—points to incomplete transmission works at Wales
Opposition Leader Azruddin Mohamed yesterday questioned whether the gas-to-energy project will deliver electricity by December, pointing to what he said were incomplete transmission and substation works at Wales, West Bank Demerara.
In a video posted on his Facebook page, Mohamed stood outside the Wales Industrial substation and showed transmission wires which remained bundled on poles.
“The wires are still bundled up on the poles, meaning it’s not connected to the grid,” he said.
Mohamed also pointed to another substation within the gas-to-energy compound which he said remained incomplete. He argued that the state of the infrastructure casts doubt on the government’s revised promise of first power by the end of December.
“We won’t even get one megawatt from December,” he declared.
The government has said that the first gas turbine is expected to become operational by the end of this year. The other gas turbines and the full combined-cycle plant are scheduled to be completed during the first half of 2027.
President Irfaan Ali told a press conference on Monday that the contractor, Lindsayca, had committed to delivering first power by the end of December. He disclosed, however, that the company had requested additional resources, although he said the government was not then considering another payment.
“I know that there has been a request for additional resources. That has not been discussed,” Ali said.
The latest timetable represents another delay for a project which was originally expected to supply 228 megawatts of simple-cycle power by the end of 2024 and deliver the full 300 MW combined-cycle plant by the end of 2025.
Mohamed said the government had also failed to deliver on its promise that the project would reduce electricity charges by 50%.
“The government promised us that at the end of 2024 our electricity would be slashed by 50%. They didn’t mean the price; they meant constant blackouts,” he said.
The engineering, procurement and construction contract for the power plant and natural gas liquids facility was signed in December 2022 with the Lindsayca-CH4 consortium for US$759 million.
At the signing, Vice President Bharrat Jagdeo said the ability to complete the project within two years was among the principal factors behind the consortium’s selection. Lindsayca subsequently assumed full responsibility for the project after the breakdown of its partnership with CH4 Systems.
The project later became embroiled in a dispute over the late handover of the Wales site. Stabroek News reported in April 2024 that the contractor had taken a US$50 million claim to a Dispute Adjudication Board. By March last year, the government said it was heading to arbitration over two claims totalling almost US$100 million.
Mohamed also focused on the transmission infrastructure being constructed by Indian company Kalpataru Projects International Limited.
Kalpataru was awarded a US$159 million contract in 2023 for transmission lines and substations to connect the Wales plant to the national grid. Those works had also been expected to be completed in 2024.
In April last year, GPL signed a further US$422.2 million in contracts with PowerChina and Kalpataru for an expanded transmission system. PowerChina received two lots valued at US$256.7 million, while Kalpataru received a US$156.5 million lot.
Those contracts include 155 kilometres of 230-kilovolt transmission lines, 167 kilometres of 69-kilovolt lines, five new substations and an upgrade of the Kingston substation. The contractors were given one year to complete the works.
GPL reported in July that PowerChina and Kalpataru were constructing eight new substations and expanding several existing facilities. At that time, the power company said materials were being shipped while site preparation and civil works continued.
Mohamed’s visit came amid continuing public dissatisfaction over frequent power outages.
At Monday’s press conference, Ali described the disruptions as unacceptable and said the country would have to “bite the bullet” and invest heavily in generation and the transmission network. However, when asked who would be held accountable for the recent outages, he did not identify any official or contractor facing action.
The President said GPL’s system was operating without adequate reserve capacity and could not keep pace with rapidly increasing demand. The gas-to-energy project remains the centrepiece of the government’s plan to provide additional generating capacity, reduce reliance on imported fuel and lower electricity charges.
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