OPM dismisses report as “false and misleading”

The Office of the Prime Minister (OPM) has firmly rejected allegations that the Government of Guyana secretly paid US$80 million to a contractor involved in the Wales Gas-to-Energy (GtE) Project, describing the claims as inaccurate and misleading.

In a statement issued on 8 April 2026, the government directly responded to a report published by Kaieteur News, which alleged that Guyana had been compelled to make a multi-million US dollar payment following an arbitration ruling. Officials maintained that “no secret payment” was made and insisted that the article misrepresented the facts surrounding the project.

The OPM further criticised the report for creating unnecessary public concern about the transparency and management of one of the country’s largest infrastructure initiatives.‍

Allegations of arbitration payout

The controversy stems from a 3 April 2026 Kaieteur News article which claimed that the government lost an arbitration case against the contractor consortium, Lindsayca-CH4 Guyana Inc., and subsequently paid approximately US$80–82 million.

According to that report, the dispute was linked to delays and cost overruns in the construction of the natural gas liquids (NGL) facility and 300-megawatt power plant at Wales, West Bank Demerara. The publication further alleged that the outcome of the arbitration was not disclosed publicly and added to the overall cost of the project.

However, the government has categorically denied these assertions, stating that no such undisclosed settlement was made and that the reporting failed to accurately reflect the contractual and legal processes involved.

Strategic importance of the Gas-to-Energy project

The dispute has drawn renewed attention to the Wales Gas-to-Energy Project, a flagship initiative expected to significantly transform Guyana’s energy sector.

Valued at approximately US$2 billion, the project aims to deliver 300 megawatts of power to the national grid, doubling generation capacity and reducing electricity costs by as much as 50 per cent.

The development includes a gas-fired power plant, an NGL facility, transmission infrastructure and a pipeline transporting natural gas from offshore fields. It forms a central pillar of the government’s plan to utilise associated gas from oil production to lower energy costs and stimulate industrial growth.

Despite its potential benefits, the project has faced challenges, including delays and contractual disputes with contractors. Earlier projections suggested completion timelines extending into late 2026, reflecting ongoing technical and administrative hurdles.

Transparency concerns and public scrutiny

The latest exchange between the government and Kaieteur News underscores broader concerns about transparency and accountability in Guyana’s rapidly expanding energy sector.

Critics have argued that large-scale projects such as the Gas-to-Energy initiative require consistent public disclosure, particularly where disputes or cost variations arise. The allegations of a secret arbitration payout, though denied have fuelled calls for greater clarity on contractual arrangements and dispute resolution mechanisms.

For its part, the government has reiterated its commitment to transparency, asserting that misinformation could undermine public confidence in critical national projects. Officials have also stressed that the GtE project continues to advance, with works ongoing at the Wales site and key components expected to come on stream by the end of 2026.‍

Balancing progress with accountability

As Guyana continues its transformation into a major energy producer, the Gas-to-Energy Project remains a focal point of both optimism and scrutiny.

The government’s strong rebuttal of the US$80 million payment claims reflects the high stakes associated with the project—not only in economic terms but also in maintaining public trust. At the same time, the episode highlights the role of the media and opposition voices in holding authorities accountable during a period of rapid development.

With construction progressing and expectations high for reduced electricity costs, the coming months will be critical in determining whether the project can deliver on its promises while maintaining transparency and public confidence.

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