Guyana Signs US$759 Million Dollar Contract With US-Owned Company

GEORGETOWN, Guyana – Guyana has signed a contract with the US-owned LINDSAYCA/CH4, for the construction of the integrated Natural Gas Liquids (NGL) plant and the 300-megawatt (MW) combined-cycle gas turbine (CCGT) power plant at Wales, West Coast Demerara (WCD)

CHLYNCHSPresident Dr. Irfaan Ali (center) flanked by US Ambassador Sarah-Ann Lynch and other officials at the signing ceremony (DPI Photo)President Dr. Irfaan Ali said that the US$759 million project will unlock enormous economic opportunities for Guyana and that the initiative will help to build the local capacity, particularly among the young people involved, especially during the initial stages of the project’s implementation.

“This is the largest project that we would have embarked on as a country and that brings its own challenges but it also gives us an opportunity to build capacity,” he said.

But Ali told the ceremony that the project does not slow down the government’s commitment to the Amaila Falls Hydro Power project, which he said forms part of his administration’s energy masterplan that is national and regional in nature.

Vice President, Bharrat Jagdeo, who also spoke at the signing ceremony on Tuesday, reiterated the government’s commitment to ensuring the project is developed along the highest international standards at the environmental, procurement, engineering, tendering, and evaluation stages.

“Given the importance of this project, its size and its transformative nature, we had to get this right and we believe that with this contractor LINDSAYCA/CH4 combination that they will deliver on the project.”

Jagdeo said the project is in keeping with the government’s manifesto promise to deliver cheaper and reliable electricity to Guyanese and aligns with the country’s low carbon approach.

“This project will allow us to decarbonize the energy sector along with hydro coming soon and solar panels already tendered to triple installed capacity and cut emissions by 70 per cent,” he said.

United States Ambassador to Guyana, Sarah-Ann Lynch, said the project will unlock new opportunities for economic diversification.

Last Friday, the government announced that CH4/ LINDSAYCA  had been confirmed to build the natural gas-fired electricity plant and natural gas liquids plant at a reduced cost of US$759 million.

The authorities said that the first payment would come from GUY$20 billion (One Guyana dollar=US$0.004 cents) in the 2022 national budget and the remainder would be a loan from the United States Export-Import Bank.

CH4/ LINDSAYCA had bid to build the facility for US$899 million under an engineering, procurement and construction contract, but Jagdeo said a number of aspects of the original bid have been erased during the negotiations leading to a reduction in the cost.

“A number of things in the LINDSAYCA bid- they had provisions for a number of things that were not required as part of the manufacturers requirement so those were removed,” he said.

Tuesday’s signing was done by the Permanent Secretary at the Office of the Prime Minister, Derrick Cummings and representatives of LINDSAYCA/CH4.