CBAM

The Carbon Border Adjustment Mechanism   is a tool Europe uses to fight climate change. CBAM is a tariff levied on exports to the European Union (EU), based on carbon emitted during their production. Its main goal is to accelerate decarbonisation of industries, by establishing a price for carbon while limiting businesses from shifting production to countries with more lenient climate regulations.

TT will begin reporting on the amount of carbon emitted in manufacturing products from January 2025. Its numerous energy-based exports have significant carbon footprints. Using natural gas resources, TT became one the highest exporters of ammonia in the world.

At the Global Climate Change Alliance (GCCA) in Trinidad on November 29, EU Ambassador Peter Cavendish advised that TT exports to Europe amount to $33.8 billion a year and TT is the second-highest exporter of ammonia to Europe which spent €1 billion ($7.1 billion) in development funds in clean-energy projects.

The EU was part of the installation of 12 solar panel systems, including the solar park in Piarco, commissioned in July which supplies four per cent of the airport’s energy needs.

In a discussion on catalysing climate change at the forum, Dr Jaymeion Jagessar, a project researcher at UWI noted that the EU CBAM and other carbon-based tariffs will have a significant effect on TT energy industries. The CBAM will initially apply to imports of goods which are significantly carbon-intensive, including cement, iron and steel, aluminium, fertilisers, electricity and hydrogen.

The reporting phase in January is part of the plans for CBAM implementation. The objective of the reporting period is to act as a transitional phase and learning period for importers and producers of carbon-intensive products, during which importers of goods in the scope of the CBAM regulations can assess and report on the greenhouse gas (GHG) emissions from the manufacture of their goods.

Indirect emissions will also be covered after the transitional period, for sectors such as cement and fertilisers, through a methodology published in August 2023. Petrochemicals such as ammonia are covered under the CBAM regulations for manufacture of fertilisers, even if the ammonia is not used for fertiliser.

Jagessar said exports to Europe account for around 12-14 per cent of TT total exports, over 90 per cent of which will be covered under the CBAM regulations and tariffs. This could have direct implications for TT when fully implemented, including high production costs.

“Overall, in terms of our foreign exchange earnings, it may have some key implications. A socio-economic impact assessment is needed in terms of fertiliser products and the impact it will have on national production.”

TT may have to deal with multiple tariffs on carbon, given that the UK is also making its own policies on carbon pricing. Every CBAM regime will be different, as each will be designed to meet a distinct set of national climate-change policies.

However, CBAM policies can  also  benefit TT .

“There are opportunities in terms of technology transfer and a market shift. CBAM could incentivise TT to adopt cleaner production methods, making its exports more competitive in the global market.”

Measured approach to transition

Sheena Gosine, adviser to the Minister of Energy on energy international relations and affairs, said TT is taking a measured approach to transitioning to clean energy. TT has a 100-year history in oil and gas, with a robust value chain, contributing significantly to GDP and natural gas, the cleanest-burning fossil fuel, will drive energy transition.

“TT is a very unique country and we have to transition in our own context.”

TT ratified the Paris Agreement and pledged to reduce emissions by 15 per cent by 2030. The Ministry was given a target to transition to clean-energy resources by 30 percent by 2030.

“The approach the ministry has taken is to focus on our mandate, which is power generation. We have been focusing on decarbonising the power-generation sector.”

The Ministry plans to meet targets through sector coupling – integrating and coordinating with different sectors.

“Sector coupling would refer to an efficient transfer of energy resources between sectors. In our case, that is emitting sectors.”

TT uses up to ten per cent of its natural gas for power generation.

In 2023, amid hot spells, TT recorded the highest peak demand for power generation on September 13. T&TEC said while it had enough installed capacity to meet the demand, it has resulted in increased natural gas usage. In 2018, the ministry issued requests for proposals (RFP) for the generation of up to 130 megawatts of power to the grid.

