The Export-Import Bank of the United States (EXIM) has announced a pivotal application for a long-term loan or financial guarantee exceeding $100 million to support the export of U.S.-manufactured goods and services. This transaction underscores the growing collaboration between the United States and Guyana in advancing the latter’s burgeoning energy infrastructure.
Purpose of the Transaction
The funding aims to facilitate critical infrastructure projects in Guyana, including:
•A natural gas separation plant.
•A combined cycle gas turbine power plant.
•Onshore and nearshore pipelines.
These projects signify a major step forward in Guyana’s energy sector, leveraging advanced technologies and expertise to build sustainable and efficient energy systems.
Key Players
•Principal Suppliers: Lindsayca, CH4 Systems, and ExxonMobil.
•Obligor: The Ministry of Finance, Cooperative Republic of Guyana.
The collaboration reflects a strategic alliance that combines U.S. engineering and technology with Guyana’s ambitious energy development goals.
Implications for Guyana
This financing supports the development of key energy infrastructure, potentially enhancing energy efficiency and reliability in Guyana. It further aligns with the country’s strategic objectives to maximize its natural gas resources and bolster economic growth.
The transaction also exemplifies the deepening ties between the U.S. and Guyana, particularly in the oil and gas sector. With U.S. suppliers providing critical equipment and services, the partnership strengthens Guyana’s energy landscape while fostering economic and technological exchange.
For updates on the final decision, visit the EXIM website under Summary Minutes of Meetings of Board of Directors.
This collaboration marks another significant milestone in Guyana’s energy transformation journey, with lasting implications for the country’s economic development and energy sustainability.
Stay tuned to the Guyana Business Journal for more updates on this story.
1 comment
11 December 2024
Dear Editor,
The comments period at US EXIM Bank re: loan AP089490XX for the Gas to Energy (GtE) project closed at 11.59pm on Monday 9 December 2024. Some administrative issues have to be completed. Thereafter it will proceed to the US Congress. The nation was informed that this will take approximately 30 -35 days before returning to the Board of Directors EXIM for final approval. There is no timeline on US EXIM Bank webpage – Notional Long-Term Financing Process https://www.exim.gov/policies/exim-and-environment/information-and-concerns/how. EIB-2025-002 was assigned to the loan as a reference identification.
It is now time to address the oversized elephants in the tiny room. Let’s start with the pink elephant. There is a shortfall, in excess of around US$155M from the initial loan application of approximately of US$660M to the provisional approval of about US$500M. How will this shortfall be funded? Will it be:-
(a) A “rubber stamp” raid on the National Resource Fund (NRF)?
(b) The previously mentioned, at one of the Thursday’s dissemination sessions, advanced alternative loan discussions and/or bridging finance mechanism?
(c) 2025 Budgetary allocation?
(d) Another financial mechanism in the magicians’ bag?
(e) Other?
Now back to the tiny room for the other elephant. Disclosures in the media claim inter alia, that one of the issues which contributed to the failure of the Skeldon power plant was the interface and mismatching of various equipment and machinery originating from different countries/sources with various and/or varying brand names. There is currently equipment and machinery being paid for from the “within budget” GtE allocations in storage. Some of these originate from Sweden; as well other countries. The provisional US EXIM Bank loan we were informed is limited to American purchased equipment and machinery. What is/are the contingency plan/s to ensure this is not a Skeldon power plant scenario repeat? There are propriety design technologies which do not permit a Samsung charger to charge an iPhone and vice versa.
Awaiting the Thursday or any other day disclosures to the nation on these issues.
Merry Christmas and Prosperous 2025!
Your sincerely,
Elizabeth Deane-Hughes
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