The Government of Guyana has confirmed a US$97 million settlement with the Wales Gas-to-Energy contractor, Lindsayca Guyana Inc., one month after the Office of the Prime Minister denied that any secret payment had been made to the company.

In a statement issued Thursday evening, the Office of the Prime Minister acknowledged that the government and Lindsayca had reached a resolution on two matters decided by the Dispute Avoidance and Adjudication Board in January 2025, relating to soil stabilisation works required at the Wales site and delay-related provisions. The settlement represents a 12.8 percent increase over the original contract sum of US$759 million.

The admission follows a sequence of public denials and subsequent revelations. On April 7, the Prime Minister’s office responded to a Kaieteur News report that a US$80 million payment had been secretly made to settle the dispute, stating that there were no secret payments and that all payments were made through the consolidated fund and reported to parliament. Kaieteur News subsequently published financial records from Lindsayca confirming a payment of approximately US$102 million.

The government has now said the settlement removes the need for further proceedings, including arbitration, and ensures construction continues under what it described as a fully aligned, forward-looking framework. Both parties have agreed to forgo their respective rights to historical liquidated damages, capped at 10 percent of the contract price.

Officials sought to reassure the public that despite the settlement, the total expenditure for the wider project, which encompasses a 300-megawatt power plant, a Natural Gas Liquids facility, transmission works, substations, high-voltage lines, and a new national control centre, is not expected to exceed US$1.1 billion, inclusive of a 10 percent contingency on the original US$1 billion budget.

The government has also reached an agreement with Lindsayca to bring the first power turbine online by the end of 2026, with all gas turbines expected to be fully commissioned by the first quarter of 2027 and combined cycle operations completed by June 2027. The Office of the Prime Minister stated that failure to meet these milestones will allow the government to reinstate liquidated damages against the contractor.

The on-site workforce is expected to rise to 1,100 in the second quarter of 2026, peaking between 1,400 and 1,600 workers as construction reaches its most intensive phase.

Prime Minister Brigadier (Ret’d) Mark Phillips described the Wales Gas-to-Energy project as a defining moment for Guyana, reaffirming the government’s commitment to cutting electricity costs by 50 percent for households and businesses across the country.

It is worth noting that as recently as February 2025, the Office of the President had cited confidentiality obligations as the reason it could not disclose the DAAB ruling, stating that the parties to the dispute resolution process were bound by certain rules of confidentiality. The government’s Thursday statement offered no explanation for the shift from that position.

SOURCE: Kaieteur News, “Govt. now admits to US$97M settlement to Wales contractor,” May 16, 2026