Govt. now admits to US$97M settlement to Wales contractor

One month after denying "secret payments" to the Wale Gas-to-Energy (GTE) contractor, the government has admitted to making a US$97 million payment, increasing the initial contract price of US$759 million by some 12.8 per cent. In a statement issued on Thursday evening, the Office of the Prime Minister explained that the Government and Lindsayca Guyana Inc. have reached a resolution on two matters decided by the Dispute Avoidance/ Adjudication Board (DAAB) in January of 2025 relating to soil stabilisation works required at the Wales site and to delay-related provisions. The settlement represents a 12.8 per cent increase over the original contract sum of US$759M. The government assured that while the settlement to Lindsayca represents a 12.8 per cent increase over the original contract sum of US$759 million, the government's total expenditure for the wider project, comprising the 300 megawatt (MW) power plant, the Natural Gas Liquids (NGL) facility, transmission works, substations, 230 kV and 69 kV lines, and the new national control centre, remains within 10 per cent contingency of its budget of US$1 billion. The commitment to deliver power to the national grid and reduce tariffs by 50 per cent remains on track. According to government, substantial progress has been recorded in works at the site thus far, with stringent milestones set moving forward, following an agreement with Lindsayca Guyana Inc. to bring the first power turbine online by the end of 2026. It said this will be followed by all gas turbines which are expected to be fully commissioned by the first quarter of 2027 and the combined cycle operation to be completed by June 2027.

(Source：Kaieteurnewsonline)