Government and US EXIM Bank ink deal for US$526 Million loan

Government and US EXIM Bank ink deal for US$526 Million loan

At the site of the multi-billion-dollar gas-to-energy project, the Government of Guyana and the Export-Import (EXIM) Bank of the United States on Friday signed the deal for the US$526 Million loan that is expected to fast track the project.

The financing will support the construction of a state-of-the-art natural gas separation plant, a 300 MW combined cycle gas turbine power plant, and services related to the gas supply pipeline located at Wales, West Bank Demerara.

 The project is expected to allow Guyana to transition to more reliable and cleaner energy for consumers and businesses by using natural gas to generate electricity. 

Singing the loan agreement on behalf of the bank today was its President and Chairperson Reta Jo Lewis, who said the project aligns with the bank’s goals and priorities.

“This deal we believe is a game changer. Not just for Guyana and the United States but for the people, businesses and shared aspirations that unite our two nations. Together, we are taking bold steps to strengthen energy security, enhance environmental sustainability and unlock economic opportunities. For Guyana, this project would double the country’s install electricity capacity, providing cleaner, more reliable and affordable energy for families and businesses,” the President of the US EXIM Bank said. 

The signing of the agreement comes just two weeks after the Board of Directors at the US EXIM Bank provided final approval of the loan.

The financing will support a U.S. joint venture involving Lindsayca, a Texas-based company, and Puerto Rican small business, CH4 Systems, and services provided by ExxonMobil. 

Prime Minister Mark Phillips said the US$526M loan agreement would support the largest, most transformative project embarked upon by the Government in Guyana’s history. 

He said the project will enable Guyana to strengthen its energy security by doubling the country’s installed electric capacity and unlocking economic growth potential for local Guyanese companies of all sizes.    

“The signing of this agreement between the Government of Guyana and the Export Import Bank of the United States is a declaration of trust in Guyana’s potential and a commitment to shaping our country’s future, which is defined by progress and opportunity. The US$526M in financing provided by EXIM Bank will breathe life into Guyana’s Gas to Energy Project. This will allow us to double Guyana’s installed electric capacity, modernize our energy infrastructure, and position us to reach the growing demands of an increasing dynamic economy,” Prime Minister Phillips said. 

Minister responsible for Finance, Dr. Ashni Singh said the project forms part of the Government’s vision to provide cleaner, more efficient and cheaper energy.

He said it was fast track the diversification of the Guyanese economy and build a competitive non-oil economy. 

“This single project is going to see Guyana doubling, more than doubling our electricity generating capacity. And importantly, will see us advance in our journey towards cleaner and more renewable sources of energy, given that we consider gas to be a transition fuel. And in addition to that, it will see us improving the reliability of our energy supply and reducing the cost of our energy supply to the extent that we will be able to reduce the cost of electricity to the final consumer by 50%,” Minister Singh said. 

The project is being built by U.S. and Guyanese companies with 85% of the 500 employees currently supporting this project on site being Guyanese.  

Before the signing ceremony, the US EXIM Bank official met and held discussions with President Irfaan Ali and a Government team, along with officials from the US Embassy.

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