Guyana aims to be regional transshipment hub

March 6, 2024

President Dr. Irfaan Ali urged popular logistics company DHL Caribbean to explore opportunities and extend services to northern Brazil from Guyana, positioned to emerge as a pivotal transshipment hub, fostering vital connections between South America and the global arena. With its strategic geographical location on the Atlantic edge of South America, Guyana is the shortest and most cost-effective route for Brazilian exports through the Panama Canal. President Ali envisions Guyana evolving into a key transshipment hub, highlighting the importance of DHL’s commitment to enhancing its services. Led by CEO Richard Saavedra, . DHL aims to not only strengthen its operations but also contribute to Guyana’s role as a transport-centric route to the Atlantic Ocean for northern Brazil’s imports and exports.

In collaboration with CARICOM counterparts Barbados and Trinidad and Tobago, Guyana is actively pursuing a ferry service to facilitate cargo and passenger transport. Caribbean Development Bank (CDB) supports this initiative, emphasising its commitment to improving food security and fostering regional cooperation. President Ali had previously revealed ongoing discussions for a specialised ferry service with Aruba, catering specifically to the transportation of agricultural produce.Highlighting its potential as a major transport hub, he envisions Guyana becoming the gateway between South America and the world, unlocking vast opportunities for investments and trade.

He stressed the need for structured mechanisms to harness the potential of inter-regional trade among the Caribbean states, South America, and Africa and the importance of building transportation links via sea and air to achieve greater integration. A trilateral meeting among President Ali, Brazilian President Luiz Inácio ‘Lula’ da Silva and Suriname President Chandrikapersad Santokhi reaffirmed Guyana’s strategic significance. Their joint declaration, set the stage for a comprehensive strategic roadmap with working groups in infrastructure, energy, and security. Notable projects, such as the full paving of the Linden-Lethem Road, are intended to enhance connectivity and facilitate the movement of agricultural and mineral products between Brazil and Guyana.

Chief Executive Officer (CEO) of the Guyana Office for Investment (GoInvest) Dr. Peter Ramsaroop, earlier highlighted the transformative potential of Guyana’s strategic position, foreseeing a substantial increase in investments across various sectors. This is so because a journey that would take days using the Amazon River would be reduced to a matter of hours via road transportation.

 

 

EIOs review for a model to monetise gas assets

March 24, 2024

Dr Bharrat Jagdeo announced that Expressions of Interest (EIOs) for a model that will help Guyana monetise its gas assets are under review by the Ministry of Natural Resources. Following extensive reviews, the ministry will recommend a preferred group to the cabinet from those who submitted expressions.

“We will then initiate a meeting, a tripartite meeting with that group, Exxon Mobil, and the Government of Guyana to discuss how we can move forward as quickly as possible to monetize the gas.”

In January, President Dr Mohamed Irfaan Ali announced government plans to accelerate monetisation of the gas resources estimated at 17 trillion cubic feet (tcf) and request proposals for this purpose.

In October 2023, a draft of the Guyana Gas Monetization Strategy was released for public consultation.

“We have HIS Market now working with us on doing a strategy. I saw elements [in] the issue paper that came recently and I said, if they do what they want to do, it will take a very long time, because you’re getting into, almost trying to monetise the gas on your own. The document would do a lot of technical work, since we’re hoping that this is going to be driven by the private sector, the government will not invest in it.”

Dr Jagdeo also emphasised that this strategy should be investor-driven since the government aims to benefit from more revenue through this investor-driven undertaking.

“That is why we don’t need to do all the detailed technical work. This should be done by the parties that want to develop the project… if you do all that detailed technical work, it might tie you to a particular approach on monetizing the gas, that we don’t know would be the best approach that the investors want,” he said, stressing the need for a comprehensive strategy that creates a supportive environment for monetising gas assets.

Guyana began oil production in 2019 in the Stabroek Block offshore.The offshore block also contains natural gas resources and the government plans to utilise these resources to generate cheaper energy and create other products. The strategy lists various monetization options, such as using natural gas for power generation and producing methanol, liquefied natural gas (LNG), ammonia/urea, and blue ammonia/hydrogen. As per the draft gas monetization plan, it is estimated that there are approximately 17 trillion cubic feet of recoverable gas resources in the Stabroek Block which mainly include associated gas and condensates.

