Vice President Dr Bharrat Jagdeo today expressed his satisfaction at the US Exim Bank’s approval of the over US$526 million loan for Guyana’s Gas to Energy (GtE) project.
“We’re happy that the loan has been approved,” Jagdeo said during a press conference, noting that the approval contradicts claims by the Alliance For Change (AFC) that the loan would not be approved.
“I don’t want to rub their noses in the dust but this is a vindication of all that we’ve been saying all along…they’re focused on whether the project will be done on time or delayed a bit; it does not matter to me. What matters is the project is being implemented and will deliver benefits to the people of the country,” he said.
The Vice President contended that nothing stopped the former APNU+AFC government from launching a similar project when they were in office but they lacked the vision to do so. “APNU would never work on a project like this. They could have done so since 2016 and they never did,” he said.
The Government will commence repaying the loan from May 1, 2031, at an interest rate of 4%. The repayment period is for 15 years.
This loan will be instrumental in funding the development of the project’s onshore component, consisting of a 300-megawatt (MW) power plant and natural gas liquids (NGL) processing plant.
Responding to criticisms that the Government should desist from borrowing, Jagdeo reminded that the loan only covers 25% of the total cost of the project. The remaining sum is financed by the Government and through an arrangement with the main offshore operator ExxonMobil.
He reminded that oil revenue is currently “just 30%” of the National Budget and also that the project contributes to the transition to clean and reliable energy. Further, the benefits of the project will see Guyana saving 460 tonnes of carbon from being emitted into the atmosphere per year which, he said, is equivalent to one million barrels of oil per year, save $100 million in fuel cost and reduce the cost of electricity for consumers.
