The Alliance For Change (AFC) is sounding the alarm over the mounting costs of Guyana’s incomplete Gas-to-Energy (GTE) project at Wales, with interim Leader David Patterson contending that power ship rentals hired to compensate for project delays are costing taxpayers approximately $126 million per day.
Patterson, a former Minister of Public Infrastructure with responsibility for power generation, made the disclosure during a virtual news conference on Thursday. He argued that the daily costs associated with two rented power ships must be factored into the true price of the broader GTE initiative, which was originally projected to reduce electricity costs for consumers by 50 percent, a target that was expected to be met as far back as 2024.
According to Patterson, the two power ships collectively cost Guyana $48.8 million daily in rental fees, $72.6 million in daily fuel costs, and $4.2 million per day in transportation expenses, bringing the total to roughly $126 million each day. He stressed that these costs were never included in the original project budget, yet they fall squarely on Guyanese taxpayers as a consequence of repeated deadline failures.
The Wales GTE project carries an official price tag of approximately US$1.7 billion, comprising around US$1 billion for the pipeline and US$759 million for the power plant and Natural Gas Liquids facility. However, when factoring in consultancy, supervision, transmission and distribution, legal fees, land acquisition, and arbitration costs, some stakeholders believe the total could surpass US$3 billion. Patterson now argues the power ship expenses must be added on top of that figure.
The project has missed at least three completion deadlines, having been pushed from 2024 to 2025, then to mid-2026, and now to the end of this year. The government has indicated that even upon startup in the last quarter of 2026, full electricity generation capacity will not be reached until mid-2027.
The AFC is calling on the government to release a comprehensive, updated cost assessment for the entire GTE project inclusive of power ship expenditure, alongside a revised timeline with clear milestones and accountability mechanisms. The party is also demanding disclosure of all major contracts, an updated electricity pricing model reflecting the higher capital outlay, and the establishment of an independent oversight body to monitor progress and spending.
There has been no official government response to the AFC’s demands at the time of publication.
Source: Kaieteur News
