Following last week’s unanimous voting of a US$527 million loan from the United States EXIM Bank to Guyana for its Gas-to-Energy (GtE) project, President of the Bank, Reta Jo Lewis, along with Prime Minister Mark Phillips yesterday inked the agreement allowing for the formal release of the sums.
Washington believes the loan is a game changer here while government says it is only one step towards accessing the US$2 billion purse which the bank has made available to this country.
“This deal is a game changer. Not just for Guyana and the United States, but for the people, businesses, and shared aspirations that unite our two nations,” the US EXIM Bank President said at the signing, which was held at the GtE site at Wales on the West Bank of Demerara.
“Together, we are taking bold steps to strengthen energy security, enhance environmental sustainability, and unlock economic opportunity. For Guyana, this project will double the country’s installed electric capacity, providing cleaner, more reliable, and more affordable energy for families and businesses. By partnering with the US and our private sector, Guyana has chosen the best-in-class equipment and a work culture dedicated to high standards and safety,” she added.
Declaration of trust
Prime Minister Mark Phillips, under whose ministry the projects falls, stated that yesterday’s signing represented an opportunity to celebrate a turning point in Guyana’s story and this country is grateful that US EXIM believed in the viability of the project and chose it.
“This is a moment that speaks to the power of vision, the strength of partnership, and the enormous possibilities that arise in shared purpose. The signing of this agreement between the Government of Guyana and the Export-Import Bank of the United States is a declaration of trust in Guyana’s potential and a commitment to shaping our country’s future, which is defined by progress and opportunity,” Phillips said.
Further, he added, “The [US] $527 million in financing provided by EXIM Bank will breathe life into Guyana’s Gas-to-Energy Project. This will allow us to double Guyana’s installed electric capacity, modernise our energy infrastructure, and position us to meet the growing demands of an increasingly dynamic economy. This project will empower our people, our industries, and our aspirations as a country.”
The Prime Minister noted that when government speaks of the project, it speaks to a cleaner, more reliable, and more affordable energy future for every citizen.
“Families will find relief in lower electricity costs. Businesses will discover new avenues for growth. Our industries will expand, bringing with them jobs, opportunities, and prosperity. This project will be the backbone of a stronger economy that is prepared to compete on the global stage. But, as we consider the transition to an energy mix of cleaner natural gas, achieving a dramatic reduction in emissions, it is also a testament to Guyana’s standing respect for the environment that sustains us. For a nation as rich in natural beauty and biodiversity as Guyana, it sends a clear message that Guyana is committed to growth, but not at the expense of the generations to come.”
He went on, “Let us not forget that this moment would not have been possible without the emergence of Guyana as a key player in the global energy landscape. Our oil and gas industry has provided the means to envision such transformative projects, and this agreement stands as proof that we are building a future beyond the extraction of resources. This project symbolises the potential of our resources to bring real and lasting benefits to the people of Guyana.”
Phillips noted that the importance of the project is also a reflection of the firm and prosperous partnership between Guyana and the United States, a partnership rooted in shared values and mutual respect.
“The involvement of our US partners demonstrates the strength of our collaboration and the trust that international stakeholders place in Guyana. We are grateful for this trust, which has been earned through Guyana’s commitment to responsible governance and sound policies.”
Technical
Zooming in on the technical aspect, he explained that the financing from the transaction paves the way for constructing a state-of-the-art natural gas separation plant, a 300-megawatt combined-cycle gas turbine power plant, and supporting infrastructure for the gas supply pipeline.
The project, according to the Prime Minister, will cut over 460,000 tonnes of carbon dioxide emissions annually, equivalent to consuming more than one million barrels of oil.
Turning to the US company executing the project, Phillips said that the project was made possible through a dynamic collaboration.
“It brings together a US joint venture – Lindsayca and CH4 Systems, under LNDCH4 – and services provided by ExxonMobil. Gas will be transported from crude oil production on the Liza Phase 1 and 2 FPSO vessels via an integrated pipeline network to a combined-cycle power plant, seamlessly connecting to Guyana’s electricity grid. Key project components will be owned and operated by both ExxonMobil Guyana Limited and the Government of Guyana. This development also aligns with rigorous environmental and social safeguards under the Equator Principles and IFC Performance Standards.”
