US EXIMBANK confirms approval of loan for Guyana’s gas-to-energy project

Last Updated on Friday, 29 November 2024, 19:43 by Writer

The United States’ Export Import (EXIM) Bank on Friday confirmed that its board has approved a just over US$500 million loan for Guyana’s gas-to-energy project, despite the opposition Alliance For Change earlier in the day challenging the accuracy of Vice President Bharrat Jagdeo’s announcement.

“Yes. The Board approved this transaction to notify congress. Once the 35-day congressional notification period ends, it will come back to EXIMs independent, bipartisan Board of Directors for a final decision,” a US EXIM Bank spokesman told Demerara Waves Online News.

The Federal Register says comments must be received on or before December 9, 2024 to be assured of final consideration of the transaction by the Board of Directors of EXIM.

Government said the loan will now be US$509,056,270.91 rather than the initially applied sum of US$660 million. The Federal Register details that the money would be used for equipment, engineering services, and project management services related to balance of plant, natural gas plant, and power plant.

AFC Chairman, David Patterson earlier Friday disputed Mr Jagdeo’s announcement that is in line with the Washington DC-based confirmation.

Mr Patterson, relying on unnamed persons at the EXIM Bank with whom his party had been in contact for more than one year now, read a purported correspondence from an electronic device stating that “no approval was given” at its last meeting in November. The AFC executive member said his party was informed that the next meeting date is January 9, 2o25 and “if it comes up for discussion, only then can a final decision be made.”

He said the AFC was informed that should the bank approve the loan, it has to go to Congress ‘s sub-committee on international trade and finance for approval but Congress is now in a lame-duck session because of transition as a result of a change of government. The AFC Leader said his party was also told that  a fully functional Congress was not expected to consider the loan application  until March 2025.

If the green light is given, the approval is returned to the Board after which the legal and procurement departments take over, and disbursements could take nine months, he said.

The AFC Chairman said his party’s contacts at EXIM Bank informed him that there was uncertainty about retroactive financing that that financial organisation does not normally do and would be unlikely because it played no part in procurement.