ExxonMobil

December 22, 2022

 –company, contractors spends over $140B in transactions with local suppliers

PRESIDENT of ExxonMobil Guyana, Alistair Routledge, believes that early capacity building investments are paying dividends as seen in the growth of local content numbers in the local oil and gas industry.

ExxonMobil stated that over 4,400 Guyanese currently service the company’s operations, representing some 64 per cent of the industry’s workforce.

“It speaks to the early commitments that we made around things like the Centre for Local Business Development starting in 2017, working with other organisations like the TVET schools and the ministries to ensure that people are well-trained and available and able to contribute and play an important part in developing the nation’s resource.”

The company is also collaborating with the government to develop the Guyana Technical Training College Inc. The institution is intended to deliver world-class training and certification to Guyanese workers in five main skills areas:

1. 1. 1. electrical,
      2. mechanical,
      3. instrumentation,
      4. process operations to support the oil and gas industry, as well as
      5. civil and building construction to support the broader economy.

Routledge related that the money Guyana earns from oil sales and royalty payments is important for the government to be able to execute its works but the company’s near-term impact would be felt more in its investments. Since the first discovery in 2015, ExxonMobil Guyana and its contractors spent over G$140 billion with Guyanese suppliers.

“We will have a much bigger impact as we invest in the projects, as we build the business, through the development of local content and we’re able to give local businesses and people jobs and opportunities to grow, to develop skills and to be able to become competitive internationally.”

With nine discoveries announced in 2022 and a second project starting up in the Stabroek Block offshore Guyana, he acknowledged that it has been a rewarding year for ExxonMobil Guyana.

“It’s all about the people; it starts with the ExxonMobil team but of course we count on the whole team of teams, many contractors and other organisations including many government regulatory agencies,. It’s truly transformational. We’re very fortunate to have made a true success here in Guyana. But now that we are on that path, putting it all together, continuing that success, momentum, from exploration into the development and the projects is fundamental to setting up this business for the future.”

Routledge said that the company is fortunate to have a series of projects which allows it to take lessons learnt and improve on them for subsequent developments. In addition to its expenditures on production, ExxonMobil Guyana has been a consistent contributor to community initiatives with a focus on STEM education, community building, women empowerment and protecting the environment. The company has, to date, spent over G$2 billion on initiatives in these areas.

“We really want to play our part in the community and so we take our corporate social responsibility as seriously as we do our commitments to growing the business and delivering job opportunities for people. And so, both as ExxonMobil ourselves and through our contribution budgets and the projects that we’ve embraced and of course the Greater Guyana Initiative, we are making some significant contributions to the community and to the development of the society and country.”

The Greater Guyana Initiative is a 10-year, G$20 billion programme under which ExxonMobil Guyana and its Stabroek Block co-venturers will fund capacity-building projects in keeping with the country’s overall development objectives.

The Payara project, the third in the Stabroek block, is expected to start up next year. Routledge said it was one of several undertakings that could provide more opportunities for success and development in Guyana.

“We’re drilling a number of exciting exploration wells and I look forward to the results of those, we have another major project start up with the Payara project coming before the end of the year, and of course many other projects and activities that continue to grow.”

EU

-says will remain `loyal supporter’ of civil society

December 19, 2022

Guyana and the European Union (EU) have agreed that the time is opportune to explore new frontiers in their relations” and Brussels has underlined forest partnerships as the priority area.

The Ministry of Foreign Affairs and International Co-Operation said that the two sides met on December 12 for the eighth round of political dialogue in the framework of the African, Caribbean and Pacific (ACP) group of countries–EU Cotonou Partnership Agreement.

The talks were held at Ramphal House at the Ministry of Foreign Affairs. The EU confirmed its commitment to continue co-operation with Guyana in the framework of a new Multiannual Indicative programme for 2021-2027. The the programme defines forest partnerships as the priority issue and will aid Guyana’s long-term vision for a green transition.

The EU lauded Guyana on its long-term vision for a green transition. Georgetown was also congratulated for being a pioneer in signing a MoU with the EU on a forest partnership as well as the recent clinching of the historic carbon credit sale and intended signature of the Voluntary Partnership Agreement with the EU on Forest Law Enforcement Governance and Trade.

Technical assistance is available from the EU in areas of mutual concern such as good governance, eco-tourism, public finance management, fostering business investment and health.

“The EU will remain a loyal supporter of civil society. A new modality will aim at mobilizing public and private investments in Guyana. Promoting investments is part of the 300 billion Euro initiative Global Gateway, which aims at connecting to the world via investments and partnerships on digital, climate and energy, transport, health and education.”

