By Josiah Williams | November 28, 2024
The United States Export-Import (EXIM) Bank has approved Guyana’s loan application for the Gas-to-Energy (GTE) project, marking a significant development in the government’s efforts to lower electricity costs and expand energy infrastructure.
The announcement was made by Vice President Bharrat Jagdeo during a press conference, where he outlined that the loan, initially set at $660 million USD, has been reduced to under $260 million USD.
The revised terms specify that the loan will primarily cover U.S. exports related to the project.
The loan has been sent to the U.S. Congress for a mandatory 30-day notification period before receiving final approval.
The GTE project involves transporting natural gas to shore via a pipeline to power a generation facility.
According to government reports, the initiative is expected to reduce electricity costs in Guyana by 50% upon completion.
Prime Minister Mark Phillips recently indicated that construction on the project is approximately 58% complete.
The approved funding will provide retroactive financing for expenses already incurred by the government since the project began.
Officials have also disclosed that initial planning for a second power plant is underway, signaling a long-term commitment to enhancing Guyana’s energy landscape.
The Gas-to-Energy project is one of the government’s flagship initiatives, aiming to modernize the country’s energy sector, reduce dependency on traditional fuel imports, and lower costs for consumers.
This milestone represents a step forward in Guyana’s energy transition strategy and broader economic development goals.