U.S. Exim Bank boss flies in

Apr 09, 2026 News

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…as gas-to-energy project controversy deepens

Kaieteur News – Amid mounting scrutiny over the troubled Wales Gas-to-Energy project, Chairman of the U.S. Export-Import Bank, John Jovanovic, arrived in Guyana on Wednesday for high-level engagements, even as questions intensify over the project’s cost, contractor, and procurement process.

The visit comes against the backdrop of growing concerns about delays and a Kaieteur News series of revelations exposing questionable decisions surrounding the multi-billion-dollar initiative, for which EXIM has approved US$527 million in financing.

In a press release on Wednesday, the US Embassy in Guyana said during his visit today, Chairman Jovanovic will meet with President Irfaan Ali, the American Chamber of Commerce, and staff from Lindsayca Inc., the Houston-based contractor executing the gas-to-energy project that has received a loan of US$527 million in EXIM financing.

According to the embassy, the visit demonstrates the U.S. government’s “continued commitment to not only this landmark infrastructure initiative but also in financing additional Guyanese development projects.” It said: “The gas-to-energy project represents the largest infrastructure investment in Guyana’s history. Once completed, it will double the country’s installed electricity capacity, reduce electricity costs by 50% for all Guyanese households and businesses, and cut carbon dioxide emissions by more than 460,000 tons annually,” the embassy stated.

The project includes construction of a natural gas separation plant, a 300-megawatt combined cycle gas turbine power plant, and a gas supply pipeline. Lindsayca Inc. continues to advance construction and has made significant progress on all project components.  The company’s expertise in energy infrastructure development positions the project to deliver transformative results for Guyana’s energy sector.

Chairman Jovanovic’s visit underscores the depth of the U.S.-Guyana partnership and the United States’ long-term commitment to supporting Guyana’s economic development and energy security through reliable, competitive and transparent financing. EXIM is the official export credit agency of the United States.  EXIM loans are backed by the full faith and credit of the United.

Kaieteur News since last week have has been running a series of articles on the project. One of the articles highlighted the fact that government rejected three cheaper bids for the contract and handed it to Lindsayca/ CH4 for US$759M. This newspaper reported that Lindsayca’s bid, at the time it was submitted, was the highest among five international companies who had placed bids for the project in September 2022. The joint venture had placed its bid to the tune of US$898 million, but later reduced the sum to US$759 million in negotiations with the GoG.Flora & Fauna

Sources close to the process however leaked bids that were filed by not one, or two, but three reputable Chinese firms that were not only interested in constructing the project at a lower sum, but were willing to provide financing to the government. PowerChina International Group Limited (PCIGL) in its financial proposal offered to construct the integrated facility for US$704M ($703,652,256.29)- a whopping US$194 million cheaper than the initial bid submitted by Lindsayca/ CH4. PowerChina was already hired in Guyana and was experienced in delivering power projects similar to Guyana’s intended structures. Additionally, PCIGL offered to finance up to 85% of the contract cost, with a 12-year repayment period, through Swiss Export Risk Insurance (SERV).

China Machinery Engineering Inc. made a financial proposal to construct the integrated facility at just US$696 million. The company was also willing to finance the development, through JP Morgan and SERV.

Another experienced Chinese entity, China Energy Int’l Group Co. Limited submitted an even lower bid- US$467 million and offered to finance the project through Siemens Energy. A proposal addressed to the Ministry of Natural Resources and dated August 31, 2022 indicated that the company was willing to provide up to 85% of the financing required for the project. Since its inception, government has been extremely selective with the information it shares with the public on this project.

Additionally, another issue this newspaper reported on is thew fact that when Lindsayca landed the almost one-billion-dollar contract in Guyana to construct a Natural Gas Liquids (NGL) facility and 300 -megawatt (MW) power plant, the entity was bankrupt, faced with several lawsuits, over allegations of money laundering and other questionable business dealings. Research also shows that Lindsayca lacked a basic requirement to qualify for the project – experience in constructing a project of such magnitude.

A careful examination of the company’s financials by this newspaper between 2016 and 2019 revealed that Lindsayca was drowning in debt to the tune of millions of US-dollars. Lindsayca, as per the pre-qualification and bidding process that started with the Request For Proposals (RFP) in September 2021 and concluded with bid submissions in September 2022 was required to submit three years of financial statements to the Government of Guyana (GoG) to ensure the company was in good standing.

Commentator and Chartered Accountant, Christopher Ram reviewed the financials seen by this newspaper and concluded that the company was under “significant financial strain, with issues that go directly to liquidity, sustainability, and the reliability of what is being reported.” Ram raised concerns over the company’s persistent negative operating cash flows in both 2017 and 2018, which he says indicates that the business was not generating enough cash to support itself. “I am also troubled by the extent to which the Company depends on related parties. The balance sheet shows large receivables from related entities, but even more significant payables to those same parties, with related-party liabilities exceeding $35 million. On top of that, a material portion of revenue comes from related-party transactions,” the Chartered Accountant said.

Luxury flights

Kaieteur News also unearthed documents showing that executives of Lindsayca travel in luxury, flying weekly out of Georgetown on a private jet, costing Guyana US$70,000. The contractor is not only misusing project funds to fly its top executives, but also source materials for the project at much higher freight costs, a source close to the project disclosed. Sources confirmed, “Since October 2022, top executives have utilised private jets to fly on a weekly basis from Houston, Texas, refueling in Puerto Rico, before touching down in Georgetown. A conservative calculation of this weekly commute exposes a staggering drain on project resources.”

By breaking down the flight routes, the true scale of this extravagance becomes clear. See table for flight cost formula.

Meanwhile, in refuting claims that it had secretly paid over US$80M after losing an arbitration against Lindsayca-CH4 Guyana Inc, the Guyana Government on Tuesday said 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). According to the government 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,” the administration added.

 

 

 

 

 

 

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• Chairman Jovanovic, EXIM, The gas-to-energy, the Houston-based c, U.S.–Guyana

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