Deep Water Port, GtE phase II among priorities in 2nd term – Pres Ali

…says projects key in transforming Guyana into a trade and energy powerhouse

President Dr Irfaan Ali has made it clear that a Deep-Water Port, as well as phase two of the Gas to Energy (GtE) Project, are among his Government’s priorities in his next term in office as the People’s Progressive Party/Civic (PPP/C) continues to work on making Guyana a trans-shipment hub and energy secure.

During the opening of the US$300 million Vreed-en-Hoop shore base in Region Three (Essequibo Islands-West Demerara), feature speaker President Dr Irfaan Ali spoke of some other large-scale projects on the horizon. He was at the time referencing the investments needed to increase Guyana’s competitiveness.
“We have fresh water, we have fertile land, we have access to the Atlantic. We will now have the cheapest energy cost and we’re investing in the most skilled labour force. Just imagine, if we convert that import, much of which is value created goods, to exports.”
“But what does this require? It requires a Government that will fight to create the enabling environment and trade opportunity. And then a private sector that must fight alongside the policy maker,” the President said.

According to Ali, the private sector can play an active role in advocating for more business and trade to come Guyana’s way. He gave as an example the State of Roraima in Brazil, next door to Guyana and pointed out that Guyana’s access to the Atlantic Ocean is a powerful advantage in any trade negotiation.
“We have to be able to create these opportunities for ourselves. The second gas project in Berbice and the Deep-Water port. In the second term, it’s not whether it will happen. It must happen.”
“Because these are key investments for the structural transformation of our country. These are key investments for the value creation that is necessary to build, generate and keep sustainable jobs,” President Ali added.
Phase one of the GtE Project is being built in Region Three and is on course for completion this year, with two state-of-the-art steam turbines and two oil tanks for the project arriving last month. When completed, the project is expected to supply 300-megawatt (MW) of power and lead to the reduction of electricity costs across the country by half.

A Joint Venture was formed by United States (US)-based companies, Lindsayca and CH4 (LNDCH4), was awarded the US$759 million contract in November 2022 to build the 300-MW Combined Cycle Power Plant and a Natural Gas Liquids (NGL) facility at Wales, West Bank Demerara (WBD) – key components of the GtE Project.
A few weeks ago, a US$527 million loan agreement was signed between the Guyana Government and the US Export-Import (EXIM) Bank to finance the project. This signing was followed by a tour of the construction site.
Only last month, LNDCH4 Guyana had noted that it recorded a year of “milestones and progress” in 2024, stating in a progress report posted to its social media page on December 27 last, that significant strides were made towards Guyana’s energy security.
Among these key accomplishments with the GtE Project is the completion of the soil stabilisation works. And in September last, GtE Project Lead, Winston Brassington, had disclosed that more than 1.65 million cubic metres (m3) of sand along with over 160,000 m3 loam and 25,000 m3 crusher run were purchased for the soil stabilisation exercise on the 100-acre Wales project site.
Initially, the GtE Project was scheduled to be completed by 2024 year-end but following setbacks in handing over some components including site preparation works, LNDCH4 was given an extension to this year to deliver the power plant.
However, the contractor had wanted more than the three-month extension that the Government has granted along with the financial claim – both of which was rejected by the state hence the move to the dispute resolution process.
Government has already made it clear that if LNDCH4 does not deliver power by the end of April 2025, then they will face liquidated damages.
Last month, Vice President Bharrat Jagdeo had suggested that in light of increasing transshipment challenges that local businesses face in getting goods into the country, the Guyana Government could potentially co-invest in a deep-water port here given the demand for such a facility in this rapidly growing economy.
Initially, the Government was considering constructing a deep-water port facility in Region Six (East Berbice-Corentyne), but have had to go back to the drawing board given the high sedimentation there and the logistical and financial hurdles of dredging the mouth of the Berbice River. (G3)