A consortium of bp and Shell won the bid and a solar farm, TT Solar, is expected to be commissioned in Brechin Castle, Couva. Among challenges to transition to clean energy, especially through power generation, is land availability.

“One of the key learnings is that the large areas of land available for these plans are covered by leases, transfer issues and other matters.

The Ministry took the approach of land owned by the government that was not in use. Three years ago a minerals advisory committee identified parcels of land that are illegally quarried in the northeast . Many are non-utilised state lands so an offering of land is planned for the next RFP.”

 

 

Modi at Caricom-India summit

November 20

 TT Prime Minister Dr Keith Rowley joined Caricom colleagues in assuring India’s Prime Minister Narendra Modi of the region’s commitment to strengthening ties with India, as regional heads of government met the Indian delegation at the summit in Georgetown.

Modi announced seven pillars of support for Caricom:

1. 1. 1. capacity building,
      2. agriculture,
      3. renewable energy,
      4. information technology,
      5. cricket and culture,
      6. ocean economy and maritime security,
      7. medical and healthcare.

Modi identified as specific areas for collaboration with Caricom:

1. 1. 1. provision of cargo and passenger ferries to enhance regional connectivity,
      2. cancer treatment equipment,
      3. drug testing labs,
      4. a regional forensic centre,
      5. an additional 1,000 slots for high-tech scholarships,
      6. expanding India’s Technical Development Centre in Belize for use by all Caricom states and
      7. training for parliamentarians and women cricketers.

Noting that sargassum was jeopardising tourism, Modi said, “In India, we’ve developed technology to make fertiliser using this seaweed. This can help you solve the problem but also increase crop yields. India is ready to share these experiences with Caricom .”

Data from India’s satellite, being launched by 2027, will be shared with all countries,

Caricom leaders thanked Modi for his government’s generosity and affirmed their commitment to strengthen this relationship. Acknowledging India among Trinidad and Tobago’s oldest friends with diplomatic cooperation spanning several decades, Rowley proposed a standing committee of Caricom and India to ensure that the initiatives are implemented.

Bilateral discussions with Modi focused on deepening and strengthening ties in:

1. 1. 1. cybersecurity training,
      2. digital transformation and
      3. national security.

Attending were Foreign and Caricom Affairs Minister Dr Amery Browne, Attorney General Reginald Armour, SC and Minister in the Ministry of Legal Affairs Renuka Sagramsingh-Sooklal.

In 2019 at the 74th Session of the United Nations General Assembly (UNGA), Caricom heads and India’s prime minister discussed co-operation modalities in renewable energy and climate change through a US$150 million credit line from India.

 

 

CARICOM & India share deep-rooted partnership

November 20, 2024

At the second CARICOM-India Summit, Secretary-General of the Caribbean Community, Carla Barnett emphasised that CARICOM and India have a long history and deep-rooted partnership through diplomatic ties forged at the bilateral level and strengthened over three decades.

This enduring alliance has been characterised by numerous high-level political exchanges, such as the inaugural CARICOM-India Summit in 2019 and a robust framework of technical cooperation. The summit was co-chaired by the Prime Minister of India, the Honourable Shri Narendra Modi, Prime Minister of Grenada Dickon Mitchell and President Dr Mohamed Irfaan Ali. India’s strong partnership with the region led to substantial contributions in critical areas like:

1. 1. 1. healthcare,
      2. human resource development,
      3. renewable energy,
      4. the blue economy and
      5. information and communications technology (ICT).

“As our countries continue to navigate the complexities of sustainable development, partnerships such as ours are imperative to foster innovative solutions.

The community therefore commends and thanks India for its strong advocacy on issues that are important to our region. India’s Presidency of the G20 in 2023 was testimony to this commitment with reform of the global financial architecture as a priority.”

Such support for the global arena is essential, especially where small states lack a strong voice.

“As CARICOM and India reaffirm steadfast commitment to a vibrant and active relationship through the outcomes from this second Summit, the Secretariat stands ready to ensure that the collaboration continues to flourish in the years to come.”

