The Committee of Supply of the National Assembly today cleared another $5B to support ongoing works with the gas-to energy project.

The additional sum is expected to see the project to completion, Minister responsible for Finance, Dr.Ashni Singh said.

The National Assembly has already passed $43B to support the construction of the project. The additional $5B approved today triggered questions from the Members of the Opposition.

The Opposition queried the use of the additional funds since billions of dollars in funding was only recently approved.

In responding, Minister Singh said that though some contracts were awarded last year and earlier this year, there are several components of the project for local suppliers that were not entirely covered.

“What this amount represents sir, is what we anticipate would be the additional resources needed given the pace at which these various components are progressing and payments that we anticipate will fall due. This represents now, the latest estimates of what we will require for the totality of the project,” the finance minister said.

Opposition MP Volda Lawrence challenged the Minister to provide a progress report associated with the various components of the project, since he has informed the House that project is moving apace.

As part of the project, ExxonMobil has committed to fund the construction of the pipeline, at the tune of approximately US$1B while the Guyana government will handle the integrated facility at Wales.

MP, Lawrence questioned the Finance Minister about Exxon’s Financial involvement in the project so far, but he opted to provide an update on the Guyana Government’s spending.

“Mr. Chairman in relation to the powerplant and associated investments, including the Transmission and Distribution, those investments are being financed by the Government of Guyana out of the budgetary allocations that are in the budget as approved and now these supplementary appropriations that are being sought,” the Minister said.

Guyana has also approached the United States Export-Import Bank for US$646 million (approximately GY$135 billion) in loans to help meet the cost of its side of the project.

Although ExxonMobil will be committing US$1B to the project it will seek to recover its investment by implementing an agreement for the sale of the transported gas to the government. 

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