 

 

VP defends skills being employed by oil companies

Mar 15, 2024

With the discovery of petroleum and subsequent commencement of production in the Stabroek Block, the skilled labour force has been tempted by more attractive salaries, leaving a serious dent in the local labour market. This has shifted the country’s growth perspective in light of the numerous vacancies in key areas. However, the government does not believe Guyanese should be prevented from seizing opportunities for personal development. Vice President, Bharrat Jagdeo said that both the private sector and state agencies complained about losing its employees to the rapidly developing sector.

Jagdeo noted that while the private sector has complained about losing its “people at the bottom” such as cleaners to the public sector since they receive better salaries, the government is losing its skilled workers to the petroleum sector.

The Guyana Revenue Authority (GRA) the body tasked with conducting audits of the petroleum companies, had complained that the trained auditors were leaving to join the oil and gas sector. The Commissioner General pointed out that while 65 persons were required for the job, only 31 persons were on roll in August 2023. Government has made it clear that it does not have yokes on its people and will not prevent them from taking better paying jobs.

“We don’t have serfdom in this country. We share the philosophy that you can’t bind people to a job because you want cheap labour. We have to equip as many of our people to get better paying jobs so they can improve themselves and the lives of their families so if someone has a better job offer, we’re not North Korea to say you have to stay here. They get a better offer, they make their own decisions, they move. In as much as we are unhappy about it because that person, a Guyanese person is improving his or her own life and that should be the objective of the individual and the government too.”

To address the skills shortage on the local labour market, the former President advised that government is now removing contractual obligations for Guyanese who benefitted from scholarships, explaining, “that means they don’t have to work for government, they can work anywhere, they don’t have to repay if they decide to move.” Government is accelerating training opportunities to up-skill more Guyanese through various government programmes.

Government is also granting work permits to allow “big companies” to import the labour required. The Chinese company constructing the new Demerara River Crossing was permitted to import their workers since this could have affected the timely delivery of the project, therefore driving up cost.

Guyanese could not afford to pay construction workers to build their homes, as the oil and gas sector was offering rates estimated at $15,000 per day.

To this end, the administration has implemented various initiatives aimed at cushioning the expensive or unaffordable cost of labour. Jagdeo listed the government’s construction of core homes and young professional homes that can be purchased at affordable prices.

“We then said we are prepared to build for you, if you have a plot of land, there’s a programme now we launched in the Ministry, we are prepared to build for you and then we take you to the bank so if you have a plot of land anywhere in the country, the third facility is where we build the core homes then young professional homes so we’ve entered the building programme to assist people in these areas.”

“You’re gonna lose people but they’re going for betterment and you can’t stop that. Why would you stop someone leaving his job because he has a better job offer and people when they are training, that’s what we expect that’s why we are funding the scholarships (so) that they (can) improve themselves and if the state sector can’t yield you the salary that you want and you get an offer in the private sector that’s fine. We are not parting on bad terms; we are fulfilling our responsibilities to our people, the citizens of the country by equipping them to get better jobs.”

 

 

 

Petrostate suffered 96 power outages in 2023

Mar 19, 2024

During a hearing of the Public Utilities Commission (PUC) when the The Guyana Power and Light (GPL) Inc. came up for review of its 2023 Operating Standards and Performance Targets (OSPT), it was revealed that 96 countrywide power outages were recorded during 2023, representing an increase. There was a 10 percent reduction in the frequency of power outages in 2022. GPL’s Divisional Director for Loss Reduction, Parsram Persaud explained that the interruptions were due to a number of reasons ranging from planned maintenance to emergencies. Persaud disclosed that the prolonged dry season contributed significantly to the demand for energy in November and December 2023, hence, demand outstripped supply in several instances.

The company was able to grow its generation capacity by 14.5 percent in 2023 but the peak demand for power increased by 21.4 percent. The agency’s Smart Grid pilot project at Good Hope, East Coast Demerara (ECD) was yielding results that may see an increase in power for households and commercial entities. GPL was monitoring the feeder and based on its performance, the project would be implemented in other communities.

“Our intention is to look at the others coming in from their sub-station – the length and through certain areas that are very far from the sub-station. Alongside that, too, we are looking at the data that is coming in from complaints where people are complaining about low voltage situations.” “It’s the first stage in smart metering and we’re building the infrastructure piece by piece… over the next five years, we expect to update those meters to two hundred and something thousand as the customer base grows.”

This project is currently in phase one, and phase two will be undertaken in 2026. The goal of this pilot project is to show how the Itron bridge type meters can be used for voltage monitoring and drive corrective work required to ensure that the voltage provided to customers are within the voltage regulation standard.