India and CARICOM share fundamental values of democracy, peace and sustainable development.

 

 

 

India plan to boost CARICOM development

November 20, 2024

With deep historical and cultural ties to the CARICOM region, India is taking steps to establish itself as a key development partner.

Prime Minister of India, Shri Narendra Modi outlined a seven-point agenda to strengthen partnership with the Caribbean Community (CARICOM) during the Second India-CARICOM Summit.

The CARICOM-India Summit, convened at the Marriott Hotel, Georgetown, marked a significant milestone in bilateral relations. PM Modi emphasised India’s commitment to supporting CARICOM development priorities.

Within the realm of capacity building, the PM proposed the expansion of the Indian Technical and Economic Cooperation Programme (ITEC) to accommodate an additional 1,000 participants from CARICOM member states over the next five years. This will promote technical training and skill development. The scale and size of the Technical Development Centre established in Belize will be expanded for use by all CARICOM countries.

“We will also work on creating a forensic centre for CARICOM.”

An online platform similar to India’s Integrated Government Online training (iGOT) portal can be provided for CARICOM Member States to offer training courses for civil servants in technology, law and education.

“As a model of democracy, India is also ready to work with CARICOM countries on training for parliamentarians.”

Emphasising the integral role of agriculture in economic development, Modi touted his vision of transformation in the sector through the integration of technology such as soil testing and drones. By leveraging these technologies, with India’s support, the region can advance its food security agenda.

Similar proposals were put forward for renewable energy, medicine, and trade.

PM Modi identified opportunities within the maritime sector to supply passenger and cargo ferries to the region to bolster transportation and trade and enable maritime domain mapping and hydrography.

The importance of cultural heritage was underscored. Cricket is an important link between India and the region. To promote its development while fostering female empowerment, he said that India can provide training to eleven female cricketers from each CARICOM nation.  This commitment to tailored cooperation reflects India’s growing influence as a global development partner.

“India will be happy to enhance cooperation in all these areas. In all of these pillars of CARICOM, one thing is common, all of these are based on your priorities and your needs. This is the core principle of our cooperation.”

President Dr Mohamed Irfaan Ali applauded the PM’s role in international advocacy for the developing nations on critical issues like climate change and sustainable development.

This is the first time the CARICOM-India Summit is being held in a CARICOM Member State. The milestone event is part of PM Modi’s three-day state visit to Guyana at the invitation of President Ali. This is the first visit of an Indian Prime Minister to Guyana in 56 years. He will address a special sitting of the National Assembly .

 

 

 

Cooperation will enhance CARICOM & India relations

November 20, 2024

Chairman of the Caribbean Community (CARICOM), Prime Minister of Grenada Dickon Mitchell stated that the 2nd India-CARICOM Summit presents an important and timely opportunity for leaders to engage in open and meaningful discussions that will be beneficial for everyone.

The historic summit is taking place against the backdrop of rapid developments regionally and globally.

“Looking forward, we envision a future where CARICOM-India relations continue to flourish and expand. Closer collaboration and cooperation among leaders of CARICOM member states and India would serve to further enhance the partnerships and contribute to successfully strengthening our existing economic, commercial and people-to-people relations,” Prime Minister Mitchell told the 2nd India-CARICOM Summit,

Since the inaugural CARICOM-India Summit in September 2019, bonds have strengthened between India and the region, reflecting their mutual commitment to a partnership built on trust, shared values, and common goals. The partnership spans sectors including trade, education, technology, healthcare, climate resilience, each contributing to the sustainable development and prosperity for both regions.

CARICOM also remains highly grateful to India for the vaccines donated to CARICOM member states at the height of the COVID-19 pandemic.

“It demonstrated that, at the time of its own great need, it [India] cared enough about its brothers and sisters within CARICOM. We remain convinced more than ever that closer linkages between CARICOM and our trusted partner, India, are part of the very necessary medication and intervention needed by the Caribbean Community and its citizens to overcome our existing developmental challenges.”

