The United States Export-Import (EXIM) Bank is preparing to move onto the next stage of considering Guyana’s request for a US$646 million loan to fund the highly anticipated gas to energy (GtE) project, which is already significantly advanced.
General Secretary of the People’s Progressive Party, Dr Bharrat Jagdeo, during his news conference on Thursday (September 12, 2024), at Freedom House, Robb Street, Georgetown, disclosed that the project could be presented for approval by the EXIM Bank’s Board of Directors as early as October.
The long-awaited funding is crucial for advancing the landmark project, which is set to significantly reduce electricity costs in Guyana.
Finance Minister Dr Ashni Singh, who recently met with key EXIM Bank officials during a visit to the United States, confirmed that the bank has all the necessary information to proceed with the funding approval process.
“Ashni Singh met with EXIM Bank and he is going to tell you about it and that they have indicated that they have all of the information they need to go to the board,” he said.
Consultants hired by the bank spent several months in Guyana conducting thorough assessments of the project’s environmental and technical feasibility. According to Jagdeo, the assessments confirmed that the project is technically sound.
With the due diligence phase complete, the project will now be submitted for review by the EXIM Bank’s Board.
Jagdeo said, “They’re aiming to go to the Board by October Board meeting but all of the technical and environmental work has been completed and they have all of the information necessary to go to the board.”
Once the project receives Board approval, the US Congress will be notified, initiating a 35-day review period. Following this, the EXIM Bank will make a final decision on the release of funds.
The Gas-to-Energy project is expected to provide around 300 megawatts (MW) of power, using natural gas from an ExxonMobil pipeline. It will include four gas turbines, two steam turbines, a Natural Gas Liquids (NGL) facility, a transmission and distribution network, and a state-of-the-art control centre.
This integrated system is expected to cut electricity costs by half for Guyana. Despite delays in securing the US$660 million loan from EXIM Bank, the government of Guyana has allocated US$400 million from its resources to ensure continued progress on the project. (Extracted and Modified from DPI)
