Jagdeo Responds to Concerns Over $422M Energy Supervision Deal with InterEnergy Group
By Alethea Grant | HGP Nightly News
Georgetown, Guyana — Amid growing public interest and media scrutiny over a proposed US$422 million overhaul of the Guyana Power and Light (GPL) infrastructure, Vice President and General Secretary of the People’s Progressive Party (PPP/C), Dr. Bharrat Jagdeo, has clarified the government’s current engagement with Dominican Republic-based InterEnergy Group Limited (IEG).
The controversy centers around a Memorandum of Understanding (MoU) signed in January 2024, which Jagdeo emphasized is non-binding and strictly exploratory. The MoU outlines potential collaboration on a massive infrastructure upgrade involving the installation of over 300 kilometers of high-voltage transmission lines, the construction of five new substations, the upgrade of another, and the creation of a smart, resilient national power grid.
“We had an MoU with this company since early 2024. A lot of it is for supervision of this infrastructure. You want when you build something—like those towers—you build them to international standards,” Jagdeo explained during a press briefing on Thursday.
IEG’s Role and the $650,000 Monthly Estimate
Preliminary reports suggest that IEG could earn up to US$650,000 per month for supervising the project. Jagdeo defended the figure, saying it is well below standard industry rates, which typically range between 5% and 8% of total contract costs.
“This is a company that is well known, with great technical capability,” he said. “When you look at the cost compared to other supervision costs based on the scale of the civil works contract, it’s a small amount—and it was not secretly done.”
Beyond Supervision: Smart Grid & Energy Assessment
IEG’s potential role could extend beyond construction supervision. According to Jagdeo, the company may assist with:
- Evaluating GPL’s existing grid capacity
- Designing a modern smart grid system
- Assessing Guyana’s gas-fired and fossil fuel power plants
These functions are considered essential to Guyana’s long-term energy resilience and modernization goals.
Presidential Support
President Irfaan Ali had also commented on IEG’s involvement back in April, describing the firm as already playing a supporting role in identifying infrastructure gaps. He confirmed that the company is “in the equation” as GPL seeks technical partners for its transformation agenda.
Transparency Promise
Jagdeo reassured the public that if a legally binding agreement is eventually signed, it will be disclosed publicly. He pushed back against accusations of secrecy:
“You can’t secretly hire somebody for this kind of national project. Everything will go through due process.”
The energy overhaul project is part of Guyana’s broader strategy to modernize its grid, increase reliability, and reduce blackouts as the country’s oil-fueled economic expansion continues.
