“Monument of Cost Inflation”: MP Sharma Solomon Condemns Mismanagement of Gas-to-Energy Project
By: Antonio Dey | HGP Nightly News|
GEORGETOWN, GUYANA — In a scathing press conference held on April 24, 2026, Opposition Member of Parliament Sharma Solomon characterized the government’s flagship Gas-to-Energy (GTE) project as a “cautionary tale” of bad planning and runaway spending. Solomon alleged that the initiative, once promised as a gateway to 50% lower electricity bills, has instead become a symbol of “brazen mismanagement” under the People’s Progressive Party Civic (PPP/C) administration.
The critique comes as recent reports suggest the project’s total price tag—including grid upgrades and pipeline costs—is marching toward the US$3 billion mark, far exceeding original estimates.
The “Bloated” Budget: From Millions to Billions
Solomon highlighted a troubling trajectory of cost escalations that he argues were preventable with proper due diligence.
- Projections vs. Reality: Originally conceived with a much smaller footprint, the project’s costs have ballooned. The current breakdown includes US$1 billion for ExxonMobil’s pipeline, US$759 million for the Wales power plant and NGL facility, and roughly US$160 million for transmission lines and land acquisition.
- The Arbitration Burden: The project is currently mired in a “legal war” with the main contractor, Lindsayca/CH4. Reports indicate the contractor is seeking over US$100 million in delay claims, on top of a US$102.7 million Dispute Avoidance/Adjudication Board (DAAB) settlement ordered in early 2025.
- Systemic Overruns: Solomon remarked that “grand promises first, improper planning later” has become the hallmark of this administration’s major infrastructure projects.
Persistent Blackouts and Broken Promises
Despite the government’s marketing of the GTE project as the ultimate cure for Guyana’s energy woes, Solomon pointed out that the daily reality for citizens remains unchanged.
- Idle Infrastructure: While the gas pipeline was reportedly completed by Exxon in 2024, it currently sits idle, filled with nitrogen to prevent corrosion while the power plant construction lags behind schedule.
- Draining the Treasury: Solomon noted that this delay forces Guyana to continue burning expensive heavy fuel oil (HFO), costing the national treasury an estimated US$232 million in avoidable expenses while the public endures “persistent blackouts.”
- The “50% Bill Reduction” Myth: With costs soaring toward US$3 billion, Solomon argued that the government’s math for reducing electricity bills by half “seems less convincing by the day.”
A Call for “Governance by Disclosure”
Solomon concluded his briefing by demanding that the government move away from “misleading public relations” and disclose the full financial implications of the project, including hidden liabilities and grid-integration costs. For the APNU MP, the Gas-to-Energy project is no longer just a power solution; it is a test of whether the PPP/C can manage the nation’s resource wealth with “transparency rather than concealment.”
