GEORGETOWN, Guyana – An agreement outlining the terms and conditions under which the United States Export-Import Bank will give Guyana a US$527 million loan to support its gas to energy project was signed on Friday during a visit by the bank’s President Reta Jo Lewis.
Senior Finance Minister Dr. Ashni Singh (sitting, left) and United States EXIM Bank’s President and Chair Reta Jo Lewis (sitting, right) sign the term sheet on Friday. Overseeing the process was Prime Minister Brigadier Mark Philips (centre). (DPI)The term sheet was inked by Lewis and Senior Finance Minister Dr. Ashni Singh at the site of the project at Wales on the West Bank of Demerara. The loan was approved on December 26 last year.
Prime Minister Brigadier Mark Philips, who oversaw the signing, said it was a turning point in Guyana’s history. He said the project will be the backbone of a stronger economy.
“This is indeed a most transformative project, and it is the largest project in terms of size and financing that is embarked upon by the Government of Guyana in the history of Guyana. This is the moment that speaks to the power of vision, the strength of partnership and the enormous possibilities which can arise with shared purpose,” he said.
He added that the signing of the agreement is a declaration of trust in Guyana’s potential and a commitment to shaping the country’s future.
Prior to signing the agreement, Dr. Singh said the historic transaction is a good example of what can be achieved through partnerships such as that between the US and Guyana.
The finance minister recalled his first meeting with the US EXIM Bank Chair in April 2022 as he noted that it was only months after that government and the bank signed a Memorandum of Understanding (MOU) under which EXIM agreed to make available an aggregate exposure of US$2 billion to Guyana.
“Notwithstanding that, during the course of this journey, it felt sometimes that we were not getting it as quickly as we wanted to, but the reality is that moving from zero to half a billion in two and a half years really is a remarkable achievement,” Dr. Singh added, thanking all parties concerned in bringing the project to this point.
Dr. 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 would like to see more US companies doing business in Guyana and with Guyanese businesses.
Delivering remarks during the signing, Lewis said Guyana’s economy has continued to grow and prosper and the signing marked 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 gas to energy project which she said is not only a game-changer for Guyana and the United States, but for the people, businesses and shared aspirations that unite the two nations.
“Together we are taking bold steps to strengthen energy, security, enhance environmental sustainability and unlock economic opportunity,” the bank president siad.
The gas to energy 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 kilometers to the Natural Gas Liquid (NGL) plant to be constructed in Wales. The government said the complete project will result in several benefits to Guyanese, including job creation, improved electricity access, foreign investment, and energy security.