Prime Minister Modi’s commitment to fostering international partnerships and his dedication to sustainable development set a remarkable example for the region and the world. The Indian Prime Minister’s leadership has not only propelled India to new heights buthas also opened new avenues for greater collaboration with the region.

“We commend India’s unwavering commitment to sustainable development for our region, especially in this intricate and inter-connected era of globalisation. It is evident to us that the challenges that we face can only be effectively addressed through a spirit of deeper integration, cooperative and cooperative actions,” he said. The region is particularly appreciative of India’s enhanced engagement in recent years as it demonstrates a genuine eagerness to fortify bilateral ties with the region and collaboratively confront pressing issues such as the pervasive digital divide.

PM Mitchell said that the Caribbean Community attributes tremendous value to the shared history, common values, kinship and strong bonds of friendship that the region has enjoyed with the people and Government of India. This has strongly influenced and enriched the diverse and vibrant culture of the Caribbean Community.

 

 

 

 

“Will boost economic ties” Guyanese locals look forward to Modi’s visit

Georgetown , November 19 (ANI)

Ahead of Prime Minister Narendra Modi’s arrival in Guyana, Indians in the petrostate shared their enthusiasm about his “historic” state visit. An estimated 40 per cent of the population is of Indian Origin. PM Modi, embarking on a five-day visit to Guyana at the invitation of President Mohamed Irfaan Ali, said it will be “the first-ever” of an Indian Prime Minister in over 50 years.

“We will exchange views on giving strategic direction to our unique relationship, based on shared heritage, culture and values. I will also pay my respects to one of the oldest Indian diaspora, who migrated more than 185 years ago, and engage a fellow democracy, as I address their Parliament. I will also join leaders from the Caribbean partner countries for the 2nd India-CARICOM Summit. We have stood together through thick and thin. The Summit will enable us to renew historical ties and expand our cooperation into new domains.”

CARICOM, a political and economic union of 15 member states and five associate members in the Caribbean, Americas, and Atlantic Ocean, was founded in 1973 in Chaguaramas, Trinidad.

Pravinchandra Dave, a financial consultant working in Guyana, said that Guyana was excited to welcome Prime Minister Narendra Modi and the visit offers several economic opportunities for both the countries because Guyana’s currency, Guyanese dollar, has been relatively stable for 12 years.

Guyana’s neighbours do not have a stable currency, which gives Guyana an edge over them.

“The CARICOM countries, which are the neighbours of Guyana, can provide very little support or help, because they themselves have their own problems. They are a standalone type of economy, depending on one crop or one tourism. Their currencies have depreciated too much. In contrast, Guyana’s economy and currency has remained stable over 12 years. It is amazing that this is the only country where the currency has not depreciated and that is a great boost for the country.”

Dave said that such a high-profile visit has not taken place in Guyana before.

“Guyana is really excited to have Prime Minister Modi in Guyana. No Prime Minister of India or President of India ever had been to Guyana, as far as I recall. Not only any third world country, either US, UK or Canada, their chief has come over here.”

PM Modi created an image of Indians that makes them proud of themselves.

“PM Modi has created an image of the Indians and Indian culture in such a big way that every Indian feels proud of our culture, religion, economy and finance because of PM Modi. Prior to the arrival of PM Modi on the scene, it was not so high because I have seen Guyana before Prime Minister Modi and after him. It has made a huge change.”

At a briefing ahead of Modi’s visit, Ministry of External Affairs Secretary (East) Jaideep Mazumdar said that while India aims to partner with Guyana on energy-related issues, the scope of cooperation is much broader.

“Guyana is on the cusp of an economic and developmental transformation with major discovery of oil and gas. We hope to partner them in a number of fields including in hydrocarbons, healthcare, education and defence. It is the fastest growing economy in the world and we will have opportunities for partnering in diverse fields.”

