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GPL, Inter Energy Group Deal Draws Scrutiny as Jagdeo Defends US$650,000 Monthly Fee

Admin by Admin
August 5, 2025
in News
L-R Vice President Bharrat Jagdeo and GHK Lall

L-R Vice President Bharrat Jagdeo and GHK Lall

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The government’s decision to hire Dominican Republic-based Inter Energy Group (IEG) to provide management supervision for the Guyana Power and Light Inc. (GPL) is drawing increasing scrutiny, with social commentator GHK Lall questioning both the logic and transparency behind the deal, even as Vice President Bharrat Jagdeo defends the US$650,000 monthly contract.

In a sharply worded column, Lall compared the GPL-IEG arrangement to “a very sick man seeking help from another sick person,” arguing that while the Dominican Republic (DR) has made strides in energy reform, its sector still grapples with persistent problems—making it an unsuitable model for Guyana.

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“Guyana made a serious mistake,” Lall wrote. “It could have done better, if its leaders were committed to what is best for Guyanese. The DR is not a good place to start.”

Referencing analyses from the IMF and World Bank as recently as August 2023 and April 2025, respectively, Lall noted that the Dominican Republic is still undertaking major electricity sector reforms to combat blackouts, transmission losses, and inefficiencies. “Therefore, of all the places to assist with what has been Guyana’s equivalent of a longstanding stroke, a company from the DR was not the best choice,” he stated.

Adding a layer of intrigue, Lall pointed to a statement by A Partnership for National Unity (APNU) Vice Presidential candidate Ganesh Mahipaul, who said Prime Minister Mark Phillips had earlier indicated in Parliament that Canadian firm Method4 was allocated the contract—only for that claim to be walked back by government sources, who said the deal with IEG was not yet finalized at the time.

Per Cabinet documents seen by Kaieteur News, the no-objection for the US$650,000-a-month contract with IEG was granted on July 7, 2025. The Cabinet paper, titled “Contract for the Provision of Consultancy Services – Guyana Power and Light Inc.”, stated that the decision followed a memorandum from Finance Minister Dr. Ashni Singh.

Vice President Jagdeo, defending the cost last week, dismissed concerns about the amount. “The US$650,000 figure is a small amount,” he said, adding that a Memorandum of Understanding had been signed with IEG since early 2024 for the supervision of key infrastructure projects needed by GPL.

But Lall remains unconvinced. “Cover-up” is what this is about, he said, asserting that “secrecy, the sinister, and shabbiness stain this GPL-IEG deal.”

He also raised concerns over the government’s history with procurement, citing the Belle View pump station project and the Wales Gas-to-Shore project as examples of costly undertakings plagued by lack of transparency and questionable results.

Ultimately, Lall’s assessment is damning: This isn’t about IEG, he said, but the PPP Government even starting out with, then settling for, a company in the DR… “Clarity and comprehension are not served. Cover-up is.”

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