Govt. secretly signs deal for Dominican Republic firm to take over management of GPL

Jul 31, 2025 News

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…monthly fee pegged at US$650K, opposition knocks contract as corrupt

Kaieteur News – Government has approved a sole-sourced contract of US$650,000 per month to a Domican Republic firm- InterEnergy Group Limited (IEG) to provide management consultancy services for the Guyana Power and Light.

The deal has been knocked by the A Partnership for National Unity (APNU) as corrupt and with it coming by way of sole-sourcing and after elections was announced would raise further concerns about transparency. Both the government and GPL have made no announcement about the deal.

Cabinet gave its no-objections to the contract at its meeting on July 7, 2025, according to documents seen by this newspaper. According to the Cabinet paper titled:’ Contract for the provision of consultancy services Guyana Power and Light Inc.’ cabinet reviewed a memorandum presented by Finance Minister, Dr Ashni Singh and granted its no-objection.
Meanwhile, based on the contract the Government of Guyana will foot the severance payment bill for workers of the GPL who will be terminated under the agreement with Inter Energy Group (IEG). This revelation comes 10 days after this publication reported that GPL has given all assurances that its employees will not be affected adversely by the agreement. Page seven of the 10-page agreement seen by this publication states “IEG will relocate unnecessary personnel and terminate employees’ labor agreement with GOG assuming any severance cost. With an agreement to the following; no more than 75 per cent of the management staff, no more than 65 per cent of the supervisory staff, no more than 50 per cent of the technical/clerical staff.”

Additionally, the agreement stipulates that IEG employees relocating to Guyana will be granted a tax exemption. The company in a statement to the media earlier this month, made it clear that it has workers’ interest at heart and that employees will benefit from training, hands-on experience and exposure alongside the international experts, to ensure local capacity is strengthened and the long-term sustainability of Guyana’s energy sector.

“The Guyana Power and Light Inc. (GPL) wishes to address recent unauthorised publications and misleading materials circulating in the public domain regarding its collaboration with InterEnergy Group (IEG). These materials falsely claim that the partnership will result in job losses for GPL employees. GPL categorically states that these claims are inaccurate and misleading,” the statement said.

GPL’s statement followed statements made by executive member of the People’s National Congress Reform (PNCR) Ganesh Mahipaul at an APNU press conference on Friday. Earlier this month, APNU cautioned the government against GPL signing an agreement with the Dominican Republic’s Company. That company has been earmarked to assist GPL in stabilising power generation and delivery.

APNU said should a deal be struck with LEG, there would be severe implications for the hundreds of staff employed by the power company. Mahipaul said, “The APNU coalition has noted with deep concern and alarm the circulation of a draft Public-Private Partnership Agreement between the Guyana Power and Light Inc. (GPL) and InterEnergy Group Limited (IEG), dated June 26, 2025. This agreement is reportedly awaiting signatures of the chairman of the GPL board, and Mr. Rolando Gonzalez-Bunster, chairman of InterEnergy Group,” the politician said.

Mahipaul argued that the government’s agreement to sign the agreement raises “profound and troubling concerns” for Guyana, citing that the deal is shrouded in secrecy and lacks transparency, as it was not the subject of public consultations and scrutiny. “Such secrecy undermines democratic governance and public accountability and is clearly another PPP corrupt deal aimed at benefiting PPP family, friends and favourites,” Mahipaul had stated.

Slap in the face of citizens

Following revelation yesterday that the contract was signed, Mahipaul said this is a slap in the face to the Guyanese people. “This secretive, bloated arrangement is emblematic of a government more concerned with wasting Guyanese money than empowering local talent or delivering reliable electricity to citizens.” According to Mahipaul, US $7.8 million per year, without competitive tender, without public consultation, and without parliamentary scrutiny, is not just poor governance, it is an insult to taxpayers, workers, and every Guyanese family struggling with blackouts and high bills.

He said the PPP/C Government greenlit this deal behind closed doors, rather than public accountability. “There was no transparent procurement process. No opportunity for local or regional firms to compete. No independent evaluation of the contract’s necessity or cost. This was governance by executive fiat, not democratic principle.
Even worse, the contract places a foreign entity in a position of immense power over GPL’s technical operations, procurement, hiring, and contractor engagement. In essence, we’re being asked to pay tens of millions for a foreign company to run our power sector while sidelining qualified Guyanese engineers and administrators,” Mahipaul noted.

He asked” Where is the benefit to the people of Guyana? Who exactly is this deal designed to help? InterEnergy, or ordinary Guyanese?” The PNCR executive said the PPP/C’s decision opens the door to widespread job losses within GPL and PPDI. “Already, workers are anxious about what’s to come, and no binding commitment has been made to protect their positions. Is this the Government’s development model?To import consultants and export our livelihoods? Worse still, InterEnergy’s track record is far from pristine. Under its stewardship in Jamaica, reports surfaced of worsening outages and alleged mismanagement. Why would our Government award such sweeping control to a company with unresolved baggage?”

No details

Mahipaul said to date, no government official has offered a full explanation or disclosed the terms of this contract. What are the performance metrics? What penalties exist if InterEnergy fails? What steps have been taken to ensure value for money? The silence from the PPP/C regime speaks volumes. “They cannot justify this because it is unjustifiable. An APNU-led Government will never treat national resources or public trust with such disregard. We believe in transparent governance, competitive procurement, and local empowerment.”

He said under an APNU-led government they will ensure that: all energy contracts are subjected to open, competitive bidding, with clear evaluation criteria and stakeholder consultation; Guyanese workers are protected and prioritized; no contract will be allowed to threaten local jobs or institutional capacity; consultancy engagements must be tied to measurable results, and payments linked to actual improvements in service delivery and reliability; foreign entities will never be given unchecked authority over strategic assets. Guyanese sovereignty and technical leadership will be non-negotiable and all major public contracts will be reviewed by Parliament, published online, and made subject to independent audit.

“The PPP/C has once again proven it cannot be trusted to manage the people’s business. Their appetite for closed-door deals and foreign dependency undermines our development and betrays our workforce. The InterEnergy consultancy is not a solution. It’s a symptom of a broken model that enriches the few while burdening the many. Guyanese deserve better. Guyana deserves a government that places transparency over secrecy, people over profit, and sovereignty over subservience. That is the commitment of the APNU, a government for the people, by the people, and in the best interest of all,” Mahipaul said.

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• agreement, Dr. Ashni Singh, Ganesh Mahipaul, GoG, GPL, IEG, ominican Republic firm, terminated

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