The EU acknowledged ongoing electoral reform in Guyana and emphasised its commitment to back the process as a follow-up to the electoral observation mission in 2020 and its recommendations. Guyana restated its commitment to democracy, good governance, the rule of law and human rights.

Also raised by Guyana side the issue of Schengen visa access for Guyanese. The Schengen visa gives access to a large number of countries in the EU but Guyanese have to travel to Suriname to apply for it and there is no guarantee of approval. The release said that the two sides agreed to work together to “address the challenges that are currently being experienced”.

Minister of Foreign Affairs, Hugh Todd was reported as saying that though the oil and gas industry is rapidly developing, equal attention is being paid by Guyana to other sectors of the economy to ensure diversification. He referenced actions that the government is taking to “create an environment conductive to sustainable and inclusive development. These include guarantees of freedom of expression, equal opportunity and non-discrimination”.

Todd argued the need for small and developing countries like Guyana that are subject to a number of inherent vulnerabilities – including to climate change – to be fairly evaluated when decisions about economic support and co-operation are being made. Guyana’s burgeoning oil revenues and robust forecasts of Gross Domestic Product (GDP) growth have resulted in the EU decision to decrease funding to the country, EU Ambassador René van Nes had said Stabroek News in September this year.

“So yes, the amount of money will be less and the higher the GDP of Guyana, the less you will get. The money has been fixed for the coming four years. That is less than it was before and that reflects the progress that you’re making,” van Nes explained when asked if the EU’s budgetary support will decrease because of Guyana’s oil revenues.

The two sides engaged in wide-ranging and frank talks on bilateral, regional and international issues of common interest to both parties including the war in Ukraine, the human rights situation on both sides, climate change, food security and citizen security.

The next round of dialogue will be scheduled in 2023.

The two sides were led by Todd and van Nes.

 

 

Dec 17, 2022

UK based Chatham House, an independent Policy Institute headquartered in London, is encouraging new petrostates like Guyana to invest quickly and heavily in auditing capabilities. The international group which  advises Guyana and other new producers stressed that a robust monitoring system with strong reporting and accounting standards for oil companies’ expenses is key to preventing significant revenue loss.

It said an efficient auditing and administrative body for the industry is a fundamental of good governance hence its recommendation that all Governments invest in building capacity.

Even from the early days of exploration, Governments should move to centralize geological data management. When discoveries are made, it is incumbent on new producers to allocate more resources to building capacity in auditing and monitoring operations.

“If discoveries reveal that the country can count on a significant production lifespan, the Government must invest in its administrative capabilities and boost its own knowledge of the petroleum sector. This will enable the Government to improve the accountability of the sector.”

The foregoing, together with establishing an independent regulatory agency, introducing key mechanisms for public accountability, including audits of state agencies and ensuring regular disclosure of audit information to the public, will all serve as critical antidotes to corruption.

Guyana in 2019 had received a US$20M loan from the World Bank to develop its abilities to govern the oil sector. The administration used a portion to conduct cost recover and performance audits but there is still much work to be done to boost the army of auditors.

The World Bank loan funds a project with four components:

• Component A – Enhancement of Legal Framework and Stakeholder Engagement: (US$3.20 M),
• Component B – Capacity Building of Key Institutions: (US $10.70 M),
• Component C – Enhancement of Fiscal Management Systems: (US$3.50 M), and
• Component – D. Project Management & Project Preparation Facilities: (Cost $2.60 M).

For explanatory purposes, the first component being for the enhancement of legal framework and stakeholder engagement, aims to support the update of Guyana’s legal and regulatory frameworks for the governance and oversight of the sector as well as support stakeholder engagement and transparency. This component includes two subcomponents: update the legal and regulatory frameworks for the sector, and support stakeholder engagement and transparency.

The second component on the capacity building of key institutions includes four subcomponents: support immediate technical needs at key institutions with responsibility for oil and gas, support critical training needs at key institutions with responsibility for the sector, build up petroleum data management, and strengthen environmental and social management.

The third component is the enhancement of fiscal management deals with, among other things, improving Guyana’s capacity to manage the Natural Resource Fund.

Finally, the fourth component gives proper management and coordination of all project activities financed under the project. More specifically, it provides support and builds the Government’s systems for procurement and financial management, while allowing for the implementation of safeguards for proper management, monitoring.

 

Ali urges Diaspora to invest in Silica City

December 17, 2022

President Irfaan Ali challenged the Diaspora to tap into local opportunities and urged investment in the housing sector, where he says demand will exist for years.

