US EXIM Bank’s US$526M loan: Approval highlights confidence in Guyana, deepening of US partnership – AmCham Guyana

AmCham Guyana has hailed the approval of the historic US$526 million loan from the United States (US) Export-Import (EXIM) Bank to fund Guyana’s groundbreaking Gas-to-Energy (GtE) Project.
The project includes constructing a natural gas separation plant, a 300 Megawatt (MW) combined-cycle gas turbine power plant, and a gas supply pipeline. Once completed, it is projected to double Guyana’s installed electric capacity, significantly cut carbon emissions, and bolster economic activity by creating jobs and expanding infrastructure.
According to AmCham Guyana, “this milestone, the largest infrastructure loan ever granted in the Caribbean, reflects growing international confidence in Guyana’s economic potential and strengthens the strategic partnership between the United States and Guyana”.
“The Gas-to-Energy Project is poised to transform Guyana’s energy landscape, enhancing energy security by diversifying energy sources and reducing reliance on imported fuels. Furthermore, it will accelerate the nation’s transition to cleaner and more reliable energy sources, driving sustainable economic growth and development.”
The company added that the landmark agreement also represents a pivotal step in advancing shared goals of prosperity and sustainability between the two nations.
“AmCham Guyana commends the Government of Guyana, the US Embassy, and all stakeholders involved in this ground breaking achievement. We look forward to supporting US EXIM’s continued engagement in Guyana, and to fostering further economic cooperation between our two nations.”
In a statement on Boxing Day, the Government announced that President Dr Irfaan Ali received a telephone call from the President and Chair of the US EXIM Bank, Reta Jo Lewis to inform him that the Board of EXIM has approved the loan for the GtE Project valued at over US$526 million at their Board Meeting held earlier in the day having completed the thirty-five-day congressional notice period.
During his weekly press conference on Thursday, Vice President Bharrat Jagdeo disclosed additional information about the loan agreement, noting that Guyana will start repaying this loan from 2031, over a span of 15 years.
He explained that the principal repayment for the loan involves 30 semi-annual installments due each November and May, for the next 15 years, with the interest rate for the loan being four per cent.
When it comes to why the Government chose to borrow this sum to help finance the US$2 billion project, Jagdeo reminded that the loan only contributes to about 25 per cent of this sum.

“We’re happy that the loan has been approved. For those people who’ve been asking why we need to borrow, I want to remind them that this project will cost about US$2 billion and the loan is only about 25 per cent of the project. So, it’s not 100 per cent of the project.”
“The rest is financed by our own resources and through an arrangement with ExxonMobil, on the pipeline. Then the second thing for those who were (trying) to find something negative, they asked why we borrowed. I need to remind them that oil revenue is just 30 per cent of the total budget,” the Vice President said at the time.
Under Phase One of the GtE Project, an Integrated Natural Gas Liquids (NGL) facility and a 300-MW combined cycle power plant are being constructed at Wales and will use the rich gas that will be piped from the Liza Phase I and II projects in the Stabroek Block, offshore Guyana.
ExxonMobil, the operator of the oil-rich Stabroek Block, is laying 250 kilometres of 12-inch pipelines that will bring the gas onshore. However, only 40 per cent of the pipeline’s capacity will be used in Phase One to gas up the current power plant and NGL facility at Wales, bringing 50 million standard cubic feet per day (mmscfd) of dry gas onshore.
But with the pipelines having the capacity to push as much as 120 mmscfd of gas, the Government is now moving ahead with Phase Two of the GtE Project that will utilise the remaining 60 per cent capacity of the pipeline and will see an additional 75 mmcfd of rich gas brought onshore.
Consequently, qualified firms are invited to respond to a Request for Proposals (RFP) to “design, finance, and operate” Phase II of the GtE Project based on a 20-to-25-year Power Purchase Agreement (PPA).
This second phase includes the design, construction, and operation of a 250-MW combined-cycle power plant, to deliver 2,100 gigawatt/hours (GWh) of electricity per annum, and sold to the Guyana Power and Light (GPL) Inc. It also caters for the design, construction and operation of another NGL facility to produce at approximately 6,000 barrels per day of NGL products such as propane, butane, and C5+gasolene.
Additionally, Phase II also includes the transfer, at no cost, of excess “lean gas” estimated at 30 mmcfd, for utilisation in downstream industries, e.g. fertiliser production, to be located at Wales.