US EXIM Bank approves loan for Guyana’s gas-to-energy project

Last Updated on Thursday, 28 November 2024, 22:16 by Writer

The Board of the United States’ Export-Import (EXIM) Bank has approved a just over US$500 million loan for the gas-to-energy project at Wales, West Bank Demerara, with final approval expected at the end of a 30-day notification to the US Congress, Vice President Bharrat Jagdeo said Thursday.

Originally, Guyana had applied for US$660 million to help finance the construction of the US$759 million natural gas-fired power plant and the natural gas liquids plant, but Mr Jagdeo said that figure was reduced to just over $500 million.

He said some of the money would be used to finance US exports and the remainder would go towards retroactive payments for the 300 megawatt electricity plant and natural gas liquids plants. Mr Jagdeo had previously said that the Guyana government was funding the project from its coffers and that the project would have gone ahead even if EXIM Bank had not approved the loan application.

EXIM Bank’s closed Board meeting minutes of November 21, 2024, states that the money would be used to purchase steam generators, separation and conditioning equipment, project management and engineering services.