Pravinchandra Dave said, “Now it offers an immense opportunity for us to make investment in Guyana from India as well as establish technical, financial, managerial collaboration with India, which can benefit both countries. And one more opportunity is that many technicians can get job opportunities in Guyana. Because jobs are available in Guyana but there are no people available. Primarily because Guyana was considered a third world country.”

Guyana is too far from India and there are no direct flights. So, if an airline takes initiative to have direct flights between both countries, travelling would become smoother.

“The proximity of Guyana to India is very far. You know, you have to come from UK or from US. That’s a problem. If any airline takes an initiative to have a direct link between Guyana and India or via any Gulf country, it will be of immense help. But I can tell you in short that there are tremendous opportunities, business opportunities, medical tourism opportunities, technical cooperation opportunities, and it is immense. Actually, it is an unexplored country.”

“We are excited. Everybody wants to see him, everybody wants to meet him, everybody wants to have the photograph with him. We know it is not possible, but it will be a great pleasure and it will be a great milestone in the history of the Guyana-India relationship and PM visit will be remembered for years to come.”

In 2023 , Guyanese President Mohamed Irfaan Ali was the chief guest at the Pravasi Bharatiya Divas and was awarded the Pravasi Bharatiya Samman, the highest honour for persons of Indian origin. In February 2023, Vice President Bharrat Jagdeo visited India.

“Prime Minister Mark Phillips also visited in February this year. There have been Ministerial visits of Agriculture and Health, and the Chief of Defence Staff was here last week. External Affairs Minister visited Guyana in April 2023 and met the entire leadership at that time.|”

During his November 19-23 visit to Guyana, PM Modi will have delegation level talks with President Irfaan Ali. He will address the National Assembly and the diaspora.

“The Indian diaspora in Guyana arrived in 1838, so it is more than 180 years since there has been an Indian presence in Guyana. Today, roughly 40 per cent of the population of 800,000 is of Indian origin and they are a vital link between our two countries,” Mazumdar said.

India has a long-standing developmental partnership with Guyana in the fields of health, connectivity, renewable power and water.

The GRSE built an ocean-going ferry which India supplied to Guyana last year and India also supplied two HAL-228 aircrafts under a line of credit to Guyana this year. Solar lighting for about 30,000 Indigenous communities has been provided to 30,000 households and we have so far had 800 ITEC alumni from Guyana who studied in India. In fact, President Mohamed Irfaan Ali himself is also an alumni of the ITEC fellowships,” Jaideep Mazumdar said.

“This is a significant Summit and we expect to have a very rich agenda of cooperation with CARICOM during this Summit. We recently had a Joint Commission Meeting at my level with CARICOM countries in which we identified a whole range of areas on which discussions will be carried forward during the Summit. These will be examined in detail and cooperation identified in areas such as healthcare, ICT including digital public infrastructure, connectivity, skilling and capacity building, technology and innovation, education especially in STEM and higher education, and renewable energy.

“The CARICOM countries have been a strong partner of India and have participated in every iteration of the Voice of the Global South Summits and we will carry forward that dialogue during the second India-CARICOM Summit” .

(ANI)

 

 

 

TDI-Brooks wraps up Suriname seabed project

November 20, 2024, by Zerina Maksumic

U.S.-based TDI-Brooks International, contracted by GeoPartners, has finalized a seabed survey project for Staatsolie Maatschappij Suriname, the national oil company.

The Suriname Seabed Piston Coring project involved the acquisition, processing and interpretation of seep data, encompassing multibeam and coring operations over a 45,000 square kilometer area on the continental shelf.

Utilizing the vessel RV GYRE, the campaign unfolded in two phases: geophysical and geochemical. The geophysical phase, conducted from July to October, focused on multibeam echosounder (MBES) acquisition, backscatter analysis, and plume detection.

