Vice President, Dr. Bharrat Jagdeo during a press conference today, addressed concerns surrounding the arbitration process involving contractor for the gas-to-energy project, CH4/Lindsayca and its potential impact on the US Exim bank loan sought for the initiative.
Jagdeo clarified that despite the legal process initiated by the company, the processing of the US$660M loan remains unaffected. He emphasized that the evaluation process for the loan has been completed, and any dispute resolution procedures outlined in the contract will not hinder the loan’s processing.
Vice President Jagdeo stated, “The evaluation has been completed for the US Exim bank loan…This is not going to affect the processing of the loan.”
Furthermore, he highlighted that the completion of the loan’s due diligence without adverse findings is a positive sign for its progression.
“They [US Exim Bank] have completed a final due diligence. There are no adverse findings. So hopefully now the loan will be able to go to the board now,” Jagdeo further mentioned.
The gas project, aimed at reducing electricity costs by 50 percent by 2025, enjoys bipartisan support from the US Congress and key figures at the US Exim Bank. Earlier this year Jagdeo had maintained that this support persists despite announcements by US President Joe Biden to pause approvals for liquified natural gas (LNG) export projects, a move applauded by climate activists.
Jagdeo had also underscored the availability of alternative financing options outside the US Exim Bank, including a contingent line of credit and support from the Treasury. He revealed that the government has already received financial backing, with US$100M allocated to meet payments to CH4/Lindsayca, tasked with constructing a 300MW power plant and natural gas liquid (NGL) plant at Wales. These facilities will receive gas from an offshore pipeline being developed by ExxonMobil Guyana Limited.
The Vice President indicated that the assurance of continued progress on the gas project amidst the arbitration dispute provides a sense of stability amid external challenges. With bipartisan support and financial backing in place, Guyana remains on track to realize this ambitious energy goal.
