Guyana secretly paid US$80M to Wales gas plant contractor after losing arbitration

Apr 03, 2026 Heist of Guyana, News

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Disclosures on the Gas-to-Energy project

By Davina Bagot

(Kaieteur News) – The Government of Guyana (GoG) was forced to pay up approximately US$82 million to the Gas-to-Energy (GTE) contractors, Lindsayca-CH4 Guyana Inc. after losing the arbitration filed by the consortium.

Guyana was represented at the arbitration hearing by a local lawyer and an international firm. A well-placed source indicated to this newspaper that government lost the case, filed by the consortium at the time, and was initially required to pay US$106M to the companies.

After negotiating with the group, it was agreed that the country would pay about US$82 million. It is important to note that government kept the outcome of the arbitration silent, even though it added more costs to the ballooning price tag of the Wales gas project, which continues to face delays.

Prime Minister Mark Phillips has staked his credibility on GTE producing power in December 2026. Once completed, government promised that customers of the Guyana Power and Light Inc. (GPL) will see a 50% reduction on their electricity bills.

During the arbitration negotiations, Kaieteur News was told that CH4 Systems LLC, a Puerto Rico LLC wholly owned by Juan Bellosta, was ousted from the contract. It was agreed that the Puerto Rico-based company would be paid US$40M by Lindsayca Inc., owned by Hector Fuentes Guimare and Jesus Fuentes Guimare, brothers and Venezuelan nationals, which would complete the remaining work on the Natural Gas Liquids facility (NGL) and 300-megawatt (MW) power plant that remains under construction.

The consortium was awarded a US$759M contract back in December 2022 to construct the two gas plants in Wales, West Bank Demerara. CH4-Lindsayca was among five companies who had placed bids for the projects in September 2022. The American joint venture had placed the highest of five international bids to the tune of US$898M to build the plants.  However, during negotiations with the GoG the project cost was reduced to US$759M.

It would be recalled that Vice President Bharrat Jagdeo in July last year told reporters that the joint venture parted ways due to “internal wrangling” that had affected the pace of implementation of the project. To this end, he said, “So I’m told that it’s a positive thing that is happening, but the technical people have to examine that”.

Moreover, when the Dispute Avoidance and Adjudication Board (DAAB) issued its ruling on the matter in January 2025, the Government of Guyana (GoG) kept the decision quiet, insisting that there was a “confidentiality” requirement. Never explained however, was the role of Banco San Juan Internacional’s Marcelino Bellosta, Venezuelan Banker, in both the contract negotiations and the dispute adjudication board. Sources indicate their private jet was a frequent flyer to Guyana in both periods.

The complaint by the contractors was filed on September 19, 2024. The first claim related to cost overruns claimed by the consortium for an incomplete work site VP Jagdeo said government was 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.”

What was left out of the public, is that at the 2022 RFP stage, Liquidated Damages (LD’s) for delays were only imposed by the Government upon the contractor for delays. During contract negotiations, the source told Kaieteur News that “the crafty lawyers of Lindsayca-CH4 outmaneuvered the Task Force Negotiators, and added Liquidated Damages to their benefit, making the government liable for delays on the following projects: Marine Offloading Facility (Gaico-Exxon), Heavy Haul Road, Landing Facility, and Site Preparation (Gysbi-Exxon), and Government-GPL Related Projects such as the High Voltage Transmission Lines and Control Center across the river in Eccles. Why the government would agree to carry penalties on the benefit of the contractors is a question for the Task Force and their legal representatives.”

Meanwhile, it was reported that the second claim made by the contractor relates to issues relating to the soil. Jagdeo had 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.”

Sources indicate, that unbeknownst to the public, this is not the only multi-million dollar arbitration involving Gas to Energy and Lindsayca. And as the damages mount, so does the cost ultimately paid by the Guyanese people. Over the next few days, Kaieteur News will disclose a series of other damning aspects of the GTE project which the government continues to keep away from the public.

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• arbitration, contractor, gas-to-energy, Lindsayca-CH4 Guyana Inc., Wales Gas Plant

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