“We will continue to report on the particular circuit that we use as a pilot and other circuits that are coming out of other sub-stations. We will also share with the PUC, the ranging of these feeders in terms of load and in terms of customers,” Persaud added.

Divisional Director of Power Generation and Distribution, Bharat Harjohn, who also appeared before PUC disclosed that GPL is working to install concrete poles. “We are now trying to move away from the wooden structures; we are introducing concrete structures, tubing steel poles and fibre-glass poles. We are intensifying our maintenance activity, which is going to be a continuous process. We are trying to reduce the time allotted for maintenance, and by doing so, we are going to increase the number of teams doing maintenance in the area. Apart from this, he noted that GPL would continue to use drone technology, which has been a tremendous benefit. “We have been able to scan the network to pick up any incumbencies, and also to identify network defects. These drones are equipped with infrared cameras, and they can pick up things the individual eyes cannot…”

 

 

 

US$30,000 from U.S. to strengthen law enforcement and security cooperation

Mar 19, 2024

U.S. Ambassador to Guyana, Nicole D. Theriot announced that Guyana is set to benefit from US$30,000 in bilateral funding assistance from the U.S. State Department’s Bureau of International Narcotics and Law Enforcement Affairs (INL),

The U.S. Embassy in Georgetown said, the award is part of U.S.-Guyana security cooperation under the Caribbean Basin Security Initiative (CBSI) and an existing Letter of Agreement to better address shared security challenges. At a signing ceremony at the Ministry of Foreign Affairsy, the U.S. envoy and Minister of Home Affairs Robeson Benn formalized a U.S. donation of funding and capacity-building opportunities as a strong demonstration of the U.S.-Guyana law enforcement and security partnership.

Ambassador Theriot announced new areas of U.S. engagement and partnership under the increased INL assistance to the Government of Guyana, including the commencement of a U.S. Drug Enforcement Administration (DEA) capacity-building training program to bolster Guyana’s counternarcotics capacity; the deployment of a technical Federal Bureau of Investigations (FBI) team to support the Government’s ongoing efforts to enhance border security at major ports of entry throughout the country, and a new $350,000 investment in Guyana under the “Better Police Readiness Program” implemented by the Pan American Development Foundation to support the Guyana Police Force’s ongoing implementation of its 2022-2026 Strategic Management Plan.

Ambassador Theriot emphasised the U S commitment to support the Government’s objectives of building an inclusive, transparent and more efficient criminal justice system, stating: “The United States’ partnership with the Government of Guyana is based on mutual respect, collaboration, and friendship. Most importantly, our work together is rooted in our shared commitment to the rule of law, democracy, and human rights.”

Launched in 2010, the Caribbean Basin Security Initiative (CBSI) is a security cooperation partnership between the United States and 13 Caribbean countries, including Guyana. Through CBSI, the United States works to build Guyana and its Caribbean partners’ capacity to disrupt illicit trafficking and transnational crime to advance citizen security. As of 2024, the U.S. Government committed over $900 million in CBSI funding benefitting Guyana and Caribbean partners, the U.S. Embassy said.

 

 

 

US strengthens port security, fights drug trafficking, improve policing

19 March 2024 Denis Chabrol

The United States’ Federal Bureau of Investigations (FBI) is set to assist Guyana in strengthening its port security that would see the two countries using fingerprints to track down suspects.

Under the agreement inked by Minister of Home Affairs, Robeson Benn and US Ambassador to Guyana, Nicole D. Theriot, an FBI technical team would be deployed here to “support the Government’s ongoing efforts to enhance border security at major ports of entry throughout the country.” She said the team’s assistance would come at a time Guyana was upgrading “its Integrated Automated Fingerprint Identification System (IAFIS) at major ports throughout the country and ensure inter-operability with US law enforcement.”

“Port security is so critically important when you’re dealing with transnational organised crimes and so we’re really pleased to help bolster yours with this programme through the FBI,” she added.

The US is also poised to start Drug Enforcement Administration (DEA) capacity-building training program to bolster Guyana’s counternarcotics capacity “to address the large amounts of cocaine transiting the country.”

Home Affairs Minister Robeson Benn asked for more international help to fight the drug scourge. “We want to continue to encourage our international partners in following on the lead of the United States of America in helping us to continue the fight against narcotics trafficking. The effects are invidious. They are more than we can handle by ourselves on our own and they have particularly negative effects on the development of Guyana and on the question of regional crime and security,” he said.

