US EXIM Bank loan: Jagdeo says ‘due diligence’ done by technical experts

Consultants were in Guyana assessing the Gas-to-Energy project at Wales, West Bank Demerara (WBD) for the United States Export-Import (EXIM) Bank.

With the process of “due diligence” now complete, Vice President Dr. Bharrat Jagdeo says the country’s request for funds could be taken to the Board for approval sometime in October.

Guyana is awaiting the final approval of funds from the EXIM Bank to advance the project. Recently, the country’s Finance Minister Dr. Ashni Singh met with key officials from the bank while in the US.

“Ashni Singh met with EXIM Bank and he is going to tell you about it and that they have indicated that they have all of the information they need to go to the board,” Jagdeo said at a press conference on Thursday.

Elaborating on ongoing engagements, Jagdeo disclosed that consultants hired by the bank visited Guyana for several months, assessing the environmental and technical viability of the project. According to him, the project was deemed “technically sound.”

With the “due diligence” needed by multilateral financial institutions now complete, the Vice President said the project could be taken to the Bank’s board next month.

“They’re aiming to go to the Board by October Board meeting but all of the technical and environmental work has been completed and they have all of the information necessary to go to the board,” he said.

Once the project, and the funding request, passes the board, the US Congress will be notified for 35 days. Then, Jagdeo said the project goes back to the EXIM Bank board before funds would finally be released.

The Gas-to-Energy project—which includes the four gas turbines and two steam turbines—is expected to provide about 300 megawatts (MW) of power, using natural gas brought onshore through an ExxonMobil pipeline.

The project also includes a Natural Gas Liquids (NGL) facility, a transmission and distribution network, and a modern control center. Altogether, the project should slash the cost of electricity in half.

The development in Wales is making significant progress, with the government allocating a substantial US$400 million from its resources to advance the project despite delays in securing a US$660 million loan sought from the US EXIM Bank.