Flaying the government over its management of the nation’s finances, former Auditor General Anand Goolsarran asserts that the long-delayed Wales gas to energy project could end up costing the country US$2b.
In his column in today’s inaugural edition of Kiskadee Watch, Goolsarran evaluated the financial paper recently tabled by the government in Parliament.
He pointed out that on the 16th of February 2026, the National Assembly approved a budget for 2026 in the sum of $1.558 trillion. Less than four months later, the Minister of Finance Dr Ashni Singh tabled Financial Paper No. 1 of 2026 seeking the approval of the Assembly for an additional $54.889 billion. Of this amount, $19.087 billion relates to the Gas-to-Power Project.
“This is (a) 178 percent increase on the original estimate of $10.717 billion which comprises local and foreign financing of $2.615 billion and $8.101 billion, respectively. Since the supplementary request is to be funded from local resources, it raises the important question about the extent of the assessment of the financial resources needed for the Project at the time the budget was crafted. Is it now a question where the specifications changed in less than four months, requiring this massive outlay of additional resources?” Goolsarran asked.
That apart, he said that Singh continues to present requests for supplementary estimates without adherence to the requirements of the Fiscal Management and Accountability Act as regards the additional document that describes the impact the variations will have on the financial plan in the annual budget.
“Nor does he indicate how much of the original budget was expended at the time the request is made. What is surprising also is that parliamentarians do not consider these as important issues before approving additional resources”, Goolsarran lamented.
During his inaugural address on 7 September 2025, Goolsarran said that President Irfaan Ali stated that electricity tariffs will be halved by virtue of the Gas-to-Energy Project coming on stream.
“The project commenced in 2022 at an estimated cost of $104 billion, with a completion date of December 2024, which date was revised to June 2026, this month-end. Volume III of the 2026 Estimates now show a new planned completion date of December 2027, and a revised estimated cost is $276.823 billion, a massive 266 percent increase”, Goolsarran charged.
As of 31 December 2025, he said that amounts totalling $258.196 billion, or 93.27 percent of the revised budget, were expended.
“However, as of September 2025, it was reported that the Project was 68 percent complete. Considering the $19.087 billion request for supplementary estimates and well as additional resources to be included in the 2027 Estimates, the cost of the Project is likely to hit the $400 billion mark which will be four times the original estimate made in 2022!” Goolsarran declared.
The gas to energy project is already the most expensive public sector project in Guyana’s history and the government has been hammered for the missteps surrounding it.
The initial scandal revolved around the absence of geotechnical studies which would have made clear that the soil type at Wales, West Bank Demerara was unsuitable for the heavy machinery that needed to be installed there. This required massive amounts of sand filling, pushing up the cost of the project and triggering delays. This prompted a dispute between the government and the US-linked contractor Lindsayca/CH4 that was taken to an international dispute panel and required the government having to pay a substantial sum to the contractors. In the meanwhile, CH4 separated itself from Lindsayca and the project remains badly delayed.
Had the project met its deadline for gas to energy, the country would have had enormous savings from the heavy fuel oil generators which have been used to cover peak demand.
In May this year, the government said that the cost of the gas to energy project wouldn’t exceed US$1.1b. It also said that an “amicable” agreement was reached with the contractor on disputes
According to the Department of Public Information, Prime Minister Mark Phillips said that the 300 megawatt project was advancing.
Phillips noted the company’s commitment to deliver first power in the national grid by the end of 2026.
“The Wales Gas to Energy project represents a defining moment for Guyana and for the energy future of every citizen of this nation. We are satisfied with the progress being made and remain fully committed to ensuring that Guyanese households and businesses benefit. This project will cut electricity costs in half, and we are firmly on track to deliver on that promise.
“Through Guyana’s investment in the 300 MW Gas to Energy (GtE) project, now under accelerated construction, the adaptability of natural gas will be harnessed to transform the power sector. The project aims to reduce electricity costs by 50 per cent and support domestic production of liquefied petroleum gas (LPG) for cleaner household cooking. Beyond immediate energy benefits, the GtE project is expected to enhance industrial competitiveness and strengthen the national energy mix.
“This is complemented by renewable energy ambitions to ensure electricity remains affordable, reliable, and sustainable for all citizens.
“As the largest investment in electricity generation in Guyana’s history, the Wales GtE project is expected to double national generation capacity, improve reliability, reduce fuel imports, stabilise energy costs, and support a 50 per cent reduction in consumer electricity tariffs. Lower energy costs will provide financial relief for households while improving industrial and commercial competitiveness across the economy.
“Underpinning this accelerated momentum is the decisive resolution of all outstanding contractual matters to ensure that construction advances without delay, the Government and Lindsayca Guyana Inc. have reached a resolution on two matters decided by the Dispute Avoidance/ Adjudication Board (DAAB) in January of 2025 relating to soil stabilisation works required at the Wales site and to delay-related provisions. This amicable resolution removes the need for further proceedings such as arbitration, and ensures that construction continues under a fully aligned, forward-looking framework.
“The resolution of costs associated with these matters reflects the realities of building Guyana’s most ambitious infrastructure project and the interest of expeditious project delivery with both parties forgoing the respective rights to historical liquidated damages, capped at 10 percent of the Contract Price.
“Importantly, the overall economics of the GtE project remain firmly on track. While the settlement represents a 12.8 percent increase over the original contract sum of $759 M, the Government’s total expenditure for the wider project, comprising the 300 MW power plant, the Natural Gas Liquids facility, transmission works, substations, 230 kV and 69 kV lines, and the new National Control Centre, remains within the a 10 percent contingency of its budget of US$1B”, the PM said.
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