December 28, 2024
Georgetown, Guyana
For immediate release to all media houses
With Seasons Greetings to all,
PRESS RELEASE
I note that the Vice President was rather gleeful in confirming what was stated before, that his announcement in October that the US EXIM approval of the loan was premature. In fact, official approval was only received on December 26, 2024.
While the PPP and their usual band of cheerleaders may be boastful, claiming the final approval as an achievement, the citizens of Guyana should know, the full details behind what is now the single largest loan taken by this country.
When the PPP announced that they had earmarked on what they claimed would be the single greatest “transformation” project in the country’s history, the gas to power project in Wales – the project budget was listed at US$810M with a completion date of two years, meaning that this project was slated to be completed by 2024.
Based on their own projections, on having power from this project by 2024, the government sat on their hands, and did nothing for three years, absolutely nothing to address the rising demand for electricity. Faced with the reality that they had grossly mismanaged the power sector, they then embarked on several reckless emergency spending activities to cover up for their shortfall.
Twenty-seven third-hand containerized generating sets, a 36MW power ship were rented and finally a 75MW power ship was added to the generating stock – all temporary measures to address the country’s energy deficit. Note that this shortfall was anticipated since they assumed office in
2020.
Having finally admitted that the gas to shore project will not be operational, if ever, until the end of 2025, the cost for their incompetence is staggering. The container sets were procured for US$27M. By 2025 the cumulative cost to the taxpayers (procurement costs + fuel + transportation) will be US$95.1M. Two years of rental and operational costs for the 36MW power ship will be US$130.7M, and one year rental and operational costs for the 75MW power ship will be US$147.8M. So, in total, their mismanagement has cost the country an additional US$373.6M. US$373.6M could have been used in procuring new generating sets for GPL, which would remain on stand-by if the gas power plant developed a fault or has to be taken offline for maintenance purposes. Further, consider that the US$373.6M and counting, being spent on temporary measures is nearly half of the original cost of the gas to shore project. No businessman would spend his hard-earned revenue like this.
Further, the PPP must tell the nation what their contingency plan is. On the expiration of the rental period for the two power ships, how will they replace the 111MW required as backup electricity for Guyanese, in the event of any issue that is normal with operating plants.
Despite all the fluff and bluff, it is evident that as with other sectors, the government’s management of the power sector has been nothing short of gross incompetence and Guyanese, both in their homes and businesses, continue to suffer the consequences with no one held accountable
outside of the cinematic PR displays.
David Patterson
END
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