The Export–Import (EXIM) Bank of the United States yesterday committed to financial support for the 2nd 300 MW gas-to-energy (GtE) project in Berbice even as the first project it has been a major financier for struggles to meet deadlines and deliver power.
In New York yesterday for the United Nations General Assembly, President Irfaan Ali met with the Chairman of the bank, John Jovanovic and the two later made the announcement in a video posted to the Office of the President’s Facebook page.
Ali said that US EXIM had “once again demonstrated its full commitment to this transformative agenda and being part of some of our historic projects …More importantly leveraging the US EXIM network and working together with other international stakeholders in finding solutions for existing projects.
Furthermore, Ali said there will be widening EXIM support in Guyana in housing and security and other areas of national interest. This, he said, included the long-stalled Amaila Falls hydro power project and also the building out of the Lethem airport. Project.
Jovanovic said that US EXIM wanted to take this “very vital partnership to the next level”.
He added “As you know, (US) President (Donald) Trump has a deep-seated commitment to ushering in an era of peace, prosperity and stability in the Western Hemisphere”.
Jovanovic said that both sides discussed the portfolio of projects and that the bank was “deeply committed” to ensuring that the GtE 1 project is completed and that GtE 2 is brought to life.
Jovanovic stated “The vision you (Ali) have for transforming, industrialising Guyana all depends on reliable base electricity and power generation and so we want to ensure that that serves as a foundational backbone”.
Speaking about the proposed deep-water port, Jovanovic said that EXIM is “honoured to be a part of a broad-based group of other …like-minded international actors that want to see you and Guyana succeed”.
He also said that there will be partnership in advancing the affordable housing construction project in alliance with US companies. He assured: “America will be a long-term strategic partner with you…”
Boxing Day
The US EXIM Bank on Boxing Day of 2024 gave final approval for the long-awaited US$527m loan for the GtE 1. Its greenlighting was also part of the institution’s pushback against Chinese competition.
The EXIM Bank’s press release issued on December 26 said “This project also falls under EXIM’s China and Transformational Exports Program (CTEP) mandate, as the numerous U.S. companies that were ultimately awarded the contract faced direct competition from the People’s Republic of China”.
According to the EXIM website, the China and Transformational Exports Program (CTEP) is a mandate for EXIM to help U.S. exporters facing competition from the People’s Republic of China and ensure the U.S. continues to lead in the 10 Transformational Export Areas: AI • Biotech • Biomedical • Wireless Communications • Quantum Computing • Renewable Energy, Storage, & Efficiency • Semiconductors • Fintech • Water Treatment & Sanitation • High Performance Computing.
The loan covered roughly 25% of the cost of the GtE 1 project which is expected to alleviate electricity tariffs by as much as 50%. It is to be repaid at a fixed 4% interest rate over 15 years, amounting to 30 semi-annual installments. Payments will commence on May 1, 2031, and will be made every May and November thereafter.
The GtE 1 project was originally supposed to be completed by the end of 2024. After numerous delays, the government has said that the first tranche of power under the 300 MW project will be ready by December of this year.
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