The Gas-to-Energy project, a critical development in Guyana, is steadily advancing. Amidst this progress, Guyana’s Vice President, Dr. Bharrat Jagdeo, has mentioned the possibility of using bridge financing to sustain the project until the awaited loan from the United States EXIM Bank materialises.
During an October 5 press conference, Dr. Jagdeo said, “President Ali met with the president of EXIM Bank and had really good discussions. It’s moving forward. It’s moving apace.”
Asked whether the wait for the loan would impact the timeline of the landmark project, Jagdeo stated, “No, it’s not going to… If there is need for it, we can have bridge financing until that loan comes up… And from what I gather, the loan can fund retroactive expenditure. So, if you have bridge financing, then you can go back and clear it easily once the loan comes up…”
The Guyana government has applied to the US Bank, seeking a substantial loan of approximately US$646 million in support of the Gas-to-Energy project.
During a May event, Jagdeo had said, “We’ve had extensive discussions with [the EXIM Bank]. They’ve given us full assurances they’re working on this project. So, the United States government is fully supportive of the project.”
The proposed loan is intended to aid the US$759 million expenditure required to set up an integrated facility at the Wales Development Zone, situated on the West Bank of Demerara. This facility encompasses a 300 MW natural gas power plant and a natural gas liquids (NGL) plant.
Additionally, the loan will boost the establishment and enhancement of electrical transmission infrastructure.
It’s noteworthy that certain environmental campaigners and lobbyists have expressed opposition to the Gas-to-Energy project, prompting Jagdeo to provide the aforementioned assurances. These campaigners have sought to discourage the US Bank from extending its support.
Activists recently suffered a major loss in their bid to cancel a key Gas-to-Energy permit via a lawsuit.
