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Georgetown, Guyana — The Alliance for Change (AFC) has raised serious doubts about Vice President Bharrat Jagdeo’s recent announcement regarding the approval of a US Exim Bank loan for the controversial Gas-to-Energy project. At a press conference on November 29, AFC Chairman and Member of Parliament David Patterson presented evidence contradicting Jagdeo’s claims and accused the government of misleading the public about the project’s progress.
According to Jagdeo, the US Exim Bank’s Board has approved the loan and sent it to Congress for a 30-day notification period, after which final approval would follow. However, Patterson dismissed these assertions, sharing a response from the US Exim Bank officials the AFC had contacted. “No approval was given by the EXIM Bank at their last meeting in November,” Patterson stated, adding that the next meeting is scheduled for January 9, 2025, and the loan application may not even be discussed then.
Patterson elaborated on the approval process, noting that if Congress reviews the application in its “lame duck” session, it is unlikely to progress before March 2024. He emphasized that even after potential approval, the loan would require further legal and procurement vetting, typically taking six to nine months before disbursement.
The AFC Chairman also cast doubt on Jagdeo’s claim of retroactive financing, which he said was “strange” given US Exim Bank’s historical practices. “Financing is based on their bylaws and has to comply with specific regulations. Retroactive financing would be unlikely, especially as the bank did not play a part in the procurement process,” Patterson noted.
Patterson highlighted ongoing delays and cost concerns with the Gas-to-Energy project, revealing that 58 percent of the project budget had already been spent while critical infrastructure, such as the foundation for the power plants, remains incomplete. During a recent site visit, Patterson said, “Not even the foundation for the plants has been completed.”
The AFC also accused the government of shifting its promises about the project. Initially touted to deliver a 50 percent reduction in electricity rates, recent government statements now vaguely suggest that the project will “significantly reduce rates.” Patterson called this a “prime example” of flawed financial modeling and questioned whether the project would meet its original goals.
This is not the first time the PPP government has been accused of prematurely announcing approvals for the Gas-to-Energy project, according to Patterson. “The nation will soon learn the truth,” he remarked, referring to the upcoming US Exim Bank meeting. The AFC Chairman concluded by urging the government to provide clarity on the final loan amount and financing mechanisms, stressing that transparency is crucial for such a high-stakes project.
