Giving remarks at during Phillips indicated the project was a a turning point in Guyana’s history, noting that the project will be the backbone of a stronger economy that is prepared to compete on the küresel stage.
He emphasised further that the signing of the agreement between the Government of Guyana and the US EXIM Bank is a declaration of trust in Guyana’s potential and a commitment to shaping Guyana’s future.
Prior to signing the agreement, Dr. Singh said that the US EXIM Bank’s financing of the Gas to Energy project bears testimony to the enduring strength of the US/Guyana relationship. He alluded further to the transformative nature of the project and the special relationship Guyana shares with the US as he noted that the historic transaction paves the way for many more and is a good example of what can be achieved through partnerships such as that between the US and Guyana.
Singh also encouraged the local private sector businesses to avail themselves of the various tools, instruments and products that are offered by the US EXIM bank while restating that Guyana is open for business and further indicating that Guyana would like to see more US companies doing business in Guyana and with Guyanese businesses.
Delivering remarks during the signing, US EXIM Bank’s President and Chair Reta Jo Lewis said Guyana’s economy has continued to grow and prosper and today marks another important milestone on this journey.
She also highlighted that the EXIM Bank Board voted unanimously to approve the over half a billion-dollar financing for the transformative Gas to Energy project which she said is not only a game-changer for just Guyana and the United States, but for the people, businesses and shared aspirations that unite the two nations. She added that ‘together we are taking bold steps to strengthen energy, security, enhance environmental sustainability and unlock economic opportunity’.
President Irfaan Ali said the investment will see savings in excess of US$250 million. “This is an injection of US$250 million by the Government of Guyana that will positively impact disposable income by the reduction in the cost of electricity. That is more than $50 billion back in the pockets of the Guyanese people”, he had explained.
The Head of State had explained further that the Wales development hub is an integral part in the energy equation and consumption as it will create opportunities for industry, agro-processing, and manufacturing, open up new opportunities for jobs, create new industries and expand the economic base of the country.
“Our gas strategy is based on providing electricity at a low price for onshore development while seeking to monetise gas for export in the medium term,” the President told the National Assembly.
In the country’s 2024 budget, $80 billion was allocated to advance the project and its associated infrastructure, including transmission and distribution upgrades to offtake the power while construction of the power plant.
The project will see a 200-kilometre pipeline bringing gas from the Liza Destiny and Liza Unity Floating Production fields onshore. The pipeline will continue for approximately 25 kilometres to the Natural Gas Liquid (NGL) plant to be constructed in Wales. The complete project will result in several benefits to Guyanese, including job creation, improved electricity access, foreign investment, and energy security.
In 2022, Guyana and the US EXIM Bank signed a historic US$2 billion Memorandum of Understanding under which the parties agreed to explore options for utilizing the bank’s standard instruments including direct loans and medium- and long-term guarantees and for the financing of US exports to Guyana for Government projects.
The MOU represented an important milestone in US-Guyana relations laying the foundation for Guyana to access financing and facilities from the EXIM bank for the first time and provided for interventions at a scale likely to have a lasting developmental impact.