Latest update March 26th, 2026 7:55 AM
Chair of US EXIM Bank on three-day visit to Guyana
…to discuss US$527M loan with leaders, business community
Kaieteur News- Chairman and President of the Export-Import Bank (EXIM) of the United States Reta Jo Lewis will visit Guyana from January 9 – 12, 2025 to highlight the bank’s recent approval of US$527 million in financing to support a gas-to-energy project that will double the country’s installed electric capacity.
President of the US EXIM Bank, Reta Jo Lewis
The project will help Guyana transition to more reliable and cleaner energy for consumers and businesses, while supporting 1,500 American jobs, the United States Embassy here said in a press release announcing Lewis’ visit. “It will also unlock economic growth potential for U.S. and Guyanese companies of all sizes,” the release added. Lewis, according to the embassy will meet with President Mohamed Irfaan Ali, senior Guyanese officials, and business leaders to discuss the project and future opportunities for U.S. and Guyanese companies to partner for the benefit of the American and Guyanese people.
The EXIM Bank loan will support the US$759 million cost of the natural gas-fired power plant and natural gas liquids (NGL) plant being constructed by a joint venture, CH4-Lindsayca and Vice President Bharrat Jagdeo has said that the interest rate on the US$527 million loan is “very competitive”.
Over the 15-year repayment period, Guyana will pay the bank a whopping US$316.2M in interest alone, in keeping with the 4% annual rate. This means the country will be paying the Bank a total of US$843.2M overall for the amount it borrowed. During his press conference at Freedom House, last week Jagdeo defended the interest rate as he compared the terms of the loan to a previous loan agreement signed under the previous administration. He reasoned, “Let me just say to you, 4% interest is a very competitive interest rate. If you look at the 10 years treasury bill in the U.S, its higher than 4%. If you look at when APNU had concluded the 4.7% loan for GuySuCo through Republic Bank, they were paying 4.7% with a sovereign guarantee.” Jagdeo argued that the global interest rate at the time was the lowest, at about 1.6% on treasury bills.
Furthermore, he said, “When we took office, interest rates were 40% in the early period, just imagine, at 4% if this is burdensome…imagine how much we would have had to pay if that was the case.” Additionally, the VP explained that based on the terms of the loan agreement with the US EXIM Bank, Guyana will not be required to make any payments in the first five years, but will only commence paying installments in 2031.
Guyana will be required to make two annual payments on November 1 and May 1, commencing on May 1, 2031. Back in April 2023 it was revealed that Guyana applied to the Bank for a US$646M loan to support the NGL and power plant. It is important to note that the Gas-to-Energy (GTE) project also comprises of a 12-inch diameter pipeline being developed by the Stabroek Block operator, ExxonMobil Guyana Limited. Exxon previously said the structure is expected to cost US$1B. Guyana is also expected to repay the contractor for the pipeline over a 20-year period. Project Head, Winston Brassington in February 2023 explained that Guyana will be required to pay back ExxonMobil some US$55 million each year for 20 years to repay the company for its investment in the pipeline. “That US$55 million is the amortized cost of US$1 billion for 20 years at a discount rate,” he said.
The Export-Import Bank of the United States (EXIM) is the nation’s official export credit agency with the mission of supporting American jobs by facilitating U.S. exports. To advance American competitiveness and assist U.S. businesses as they compete for global sales, EXIM offers financing including export credit insurance, working capital guarantees, loan guarantees, and direct loans. As an independent federal agency, EXIM contributes to U.S. economic growth by supporting tens of thousands of jobs in exporting businesses and their supply chains across the United States. Since 1992, EXIM has generated more than $9 billion for the U.S. Treasury for repayment of U.S. debt. Learn more at www.exim.gov.
(Chair of US EXIM Bank on three-day visit to Guyana)
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