Govt inks agreement with US company for cheaper, more reliable electricity
The Government of Guyana today inked a contract with US consortium CH4/ LINDSAYCA to build two energy plants that will provide electricity at a reduced cost.
Earlier today, President Dr Irfaan Ali inked a contract for the Engineering, Procurement and Construction (EPC) Services for the Engineering, Procurement and Construction Services for the Guyana Integrated Natural Gas Liquid Plant & 300 mwe Combined Cycle Power Plant.
Just last week, it was announced that American-owned CH4/ LINDSAYCA would build the natural gas-fired electricity plant and natural gas liquids plant at a reduced cost of US$759 million, after bidding to build the facility for US$899 million.
The project has December 2024 deadline for construction. If the company fails to meet this deadline, the company will face penalties for each day of delay.
The plant is expected to provide stable power at US 4 to 5 cents per kilowatt hour, to be sold at US 15 cents per kilowatt hour. Guyanese currently pay 30 US cents to 25 US cents per kilowatt hour.
US Ambassador Sarah Ann Lynch assured that work would be done to the highest standard.
“Throughout the process they have pushed to provide the best possible engineering solutions while being attentive to the requests of the Government of Guyana, all with an eye to deliver high quality reliable infrastructure that will benefit the Guyanese. The countries in this consortium have an excellent track record of delivering projects in other countries."
The Ambassador acknowledged that the US involvement on what will be Guyana’s largest onshore-infrastructure project will open the door for even more future projects by top notch US companies.
President Dr. Irfaan Ali praised this major step in the project as well, highlighting that this is only part of major projects that will transform the energy landscape in Guyana.
“The project does not slow down our commitment to the hydro project. Our commitment to hydro and a diversified portfolio of energy generation will be unparalleled and unmatched.”