Govt. 99% close to securing new Berbice powership deal – Minister Indar

Jun 29, 2026 News

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(Kaieteur News) – Minister of Public Utilities and Aviation, Deodat Indar, has revealed that the Government of Guyana is 99% close to finalising a new agreement for the 36-megawatt power ship stationed in Berbice.

Addressing recent media coverage and leaked correspondence by this publication surrounding the tense contract talks, Minister Indar strongly rejected claims that Guyana was being forced into an unfavourable position by foreign contractors.

“No One Should Believe We Were Backed Into A Corner”

Speaking directly on the aggressive nature of the talks, Minister Indar emphasised that the administration, has maintained an unyielding stance to protect national interests. “People can think we are backed into a corner. No one should believe we were ever backed into a corner,” Indar asserted. “We will defend the interests of the Guyanese people. We will fight the best we can to get out of the outcome. We don’t lay back and say, well, you come and bamboozle us. That doesn’t work with us. We don’t operate like that. We have to fight. So a proposal came, counterproposal went. That is how we deal with it. That is how it works.”

The minister expressed disappointment over a leaked negotiation letter that fuelled negative press commentary, noting, “You don’t negotiate in the public. You negotiate with the people. And we are back and forth. They give their position. We say, fine, we give you a position. It was very difficult. You bet your bottom dollar. Our government led by President Ali, we made sure that we took some strong positions on negotiation.”

The Evolution of the Power Ship Agreements

Providing a look back at the grid’s emergency generation strategy, Minister Indar detailed the timeline of how Guyana arrived at its current power ship fleet:

• The 36 MW vessel: Brought in two years ago to fill an immediate shortfall. “The genesis of this matter is that we had to get extra power, and at the time, two years ago, we brought in 36 megawatts. At that time, that’s what we needed. We negotiated, the government has negotiated with this contractor. UCC is a JV between them and the Turkish people that owns the assets. We negotiated 7.2 cents per kilowatt. Cents, 7.2 cents. It’s split between a capacity charge, right? And that rate was the cheapest rate anywhere we could find it with a ship that is available at the time that we needed it. It was a very low rate. The company that rented us the ship actually didn’t even want to go through with it, but we said that, well, you know, you already gave us your word, and we took your word, and we said, and we got a very low rate. It was a concessional rate.” The current subject of hard bargaining. “So this one now, the thirty six megawatt, which is a smaller one in Berbice, two years have passed. We have not got the power yet from gas to energy. So we need the power still because we need the voltage and we need the generation at Berbice side. Because they have a line that brings back the power this way and takes it up to Berbice. The next generation facilities is very far up.”
• The 60MW Vessel: Brought in swiftly to handle heavy seasonal loads. “The second power ship came in, the price that we paid for that one, which is 60 megawatts, that is outside of Banks right at the river there. We needed that, too, because it was coming up to Christmas time. The demand was going to go. I worked to run that transmission line. In six weeks, I built that four kilometers of transmission line. Six weeks, four kilometers. Never been seen. We did it just to get the power hooked up. That power ship we negotiated at 9.5 cents per kilowatt.”

Bridging the Price Gap: 9 Cents vs. 9.5 Cents

The crux of the current standoff hinges on moving away from the initial “concessional” pricing, as the asset owners recognise Guyana’s ongoing dependency while the Gas-to-Energy project is finalised.

“We have to remember, too, that we got the first two year on very low rates. And the owner of the asset, Werner, they said, you know, they have never rented this to anybody at this rate. So they asked for 9.5 cents. We said we want 9 cents. And we are working between that. Because we can’t, they would never renew it for a concessional rate at 7.6. We know that. And the demand has increased too. The demand continues to grow. You need a generation. They know we need a generation. We know we need a generation,” Indar explained.

However, the Minister made it clear that Guyana is holding its ground by leveraging external alternatives. “But they’re not the only persons we’re talking to. So we also let them know that we have options too. But it was a very difficult negotiation with the people and we continue to negotiate with them because the vessel is here. It’s already hooked up to our system. We need the power. They need the work. Let’s find a middle ground. And that is what we’ve been working on. I would say we are 99% there. Not fully yet, but we are 99% there with a final outcome. And once we are okay with that, I will put out a statement on the matter.”

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• Berbice, Electricity, GPL, powership

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