Guyana, US EXIM seal historic US$527M loan deal for GtE Project

…as local private sector challenged to leverage remaining US$1.5B in financing

The Guyana Government has signed the US$527 million loan agreement with the United States (US) Export-Import (EXIM) Bank – funds that will go towards the advancement of the transformative Gas-to-Energy (GtE) Project.
Back in 2023, Guyana had applied for a loan from the US EXIM Bank to finance the US$761 million GtE Project, which includes the construction of an Integrated Natural Gas Liquid (NGL) plant and a 300-megawatt (MW) combined cycle power plant at Wales, West Bank Demerara (WBD), utilising natural gas from the country’s offshore operations in the Stabroek Block.
On December 26, 2024, it was announced that US EXIM Bank’s Board of Directors approved $527 million to Guyana’s Finance Ministry to support the highly anticipated GtE Project that will strengthen the country’s energy security by doubling its installed electric capacity.
According to the bank, the financing from the loan transaction will aid the construction of a natural gas separation plant, a 300 MW combined cycle gas turbine power plant and services related to the gas supply pipeline near Georgetown.

Gamechanger
On Friday, Finance Minister, Dr Ashni Singh along with the US EXIM Bank President and Chair, Reta Jo Lewis, inked the loan agreement at the Wales construction site of the project. This was done in the presence of Prime Minister, Brigadier (Ret’d) Mark Phillips; Natural Resources Minister, Vickram Bharrat; US Ambassador to Guyana, Nicole Theriot, and other officials including representatives from the contractor, Lindsayca CH4 Guyana Inc. (LNDCH4 Guyana) – a US joint venture Texas-based Lindsayca and CH4 Systems, a Puerto Rican small business.
In her remarks, Chair Lewis, who is in Guyana for a four-day visit said, this over a half billion US dollar energy deal is a gamechanger, not just for Guyana and the US but also 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. For Guyana, this project will double the country’s installed electric capacity, providing cleaner, more reliable, and more affordable energy for families and businesses.
“We know that by partnering with the US and our private sector, Guyana has chosen the best-in-class equipment and a work culture dedicated to high standards and safety. US equipment and technology offer reliable, durable, quality solutions for Guyana’s development,” she posited.

The US EXIM Bank President went onto note the institution’s unwavering commitment to supporting US businesses and workers – something which she reminded also extends to the Guyanese private sector.
“We know… that this is just the first of many deals to come as I have a message for the business leaders here in Guyana. We can be at US EXIM, a major resource for you – whether your business is large, medium or small. When you need American goods and service, EXIM is there to help you with that financing as well as [for] any foreign buyer who wants to purchase American goods and services, and export them to Guyana or throughout the region,” Chair Lewis posited.

Take advantage
Similar sentiments were expressed by Minister Singh, who encouraged Guyanese businesses to take advantage of the roughly US1.5 million in financing that is available at the US EXIM bank.
Back in July 2022, Guyana and the US EXIM bank had signed a Memorandum of Understanding (MOU) for financing of up to US$2 billion for projects in several sectors including infrastructure, energy, telecommunications, water treatment and sanitation, and agriculture.

The MOU provides a framework within which financing can be provided by EXIM to advance developmental projects either by the state or the private sector in Guyana while promoting the export of US-made goods and services.
“We want to see much more business done with EXIM. We want big, medium and small-sized projects… The facility you approved is a US$2 billion facility [and] we’ve only utilised about half a billion dollar of that so there is still another US$1.5 billion of potential business to be done with Guyana, and we’re looking forward to taking up all of that room. And I want to encourage Guyana’s private sector to avail themselves of the various tools and instruments and products that are offered by EXIM to private sectors around the world to do business with American companies,” the Finance Minister stated during Friday’s signing.
In fact, Chair Lewis and her team is expected to meet with the Guyanese private sector representatives today to explore the financing options that the US EXIM bank is offering.
Nevertheless, Minister Singh went onto highlight that importance of this energy deal that will further strengthen the already strong relations between Guyana and the US, which he added is now entering a new dimension especially in the economic trade and commercial sectors. This, according to the Finance Minister, is reflective in the approval of the loan for the GtE Project.
“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… And it represents a good example of what can be achieved,” Singh noted.

“Breathe life”
Meanwhile, Prime Minister Phillips, who has responsibility for the country’s energy sector, remarked that this loan from the US EXIM will “breathe life” into the GtE Project, which will not only enhance generation capacity and provide reliable power but also slash the cost of electricity by half when the 300-MW power plant comes on stream later this year.
According to the Prime Minister, “Today, we are speaking of a cleaner, more reliable, and more affordable energy future for every citizen. Families will find relief in lower electricity costs. Businesses will discover new avenues for growth. Our industries will expand, bringing with them jobs, opportunities, and prosperity. This project will be the backbone of a stronger economy that is prepared to compete on the global stage.”
He emphasised further that the approval and subsequent signing of the loan agreement is a demonstration of the US EXIM Bank’s trust in Guyana’s potential and its commitment to future generations.
“For a nation as rich in natural beauty and biodiversity as Guyana, it sends a clear message that Guyana is committed to growth, but not at the expense of the generations to come… Our oil and gas industry has provided the means to envision such transformative projects, and this agreement stands as proof that we are building a future beyond the extraction of resources. This project symbolises the potential of our resources to bring real and lasting benefits to the people of Guyana,” PM Phillips posited.
(Vahnu Manikchand)