GTE 2 while GTE 1 is still bleeding public funds

Dear Editor,

President Irfaan Ali wants to talk about GTE 2 and that seems to be the new snake oil being sold to the Guyanese people. At least this is what he did at his latest press conference. He wants Guyanese to dream about a second gas-to-energy project in Berbice while the first one at Wales remains unfinished, behind schedule by some two years, and over budget by more than US$800 million. That US$800 million can develop and build 14,000 houses for poor people in this country and it is all being squandered on one company (Lindsayca) that has deep historical and operational roots in Venezuela.

This is not vision. This is gaslighting on the part of the PPP. Gaslighting is a clinical term for a repetitive pattern of manipulation designed to make people doubt their own perception of reality. What the PPP is doing to the Guyanese people is now well documented. Their political gaslighting undermines the population’s confidence in its own judgment, erodes trust in institutions, and creates a pervasive sense of confusion and powerlessness. When a leader promotes a new mega project while the first one is still bleeding public funds, he is not offering hope. He is rewriting the narrative to avoid accountability.

Here are the facts he does not want you to focus on.

The Wales GTE project has failed to meet every major deadline since December 2024. The original contract with Lindsayca was awarded in 2023, promising 300 MW by the end of 2024.^[1] It is now late 2026, and the government is only hoping for one turbine (57 MW) by December. I am now emphatically informing the nation that based on the evidence coming out of the Project this will not happen. Full operations are now pushed to late 2027.

The two-year delay is costing Guyana approximately US$884 million more than the original project cost. That is not a rounding error. That is more than the original price tag of the two gas plants. This project is costing more than 100% above its original price tag.

Meanwhile, Guyana has been paying US$619 million for imported heavy fuel oil over the same two-year period simply to keep the lights on. The very promise of the GTE project—to slash electricity costs by 50 percent—remains unfulfilled.

And now, the powerships. Guyana was forced to hire two Turkish powerships as an emergency measure because the Wales project was not ready. The current rental bill is approximately GY$126 million per day—that is GY$48.8 million in daily rental, GY$72.6 million in fuel, and GY$4.2 million in transportation costs. Over two years, the rental alone amounts to approximately US$165.8 million.

The government is reportedly negotiating with Karpowership to bring a third ship into Guyana waters. The company initially offered 7.6 cents per kWh for the first ship. The second ship was already costing 9.5 cents per kWh. Now Karpowership has secured 9.5 cents for both—an increase that would add US$5.8 million annually in rental fees, which is another 110 houses for the people down the drain. The question every Guyanese should ask is this: if the GTE project is supposed to come online by December, why is the government negotiating a two-year extension for emergency power?

The answer is simple. They know the project will not be ready. They are planning for failure while telling you to dream about success.

And the waste does not end there. The government paid a US$97 million settlement to Lindsayca/CH4 after a legal dispute.^[2] The government has never produced a public feasibility study to justify what has become the country’s largest single investment. The Opposition Leader has demanded full transparency and been met with silence.

Now President Ali speaks of GTE 2.^[3] The same playbook. The same lack of feasibility study. The same promises of transformation. The Opposition Leader has already warned that it would be “a waste to start a next one” without learning from the first disaster.

Guyanese are not asking for dreams. They are asking for accountability. They are asking why their electricity bills remain high while billions are spent on a project that is years behind schedule. They are asking why the government is negotiating exorbitant powership rates instead of delivering the gas plant it promised. They are asking why the President talks about a second project when the first one is a cautionary tale.

GTE 1 is not finished. It is not on schedule. It is not within budget. And President Irfaan Ali is trying to sell the people of Guyana more Nancy stories.

References

1. Gov’t vs Lindsayca arbitration outcome to determine first gas ... — www.guyanastandard.com ↩
2. Guyana secretly paid US$80M to Wales gas plant contractor after losing arbitration - Kaieteur News — kaieteurnewsonline.com ↩
3. Govt. still pursuing Suriname partnership for second Berbice gas ... — kaieteurnewsonline.com ↩