Latest update February 1st, 2025 6:45 AM
Latest News
- Record production in Guyana, Permian help Exxon pocket US$7.3B earnings for Q4 2024
- Govt. to seek another extension from World Bank to complete Petroleum Management Project
- Three Israelis and 183 Palestinians to be freed in next Gaza ceasefire swap
- CANU warns of dangerous ‘Strawberry Quick’ drug circulating in schools
- Piecemeal information on decisions and revenue management ingredients for corruption- NRGI
‘It is an insult to send Guyanese to US EXIM Bank to request studies on GTE’- AFC
…as concerns grow over climbing cost of project
Kaieteur News- Leader of the Alliance For Change (AFC), Nigel Hughes believes it is an insult to Guyanese for Vice President Bharrat Jagdeo to direct them to the United States Export Import (US EXIM) Bank to request studies on the Gas-to-Energy (GTE) project.
During a recent press conference, Hughes said, “It is completely unacceptable for the Vice President to suggest that we must go to EXIM to get the feasibility study. The government of the day, irrespective of whichever government it is, must share with the population any feasibility study, economic or otherwise, for most projects but particularly for large-scale projects so we repeat our demand for the production of the feasibility study and we think it is an insult to the people of Guyana to invite them to ask EXIM.”
Leader of the AFC, Nigel Hughes
It would be recalled that VP Jagdeo when asked by this newspaper about the release of the studies said, “Ask Exim Bank for it…”
Jagdeo had previously indicated that the Bank conducted its own feasibility and environmental studies before arriving at its decision to provide financing for the project. The US EXIM Bank, on December 26, announced that it has finalized a US$527M loan aid the construction of two gas plants at Wales, West Bank Demerara.
Meanwhile, Chairman of the Party and former Minister of Public Infrastructure, David Patterson, pointed to the climbing cost of the project.
He said it was very unlikely that the government’s commitment to reduce the cost of electricity by 50% would be realized, taking the price tag of the project into consideration.
According to him, this may only be likely if “Jagdeo them dig another hole to fill this hole” meaning that the Guyana Power and Light (GPL) would be subsidized by government to meet the targets.
Patterson pointed to the ongoing dispute between the Government of Guyana (GoG) and the GTE contractor that was hired to construct the Natural Gas Liquids (NGL) facility and the 300-megawatt power plant.
He said, “There are two claims which is US$100 million so obviously, in theory, I do anticipate and I have said it before, that when you have claims in a construction project at the beginning, experience has said that nine times out of 10, those claims are successful.”
The former Minister reasoned that this was expected since the contractor was required to do additional work to get the site ready for the project activities.
According to him, “I anticipate that both claims will be successful, in the most part, so you have to tack that on to the US$871 million we will be paying back (to the US EXIM Bank), added to the US$1B we will be paying back to Exxon, added to the sum that we are paying to the Indian firm for the construction of the transmission and distribution lines, added to that we have to add on the rental of the powership and these things like that; and then when you put down everything into the basket, then is when you will know exactly how much this project has cost and the way it’s going the price tag may well pass US$3B.”
(‘It is an insult to send Guyanese to US EXIM Bank to request studies on GTE’- AFC)
Similar Articles
THE BLUNT OF THE DAY
Sports
Features/Columnists
A wave of criminal deportees may be coming our way soon
Peeping Tom… Kaieteur News-It is peculiar the way the PPP/C government often finds itself staring down the barrel of... more
OAS Secretary General Election and renewed OAS Consensus
Antiguan Barbudan Ambassador to the United States, Sir Ronald Sanders By Sir Ronald Sanders Kaieteur News- The upcoming election... more
Weekend Cartoon
