The United States Export Import US EXIM Bank has granted final approval for a US$527 million loan to support Guyana’s Gas-to-Energy GTE project. In a statement on December 26, the financial institution said the Board of Directors approved $527 million to the Ministry of Finance of the Cooperative Republic of Guyana to support a gas-to-energy project that will strengthen the country’s energy security by doubling the country’s installed electric capacity.It explained that financing from the transaction will aid the construction of a natural gas separation plant; a 300 megawatt MW combined cycle gas turbine power plant and services related to the gas supply pipeline near Guyana’s capital, Georgetown. This project will allow Guyana to transition to more reliable and cleaner energy for consumers and businesses by using natural gas-powered turbines to generate electricity. Without this gas-to-energy project, Guyana will continue to import fuel oil, one of the highest polluting fossil fuels, and be unable to decommission hundreds of less efficient local generators. This project will result in a reduction of more than 460,000 tonnes of carbon dioxide per year, the equivalent of consuming more than one million barrels of oil,” the US EXIM Bank stated.
President and Chair Reta Jo Lewis said, “I am extremely pleased that the Board of Directors approved this strategically important energy project. Not only is EXIM continuing its support of U.S. businesses small and large, but this project will support more than one thousand jobs across the country. I am especially proud to continue to support Bank priorities and charter mandates along with projects that align with the administration’s economic, energy, and national security priorities In a statement on December 26, the financial institution said the Board of Directors approved $527 million to the Ministry of Finance of the Cooperative Republic of Guyana to support a gas-to-energy project that will strengthen the country’s energy security by doubling the country’s installed electric capacity. It explained that financing from the transaction will aid the construction of a natural gas separation plant; a 300 megawatt MW combined cycle gas turbine power plant and services related to the gas supply pipeline near Guyana’s capital, Georgetown.This project will allow Guyana to transition to more reliable and cleaner energy for consumers and businesses by using natural gas-powered turbines to generate electricity. Without this gas-to-energy project, Guyana will continue to import fuel oil, one of the highest polluting fossil fuels, and be unable to decommission hundreds of less efficient local generators. This project will result in a reduction of more than 460,000 tonnes of carbon dioxide per year, the equivalent of consuming more than one million barrels of oil,” the US EXIM Bank stated.President and Chair Reta Jo Lewis said, “I am extremely pleased that the Board of Directors approved this strategically important energy project. Not only is EXIM continuing its support of U.S. businesses small and large, but this project will support more than one thousand jobs across the country. I am especially proud to continue to support Bank priorities and charter mandates along with projects that align with the administration’s economic, energy, and national security priorities.The financing will support a U.S. joint venture involving Lindsayca, a Texas-based company, and CH4 Systems, a Puerto Rican small business. The joint venture was awarded the contract to construct the NGL and power plant for Guyana. According to the EXIM Bank, the financing will also support more than one dozen U.S. companies and support an estimated 1,500 jobs across 11 states and territories.The Board Meeting was held on Thursday, completing the 35-day congressional notice period. “President Ali expressed to the Chair and EXIM Bank as well as all other US Government agencies and authorities involved, including Ambassador Theriot and her team at the US Embassy in Guyana, the Government’s strong appreciation and thanks for the approval granted and for the confidence shown in this GTE project and in Guyana,” the Office of the President said. Further, the Head of State commended the Guyana team at the Office of the President, Ministry of Finance, Ministry of Natural Resources, and the Guyana Embassy in Washington DC, whose work helped secure this important outcome for our country.Meanwhile, the American Chamber of Commerce of Guyana AMCHAM applauded the loan approval, signaling that the landmark agreement marks the largest-ever infrastructure loan in the Caribbean which signifies a growing confidence in Guyana’s prosperity and deepening the U.S.-Guyana partnership. (Kaieteur News)
Photo: President Irfaan Ali.