Guyana closer to getting approval for US$646M US EXIM Bank loan -says VP Jagdeo

Guyana’s US$646 Million loan application to the US Exim Bank is one step closer to approval, according to Vice Presisent Bharrat Jagdeo. The Government is seeking the loan for the gas-to-shore energy project.

At a press conference today, the Vice President said the Bank now has all of the information it needs, and it is likely that the application will go to the Bank’s Board of Directors within the next month.

Following that process, the Vice President explained that the US EXIM Bank has since hired two consultants for environmental and technical studies to be conducted. He said the consultants have since reported that the project is technically and environmentally sound.

“Those were the two things that were necessary, so when they go to their board, they will then say we have done our due diligence, the project is technically and environmentally sound because the financial case is already made but it requires time,” Mr. Jagdeo stated.

Mr. Jagdeo sought to put to rest speculation that the project is not viable, hence the lengthy delays in getting the loan approved.

To justify the delay for the loan approval, the Vice President made the case of the loan for the Linden/ Soesdyke highway from the Islamic Development Bank which he said was only approved last year, although the Government was working on the loan since it took office in 2020.

“Anybody going for multilateral funding would know this and who has the experience in doing so would know this, this people here think this is like a private bank where you can walk up tomorrow and get the money. Anyone who has had a modicum of experience with multilateral fundings would know that before they go to their boards, they do own due diligence on the project,” Mr. Jagdeo said.

A few activists have written to the US EXIM Bank trying to block the loan, raising environmental and other concerns.

Other concerns regarding the project’s feasibility have also been raised, but Mr. Jagdeo said the project is the most feasible one yet. He said once the loan application gets to the Board next month, it will then have to go to the US congress for thirty-five days and then back to the Board for final approval.

“That is how it works, that’s the procedure for Exximbank, we didn’t create the procedure, and they didn’t create it for Guyana that is their standard procedure and the fact that we have gone through to their satisfaction all the technical and environmental issues, we have passed the due diligence,” the Vice President said.

The Vice President believes that the Opposition has been raising concerns about the massive cost of the gas to shore project, because it will be his Government that will be solving the problem of energy efficiency and lower costs.