Guyana’s gas-to-shore project passes US EXIMBANK’s due diligence – Jagdeo

Last Updated on Thursday, 12 September 2024, 23:04 by Writer

Vice President Bharrat Jagdeo 0n Thursday said the United States’s Export-Import (EXIM) Bank has informed Guyana that it has received environmental and technical reports showing that the US$756 million dollar electricity and natural gas liquids plants are “sound”.

“They have examined all the technical stuff. That is the drawings and everything else for the project. They have satisfied themselves that it’s technically sound and they have reported back to the ExxonMobil management.

The environmental consultants came in. They asked questions and we answered all those questions and they have gone back and said the project is environmentally sound,” Mr Jagdeo told reporters.

About one year ago, Guyana applied to EXIM Bank for a U$646 million loan for the project that also includes transmission and distribution grid and a control station. However. Mr Jagdeo said Finance Minister Dr Ashni Singh was informed during his visit to the US last week that now that the studies were in, the EXIM Bank’s Board would next month consider the loan application.

After the Board considers Guyana’s loan application, it would move to the US Congress for a 35-day notification before it returns to the Board and “then the loan is approved.” “The fact that we have gone through, to their satisfaction, all the technical and environmental issues, we passed the due diligence there,” he added.

The Vice President reiterated that Guyanese would be paying 50 percent less on electricity when the natural gas-fired 300 megawatt electricity plant becomes operational.