–bank’s Chairperson optimistic about future developments as US-Guyana further strengthen partnership

IN a significant step towards advancing its energy infrastructure, Guyana has officially inked a loan agreement with the US Export-Import (EXIM) Bank for its ambitious Gas-to-Energy (GTE) Project.
The contract was officially signed on Friday afternoon at the GTE project site at Wales, West Bank Demerara, where the US EXIM Bank’s President and Chairperson, Reta Jo Lewis highlighted the significance of the project which aims to reduce the cost of electricity, enhance energy security and promote environmental sustainability.

Jo Lewis said: “Together, we are taking bold steps to strengthen energy security, enhanced environmental sustainability and unlock economic opportunity.”
She further pointed out that this multimillion-dollar collaboration is just the first of many, emphasising the long-standing relationship between Guyana and the US.
The Exim Bank Chairperson said: “We’re not just talking about US businesses and workers in the United States, we’re talking about businesses and workers right here in Guyana.”
Guyana’s Prime Minister, Brigadier (Ret’d) Mark Phillips said that the secured funding will allow the country to modernize its energy infrastructure, positioning it to meet the growing demand for an increasing dynamic economy.

“This project will be the backbone of a strong economy that is prepared to compete on the global stage. But as we consider transition to an energy mix of cleaner natural gas, achieving a dramatic reduction in emissions is also a testament to the understanding respect for the environment”, the Prime Minister said.
Senior Minister in the Office of the President with Responsibility for Finance, Dr. Ashni Singh, further highlighted the shared values or the two nation pointing to the economic trade and commercial dimensions of the two country’s partnerships.

Back in December, the financial institution granted its final approval for the US$526 million loan at their Board Meeting, after having completed the 35-day congressional notice period.
The benefits of this project go beyond cheaper electricity. It was highlighted that there could be additional revenue potential from gas liquids extracted during the process.
This, Vice-President, Dr. Bharrat Jagdeo had said, spawn by-products like cooking gas which could generate some $250 million annually if sold at current market price.

The pipeline installation for the project was completed in 2024 with the government expecting the integrated gas processing facility to be completed by the fourth quarter of 2025 while partial start-up is planned for earlier in the year.