–to expand, upgrade country’s transmission, distribution network
THE Guyana Power and Light Inc. (GPL) has embarked on its largest infrastructure project to date, valued at US$422 million (approximately G$90 billion), to expand and upgrade the country’s transmission and distribution network.
The proposed expansion and upgrade is for the distribution of power from the gas-to-energy project to the national grid.
The project contract was signed on Friday at a brief ceremony at the Prime Minister’s Office, and attended by Prime Minister Brigadier (Ret’d) Mark Phillips; Minister within the Ministry of Public Works Deodat Indar; and Head of GPL’s Management Committee Kesh Nandlall.
The project has been divided into three lots: Lots One and Three were awarded to PowerChina for a combined total of US$256.7 million, while Lot Two was awarded to Kalpataru for US$156.5 million. The government and GPL anticipate its completion within a year.
During his address, Prime Minister Phillips underscored the transformative nature of the project, emphasising that the transmission serves as the backbone of the country’s electricity supply.
According to him, this historic investment is crucial to ensuring the reliable delivery of power across Guyana, especially as the nation experiences unprecedented economic growth.
He noted that while short-term measures such as power barges have stabilised supply, the government remains committed to medium-and-long-term energy solutions, including the Gas-to-Energy Project and the Amaila Falls Hydropower Project.
He highlighted the government’s phased approach to energy development, with immediate projects underway and future initiatives already in planning.
“When we went to the electorate in 2020, we went with a Manifesto, and we promised that, once and for all, we would fix this whole electricity problem. Today, in Guyana, we have adequate electricity; more than the demand,” he said.
He added that the new transmission system will replace outdated infrastructure, integrating cutting-edge technology that aligns with global standards.
“This is part of our first five years of development,” Phillips emphasised.
He said the project will also support Guyana’s rapid expansion, ensuring reliable electricity for new housing schemes, industrial activities, hospitals, schools, and underserved communities.
He said that the project will ensure a stable and efficient electricity supply within the Demerara-Berbice Interconnected System (DBIS), benefitting approximately 585,000 customers.
According to Phillips, 17 previously unserved areas have already received electricity under the current administration’s development initiatives.
“President Dr. Irfaan Ali and his government promised development to the people, and what we are doing here is delivering on that promise,” he concluded, reaffirming the government’s commitment to continuous progress in the energy sector.
Nandlall, in his remarks, pointed out that in 2024, GPL expanded its grid capacity by 124 megawatts to accommodate the rising electricity demand.
He said the company’s projected peak demand for 2025 is approximately 250 megawatts, with installed generation currently standing at 300 megawatts.
“The Government of Guyana has invested in the Gas-to-Energy project, which aims to deliver an additional 300 megawatts to the national grid in the first phase, followed by another 300 megawatts in the second phase,” Nandlall said.
EFFICIENTLY TRANSMITTED
GPL’s challenge, according to him, is to ensure this power is efficiently transmitted across the country.
The project works include the construction of 155 kilometers of 230 kilovolt (kV) double-circuit transmission lines and 167 kilometers of 69 kV double-circuit transmission lines, along with the development of five new substations and the upgrade of the Kingston substation in Georgetown.
One of the major components of the project is the 230 kV transmission line, which will interconnect the under-construction Goedverwagting substation to a new substation in Williamsburg, East Berbice. Meanwhile, the 69kV transmission line will replace existing infrastructure along the railway embankment, linking substations in East Coast Demerara.
New substations will be built at La Bonne Intention (LBI) and Enmore on the East Coast Demerara in Region Four (Demerara-Mahaica), at Trafalgar in Region Five (Mahaica-Berbice), and at Williamsburg in Region Six (East Berbice-Corentyne) to improve power transmission efficiency, and accommodate future growth in these regions.
Nandlall emphasised the importance of maintaining high international standards, and urged contractors to meet project timelines.
“These are very important projects for the country and the people of Guyana. And I would like to let you know that this project, which we are going to sign today, is the largest-ever investment for GPL in infrastructure, in a one-time investment,” he noted.
Minister Indar said the government has not raised electricity rates for the past four-and-a-half years.
The government, he added, aims to provide 500 megawatts of power, including 300 megawatts from a gas-to-energy project, and 165 megawatts from other sources, like ‘hydro’ and solar power.
He stated that last year, the Ministry of Public Works issued 13,974 electrical inspection certificates, reflecting a strong demand for new connections across various sectors, including housing, oil and gas, water development, and new facilities.