Patterson suspects more troubles ahead for gas-to-shore project as main contractors split

With the two major contractors in the gas-to-energy project, CH4 and Lindsayca severing ties with each other, Chairman of the opposition Alliance For Change (AFC), David Patterson, today said the multi-billion-dollar flagship project of the Government appear en-route to being a massive failure.

The former Public Infrastructure Minister said the latest development confirms that the project was poorly planned and poorly executed, and could now result becoming the biggest failed project in the country’s history.

Designed to reduce the cost of electricity by 50%, the project, which includes the construction of a Natural Gas Liquids (NGL) Plant and a 300-megawatt power plant, was expected to be completed by September 2024, but it has faced multiple delays.

Patterson said the AFC had long warned against the project under the current configuration.

“On April 30, 2021, the Alliance for Change warned the country that the project proposed by the PPP was not economically, technically or environmentally sound or sustainable, the promises reduction of US$0.05 per MW was based on “voodoo economics” – we further urged the PPP to conduct further detailed studies before the country is saddled with the largest ever PPP white elephant project,” he said.

The contract for the construction of the project was signed back in April 2021 at a cost of US$900 Million.

But Patterson said that cost has since ballooned to US$2.4 Billion and is still climbing.

Added to that, he said the completion date has slipped from September 2024 to 2026 – more than two years of delays while the deliverables of 300MW of electricity remain the same.

“Over the last four years, instead of exercising caution, the PPP has recklessly ploughed ahead with this project, completely disregarding all warning signs, launched personal attacks against any citizen or political parties who dared questioned what was plainly oblivious to entire nation, a project that was failing,” Patterson complained.

The AFC Chairman also accused the Irfaan Ali Administration of flip-flopping on its promises. He pointed out that initially, the PPP/C promised that the electricity rates would be US$0.05 per MW, however, two years later, that promise was changed to “will cut electricity bills in half” to the current promise – on completion, the project will “reduce electricity bills”.

Patterson said the project has been subjected to two international arbitrations, and has now been confirmed that the joint venture partnership constructing the project will be dissolved – further extending the two years delay.

Patterson said while the AFC acknowledges the need for improved power generation to meet the country’s demand, it maintains that the project has been poorly designed and is being badly executed. He said efforts must be made to ensure that the country receives value for money.

He said there is need for a full audit of the project to be conducted.

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