The Alliance For Change (AFC) today said it has been able to confirm that Guyana’s loan application before the United States Export-Import Bank (US Exim) bank is still in the processing stages and has not fully approved.

While the Bank’s Board of Directors has approved the loan request, it still has to be approved by the US Congress.

On Thursday, Vice President Jagdeo told a news conference that the US ExIm bank has approved a US$509 million loan to Guyana for the gas-to-energy project and that the financing will be retroactive. Guyana had applied for a loan of over US$650 Million from the bank.

At a press conference today, AFC Chairman and Member of Parliament, David Patterson said his party reached out to an official at the Eximbank regarding the loan and that official expressed shock at the Vice President’s statement.

Mr. Patterson said that the Eximbank official, who he did not name, noted that the U.S Congress is currently in a transition period following the just concluded elections and will not deal with any such application now.

Patterson said he was further informed that because of the new composition of the U.S Congress, it will take a long time before Guyana’s application goes before it for final approval.

“Ladies and gentlemen this is not the first time that Jagdeo has told the nation that this project has been approved or is about to be approved by the US Eximbank, we have 41 days until the US Eximbank meeting, so the nation will soon learn more and soon learn the truth,” Mr Patterson said.

On the question of retroactive financing, the AFC executive noted that his party was informed that the bank has never done retroactive financing, and that it is highly unlikely that such a concession will be afforded to Guyana. 

With regards to the gas-to-shore project, Mr. Patterson said the project is limping along despite 58% of the budgeted costs for the power plant being expended.

The Opposition MP said he recently visited the site of the project and from his own estimation, it is nowhere near completion, as works are still ongoing on the foundation for the plant.

“We also note that the government has since changed their tune which they started in 2020, moving from a starting 50% reduction in rates to be paid by consumers for electricity and they are now saying that the prokect will significantly reduce rates, this is a prime example that the entire financing model for this project has been flawed and it will not achieve anything that the PPP has said,” Mr. Patterson noted.

The Government has been financing the project and estimates that it will be completed by the end of next year.

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