Vice President, Dr. Bharrat Jagdeo announced on Thursday that Guyana is set to secure a US$660 million loan from the Export-Import (EXIM) Bank of the United States to fund the landmark Gas-to-Energy Project. This revelation was made during his weekly press conference where he affirmed the Exim Bank’s full commitment to the project.
Addressing earlier concerns about the loan arrangement, Jagdeo emphasized the thorough evaluation conducted by the technical team from Exim Bank. Despite initial uncertainty following reports of the Finance Minister’s solo meeting with senior bank officials in the US, Jagdeo conveyed confidence in the ongoing discussions.
Last year, Guyana inked a noteworthy US$2 billion Memorandum of Understanding (MoU) with the bank. Dismissing doubts, the Vice President stated that interactions with the bank’s leadership, including a productive meeting and dinner with the ambassador, showcased extensive support from various arms of the US government.
Clarifying misconceptions about the loan amount, Jagdeo explained that while the Natural Gas Power Plant at Wales incurs a total cost of US$759 million, the loan being requested is US$660 million. This adjustment accounts for the Government having already invested US$100 million from the Treasury into the project.
“The President of Exim Bank offered a $2B line of credit to Guyana. We are not seeking to borrow $2B. That’s where he has it wrong. They are not going to take the $2B and credit it to our account tomorrow. We didn’t ask for that,” the Vice President explained.
The ambitious project encompasses the construction of a 300-megawatt power plant, with a targeted completion date of December 2024. Notably, ExxonMobil Guyana is expected to cover the expenses for constructing the pipeline, estimated at a substantial US$1 billion.
