Guyana to repay US EXIM Bank about US$60 million annually

Last Updated on Saturday, 28 December 2024, 0:07 by Writer

Vice President Bharrat Jagdeo on Friday said that Guyana would repay the Export-Import (EXIM) Bank of the United States (U.S.) about US$60 million annually from 2031 on a loan that was acquired to help finance the construction of the gas-to-energy and natural gas liquid plants.

He told a news conference that the interest of 4% per annum would be capitalised from 2025 to May 1, 2031 when the first payment is scheduled to be made over a 15-year period. The US$526,873,240 was fully approved on Thursday by the EXIM Bank Board after a 35-day notification to the U.S. Congress.

The money would be used specifically on the natural gas separation plant, a 300 megawatt gas turbine power plant, and services related to the gas supply pipeline located at Wales, West Bank Demerara.

Mr Jagdeo later said that based on projected sales alone of natural gas liquids such as liquid propane gas (LPG), also known as cooking gas, could rake in between US$100 million and US$250 million annually. He said that would be sufficient revenue from which to pay ExxonMobil US$50 million annually for the gas pipeline offshore to the Wales power and natural gas liquids plants.

ExxonMobil constructed the pipeline at an estimated US$1 billion. The two plants are being constructed at Wales, West Bank Demerara, by CH4/Lindsayca at a cost of US$759 million.

The Vice President on Friday said the entire project is estimated to cost US$2 billion.