The US Export-Import Bank has approved a US$500 million loan to Guyana to support its gas to energy project. Guyana was seeking a US$646 million loan.

According to Vice President Bharrat Jagdeo, the bank has since initiated the relevant process ahead of final approval.

“The loan has been approved by the Board of the Eximbank and it has been sent to the Congress for 30 days notification, after which it will be returned to the Board of the Eximbank for final approval, so that is where we stand at this point in time,” Mr. Jagdeo told a press conference this afternoon.

A few activists had written to the bank in a bid to block the loan, raising environmental and other concerns, including the project’s feasibility

The Vice President said due diligence on the project was followed by the US ExIm bank.

“The amount will not be US $640M, it will be less than that and it will only cover exports out of the United States, it will not be the full some. The loan will also provide retroactive financing, so if the loan is made available it will cover financing that the government of Guyana had to make during the period since the process stared,” Mr. Jagdeo said.

While awaiting approval of the loan, the Government dolled out some US$$400 million in lieu of that approval, and Mr. Jagdeo indicated that the Government was prepared to fund the project completely if the loan was not approved.

When it took office in 2020, the PPP/C promised to deliver the Gas to Energy project by end of 2024 and promised too that it would not only lower consumer tariffs by some 50 per cent, but will also replace the current heavy fuel oils that this country currently use, with cleaner fuel. 

The completion timeline has now been revised to next year.

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