The U.S. Export-Import (EXIM) Bank’s board has approved a loan to support Guyana’s ambitious Gas to Energy project, an initiative expected to bolster the country’s energy infrastructure and economic growth.
This was announced by Vice President Dr. Bharrat Jagdeo on Thursday.
Dr. Jagdeo revealed that the EXIM Bank’s approval has been forwarded to the U.S. Congress for a 30-day notification period which is expected to expire at the end of November.
After this period, the proposal will return to the EXIM Bank’s board for final approval.
“That is where we stand at this point,” the Vice President told reporters.
Although the loan amount approved is less than the full US$660 million requested by Guyana, it is expected to exceed US$500 million, covering exports originating from the United States.
The funding will also include retroactive financing, which will allow the government to recoup costs it has already incurred since the project began.
This development comes on the heels of a September visit to the United States by Dr. Ashni Singh, Senior Minister in the Office of the President. During this visit, Dr. Singh engaged with key officials from the EXIM Bank to discuss the project’s financing and ensure continued support.
The Gas to Energy project, located in Wales on the West Bank Demerara (WBD), is progressing despite some setbacks in securing the full $660 million loan. The government of Guyana has committed to advancing the project, allocating $400 million from its own resources to ensure its momentum.
Guyana’s efforts to secure support from EXIM Bank have been ongoing for some time. This loan is seen as a vital step in realizing the full potential of the Gas to Energy project.
The project is expected to generate a reliable energy source for the country, cutting current costs by half. With the financing now in place, Jagdeo is optimistic about the project’s continued progress and its long-term impact.
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