Govt. now admits to US$97M settlement to Wales contractor

May 16, 2026 News

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…after denying ‘secret payment’ one month ago

(Kaieteur News) – One month after denying “secret payments” to the Wale Gas-to-Energy (GTE) contractor, the government has now admitted to making a US$97 million payment, increasing the initial contract price of US$759 million by some 12.8 per cent.

In a statement issued on Thursday evening, the Office of the Prime Minister explained, “…the Government and Lindsayca Guyana Inc. have reached a resolution on two matters decided by the Dispute Avoidance/ Adjudication Board (DAAB) in January of 2025 relating to soil stabilisation works required at the Wales site and to delay-related provisions…the settlement represents a 12.8 per cent increase over the original contract sum of US$759M.”

On April 7, the prime minister’s office responded to a Kaieteur News article indicating that a US$80M payment was secretly paid to the Wales GTE contractor to settle the dispute. The PM at the time however indicated, “There are no secret payments made to the contractor. 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 GoG has lost the arbitration.”

Following that statement however, Kaieteur News published a subsequent article exposing the financials of Lindsayca which confirmed a payment to the tune of US$102 million.

In its recent missive, the government revealed that this amicable resolution removes the need for further proceedings such as arbitration, and ensures that construction continues under a fully aligned, forward-looking framework. Moreover, it was explained that both parties have agreed to forego “respective rights to historical liquidated damages, capped at 10 percent of the contract price.”

Government assured that while the settlement to Lindsayca represents a 12.8 per  cent increase over the original contract sum of US$759 million, the government’s total expenditure for the wider project, comprising the 300 megawatt (MW) power plant, the Natural Gas Liquids (NGL) facility, transmission works, substations, 230 kV and 69 kV lines, and the new national control centre, remains within 10 per cent contingency of its budget of US$1 billion.

“As such, the GtE plant, the Transmission/Substation project undertaken by KPIL, the new National Control Center (NCC) at Goedverwagting, and all other project related costs funded by GoG, were all budgeted at $1 billion based on the published contract price. The overall cost is not expected to exceed US$1.1 billion, including the 10 per cent contingency,” the prime minister’s office stated.

To this end, it was explained that the commitment to deliver power to the national grid and reduce tariffs by 50 per cent remains on track.

According to government, substantial progress has been recorded in works at the site thus far, with stringent milestones set moving forward, following an agreement with Lindsayca Guyana Inc. to bring the first power turbine online by the end of 2026. It said this will be followed by all gas turbines which are expected to be fully commissioned by the first quarter of 2027 and the combined cycle operation to be completed by June 2027.

OPM pointed out that “failure to meet these milestones will allow the government to re-instate liquidated damages against the contractor.”

Meanwhile, it was explained that the workforce is expected to rise to 1,100 in the second quarter of 2026 and peak between 1,400 and 1,600 workers as construction reaches its most intensive stage.

Prime Minister, Brigadier (Ret’d) Mark Phillips said, “The Wales Gas to Energy project represents a defining moment for Guyana and for the energy future of every citizen of this nation. We are satisfied with the progress being made and remain fully committed to ensuring that Guyanese households and businesses benefit. This project will cut electricity costs in half, and we are firmly on track to deliver on that promise.”

Confidentiality?

Just over a year ago, the GoG claimed that it could not reveal the ruling of the Dispute Avoidance and Adjudication Board (DAAB) regarding complaints filed by the contractor.

In February 2025, Office of the president stated, “In relation to this ruling, the parties to the dispute resolution process are bound by certain rules of confidentiality.”

Sources close to the controversial Wales Gas-to-Energy (GTE) project first disclosed the dispute settlement as was published by Kaieteur News.

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• Lindsayca Guyana Inc, settlement, Wale Gas-to-Energy, Wales contractor

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