AFC CONCERNED OVER BALLOONING COST FOR WALES GAS TO ENERGY PROJECT

“A Complete Absence of Transparency”: AFC Flags Ballooning Costs and Shifting Timelines of Wales Gas-to-Energy Project

By: Marvin Cato | HGP Nightly News |

GEORGETOWN, GUYANA — The Alliance For Change (AFC) has launched a stinging critique of the government’s flagship Wales Gas-to-Energy (GTE) project, labeling it a “collapsing” venture defined by skyrocketing budgets and secret contracts. During a press conference on Thursday, March 26, 2026, AFC Interim Leader and former Infrastructure Minister David Patterson warned that the project’s total cost could now exceed US$3 billion—more than triple the original estimate.

Initially sold to the nation in 2021 as a US$900 million fast-track solution to cut electricity costs by 50% by the end of 2024, the project is now facing significant delays in its power plant and Natural Gas Liquids (NGL) facility.

The US$3 Billion Question: Where is the Money Going?

Patterson highlighted that while the 12-inch pipeline constructed by ExxonMobil was completed in December 2024, the government has yet to reveal its final price tag.

• The Soil Stabilization “Surprise”: The AFC leader pointed out that the lack of a proper initial feasibility study led to an unbudgeted US$100 million expense just for soil stabilization at the Wales site.
• Hidden Infrastructure Costs: When factoring in transmission and distribution upgrades, soil works, and the power plant, Patterson believes the consolidated cost is spiraling toward the US$3B mark.
• Unfulfilled Promises: He reminded the public that Prime Minister Brigadier (Ret’d) Mark Phillips made three separate commitments in the National Assembly to lay over all project documents—commitments the AFC claims remain unfulfilled.

“Inflated Demand”: The 60% Projection Gap

One of the most damning aspects of the AFC’s report concerns the government’s justification for the project’s scale.

• The PPP/C Projection: In 2022, the government justified the 300MW plant by projecting a peak power demand of 480MW by the end of 2025.
• The Reality: Patterson noted that between 2020 and 2026, the highest peak demand on the Demerara-Berbice Interconnected System (DBIS) was only 220MW, with current demand sitting at 200MW.
• The Discrepancy: This means actual demand is a staggering 60% below what the government used to justify the project’s massive capital expenditure.

“What was sold to the nation was a fast-track, cost-effective solution… now it has become a project defined by shifting timelines, a ballooning budget, and a complete absence of transparency.” — David Patterson, AFC Interim Leader

The AFC’s Demands for Accountability

As the country continues to rely on expensive rental power ships to bridge the energy gap, the AFC is demanding immediate disclosure from the administration:

1. Updated Cost Assessment: A full, transparent breakdown of the entire Gas-to-Shore project.
2. Power Ship Costs: Disclosure of exactly how much is being paid for emergency power while the Wales plant faces delays.
3. Revised Pricing Model: An updated electricity-pricing forecast that reflects the significantly higher capital costs now associated with the project.
4. Independent Monitoring: The establishment of an independent system to track spending, technical compliance, and progress.

The Gas-to-Energy Reality Check

A High-Stakes Energy Gamble

The Gas-to-Energy project remains the centerpiece of Guyana’s plan to lower the cost of living. However, the AFC’s findings suggest that if capital costs continue to climb while demand remains low, the “cheap electricity” promised to Guyanese citizens may be offset by the massive debt required to build the infrastructure. For now, the “fast-track” solution appears to be stuck in a cycle of mounting costs and missing documents.