(MENAFN- Caribbean News Global)
GEORGETOWN, – The government of Guyana has received a loan approval for its flagship project – the Gas-to-Energy being developed at Wales, Region Three – from Export-Import bank of the United States (US Exim Bank) board.
Following this approval, Guyana's application will be sent to the US congress for a mandatory 30-day notification period. This latest development was highlighted by Dr Bharrat Jagdeo, the General Secretary of the People's Progressive Party (PPP), during a party press conference on Thursday in Georgetown.
“After which it will be returned to the board of the Exim-Bank for final approval, So, that is where we stand at this point in time,” he noted at Freedom House in Georgetown.
Initially, the government was seeking $US646 million to advance works on the premier project, but will only access likely upwards of $500 million. He said this sum will focus solely on exports from the United States.
However, according to Dr Jagdeo, the loan provides retroactive financing, covering financial expenditures by the government, since the project's commencement.
To date, the government has expended approximately US$400 million of its own resources , ensuring the project is completed in due course.
This monumental energy project encompasses the laying of a 200-kilometre pipeline, that will transport gas from the Liza Destiny and the Liza Unity Floating Production fields onshore at the West Coast Demerara facility.
The pipeline will continue for approximately 225 kilometres to the Natural Gas Liquid (NGL) plant, that is to be constructed in Wales.
Upon completion, the Gas-to-energy project will have significant impact on the country's economy, attracting sustainable investments across various sectors and creating numerous job opportunities.
Notably, energy costs are expected to be slashed by 50 per cent, allowing Guyanese to enjoy affordable and stable electricity.
The government has partnered with oil giant ExxonMobil to develop the necessary infrastructure and facilities to transport and process the gas for power generation and other applications. At the time the PPP/C government took office, generating capacity was between 96 to 100 megawatts with a demand of 115/116 megawatts.
The post US Exim Bank board approves loan for Gas-to-shore project – Guyana appeared first on Caribbean News Global .
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