In terms of civilian policing, the US has decided to provide a new US$350,000 investment in Guyana under the “Better Police Readiness Program” implemented by the Pan American Development Foundation to support the Guyana Police Force’s ongoing implementation of its 2022-2026 Strategic Management Plan.    Specifically, she said the US would work hand-in-hand with the GPF to improve training academy curriculum, enhance he GPF’s strategic management and planning, bolster the GPF’s forensic and crime scene investigation capabilities and train the GPF on crisis communications, hostage negotiations and best practices to engage vulnerable populations.

“Together, our partnership will help pave the way for Guyana’s deeper integration into regional security cooperation. It will support a more inclusive criminal justice system and it will further attract international investment as Guyana rapidly grows, transforms and diversifies its economy,” she said.

Ambassador Theriot highlighted the United States’ commitment to support the Government’s objectives of building an inclusive, transparent, and more efficient criminal justice system.

“The United States’ partnership with the Government of Guyana is based on mutual respect, collaboration, and friendship. Most importantly, our work together is rooted in our shared commitment to the rule of law, democracy, and human rights,” she was quoted as saying in a US embassy statement.

During the ceremony held on Monday, Ambassador Theriot announced an award of US$300,000 in bilateral funding assistance from the U.S. State Department’s Bureau of International Narcotics and Law Enforcement Affairs (INL). This award is part of U.S.-Guyana security cooperation under the Caribbean Basin Security Initiative (CBSI) and an existing Letter of Agreement to better address shared security challenges.

Launched in 2010, the Caribbean Basin Security Initiative (CBSI) is a security cooperation partnership between the United States and 13 Caribbean countries, including Guyana. Through CBSI, the United States works to build Guyana and its Caribbean partners’ capacity to disrupt illicit trafficking and transnational crime to advance citizen security. As of 2024, the U.S. Government has committed more than $900 million in CBSI funding benefitting Guyana and Caribbean partners.

The Chancellor of the Judiciary, Chief Magistrate, Police Commissioner and the Head of the Customs Anti-Narcotics Unit were among those who witnessed the signing of the accord.

 

 

 

Exxon Versus Chevron: The Fight for Hess’ 30% Guyana Interest

Chevron’s plan to buy Hess Corp. and assume a 30% foothold in Guyana has been complicated by Exxon Mobil and CNOOC’s claims that they have the right of first refusal for the interest.

Pietro D Pitts, Hart Energy

Mon, 03/04/2024 – 12:00 AM

Exxon plays hardball with Chevron
It’s rare for disputes between any of the world’s supermajor oil companies to spill out in public.

 

 

Guyana in the global energy landscape

|March 6, 2024

With oil production poised to reach over 1.3 million barrels per day by 2030, Guyana will be positioned among the top 15 oil producers in the world, accounting for about one per cent of global production.

By 2035, exploration and development costs should be fully recovered, which means that the Government’s take will increase from 14.5% currently, to, conservatively, 25%, resulting in a projected increase to peak at approximately US$8 Billion annually thereafter from the Stabroek Block, all other things being equal.

The global demand for fossil fuel remains buoyant amidst an increasingly focused global agenda on the energy transition goals by 2050. Global demand is expected to remain strong, especially since the U.S needs to rebuild its strategic reserves, which currently only represents less than one month’s daily consumption.

The U.S strategic reserves is down to its lowest level in decades at 347 million/bbls (2023) down from a peak level of 727 million/bbls in July 2011. Other countries such as India and China are also building up strategic reserves as part of their energy security strategy.

Therefore, owing to ExxonMobil Guyana’s unprecedented success rate in the Stabroek Block, Guyana’s increasing global importance in the energy landscape is cemented.

In the first year of production, the Government’s annual earnings averaged US$300 Million, which moved to about US$1 Billion based in 2022 and 2023. With the addition of a third FPSO, annual projected earnings is estimated to reach US$2.1 Billion at an average price of US$70 per barrel in FY 2024, all other things being equal.

ExxonMobil Guyana and their co-ventures (CoVs) are aiming to have 10 FPSOs online by 2030, producing an estimated 1.3 million/bpd, given the proven reserves to date of over 11 billion barrels oil equivalent.