The geochemical phase, from October to November, added sub-bottom profiler surveys and core sampling, with a 1-kilometer chirp sub-bottom profiler line acquired at each core site. In total, the company recovered 60 SGE cores and seven heat flow samples, yielding several hydrocarbon indicators.

“Another successful acquisition completed. Thank you to all crew and support staff involved,” said Ben Sayers, Partner at GeoPartners. Ron Daniel, Geoscience Advisor for Staatsolie’s Exploration team, added: “Thank you for a safely and well-executed project, done in collaboration with all the stakeholders. We look forward to the geochemical results.”

The RV GYRE is equipped for advanced seep-hunting operations, featuring a newly installed Kongsberg EM-304 (1×1) hull-mounted MBES system and an Edgetech HM3300 Chirp sub-bottom profiler, TDI-Brooks said.

Its capabilities include geotechnical and geochemical coring, heat flow sampling and cone penetration testing (CPT).

Following the offshore campaign, geochemical analyses will be conducted at TDI-Brooks’ laboratories in College Station, Texas. Screening analysis will focus on interstitial carbon gases (C1-C5 hydrocarbons and CO2), total scanning fluorescence (TSF), and C15+ gas chromatography. Cores with seepage evidence will undergo further isotopic and biomarker analysis to assess the hydrocarbon system’s characteristics.

“Seep hunting surveys have been based on the observation that migrated petroleum from deep source rocks and reservoirs can be analytically detected or otherwise proxied as thermogenic seepage in near-surface soils and sediments, such that results can be used to help evaluate a prospective petroleum system,” explained Bernie Bernard, Vice President & Chief Technology Officer of TDI-Brooks.

“The value of survey results has been aided by the evolution of tools and techniques for site selection, sample collection, lab analysis, and interpretation, resulting in our growing ability to determine charge, age, maturity, depositional environment, and even oil quality from the detected seepage.”

In September, Staatsolie Maatschappij Suriname signed a memorandum of understanding (MoU) with Petrobras to enhance collaboration in various aspects of the energy arena.

Norway’s subsea services provider Argeo signed an eight-year agreement in November with Staatsolie for the acquisition, processing, and sales of multi-client data in Suriname.

 

 

Exxon exits Suriname offshore block, transfers 50% stake to Petronas

By Kevin Crowley, Bloomberg November 20, 2024

Exxon Mobil Corp. confirmed its withdrawal from an oil-exploration block offshore Suriname, not far from where it discovered over 11 billion bbls in Guyana waters. Exxon will transfer its 50% stake in Block 52 to Malaysia’s Petronas, operator of the project and owner of the remaining 50%, according to Staatsolie, Suriname’s SOC.

Exxon confirmed its exit and said it has “fulfilled all our work commitments.”

Suriname, a former Dutch colony on the northeast of South America, is hopeful that it will one day transform its economy into a major oil producer like neighboring Guyana. TotalEnergies SE and APA Corp. recently approved a $10.5 billion project expected to begin pumping crude as soon as 2028.

Still, converting exploration success into tangible oil production has been more challenging than in Guyana, in part due to the high natural gas content of crude from Suriname.

Exxon and Petronas made a gas discovery on the block in 2020 and drilled a second well for appraisal purposes earlier this year.

Staatsolie said. “The withdrawal is part of the ongoing evaluation of assets in ExxonMobil’s global portfolio. Staatsolie expects Petronas to continue the activities in Block 52 without interruption.”

 

 

 

 

IMF – Suriname

IMF Staff Conclude Article IV Discussions and Reach Staff-Level Agreement with Suriname on the Eighth Review of the Extended Arrangement Under the Extended Fund Facility

November 22, 2024

End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board.

Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision.

The International Monetary Fund staff and the Surinamese authorities reached a staff-level agreement on the eighth review of the authorities’ economic recovery program supported by the Extended Fund Facility (EFF). The review is subject to approval by the IMF’s Executive Board.

