US Exim Bank Approves $500 Million Loan for Guyana Gas Project

Guyana's government has received preliminary approval for a loan guarantee exceeding $500 million from the U.S. Export-Import Bank to support its gas-to-energy project in Wales, aimed at constructing a natural gas-fired power plant and processing facility. Initially seeking $646 million, the government will utilize the funds for U.S. equipment purchases and retroactive financing for prior expenditures totaling about $400 million. Despite ongoing delays due to equipment delivery issues and contract disputes, the project is expected to lower energy costs by 50% once operational, with a revised startup timeframe now set for late 2025. Vice President Bharrat Jagdeo emphasized that the government is prepared to complete the project independently if the loan is not finalized. The loan approval process includes a mandatory 30-day notification to the U.S. Congress before final approval by the ExIm Bank board. This significant investment is anticipated to transform Guyana's energy landscape and stimulate economic growth.