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Lall Says Guyana Paying Price for Energy Project Delays

Admin by Admin
June 2, 2026
in News
Prime Minister, Brigadier (Ret’d) Mark Phillips (second left) inspecting the power station (DPI)

Prime Minister, Brigadier (Ret’d) Mark Phillips (second left) inspecting the power station (DPI)

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Social commentator GHK Lall has criticised the government’s handling of Guyana’s energy sector, arguing that a reported demand by Turkish power supplier Karpowership for an additional G$3.4 million per day exposes deeper weaknesses in the country’s energy strategy and the delayed Wales Gas-to-Energy (GTE) project.

Writing in Village Voice News today, Lall described the situation as a lesson in international business and warned that Guyana’s continued dependence on temporary power-generation arrangements has left the country vulnerable.

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“The men from Istanbul are giving Guyanese a free tutorial on how the real world operates,” Lall wrote. “They supply 96MW in urgently needed electricity. It’s $3.4 million a day, or they are on their way.”

Karpowership currently operates two floating power plants in Guyana’s waters—one in the Berbice River supplying 36 megawatts and another in the Demerara River supplying 60 megawatts. Together, the vessels provide approximately 96 megawatts of electricity to the national grid.

The company was brought in by the government in 2024 as an emergency measure to address chronic electricity shortages and delays in bringing new generating capacity online. The arrangement was intended to serve as a temporary bridge until the completion of the Wales Gas-to-Energy (GTE)project, which government officials have long promoted as the solution to Guyana’s energy challenges.

However, with the GTE project now years behind schedule, what was supposed to be a short-term remedy has become a critical component of the country’s electricity supply, increasing Guyana’s dependence on a foreign provider.

The approximately US$2 billion Wales Gas-to-Energy project is one of the Ali administration’s flagship initiatives. It aims to transport natural gas from ExxonMobil’s offshore operations to Wales, West Bank Demerara, where it would be used to generate electricity and support industrial development. Government officials have repeatedly said the project will lower electricity costs and improve reliability.

But the project has faced delays, legal challenges and cost overruns, leading to growing scrutiny over its implementation and management.

According to Lall, those delays have strengthened Karpowership’s bargaining position.

“Pay up. Don’t muck with the men from the land of Ataturk,” he wrote, suggesting the Turkish company now holds significant leverage because Guyana remains dependent on its electricity supply.

Lall also linked the issue to the government’s broader approach to contracts and negotiations.

“Recall that fancy one: sanctity of contract. Exxon say no, and so Guyana go,” he wrote.

He argued that the country’s current predicament stems directly from the failure to complete the Wales project on schedule.

“The formula was and still is simple: get the Wales GTE done, and Karpower is done,” he stated.

Lall was particularly critical of what he sees as Guyana’s weak negotiating position, contending that the government has little choice but to meet the additional demand if it wishes to avoid disruptions to electricity supply.

“Guyana is on the ropes, which are now wrapped around the necks of its peoples,” he wrote, warning of the consequences should the 96MW supplied by Karpowership be withdrawn.

The commentator also connected the energy challenges to broader governance concerns, including infrastructure shortcomings and recent flooding across parts of the country.

“It is said that when it rains, it pours. This is what is happening to Drs. Ali, Jagdeo, and Phillips,” he wrote.

Despite his criticism, Lall predicted that the government would ultimately approve the additional expenditure rather than risk widespread power outages.

“To my fellow Guyanese: Good news: doan tek wurreez. The PPP will pay the people from Turkey the money: $3.4M a day more signed, sealed, delivered.”

The controversy has renewed questions about Guyana’s continued reliance on temporary power-generation arrangements despite unprecedented oil revenues and repeated assurances that the Gas-to-Energy project would deliver cheaper and more reliable electricity. Critics argue that delays in key infrastructure projects have increased the country’s exposure to additional costs and contractual pressures while leaving consumers vulnerable to continued uncertainty in the energy sector.

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