Subject to approval by the IMF Executive Board, Suriname would have access to about USD 61.3 million (SDR 46.7 million).

Program performance has been solid, demonstrating the authorities’ steadfast commitment to macroeconomic stability. The authorities’ main near-term policy priority is to maintain fiscal discipline in the run up to the elections while protecting the poor and vulnerable.

Over the medium term, strengthening the fiscal framework, including through the introduction of new fiscal rules and the establishment of the appropriate institutional mechanisms will enable Suriname efficiently and transparently manage its newly found oil resources. It is also essential to boost non-oil GDP growth, including through addressing governance weaknesses and closing gender gaps in employment.

Washington, DC: An International Monetary Fund (IMF) team led by Ms. Anastasia Guscina conducted discussions with the Surinamese authorities during October 29-November 12 on the 2024 Article IV and reached a staff level agreement on the 8th review of the 36-month Extended Fund Facility that was approved by the IMF’s Executive Board in December 2021.

At the conclusion of the discussions, Ms. Guscina issued the following statement:

“The IMF team reached a staff-level agreement with the authorities on the eighth review of Suriname’s economic reform program that is supported by the EFF arrangement. All quantitative targets for the eighth review were met except the primary fiscal balance target. The authorities are taking corrective actions to meet the end-year primary balance target. Structural reforms are progressing with a strong impetus. This staff-level agreement is subject to approval by the IMF’s Executive Board, contingent on the fulfillment of all relevant Fund policies. Upon completion of this review, Suriname will have access to SDR 46.7 million (about USD 61.3 million), bringing total program disbursements to date to SDR 383.8 million (about USD 503.8 million).

“The authorities’ commitment to maintaining prudent macroeconomic policies and difficult reforms are showing results in terms of macroeconomic stability and investor confidence. Economic growth is projected to reach 3 percent this year, inflation is on a steady downward trend, donor support is increasing, investor confidence is returning, and international reserves are increasing. The authorities face important near-term risks, including capacity constraints and policy implementation challenges reflecting the increasingly difficult socio-political environment. Suriname’s medium-term outlook has improved significantly with the announcement of the final investment decision (FID) paving the way for offshore oil production beginning in 2028.

“The fiscal path for 2024-25 has been loosened to accommodate unanticipated fiscal needs against the backdrop of the improving medium-term debt dynamics arising from the FID. The end-September primary balance target was missed because the electricity company (EBS) transferred insufficient resources to the state budget and an overrun on social assistance spending. The EBS has been hit hard by the ongoing drought (forcing a switch from hydroelectric to more expensive thermal generation) and weak bill collection. There was also a need to help rice farmers that have lost their crops due to the drought. The government is putting in place new fiscal rules and the supporting institutional arrangements to enable the country efficiently and transparently manage the upcoming oil wealth. Broader structural reforms are necessary to increase the efficiency, transparency, and accountability in the energy sector.

“Protecting the poor and vulnerable remains high on the agenda. The government met the indicative target on social assistance spending for end-September 2024. Stronger efforts are needed to address the challenges in the execution of the social beneficiary program to ensure the benefits reach the intended beneficiaries, particularly in the country’s interior regions. The authorities should promptly implement the recently completed strategic plan to enhance the effectiveness of social protection with the support of development partners.

“Excellent progress has been made with debt restructuring. Agreements have been reached with all official and most commercial creditors and negotiations with the remaining commercial creditors are ongoing. An umbrella agreement with the Paris Club for the second phase of the debt treatment was signed in October and negotiations with individual creditors are ongoing. Domestic debt arrears have been repaid and Suriname should be ready to re-access domestic debt market in the second half of 2025. The authorities are strengthening commitment controls to prevent accumulation of supplier arrears.

“The continued restrictive monetary policy stance has further reduced inflation. The Central Bank of Suriname (CBvS) is monitoring monetary developments and will continue to diligently implement open market operations to maintain the reserve money path consistent with the program targets. The CBvS remains committed to a flexible, market-determined exchange rate and is working to improve the functioning of the foreign exchange market, including through the launching of an electronic foreign exchange trading platform.

