GEORGETOWN, Guyana, CMC—Vice President Bharat Jagdeo says Guyana’s US$646 million loan application to the US Exim Bank is one step closer to approval.The application was submitted because the Government is seeking a loan for the gas-to-shore energy project.
During a press conference on Thursday, the Vice President said the Bank now has all of the information it needs, and the application is likely to go to the Bank’s Board of Directors within the next month.
Following that process, Jagdeo explained that the US EXIM Bank has since hired two consultants to conduct environmental and technical studies. He said the consultants have since reported that the project is technically and environmentally sound.
“Those were the two things that were necessary, so when they go to their board, they will then say we have done our due diligence, the project is technically and environmentally sound because the financial case is already made but requires time,” Jagdeo stated.
He also sought to put to rest speculation that the project was not viable, hence the lengthy delays in getting the loan approved.
To justify the delay in loan approval, he cited the loan for the Linden/ Soesdyke highway from the Islamic Development Bank, which he said was only approved last year, although the Government had been working on the loan since it took office in 2020.
“Anybody going for multilateral funding would know this, and who has the experience in doing so would know this; these people here think this is like a private bank where you can walk up tomorrow and get the money. Anyone with a modicum of experience with multilateral funding would know that before they go to their boards, they do their due diligence on the project,” Jagdeo said.
A few activists have written to the US EXIM Bank, trying to block the loan and raising environmental and other concerns.
Other concerns regarding the project’s feasibility have also been raised, but Jagdeo said the project is the most feasible yet.
He said once the loan application gets to the Board next month, it will have to go to the US Congress for thirty-five days and then back to the Board for final approval.
“That is how it works; that’s the procedure for Exximbank. We didn’t create the procedure, and they didn’t create it for Guyana. That is their standard procedure, and we have gone through all the technical and environmental issues to their satisfaction. We have passed the due diligence.”
The Vice President believes that the Opposition has been raising concerns about the massive cost of the gas-to-shore project because his Government will solve the problem of energy efficiency and lower costs.
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