Government dedicated to completing the gas-to-shore project – Prime Minister Phillips

-over 500,000 Guyanese to benefit

Prime Minister, Brigadier (Ret’d), the Honourable Mark Phillips, emphasised his government’s dedication to completing the gas-to-shore project, which is anticipated to produce around 300 megawatts (MW) of electricity and is expected to reduce energy costs for the citizens of Guyana by 50%.

The Prime Minister made these remarks during the signing ceremony of the Provision of Engineering, Procurement and Construction (EPC) Services contract, which will see the installation of transmission lines and substations for integrating the new 300 MWe CCGT Power Plant.  Wednesday’s ceremony occurred at the Office of Prime Minister (OPM), Camp Street.

According to the Prime Minister, “More than 60% of the people of Guyana will benefit from this project; that is, the people along the coastland whose households and businesses are powered by the Demerara/Berbice Interconnected System (DBIS). This project will once and for all bring not only reliable and stable electricity, with the other components that will bring power for over 500,000 Guyanese at a cost that is half of what they’re paying now.”

Prime Minister Phillips, who holds responsibility for the country’s Energy sector, further explained that the cost of electricity currently stands at an estimated $48 per kWh and will be significantly reduced to around $24 per kWh hour.

He also noted that this undertaking is in accordance with the pledge made by the PPP/C Government in its manifesto to provide accessible and reliable electricity to the people of Guyana.

“We went to the elections in a manifesto in 2020. We made a promise to the people out there that once and for all, we will solve the electricity problem, the power problem for the households, citizens and the business community.”

During the event, the Prime Minister addressed the contractor to stress the importance of completing the national-scale project on time.

“This is another manifesto promise that we are delivering to the people of Guyana, and you are playing an integral role in ensuring that the people of Guyana are freed from unstable electricity, and blackouts come August 2024. So, I look forward to working closely with the principlas of Kalpataru and ensuring relief to the people of Guyana from unstable electricity to reliable and sustainable electricity at cheaper costs.”

Meanwhile, the Minister within the Ministry of Public Works, Honorable Deodat Indar, who also spoke at the ceremony, underscored the importance of timely delivery and quality work. 

“Our government has made a national commitment that we run on our election campaign that we will cut the electricity by half, and this aspect of the multiple moving parts needs to be completed on time. Timing is a critical success factor… but delivery now becomes of paramount importance.”

He stated, too, that “for people to live comfortably, we have to cut energy costs, and that is the vision of our government, and that is what will be pressing forward.”

The project, according to the Indian High Commissioner to Guyana, HE Dr KJ Srinivasa, reflects the two countries’ growing cooperation. Over the past 180 years, Guyana and India have enjoyed successful cooperation in several sectors, including agriculture, renewable energy, healthcare, infrastructure, defence, and education.

Kalpataru Projects International Limited (KPIL) has been awarded the Engineering, Procurement and Construction (EPC) Services contract for the installation of transmission lines and substations required to integrate the new 300 MWe CCGT Power Plant. The contract is valued at approximately USD 159 million and is expected to be completed in 2024.

The contract was signed by Mr Derrick Cummings, Permanent Secretary in the Office of the Prime Minister; Mr Maurice Gajadhar, Chairman of Guyana Power and Lights Inc. and Mr Mainak Majumdar, General Manager (International Projects), Kalpataru Projects International Limited (KPIL) in the presence of Prime Minister Mark Phillips.

Head of Guyana’s Gas-to-Energy Taskforce, Winston Brassington and Mr Michael Munroe, Director & Company Secretary Guyana Power and Gas Inc., were also present at the signing.