House approves $28.7B to facilitate mobilization, advance payments for GPL power system upgrades

May 25, 2025 News

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Kaieteur News- The National Assembly has approved $28.7B to facilitate mobilization, and advance interim payments for the contracts recently signed to upgrade and expand the distribution network for the Guyana Power and Light (GPL).

During the 104th Sitting of the 12th Parliament on Friday Prime Minister (Retd) Brigadier Mark Phillips told the House that last year the Guyana Power and Light (GPL) tendered for Engineering, Procurement and Construction (EPC) plus finance for the upgrade projects. However, it received only EPC bids, which therefore now requires government financing.

“On April 4th, 2025, we had through the Government of Guyana signed two contracts for major power system upgrades and expansion totaling US$422.2 million, or GYD $90.9 billion. The projects included in these EPC contracts will deliver reliable, affordable and cleaner electricity services for the 300-megawatt natural gas power plant located in Wales. The requested sum of $28.7 billion is to facilitate mobilization, advance payment and interim payments projected to December 2025, in accordance with the signed EPC contracts,” he clarified.

For further clarity the Prime Minister offered the disaggregation saying that the project will be done in three lots. Lot One, in Region Four, will consist of the construction of an approximate total of 35.19 kilometer of double circuit, 230 KV overhead transmission line between Goedverwagting substation on the East Coast of Demerara and Eastern Bank of the Mahaica River.

This will be followed by the construction of an approximate total of 84.7 kilometers of double circuit, 69 Kv transmission line, which will interconnect with six substations located on the East Coast of Demerara, which includes the Line Bay, Good Hope, La Bonne Intention, Enmore, Sophia and Victoria. This contract was awarded to Power China for US$147,966,250.

Lot Two will be conducted in Region Five, which will see the construction of approximately 78.395 kilometer of double circuit, 230 Kv overhead transmission line between Eastern Bank of the Mahaica River and Eastern Bank of the Berbice River. Construction of approximately six kilometer of double circuit, 69 kV transmission line to interconnect with two substations located in the West Coast Berbice.

These are a, “69 Kv line bay, Columbia substation and at Trafalgar, 230/69 Kv substation, (it will also) upgrade Onverwagt substation capacity and the supply and installation of 15 MVR complete capacitor bank at Columbia with substation expansions. To the tune of US$ 156,538,005, and that contract was awarded to Kalpataru,” he said.

Furthermore, Lot Three, Region Six, will consist of the construction of approximately t 27.37 kilometer of double circuit, 230 Kv overhead transmission line between Eastern Bank of the Berbice River and Williamsburg station.

This will entail the construction of approximately 67.16 kilometer of double circuit, 69 Kv transmission line to interconnect with three substations located in Corentyne Berbice, Williamsburg 230/69 Kv substation, Number 53 69/13.8 Kv substation and the supply and installation of 15 MVR complete capacity bank at Number 53. That contract was awarded to Power China, and carries a price tag of a total of US$170,715,611.

Kaieteur News reported on April 5, that Power China and Indian firm Kalpataru signed contracts worth some US$422 million (GUY $90 billion) for the extension of transmission lines for Guyana Power and Light (GPL Inc).

During a press briefing at the Office of the Prime Ministers boardroom, the head of GPLs executive management committee, Kesh Nandlall, said it is no secret that Guyana has the fastest-growing economy in the world. He said GPLs role is of paramount importance in supporting the energy needs of the country.

“The Government of Ireland has invested in the gas-to-energy project, which aims to deliver an additional 300 megawatts to the national grid in the first phase, followed by another 300 megawatts second phase. The primary challenge for GPL will be to ensure that the delivery of the power is delivered to the various regions across the country. Addressing this challenge necessitates the construction of infrastructure for the transmission and distribution. We are here because we have started that process, and I would like to let you know that this project that we are going to sign today is the largest ever investment for GPL in infrastructure development in a one-time investment,” Nandlall said.

He disclosed that there are three lots for the projects in the eastern corridor of the Demerara-Berbice Interconnected System (DBIS). Lot One was awarded to Power China in the sum of USD $256.7 million, while contracts for the other two lots were won by Kalpataru for USD $156.5 million.

Nandlall explained, “These lots include 155 kilometers of 230 double circuit transmission line, 167 kilometers of 69 Kv double circuit transmission line, the construction of five new substations and the upgrade of one substation at Kingston. The 230 Kv transmission line will interconnect with the Goedverwagting substation that is now being constructed under the GTE project, to a new substation to be constructed in Williamsburg, East Berbice.”

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• distribution network, GPL, national grid, supplementary budget, upgrades

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