Gov’t invites proposals for second power plant at Wales

The Government of Guyana invited qualified firms to submit proposals for a second natural gas-fired power plant at Wales, West Bank Demerara (WBD).

According to the Request for Proposals (RFP), published in the Friday edition of the Guyana Chronicle newspaper, the government wants an investor to design, finance and operate the project.

It is part of the second phase of the Gas to Energy project curtently under development.

A massive 300 megawatt (MW) natural gas-fired power plant is being developed at Wales. Gas produced in the lucrative Stabroek Block offshore will be brought onshore to power this plant. There will also be a Natural Gas Liquids (NGL) facility.

The project should be operational by 2025, slashing the cost of electricity in half.

The project should reduce the expenses for ordinary citizens while also stimulating an expansion of business- especially the manufacturing sector which needs huge amounts of energy.

Looking ahead, the government believes that Guyana’s energy needs will continue to grow. In a recent interview, President Dr. Irfaan Ali confirmed that a second power plant would be pursued.

The second plant, if built, will be located immediately adjacent to the 300MW facility.

And based ont he RFP, the project will be on a 20 to 25-year power purchase agreement, though this is negotiable. Investors will recover their investment from the sale of electricity, and from the monetisation of the NGL facility.

The government, however, refers the right to buy-out the project anytime after construction and commissioning. It would only do so at an agreed-upon formula that allows the investor to obtain a return of investment and a reasonable accrued return based on the cost of capital.

It also reserves the right to transfer the entire volume of NGL so the government can market and distribute alongside the Phase I’s NGL either at zero cost or another agreed value.