The Guyana Power and Light Company (GPL) on Friday signed off on three contracts totaling US$422 Million for the construction of transmission lines and five new substations to support the Gas-to-Energy Project.

Acting Chief Executive Officer of GPL, Kesh Nandlall signed on behalf of the power company.

The deal represents the single largest investment by the power company, according to its officials.

The multi-billion-dollar project will be executed in three parts, with Lots 1 and 3 awarded to Power China to the tune of US$256.7M and Lot 2 awarded to the Kalpataru company to the tune of US$156.5M.

Prime Minister Mark Phillips, who along with the Minister within the Ministry of Public Works, Deodat Indar, witnessed the signing of the contracts at the Prime Minister’s Office, said the construction of the transmission lines and substations are key to the Gas-to-Energy Project.

“Today, we are talking about transmission, and transmission is the backbone. If you don’t have a proper backbone the whole system will not work. We are producing all this power; we have to evacuate it safely and in a stable manner to where it is needed. This is a transformative project in the sense that we are not just repairing what is already there, we are building a brand new transmission system that is modern, that is state of the art, that is comparable in any part of the world, any such construction that is going on today, what we are doing from this contract is comparable to the latest in terms of transmission technologies. That is what we are doing for Guyana,” the Prime Minister said.

He said the project is critical to fulfilling the Government’s commitment to bring down the cost of electricity by 50% with the completion of the first Gas-to-Energy Project this year.

Minister Deodat Indar said the project, which includes the construction of 155 kilometres of 230 double circuit transmission lines and 167 kilometres of 69 KV double circuit transmission lines, will help to improve the energy infrastructure of the country.

“This signing today is part of the design to improve the energy infrastructure, and what that means, the plant that is being constructed at Wales, the power has to move from Wales into the rest of the country. One part of that power will come from Wales over the Demerara River to Garden of Eden into the backlands and it will terminate at a location behind Eccles, they call it Goedverwagting,” Minister Indar said.

The project will also see the substation at Kingston being upgraded.

The Government officials told the contractors that it is important to complete the project within the one-year-time frame.

Through the Gas-to-Energy Project, the Government is aiming to provide an additional 300 megawatts of electricity to the national grid on completion of the first phase of the project, and another 300 megawatt during the second phase of the project

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