DISCUSSION AND ANALYSIS
At this level of scaled production of 1.3 million/bbls by 2030, the Government’s annual earnings is an estimated US$4.7 Billion. By 2035, exploration and development costs should be fully recovered, which means that the Government’s take will increase from 14.5% currently, to, conservatively, 25%, resulting in a projected increase to peak at approximately US$8 Billion annually thereafter from the Stabroek Block.

Thus, with oil production poised to reach over 1.3 million barrels per day by 2030, Guyana will be positioned among the top 15 oil producers in the world, accounting for about 1% of global production. It is worth noting that considering the size of the Stabroek Block, which is an estimated 26,806 km2,, to date, less than 2% was fully explored. This includes the 46 discoveries to date.
This means that by 2027 when the 2016 Prospecting License expires, not more than 3% of the Stabroek Block will have been fully explored, effectively placing the Government of Guyana in a position to repossess 97% of the Stabroek Block.

Consequently, the new fiscal terms, inter alia, the new model Production Sharing Agreements (PSAs) shall be applied to any new exploration and production licenses thereafter.

THE GLOBAL OIL INDUSTRY CONTEXT
The top 10 countries that hold the largest proven oil reserves in the world account for 86.4% of the global proven reserves, while the rest of the world’s proven reserves account for 13.6.

In 2022, the top 20 oil exporters accounted for 44% of global oil production, while the rest of the world accounted for 56%. Saudi Arabia remained the largest oil producer in the world, accounting for 8% of global production. The second, third, fourth, and fifth largest producers are Russia, Iraq, the UAE, and Kuwait accounting for 5%, 4%, 3% and 2% of global production respectively.

The top 10 largest consumers of oil accounted for 62% of global consumption of which the United States is the largest, accounting for 20% of global consumption, followed by China and India accounting for 16% and 5% of global consumption respectively.

Global oil production rose from 78.5 million bbls/day in 1998 to 93.9 million bbls/day in 2022, reflecting an increase of 20% cumulatively over the last 24 years (1998-2022), or an average of 0.83% annually for that period.

The United States strategic oil reserves fell to record low levels in July 2023 since July 1983, an almost forty (40) years’ record low level to 347.5 million bbls, down from a high of 718.2 million bbls in July 2011. This level of decline is a direct result of the Russia-Ukraine crisis, which saw oil prices soaring to historical peak levels since 2008-2014.

This prompted the U.S Government to dip into its reserves to stabilise oil prices in order to bring about some ease for the U.S consumers.

DRIVERS OF GLOBAL DEMAND, AND OUTLOOK
The global demand for fossil fuel remains strong amidst an increasingly focused global agenda on the energy transition goals by 2050. Global demand will continue to be strong, especially since the U.S needs to build up its strategic reserves, which currently only represents less than one month’s daily consumption.

Other countries such as India and China are also building up strategic reserves as part of their energy security strategy. With respect to the energy transition agenda, the world continues to lag behind on multiple fronts, such that it may ultimately render the 2050 goals unachievable. In this regard, there are a number of gaps to be bridged in order to reach net zero by 2050, as outlined hereunder.

 The Generation Gap. In recent years, backed by subsidy schemes, tax credits, and a falling levelized cost of energy, the installation of renewable energy capacity has expanded tremendously.

Globally, 1,282 gigawatts (GW) of renewable power capacity was added to the energy system between 2016 and 2021, and the International Energy Agency (IEA) projects that an additional 2,400 GW of renewable capacity will be installed in 2022 and 2027. However, if the world is to reach net zero by 2050, capacity will have to grow to more than 27,000 GW―an eightfold increase from 2021 levels.

 The Grid Gap. Over the past decade, the world has invested an average of $300 billion per year. According to the IEA, annual investments will need to rise to the range of US$560 billion to US$780 billion in the 2030s.

 The Storage Gap. Renewable energy tends to be intermittent (the sun doesn’t always shine, and the wind doesn’t always blow, while the demand for electricity is relatively constant and predictable). Hence, to have an orderly transition to a decarbonised grid, a significant amount of electricity storage capacity will be required, in the form of batteries or pumped hydropower schemes. Significant investments in grid-scale battery storage have been made.

In 2022, globally, 16 GW of grid-skill battery storage was added. According to the IEA, to get on track with the net-zero targets, which would require a 143-fold increase by 2050, annual additions must pick up significantly to an average of more than 80 GW per year over the 2022 to 2030 period.

 The total funding gap needs to almost triple. To keep on track with net-zero emissions by 2050 goals, the IEA estimates that annual investment in clean energy will have to rise substantially from the projected 2023 level of US$1.8 trillion to US$4.6 trillion in 2030.

