Guyana is set to extend its rental contract with Turkish energy company Karpowership as delays to the Wales Gas to Energy project push the country’s daily power generation costs to unsustainable levels, according to senior officials at the Guyana Power and Light corporation.

Head of Executive Management at GPL, Kesh Nandlall, confirmed to reporters that the contract for the first powership, which expires in May 2026, will be renewed to prevent widespread electricity blackouts. The daily rental charge for both vessels stands at approximately US$235,000, with negotiations currently underway that are expected to maintain the existing rate.

The Wales Gas Project, originally scheduled for completion in 2024, has experienced repeated delays. The government has pledged that the initiative will reduce electricity costs by 50 percent for Guyanese consumers. However, while operations are expected to begin in the final quarter of 2026, full capacity generation is not anticipated until mid-2027.

Opposition politician and interim Alliance for Change leader David Patterson has sharply criticised the government’s handling of the project. Speaking at a virtual press conference, Patterson outlined the full financial burden being carried by taxpayers as a direct consequence of the delays. He noted that in addition to a daily rental fee of G$48.8 million for both vessels, Guyana is also paying G$72.6 million daily in fuel costs and G$4.2 million in daily transportation expenses, bringing the total daily expenditure to approximately G$126 million.

Patterson argued these powership costs were never factored into the original project budget, which he placed at approximately US$1.7 billion. Stakeholders have suggested the true cost of the Wales initiative, inclusive of consultancy, legal fees, land acquisition, arbitration and related expenses, could exceed US$3 billion. The former infrastructure minister contends that powership rental costs must also be added to that figure.

Documents presented to the National Assembly in April 2025 indicate that Guyana was projected to spend over G$26 billion on fuel alone for the two powerships during 2025. Combined rental costs over two years are estimated at approximately US$165.8 million.

GPL has not indicated how long the extended contract will run, and the government has not publicly responded to opposition criticism regarding the cumulative cost of the delays.

Source: Kaieteur News, March 29, 2026