In what is shaping up to be one of the most significant financial missteps in recent Guyanese history, the government’s mishandling of the power sector has cost the country an astronomical US $373.6 million. The staggering expenditure stems from a series of emergency measures undertaken to address a power crisis that critics say was entirely preventable, had the government acted with foresight and competence.
The Alliance for Change (AFC) has issued a damning critique of the People’s Progressive Party (PPP) administration, accusing it of gross incompetence and wastefulness. The criticism centers on delays surrounding the Wales gas-to-power project, a venture touted as the linchpin of Guyana’s energy transformation. Initially announced in 2020, the project was budgeted at US $810 million and was supposed to be completed by 2024. However, with the year drawing to a close, the project remains far from operational. The government now admits that the facility will not be ready until at least the end of 2025, if at all.
This delay has left the country scrambling to keep the lights on, forcing the administration to implement costly stopgap measures. These measures included the procurement of 27 second-hand containerized generating sets at a cost of US $27 million, the rental of a 36MW power ship for two years at a cost of US $130.7 million, and the addition of a 75MW power ship for one year at a cost of US $147.8 million. Altogether, these temporary solutions have drained US $373.6 million from public coffers.
David Patterson of the AFC minced no words in his criticism of the government’s actions. He accused the PPP of sitting idly by for three years after assuming office in 2020, despite clear signs that the country’s energy demands were outpacing its capacity. This lack of preparation, Patterson argued, forced the administration into a series of panic-driven, short-term fixes that have not only drained resources but failed to address the root causes of the power crisis.
Adding insult to injury, Patterson pointed out that the funds spent on these temporary measures could have been used to procure new, permanent generating sets for the Guyana Power and Light (GPL). Such an investment would have provided a lasting solution, ensuring a stable and reliable power supply for years to come. Instead, the government chose to pour nearly half the original cost of the Wales project into what Patterson described as “band-aid solutions.”
The AFC also raised serious concerns about what will happen when the rental periods for the power ships expire. The 111MW of backup electricity provided by these ships is critical to the country’s power grid. Without a contingency plan, Guyana could face widespread outages and further economic disruptions.
Beyond the financial cost, the PPP’s mismanagement has had real-world consequences for the people of Guyana. Households and businesses alike have borne the brunt of unreliable power, with no clear resolution in sight. Patterson lambasted the government for its failure to hold anyone accountable, describing its public relations campaigns as little more than a distraction from its glaring failures.
The government’s recent announcement of U.S. EXIM Bank’s approval of a loan for the Wales project has done little to quell the criticism. While the PPP has lauded the approval as a major achievement, the AFC contends that the delays and ballooning costs have already caused irreparable damage. The party emphasized that no responsible business or government would spend nearly US $400 million on temporary fixes without addressing the underlying problems.
As Guyana grapples with this unfolding crisis, the AFC’s revelations have spiked concerns about greater transparency and accountability. The wasteful spending and lack of planning have undermined public trust in the administration, with many questioning whether the PPP is fit to manage the country’s energy sector.
