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David Patterson, Member of Parliament and Chairman of the Alliance For Change (AFC), has raised concerns over the government’s handling of the Wales Gas-to-Shore project, particularly in relation to its feasibility and the claims made by the ruling People’s Progressive Party (PPP) regarding the project’s due diligence. During a press conference on October 18, 2024, Patterson responded to questions about the AFC’s previous stance on the project and the recent involvement of the U.S. Exim Bank, which reportedly found the project to be technically and environmentally sound.
“The PPP is saying we’ve never claimed there was no feasibility study,” Patterson clarified, referencing the AFC’s position. He pointed out that, as the then-Minister of Public Infrastructure, he had conducted feasibility studies in collaboration with international partners such as the Inter-American Development Bank (IDB). “I myself, as minister, paid for one from Energy Narrative. We collaborated with the IDB, and we did two orders. We also employed a company, K&M, who recommended the type of engines based on the composition of our natural gas,” Patterson explained. He criticized the PPP for disregarding these studies, which he believes is at the heart of the current issues surrounding the project.
Patterson also questioned the government’s assertion that the U.S. Exim Bank had conducted its own due diligence, noting that no public documentation has been released. “The government is claiming that the Exim Bank did their own due diligence, but no one has seen it. The government is the only entity making this claim,” Patterson stated. He raised concerns about the transparency of the process, adding, “When you do due diligence, the information should be available.”
He further questioned the timeline of the project, pointing out the delays in financing and the unrealistic expectations set by the government. “You put in a loan two years ago, and we’re almost at the end of 2024, and they have not responded. You’re claiming the project will be finished in March 2025,” Patterson said, expressing skepticism. “Which bank, in which part of the world, do you think will fund a three-month project?”
Patterson was particularly critical of the government’s claim regarding retroactive payments for the project, describing it as “hogwash.” He explained that foreign banks like the U.S. Exim Bank have strict procurement regulations, and any retroactive payments would require that all previous work had been done in accordance with those regulations. “Everyone knows how Exim banks and foreign banks have different procurement regulations. The claim by the government is simply hogwash,” Patterson reiterated.
To further complicate the timeline, Vice President Bharrat Jagdeo, at a press conference on September 12, 2024, explained some of the reasons why the project might face delays. Jagdeo acknowledged that although U.S. Exim Bank had indicated they were moving forward with the project, their internal processes for due diligence and approval would take time. He noted that Exim Bank had hired two consulting firms—Ramba for the environmental review and Sargent & Lundy for the technical aspects—and that these firms had been conducting their assessments over several months.
“The fact that we have gone through to their satisfaction, all the technical and environmental issues, we passed the due diligence there,” Jagdeo said. However, he emphasized that once Exim Bank’s board approved the project, there would still be a mandatory 35-day notification period to the U.S. Congress before final approval could be granted. “This is how multilateral financing works,” Jagdeo explained, suggesting that while the project is progressing, it may take longer than expected due to these procedural requirements.
Patterson highlighted this process as a key factor contributing to the uncertainty surrounding the project’s timeline. “We’re almost at the end of 2024, and they have not responded,” he said, emphasizing the implausibility of the government’s timeline to complete the first phase of the project by March 2025.
As the PPP maintains that the first phase of the project will be completed by March 2025, Patterson urged the public to wait and see if the government’s promises hold up, stating, “Let us see what comes out of that.”