With this in mind, bridging the energy transition gap is likely to remain a challenging task in meeting those targets to narrow the gap. Therefore, the global demand for fossil-fuel will continue to be strong for at least for the next 3 decades or another century.

The global demand for fossil fuel remains buoyant amidst an increasingly focused global agenda on the energy transition goals by 2050. Global demand is expected to remain strong, especially since the U.S needs to rebuild its strategic reserves, which currently only represents less than one month’s daily consumption.

The U.S strategic reserves is down to its lowest level in decades at 347 million/bbls (2023) down from a peak level of 727 million/bbls in July 2011. Other countries such as India and China are also building up strategic reserves as part of their energy security strategy.

Therefore, owing to ExxonMobil Guyana’s unprecedented success rate in the Guyana’s Stabroek Block, Guyana’s increasing global importance in the energy landscape is cemented.

Over the medium-term, Guyana is projected to experience sustained double-digit growth over the next decade with continued oil production and exploration, averaging about 28% annual GDP growth.

Concurrently, the Government is pursuing an ambitious economic diversification and transformative development agenda developed three decades ago.

 

 

Mark Itwaru to head ‘One Guyana Digital’

March 4, 2024

…diaspora respond to National development call

In response to Guyana’s burgeoning tech scene and President Dr. Irfaan Ali’s vision for national development, Mark Itwaru, a Canada-based Guyanese tech entrepreneur, has returned to his homeland to lead the transformative ‘One Guyana Digital’ (1GD) initiative.

The 1GD venture, a strategic collaboration between the Guyana Online Academy of Learning (GOAL) and Toronto Metropolitan University, is aimed at bolstering digital literacy across the country.   Tech mogul Itwaru, during the initiative’s launch at the Arthur Chung Conference Centre , expressed his gratitude and excitement about the opportunity.

“I’ve been honoured to be entrusted with the position as the managing director of 1GD. I stand here humbled and grateful to be entrusted with this responsibility that will bring world-class education, free of charge to fellow Guyanese.”

The 1GD programme’s mission extends beyond mere digital literacy; it is an embodiment of the government’s commitment to inclusive growth and development. With plans to train 2,000 Guyanese as full-stack developers, with a special focus on including women and indigenous peoples, the initiative is poised to create a more diverse and skilled workforce. Itwaru had explained that this approach not only addresses the acute shortage of technical professionals in the country, but also aligns with global standards and expectations.

Itwaru’s personal narrative adds a poignant layer to this initiative. Born in East Canje, Berbice, to a family of educators, he said he has always valued the transformative power of education.

“When I found out there was an opportunity to return to Guyana and take part in President Ali’s visionary strategic education initiatives, I jumped at the opportunity. For me personally, it’s an exciting opportunity to come back here and to help build this industry in the country that I’m from.”

He explained that his professional journey, marked by innovation in mobile commerce and social media technologies, has now come full circle as he aims to contribute to Guyana’s digital and educational revolution.

This homecoming story aligns with President Ali’s broader appeal to the Guyanese diaspora to contribute to the country’s development. The Head of State has been vocal about leveraging the skills and experiences of overseas Guyanese to address local challenges, particularly in the technology and education sectors. During an engagement with Guyanese diaspora in St. Lucia, President Ali issued another invigorating call for Guyanese living abroad to return home to contribute and witness the nation’s metamorphosis first hand.

“We are in a period of transition… I firmly believe that a lot of Guyanese in the diaspora will return home,” Dr. Ali stated, underscoring the nation’s need for skilled professionals to support its rapid economic and social development. The President’s discourse was laden with compelling narratives and assurances, painting a picture of a nation on the rise.

“The conditions that drove Guyanese out of Guyana… are quickly changing,” he asserted, projecting an optimistic future where, by 2027-2028, Guyana would not only match, but potentially exceed the living and professional standards that many in the diaspora sought elsewhere.

The Head of State delved into the specifics of the transformative agenda underway, addressing the acute shortages in skilled labour that present a challenge locally, but an opportunity for the diaspora. As Guyana stands on the brink of a new era, fuelled by a historic $1.146 trillion 2024 budget and notable economic growth, the return of individuals like Itwaru symbolises the potential for a synergistic development model.

With the World Bank forecasting remarkable growth, particularly in the oil sector, Guyana’s future appears bright, promising opportunities for all Guyanese, including those returning home to contribute their skills and experience.

