US EXIM Bank and Guyana Government Sign Agreement for Gas-to-Energy Project
Senior Finance Minister Dr. Ashni Singh (sitting, left) and United States EXIM Bank’s President and Chair Reta Jo Lewis (sitting, right) sign the term sheet on Friday. Overseeing the process was Prime Minister Brigadier Mark Philips (centre). (DPI)
Agreement Signing Ceremony
GEORGETOWN, Guyana, CMC—The United States Export-Import Bank’s President Reta Jo Lewis visited Guyana on Friday to sign an agreement outlining the terms and conditions under which the bank will give Guyana a US$527 million loan to support its gas-to-energy project.
Lewis and Senior Finance Minister Dr. Ashni Singh inked the term sheet at the project site in Wales on the West Bank of Demerara. The loan was approved on December 26 last year.
Prime Minister’s Remarks
Prime Minister Brigadier Mark Philips oversaw the signing and said it was a turning point in Guyana’s history. He said the project will be the backbone of a stronger economy.
“This is indeed a most transformative project, and it is the largest project in terms of size and financing that the Government of Guyana embarks upon in the history of Guyana. This moment speaks to the power of vision, the strength of partnership, and the enormous possibilities that can arise with shared purpose,” he said.
He added that signing the agreement is a declaration of trust in Guyana’s potential and a commitment to shaping the country’s future.
Finance Minister’s Remarks
Before signing the agreement, Dr. Singh said the historic transaction is a good example of what can be achieved through partnerships such as the US and Guyana.
The finance minister recalled his first meeting with the US EXIM Bank Chair in April 2022, noting that it was only months after that government and the bank signed a Memorandum of Understanding (MOU) under which EXIM agreed to make available an aggregate exposure of US$2 billion to Guyana.
“Notwithstanding that, during this journey, it sometimes felt that we were not getting it as quickly as we wanted to, but the reality is that moving from zero to half a billion in two and a half years is a remarkable achievement,” Dr. Singh added, thanking all parties concerned in bringing the project to this point.
Dr. Singh also encouraged the local private sector businesses to avail themselves of the various tools, instruments, and products offered by the US EXIM Bank, restating that Guyana is open for business and would like to see more US companies doing business in Guyana and with Guyanese businesses.
US EXIM Bank President’s Remarks
Delivering remarks during the signing, Lewis said Guyana’s economy has continued to grow and prosper, and the signing marked another critical milestone in this journey. She also highlighted that the EXIM Bank Board voted unanimously to approve the over half-a-billion-dollar financing for the gas-to-energy project, which she said is not only a game-changer for Guyana and the United States but also for the people, businesses, and shared aspirations that unite the two nations.
“Together, we are taking bold steps to strengthen energy and security, enhance environmental sustainability, and unlock economic opportunity,” the bank president said.
Project Details
The gas-to-energy project will see a 200-kilometre pipeline bringing gas from the Liza Destiny and Liza Unity Floating Production fields onshore. The pipeline will continue for approximately 25 kilometers to the Natural Gas Liquid (NGL) plant to be constructed in Wales. The government said the complete project would benefit Guyanese by creating jobs, improving electricity access, foreign investment, and energy security.
Conclusion
The signing of the agreement marks a significant milestone in Guyana’s economic development and demonstrates the country’s commitment to transforming its energy sector. The project is expected to have a positive impact on the country’s economy and environment, and we look forward to its successful implementation.
FAQs
Q: What is the purpose of the gas-to-energy project?
A: The project aims to develop Guyana’s gas resources and use them to generate electricity, reducing the country’s reliance on imported fossil fuels.
Q: What is the cost of the project?
A: The project will cost approximately US$527 million, which will be financed by the US EXIM Bank.
Q: What are the benefits of the project?
A: The project is expected to create jobs, improve electricity access, attract foreign investment, and enhance energy security in Guyana.
Q: When is the project expected to be completed?
A: The project is expected to be completed in the coming years, pending the successful implementation of the agreement.