HGP Nightly News – Former Minister of Public Infrastructure David Patterson says the government may have little room to resist the demands of a power ship operator, following the emergence of a leaked document suggesting that contract extension discussions were ongoing.
The document, which was not released through official government channels, appears to be correspondence dated May 25, 2026, from Karadeniz Powership Yasin Bey Company Limited and Urbacon Concessions Investments W.L.L. to the Ministry of Public Works.
The letter, addressed to Minister within the Ministry of Public Works Deodat Indar and copied to GPL Executive Management Committee Leader Kesh Nandlall, refers to the expiry of a power ship time charter agreement on May 21, 2026.
According to the document, the company had continued generating power beyond the original expiry date and had previously accommodated an extension in good faith. However, while the Ministry reportedly requested an additional 30-day extension to conclude renewal discussions, the company indicated that it could not accommodate that request.
Instead, the company said it was prepared to grant a final extension until June 1, 2026, in the interest of operational continuity.
The leaked correspondence also requested that negotiations and approval processes be expedited to avoid any interruption to operations.
Speaking in response to the document, Patterson said the company would be aware of Guyana’s dependence on its generating capacity and would understand that the government has limited bargaining power.
“The company knows that they have the government’s back against the wall,” Patterson said.
According to Patterson, if the company were to withdraw its supply, Guyana’s power system could be placed under serious pressure.
He said the country’s current peak demand was about 205 megawatts, while GPL has claimed that available power could reach around 250 megawatts if all units are working. However, Patterson argued that if the power ship’s supply is removed, the available capacity would fall close to national demand, leaving only a narrow reserve margin.
He warned that this could become especially difficult during periods of high electricity usage, including major sporting events and other national activities.
Without that power, Patterson said Guyana would be “severely challenged” to meet electricity demand.
The AFC Leader also linked the situation to delays in the Gas-to-Energy project, arguing that the country remains dependent on emergency generation because the project has not yet delivered power to the grid.
He said there is still no clear certainty on when the Gas-to-Energy project will become fully operational or whether it will immediately deliver the promised reduction in electricity costs.
Patterson further claimed that the company is seeking to align the commercial terms of the smaller power ship contract with the terms of a larger contract. According to him, that could result in millions of US dollars in additional annual costs.
He estimated that the increase being sought could move the annual cost of the existing contract from about US$22 million to around US$28 million.
Patterson said that, if approved, the increase would ultimately place an additional burden on taxpayers.
He argued that the situation reflects poor planning in the energy sector and leaves the government in a weak negotiating position.
The government has not, in the provided material, publicly confirmed the authenticity of the leaked document or provided a detailed response to Patterson’s claims.