Under the People’s Progressive Party/Civic (PPP/C) government, Guyana is witnessing a historic transformation, marked by significant investments in infrastructure, education, and healthcare. The establishment of the Port Mourant National Oil and Gas Training Centre and the envisioned world-class Tourism and Hospitality Institute are evidence of the ambitious development agenda.

President Ali’s vision for a rejuvenated Guyana, complemented by initiatives such as 1GD, is reshaping the country’s narrative. The emphasis on education, healthcare, and infrastructure, coupled with the strategic engagement of the diaspora, is crafting a new future for Guyana — one where technology and education are key drivers of economic and social prosperity.

As Itwaru and many like him return to contribute to their homeland, the message is clear: Guyana is not just on the brink of transformation, but is actively shaping an inclusive, empowered, and technologically advanced future for all its citizens.

 

 

More UK loans to Guyana

Feb 28, 2024

United Kingdom Export Finance (UKEF) revised its loan ceiling to Guyana from £750 million to a massive £2.1 billion, within days of a US$150 million loan agreement with the Inter-American Development Bank (IDB) and a new agreement with the government of Canada for a US$89M loan.

Visiting UK Minster, David Rutley, Parliamentary Under-Secretary of State at the Foreign, Commonwealth & Development Office (FCDO) made the official announcement of the revised loan ceiling at a press conference at the British High Commissioner’s residence, Bel Air, Georgetown.

“UKEF’s mission is to ensure that no viable UK Export fails for lack of finance or insurance. We can help overseas buyers across the world [have] access to financial support they need to procure from the UK, unlocking the potential of the UK supply chain by making their bids more competitive.”

Rutley said the increased UKEF’s Country Limit/Market Risk Appetite (MRA) for Guyana represents nearly a tripling of support now available to the Guyanese market and a reflection of the confidence that the UK has in the stewardship of Guyana’s economy by the government.

UK financing will not only be available to government but will also be accessible to the private sector. The British Minister was keen to point out that government will be able to access competitive long-term financing for national priority projects for social infrastructure, health care, education, or transport and all other sectors with the exception of oil and gas.

UKEF provided €1.6 billion (euros) in 2022 for the construction of the new Pediatric and Maternal Hospital in East Coast Demerara. Rutley said he hopes that with the increased risk appetite, UKEF will be able to finance further projects, vital to this country’s development.

“My hope is for the UK to continue to partner with the government of Guyana to assist in meeting the development needs of this great country and take our bilateral relationship to even greater heights.”

In attendance were British High Commissioner to Guyana, Jane Miller, Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh, Chairman of the Private Sector Commission (PSC), Komal Singh, Chairman of the British Chamber of Commerce Guyana, Faizal Khan, Head of the Guyana Manufacturers Association (GMSA), Ramsay Ali and President of the Georgetown Chamber of Commerce and Industry (GCCI), Kester Hutson among others.

Minister Singh expressed strong appreciation to the UK for the announcement of the increased loan ceiling. He said it represents a clear signal of the UK’s confidence in Guyana as a destination for British companies to invest in and as a place for British companies to do business with. At the sovereign level, the Finance Minister said government will take advantage of the available resources.

“We certainly intend to explore and pursue every available opportunity to make use of this facility…I want to urge the Guyanese private sector to avail themselves of this opportunity to access financing and this opportunity to do business with British companies.”

He said the institution has been a competitive partner, relative to export credit agencies globally.

Regional Head of UKEF, Camilo Neira in an interview explained that businesses are required to provide at least three years of audited financial statements to tap the available financing. This means that the programme does not support startups. The minimum per transaction is £1 million (pounds). Neira said the £2.1 B is the general country limit and includes the sovereign transactions with government and the private sector and there was no specific amount allocated for either.

The Regional UKEF official said another requirement is for at least 20% of the transaction to be supplied by the UK.

 

 

 

US hails dedication to environmental sustainability

 February 28, 2024

–acknowledges efforts to foster sustainable development

As Guyana advances towards economic prosperity through careful management of its energy sector, the United States praised its balance between economic growth and environmental sustainability. Ambassador Linda Thomas-Greenfield, US envoy to the United Nations, during a press conference at the US Embassy on Monday, commended President Dr Irfaan Ali and the People’s Progressive Party/Civic (PPP/C) government for its commitment to the environment. She led the US delegation to the 46th Regular Meeting of the Conference of Heads of Government of CARICOM, and met President Ali and other senior officials.