“Vulnerabilities in the banking system are being addressed. Timely completion of recapitalization plans of banks with capital shortages, and prudent monitoring of capital adequacy, liquidity and asset quality of banks are essential to preserve stability in the banking sector. The CBvS also needs to increase its monitoring of non-bank financial institutions, particularly with respect to their interconnectedness with the banking system.

“The authorities need to push ahead with their ambitious structural reform agenda to strengthen institutions and governance. A strong CBvS balance sheet is crucial for operational independence and the robust implementation of monetary policy. The central bank recapitalization plan, as required by the Central Bank Act, should be implemented as planned. Looking ahead, it is also important to push ahead with the broader governance reforms in anti-money laundering/combating the financing of terrorism (AML/CFT), anti-corruption, and public sector procurement to prepare the country for the oil wealth.

“The mission would like to thank the authorities for a collaborative and fruitful dialogue. Meetings were held with the President and Vice President of the Republic of Suriname, the Minister of Finance and Planning, the Minister of Agriculture, the Minister of Justice and Police, the Minister of Internal Affairs, the Minister of Labor, the Minister of Transport, Communications and Tourism, the Central Bank Governor, the leadership and the finance committee of the National Assembly, other senior government officials, civil society organizations, women leaders, representatives of the private sector, and development partners.

IMF Communications Department

 

LIAT 2020 makes inaugural flight to Guyana

2024, 11/20

Prime Minister of Antigua and Barbuda, Gaston Browne, and Minister of Public Works, Bishop Juan Edghill, CEO of the Cheddi Jagan International Airport, Ramesh Geer, and Director of the Guyana Tourism Authority, Kamrul Baksh and Antigua and Barbuda delegation cut the ribbon during the inaugural flight of Liat 2020.

Antigua and Barbuda Prime Minister Gaston Browne underscored the importance of the regional airline, LIAT 2020 to the Caribbean as the St. John’s based airline made its inaugural flight into Guyana. Browne, who was among dignitaries that marked the occasion, said that LIAT 2020 is a far stronger and better-capitalised airline than its predecessor, which went bankrupt in January this year.

“We have invested almost EC$200 million (One EC dollar=US$0.37 cents), making LIAT 2020 the best-capitalised airline operating in the Caribbean today,” Browne said, reassuring the public of the airline’s stability and longevity.

The shareholder governments of the former LIAT (1974) airline are Antigua and Barbuda, Barbados, Dominica and St Vincent and the Grenadines.

Antigua and Barbuda is involved in an agreement with private Nigerian airline, Air Peace, in the establishment of LIAT 2020 airline and earlier Prime Minister Browne had said that Air Peace would invest close to US$65 million, while his government is investing US$20 million.

The Antigua and Barbuda government said it would pay US$12.1 million into an escrow account for the acquisition of other planes owned by the Barbados-based Caribbean Development Bank (CDB).

Collaboration opens up new possibilities for transatlantic travel, with plans to add a larger 125-seater aircraft next year, further extending the airline’s reach beyond the Caribbean.

Guyana’s Public Works Minister, Bishop Juan Edghill, spoke of the significance of LIAT 2020’s arrival . Guyana’s aviation sector has experienced substantial growth since 2020, driven by both strategic investments in infrastructure and the country’s growing economic importance on the global stage.

“Every week, LIAT 2020 will add 796 seats with eight flights to Guyana, and that’s a big improvement,” Edghill said, noting that the growing demand for air travel was not just about increased passenger numbers but about providing dependable service to the public.

“Guyanese, the business community, and the tourism sector only ask for three things: predictability, reliability, and consistency. We want to know that when we show up, we can get our flight, just like anywhere else in the world,” he said, reinforcing the expectations for the airline’s performance.