Securing the loan disbursement, he said, was another step in his government’s commitment to lowering electricity costs, strengthening energy security, and unlocking industrial development through affordable, cleaner power for all of Guyana.
“It is a cornerstone of Guyana’s energy strategy, delivering reliable and sustainable electricity while driving economic growth and environmental stewardship,” the Prime Minister posited.
“The revenues from our oil and gas sector must serve as the engine of a diversified economy, one that prioritises education, healthcare, and innovation. We want to create a country where opportunity knows no bounds, where every citizen has the tools to build their future, and where prosperity is both shared and enduring,” he added.
However, he was quick to note that economic transformation “is a marathon that demands discipline and perseverance, but it is also about seeing progress in the lives we touch.”
The GtE Project, he said, “will create thousands of jobs, many of which will go to the young men and women of Guyana, and many more persons will also feel the ripple effects that the project will bring. These opportunities will open their horizons and provide further opportunities for our people toward a better tomorrow.”
It is why he believes that yesterday’s signing ceremony was “a moment to pause and reflect, to celebrate what has been achieved, and to commit ourselves to the work that lies ahead. It is a reminder of what can be accomplished when we place the needs of our people above all else.”
Thanking US EXIM, and international partners, and all others that helped to make the project a reality, Phillips said it was a moment to serve as a demonstration of what is possible when there is a pursuit of shared goals.
‘All of that Loan’
Senior Minister in the Office of the President with Responsibility for Finance and the Public Service, Dr Ashni Singh, also present at the signing, in his brief remarks echoed most of what the US EXIM President said. Dr. Singh noted that the project “goes to the core” of his government’s efforts to build a non-oil economy.
He pointed out that with the bank offering a purse of US$2 billion to Guyana, “there is still US$1.5 billion and we are looking forward to taking up all of that loan.”
To US businesses, he said that government wants them to know that this country is open for business and “wants to see more American companies” coming here to invest.
US Companies
The US EXIM Bank President said that the initiative also reflects EXIM’s unwavering commitment to supporting US businesses and workers.
“Through this financing, we are helping sustain an estimated 1,500 American jobs across 11 states and territories while empowering more than a dozen US companies to contribute their expertise to Guyana’s energy future,” she said.
“I want to thank the Guyanese government for its vision and collaboration, as well as the many American companies that have brought their talents and technology to this endeavour. Together, we will demonstrate that partnerships rooted in shared values and shared benefits yield results that are greater than the sum of their parts,” she asserted, while noting also that US equipment and technology offer reliable, durable, and quality solutions for Guyana’s development.
On Boxing Day, US EXIM Bank gave final approval for the project and its green lighting is also part of the institution’s pushback against Chinese competition.
The Exim Bank’s press release issued on December 26 stated, “This project also falls under EXIM’s China and Transformational Exports Program (CTEP) mandate, as the numerous U.S. companies that were ultimately awarded the contract faced direct competition from the People’s Republic of China.”
According to its website, the China and Transformational Exports Program (CTEP) is a mandate for EXIM to help US exporters facing competition from the People’s Republic of China and ensure the US continues to lead in the 10 Transformational Export Areas: AI, Biotech, Biomedical, Wireless Communications, Quantum Computing, Renewable Energy, Storage, & Efficiency, Semiconductors, Fintech, Water Treatment & Sanitation, and High Performance Computing.
The award of the loan under this mandate would be perhaps the most prominent recognition by Washington that US companies face stiff competition from Chinese companies here.
The loan covers 25 per cent of the cost of the GtE project which is expected to alleviate the electricity tariffs by as much as 50 per cent. It is to be repaid at a fixed 4 per cent interest rate over 15 years, amounting to 30 semi-annual installments. Payments will commence on May 1, 2031, and will be made every May and November thereafter.
Vice President Bharrat Jagdeo has explained that the loan, “Is a 4 per cent fixed interest. Principal repayment is 30 semi-annual installments due and payable on each November and May 1, 2031. So that is when you start paying from and it will be 15 years thereafter.”
Prime Minister Mark Phillips (seated centre) observing the signing of the deal by Finance Minister Dr Ashni Singh (left) and US EXIM Bank President Reta Jo Lewis. Also in photo are US Ambassador Nicole Theriot (right) and Natural Resources Minister Vickram Bharrat.
