) was contracted by ExxonMobil to complete the site.
Jagdeo further stated that the government decided to give the contractors an extension of three months (from the end of 2024), “that is why we are arguing that the plant must be completed by April of 2025, instead of end December 2024.”
The former Head of State said the GoG is at odds with the contractor over the delay period. He explained, “That is where the three months we are arguing the three months delay on the project came. They want a longer period because the liquidating damages for not completing the project on time for the contractor, if they don’t complete the project on time, it’s over US$11M per month they have to pay in liquidating damages for delay on the project, so they are arguing they need more time beyond the three months. We are saying three months is adequate.”
(Gas-to-Energy contractor submits new claims to arbitration panel over soil conditions)
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
A Tale of Two Non-appointments
Peeping Tom… Kaieteur News- In Guyana, under the People’s Progressive Party Civic (PPPC) government, the Constitution... more
Breaking the Chains of Poverty: A need for political will
By Sir Ronald Sanders Kaieteur News- The year 2024 has underscored a grim reality: poverty continues to be an unyielding... more
Weekend Cartoon
