In light of recent developments, Chairman of the opposition Alliance For Change (AFC), David Patterson, expressed grave concerns regarding the gas-to-energy project, following the severing of ties between major contractors CH4 and Lindsayca. He described the multi-billion-dollar flagship initiative of the Government as potentially on the path to a massive failure
Patterson, a former Public Infrastructure Minister, stated that the latest turn of events confirms the project has been poorly planned and executed, warning it could become the largest failed project in Guyana’s history. Designed to reduce electricity costs by 50%, the project includes the construction of a Natural Gas Liquids (NGL) Plant and a 300-megawatt power plant. Initially expected to be completed by September 2024, it has faced numerous delays.
“The AFC has long warned against the project under its current configuration,” Patterson said. “On April 30, 2021, we cautioned that the PPP’s proposal was neither economically, technically, nor environmentally sound. The promised reduction of US$0.05 per MW was based on ‘voodoo economics.’ We urged the government to conduct further studies before burdening the country with what could be the largest white elephant project.”
The project’s contract was signed in April 2021 at a cost of US$900 million, but Patterson noted that costs have since skyrocketed to US$2.4 billion and continue to rise. Additionally, the completion date has been pushed back from September 2024 to 2026, resulting in over two years of delays while the deliverables of 300 MW of electricity remain unchanged.
“Over the last four years, rather than exercising caution, the PPP has recklessly pushed ahead with this project, ignoring all warning signs,” Patterson complained. “They launched personal attacks against anyone who questioned the situation, which was plainly evident.”
He further accused the Irfaan Ali Administration of inconsistencies in its promises regarding electricity rates. Initially, the PPP/C claimed the electricity rates would be US$0.05 per MW, but this commitment has since shifted to a vague promise of halving electricity bills upon project completion.
Patterson revealed that the project has been subjected to two international arbitrations, and the dissolution of the joint venture partnership responsible for its construction has now been confirmed, potentially extending delays by another two years.
While acknowledging the need for improved power generation to meet national demand, Patterson maintained that the project has been poorly designed and executed. He called for a full audit of the project to ensure that the country receives value for money.
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