By Delicia Janneire | January 11, 2025
Guyana has taken a significant step forward in its energy development with the signing of a US$527 million loan agreement with the United States Export-Import (US EXIM) Bank for the Gas-to-Energy (GTE) project.
The agreement was formalized on Friday during a ceremony at the project site in Wales, West Bank Demerara.
Prime Minister, Retired Brigadier Mark Phillips, along with several government ministers, including Dr. Ashni Singh, the Senior Minister in the Office of the President with responsibility for Finance, were present at the event.
The loan, which has been approved by US EXIM Bank, will play a crucial role in the successful realization of the GTE project, which is expected to have a transformative impact on Guyana’s economy.
President and Chair of the US EXIM Bank, Reta Jo Lewis, described the agreement as a major milestone that will bolster energy security, promote environmental sustainability, and open new economic opportunities for Guyana.
Prime Minister Phillips also emphasized the significance of the loan agreement, describing it as a testament to the trust placed in the government of Guyana.
He highlighted that the project would enable Guyana to double its installed electric capacity, modernize its energy infrastructure, and better meet the growing energy demand fueled by the country’s expanding economy.
In line with this, Dr. Ashni Singh spoke to the rapid progress made since the signing of a Memorandum of Understanding between Guyana and US EXIM Bank in 2022.
He emphasized that efforts to make key projects like GTE a reality had been swift and decisive.
The GTE project is on track to start producing power in the third quarter of this year.
Notably, 85% of the necessary equipment has already been manufactured, with 100% of this equipment, including the turbine, now in Guyana.
This marks a crucial phase in the project, setting the stage for the enhancement of the nation’s energy capacity.
This loan agreement further highlights Guyana’s growing role in regional energy development and positions the country for long-term energy sustainability.