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Gov’t will defend against claims made by Gas-to-Energy contractor even if it delays project- Jagdeo
…says powerships will supply country with electricity in the meantime
Kaieteur News- Vice President Bharrat Jagdeo made it clear on Thursday that the Government of Guyana (GoG) is prepared to defend against the claims made by the Gas-to-Energy (GTE) contractor- CH4/ Lindsayca- even if it results in the delayed completion of the project.
Vice President Bharrat Jagdeo
During his weekly engagement with the press at Freedom House, Georgetown, the former Head of State, told reporters that he could not reveal details surrounding the arbitration process, as it is bound by a confidentiality clause.
He said, “I told you already with the press release that came out from the Ministry with the (Dispute Avoidance and Adjudication Board) DAAB process that we are bound to hold it confidential on the arbitration, but I can assure you as I said then that we are not, because we want this project to be completed in time before the elections, or we wanted it to be completed, that we are going to compromise the interest of the people of this country.”
To this end, the VP indicated that the government will be defending its position in the arbitration process, even if it results in the delayed completion of the project.
“That’s why we are fully going to go to arbitration and make all of our cases, even if it delays the project a bit; we are protecting national interest first…we just contracted the power barges for two years so we will have power in the system,” he assured.
In February, a statement from the Office of the President explained, “On 31 January 2025, the DAAB issued their ruling on the matters referred to it. In relation to this ruling, the parties to the dispute resolution process are bound by certain rules of confidentiality.”
The government did not specify the details of the decision made by the DAAB, following a complaint filed on September 19, 2024. It only revealed that the Parties have 28 days to determine if they wish to refer the decisions, or any part thereof, to Arbitration, which would be the next stage in the dispute resolution process.
Arbitration claims
So far, the GTE contractor, Lindsayca/CH4, has submitted two claims to the DAAB. The first claim amounts to US$50M, reportedly related to cost overruns. Vice President Bharrat Jagdeo had blamed ExxonMobil Guyana Limited (EMGL) for the construction delays in the Wales gas plants. Jagdeo said that ExxonMobil was responsible for the site preparation, the road, the Materials Offloading Facility (MOF), and the lay-down yard.
“We were supposed to hand over the site to the contractor by June, we did not hand over the site, that is, Exxon did not hand over the site until September, and it was still incomplete…so a three-month delay,” he said. Guyana Shore Base Inc. (GYSBI) was contracted by ExxonMobil to complete the site.
Jagdeo further stated that the government decided to give the contractors an extension of three months (from the end of 2024), “that is why we are arguing that the plant must be completed by April of 2025, instead of end December 2024.”
The former Head of State said the GoG is at odds with the contractor over the delay period.
He explained, “That is where the three months we are arguing, the three months delay on the project came. They want a longer period because the liquidating damages for not completing the project on time for the contractor, if they don’t complete the project on time, it’s over US$11M per month they have to pay in liquidating damages for delay on the project, so they are arguing they need more time beyond the three months. We are saying three months is adequate.”
Meanwhile, it was reported that the second claim made by the contractor relates to issues relating to the soil. Jagdeo said, “There have been some additional claims by CH4 and Lindsayca, particularly as they relate to the soil conditions and those would have to go through the technical process to see whether they are justified or not.”
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