US EXIMBANK poised to approve US$660 million for gas to shore project- Jagdeo

Last Updated on Thursday, 21 December 2023, 17:16 by Denis Chabrol

Vice President Bharrat Jagdeo on Thursday said the United States’ Export-Import Bank (EXIMBANK) would approve an application for US$660 million to finance the construction of the Gas-to-Shore natural gas-fired electricity and liquids plants at Wales, West Bank Demerara.

He said he received “assurance” from the President and Vice President of the EXIMBANK, Department of Commerce and the US State Department that the loan application would “receive their full support”, scotching concerns in some quarters that the EXIMBANK seemed reluctant to approve the financing for the project including a 300 megawatt electricity plant. “Every US agency, including on a bipartisan basis, members from both sides of Congress assured us that this project is a great project; it will receive their full support, so it is just that you have to go through the technical process,” he said.

The loan application was made public in April, 2023.

According to Mr Jagdeo, the consultants that have been hired by EXIMBANK would most likely complete their assessment and feasibility study by January 2024.  Mr Jagdeo said the lengthy process includes on-site inspections by consultants, US Congressional 45-day process and then final approval by the EXIMBANK’s Board.

Pending the EXIMBANK’s approval of Guyana’s US$646 million loan application, Mr Jagdeo said Guyana has already provided US$100 million from its Treasury for the US$756 million project and had a contingency arrangement should there be hiccups with the American funding. “The project is moving forward, the gas to energy project is moving forward, the loan shall be in place and we had already planned contingency should this not happen because we’re a serious government,” he said.

The US EXIMBANK has made available a US$2 billion line of credit to Guyana.