No deal yet on $3.4M daily powership demand

Jun 07, 2026 News

…Govt. tables counteroffer

(Kaieteur News) – Despite a June 1 deadline set by the Turkish powership operator, the Government of Guyana and the company remain locked in negotiations over a proposed increase that could cost taxpayers an additional US$5.8 million annually, as the country continues to rely on rented electricity due to delays in the Wales Gas-to-Energy project.

Public Utilities Minister Deodat Indar told Kaieteur News on Saturday that government has submitted a counteroffer and is still awaiting the company’s response, insisting that efforts are focused on securing a lower rate than the one being demanded.

“The contract is up for renewal and during this period we are still negotiating. The government has put forward a counter offer and we are currently under negotiations as of now,” he confirmed on Saturday.

No deal yet on $3.4M daily powership demand

Minister of Public Utilities and Aviation, Deodat Indar

Indar noted that the government is awaiting the company’s response to its proposal. He pointed out that Guyana previously benefitted from a “very concessional rate” of US$0.762 cents as it was the first business with the power company some two years ago.

The company is however demanding a new rate of US$0.95 cents from Guyana which translates to a whopping $3.4M more to be pulled from the national purse.

Indar assured, “The government of Guyana maintains seriousness on this negotiation and will do the best for the Guyanese people in trying to get the best commercial rate possible from this arrangement.”

When asked about the current daily rate the country is required to pay the power company to supply 36-megawatts of electricity to the national grid, the minister explained that this has not been finalized.

According to him, “Right now we are between the old contract and what the new contract will be so that is what we are working out now. A month has not gone yet. They bill us on a monthly basis. The last bill was May 21, the next billing cycle will be a month from now. We hope to get it (the negotiations) finished by then to agree on the rate. Based on what they are asking, it cannot be higher than that, it has to be lower than that. We are negotiating down.”

Under the now expired energy contract, Guyana was renting power at US$0.076/KW, forking out US$23,008,665.6 on an annual basis.

The new demands by Karpowership could add about US$5.8M in rental fees, driving up Guyana’s annual bill for that vessel to US$28,780,832.

In a joint letter dated 25th May, 2026, sent by Karadeniz Powership Yasin Bey Company Limited and Urbacon Concessions Investments to minister Indar, the foreign entity threatened to pull its services if government fails to meet its demands by 1st June, 2026. The operators demanded that the government moves swiftly, stating that “alignment and unification of the commercial terms and pricing structure across all country operations remain essential requirements for the continuation of the arrangement.”

They ominously concluded that they trust the matter will be settled “to avoid any interruption to operations.”

Guyana is being forced to pay billions to rent electricity as a result of the Wales Gas-to-Energy (GTE) project failing to meet its 2024 deadline. That power project is now expected to startup by the end of 2026.

The two-year delay will cost the country more than double the cost of the Wales development which was initially pegged at US$759M. On May 28, this publication reported that these delays are likely to cost the nation an eye-watering US$884M more due to the increasingly high import bill for Heavy Fuel Oil (HFO), rental of powerships and a costly legal dispute with the contractor, Lindsayca/ CH4.

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GPL, Karpowership, powership, Wales gas-to-energy project

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