“I have been very, very impressed with the commitment that this government has made to the environment.”

The ambassador highlighted the collaborative efforts between the United States and Guyana, focusing on the exploration of alternative energy sources.

“We [the US] are supporting those efforts, working with them to look at alternative energy sources. For example, looking at how they can use solar and wind and other sources while they develop their oil-and-gas resources.”

She highlighted the importance of considering diverse energy options to enhance environmental sustainability. She acknowledged President Ali’s dedication to environmental priorities, particularly in supporting rural communities and maintaining forest cover.

“I hear directly from the President his commitment to ensuring that the environment continues to be prioritised by his government. They’re using funding coming in now to support people living in rural areas to ensure that forest cover remains.”

The Ambassador reaffirmed strong support for Guyana’s efforts, underscoring the significant commitment from the President towards environmental conservation and sustainable development.

Guyana’s commitment is evident in the initiatives aimed at combating climate change and enhancing economic resilience within the Caribbean Community (CARICOM), as it contributed US$2 million to the Regional Adaptation Fund. Guyana is also making strides in biodiversity conservation by setting up a state-of-the-art biodiversity centre, as part of its Low Carbon Development Strategy (LCDS) 2030. This strategy aims to balance economic growth with environmental preservation.

Guyana’s historic $1.146 trillion 2024 budget, powered by the burgeoning oil-and-gas sector, is set to transform the country’s economic landscape. Major projects such as the gas-to-energy initiative and the Amaila Falls Hydro Project are underway, aiming to provide affordable, reliable energy while reducing reliance on fossil fuels.

Some of the other alternative energy sources that Guyana is investing in include biomass and bagasse-based cogeneration, rice husk, biodiesel, ethanol and wind. Those investments align with Guyana’s goal to transition to renewable energy sources and reduce its greenhouse gas emissions. The country aims to achieve a 75 per-cent renewable energy consumption by 2030, as outlined in the LCDS.

Guyana is making significant progress in renewable energy, with a focus on solar projects expected to power nearly 90 per cent of the hinterland population by 2025. These efforts align with global sustainability goals and support inclusive growth and energy access.

The government is also taking regional leadership through initiatives such as the ‘25 by 25’ plan, aimed at reducing CARICOM’s food-import bill by 25% by 2025 and forging innovative financing models for environmental sustainability, such as the landmark agreement with Hess Corporation for the purchase of 2.5 million carbon credits annually.

Economic forecasts for Guyana are exceptionally positive, with the World Bank predicting unparalleled growth rates in the coming years, driven by oil production and diversifying sectors such as agriculture and construction. The forecast predicts an astounding 38.2 per cent growth in 2024 and 15.2 per cent in 2025 for Guyana, the highest in the Caribbean.

Overall, the economic landscape is set for continued expansion, with growth averaging 20 per cent expected annually from 2024 to 2028. This growth is supported by an ambitious budget focused on development, infrastructure, and social welfare, funded significantly by oil revenue.

As the spectre of climate change and environmental degradation looms large, Guyana is addressing these challenges head on, with comprehensive strategies for low-carbon development and significant investments in renewable energy projects, including solar, hydropower, and wind initiatives. The transition to cleaner energy sources is also reflected in the development of infrastructure such as the Corentyne River Bridge, enhancing connectivity and trade potential.

In preparation for the future, Guyana is enhancing its safety and environmental protection measures, particularly in the oil sector, with a National Oil Spill Response Plan and regular training exercises. This proactive stance ensures that while the country harnesses its natural resources for economic gain, it remains vigilant against potential environmental risks.

 

 

 

US Military Aid

“The US is increasing its urgent military aid to Guyana as neighboring Venezuela’s threats linger”

GEORGETOWN, Guyana (AP) February 5

The U.S. government is increasing its urgent military assistance to Guyana, officials said Monday, as neighboring Venezuela threatens to seize a large part of the country’s territory it has long claimed.

The U.S. is pledging to help Guyana buy new aircraft, helicopters, a fleet of military drones and, for the first time, radar technology.

The details were not immediately clear, and Guyanese officials declined to say how much they expect to pay.

Confirmation of the plan came a day after the U.S. deputy national security advisor, Jon Finer, and Western Hemisphere senior director Juan González met authorities in Guyana about improving defense capabilities. Their visit was the latest engagement by top defense and administration officials, including Secretary of State Antony Blinken, on improving Guyana’s ability to defend itself from external threats.