Govt. denies US$80M arbitration payout to Wales gas project contractor

Apr 08, 2026 News

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…says works continuing on controversial project

The Government of Guyana on Tuesday refuted reports that it had paid over US$80M after losing an arbitration against the Gas-to-Energy (GTE) contractor, Lindsayca-CH4 Guyana Inc.

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. However, in a statement issued by the Office of the Prime Minister, government said there were no secret payments made to the contractor. The administration said all payments are made via the Consolidated Fund and reported to Parliament. “For the record, the Parties have not advanced the arbitration process and as such there is no arbitration ruling. Arbitration continues to be an option available to the Parties. It is therefore incorrect to suggest that the Government of Guyana has lost the arbitration,” the statement added.

According to the OPM, it may be recalled that in January 2025, the Dispute Avoidance/Adjudication Board (DAAB) made decisions which both parties were dissatisfied with. In March 2025, both Parties signaled their intent to go to arbitration and notified the members of the DAAB. It has been publicly stated that DAAB decisions are confidential. “As such, neither party can speak to its contents,” the statement noted.

The OPM said in mid-2025, the contractor consortium changed. The Houston based US company Lindsayca, acquired the shareholding held by CH4 Systems LLC, such that Lindsayca now controls 100% of the project company, renamed Lindsayca Guyana Inc. “From late 2025, Lindsayca has advanced construction and successfully delivered much of the major equipment to the site, accessing the site successfully via the Material Offloading Facility (MOF) and Heavy Haul Road (HHR). At the current time, over 8,000 piles have been installed and over 18,000 cubic meters of foundations poured. 800 persons are currently engaged at the Wales job site.

Work on many aspects of the construction is proceeding on a 24-hour basis. The Contractor has successfully commissioned on-site accommodations for over 400 workers. The job site is quite active. All 4 gas turbines have been placed on foundation. All transformers for the substation have been placed on foundation. Pipe racks to move the gas to the NGL facility and power plant are being placed on foundation. NGL bullet tanks have started arriving at the site.

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,” Jagdeo had said.

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• contractor, gas-to-energy, Lindsayca-CH4 Guyana Inc., Mark Phillips

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