As the US Eximbank considers a US$646 million loan for the Wales Gas-To-Shore project in Guyana, public interest litigants Elizabeth Deane-Hughes and Vanda Radzik have instructed their attorney-at-law Melinda Janki, to write to the institution pointing out that the bank should not provide funding for any project which is based on a decision (the grant of a permit) that is ‘contrary to law’.
This action was highlighted in a release on Monday from Deane-Hughes and Radzik and referenced a decision handed down on October 5, 2023, where the court concluded that the “…the decision by the EPA to grant the permit to Esso Guyana was contrary to law and was improper.”
The letter which was sent to a number of Eximbank staff on Friday January 12, and to the President of Eximbank, Reta Jo Lewis, states in part, “Eximbank should not provide funding for any project which is based on a decision (the grant of a permit) that is ‘contrary to law’ Eximbank should respect the rule of law in Guyana.”
It referenced the case of Radzik and Deane-Hughes v Environmental Protec-tion Agency (EPA) and Esso Exploration and Production Guyana Ltd. (Esso) which challenged the EPA’s grant of an environmental permit to Esso for the gas to shore project. “We argued that Esso had not submitted the information, required under the regulations, to show that Esso had legal right or authority to do the project without the consent of the landowner or occupier.”
The letter further pointed out, “After examining the evidence put forward by Esso, the court stated that,
“It therefore cannot be said, that at the time of grant of the permit on 25th November 2022, that Esso Guyana had submitted all the relevant documents which could potentially evince a legal right or ability to conduct the proposed project without the consent of the landowner or occupier.”
As such, Deane-Hughes observed that “The rule of law ought to take priority over government plans for this gas project and Eximbank ought not to support anything that is contrary to law. All companies & partnerships operating in Guyana, including Stabroek Block Partners, need to adhere to & follow the laws of our country. Moreso, in debut unprecedented transformational & transformative projects.”
While Radzik pointed out that, “The report released on 4th October 2023 by the independent global think tank, Institute for Energy Economics and Financial concluded that the Guyana Gas to Energy Project is unnecessary and financially unsustainable. The decision to do the gas project appears to be completely irrational and unjustifiable. If that is the case, then the entire decision to do the gas project is unlawful.”
The release highlighted that the key conclusions from the report which are: 1) ExxonMobil would gain the most from the Gas to Energy Project, through profits from pipeline construction, lending money to Guyana, and selling natural gas. 2) Solar would cost less, reduce costs for ratepayers, generate more local jobs and put Guyana on a path toward meeting its climate goals of 100 per cent renewable energy.