“We are working now, moving forward with the construction of Silica City – a new, smart, innovative city. The interest internationally in Silica is bubbling hot. Very soon we will move into the blueprint… we have a lot of liquidity that exists in the Diaspora. This is a challenge to the Diaspora. I challenge you today. You can’t do it individually. Come together. Mobilise $10 million or $20 million. Come to the local private sector. Mobilise what they can mobilise. And guess what? Build condos in high end areas. The market is there.”

Addressing the annual awards ceremony of the Georgetown Chamber of Commerce and Industry (GCCI) , Ali said that he was sure that many in the Diaspora want to return home and there are revenue generators for them.

“Why don’t you do this collectively. Twenty of you come together [who are] in this room? Come together and put up a business plan in which we can raise the capital from [the] Diaspora because they want to be involved in this. Or better yet, if we have to get 5,000 new apartments, let us not complain of how we get it. Develop a business plan and then let us presell the business plan. Get the Diaspora to invest in those apartments and they have an income,” Ali pitched.

“This is what Silica City would be doing: seeking out private investment from around the world. That is how all modern, smart, innovative cities are built. So we have to be  proactive, innovative…,”

Ali hoped that citizens give him two terms in office as his government has plans for well into the 2030s. The smart city plans are just one of many for technological development. He said this country wants to be the first place foreign companies come to establish their headquarters and source human resources in this region.

“We are positioning ourselves to be a global destination for headquarters. This is very, very important. To do this, it is important that we examine a few key pieces of infrastructure. Some have already started, and some will come.”

GCCI President Timothy Tucker told participants that there is no denying that Guyana’s booming oil and gas sector generates billions in revenue. With the economy expanding at the fastest rate in the world, the organisation commends the government for its responsiveness in the undertaking of several mega projects to keep up with this growth.

“In the words of Dr. Singh “The making of modern Guyana is well underway, and today’s generation of Guyanese are incredibly privileged, not only to witness it but to be part of it,” he said, quoting Minister of Finance Dr.Ashni Singh.

“Our nation is now the hotspot for investments and the Chamber has witnessed this firsthand as we continue to welcome incoming delegations and potential investors. Although we are committed to pursuing all business opportunities that exist within the oil and gas sector, we must also remember that the agriculture and agro-processing, manufacturing, tourism, finance, and construction sectors are equally critical to the development of our nation.”

“Our business community plays a crucial role in Guyana’s development and local companies are now forced to think outside the box when it comes to brand recognition and marketing – especially if we are pushing local content. It is important that foreign investment in Guyana not be at the expense of indigenous Guyanese companies but it is equally important that local companies ensure that we can provide the quality of service required, whether through better access to finance, development forums, seminars, marketing fundamentals, the work never stops.”

Because the local private sector is increasingly seen to have a role to play in helping the nation to meet local and international development targets, Tucker said that to ensure that the economy meets the highest international standards, the government and the private sector must join forces.

“In our capacity, GCCI has continually sought ways to add value to our nation and the business community we serve. GCCI’s Executive Management Committee, Councillors, Secretariat, Committees, and Subcommittees have demonstrated collaboration and teamwork through their dynamic efforts.”

While it is not always possible for the Chamber “to work in absolute tandem with every proposal or pitch from every stakeholder”, he said its goal for the new year “is to foster collaborative and consultative partnerships in decision-making initiatives that would be in the best interest of the business community and by extension, Guyana. In this regard, we endeavour to enhance our concerted efforts to push for amendments to policies and legislation where possible, to promote better access to finance, capital markets and tax reform.”

Tax reforms

The GCCI president appealed to Ali and his administration to scrap the excise tax on new vehicles so as to allow the ordinary Guyanese to realise their dreams of owning a vehicle.

He reasoned that although there is traffic congestion on the coastlands, the removal of the tax would have benefits, including cheaper access to new vehicles that have more safety features, emission control, lower fuel consumption, and eliminating the need for spare parts.

“The dream of owning a new vehicle by a small family is, of course, an importance.”

Tucker said that overall tax reform should include removal of the excise tax on new vehicles as well as better rates for both income and corporate taxes. “Both cross-country and micro-level studies suggest that lowering tax rates can increase investment, reduce tax evasion, promote formal firm creation and ultimately lead to an increase in firms’ sales and GDP growth overall. We hope that by lowering taxes, the private sector will be encouraged to pay taxes.”.

On local banks, the GCCI President underscored the importance of having a banking sector that responds to the needs of micro-, small- and medium-sized enterprises looking to grow in the simplest way.

“It is paramount that we have access to finance to play a significant role in the oil and gas sector and to realise our true potential of being the engine of growth. Based on work done by the Chamber of Commerce, it has been revealed that more than 50% of businesses use formal financing to meet working capital needs and less than 50% use financing for fixed investment or paying off debt. These figures indicate the utmost need for collaborative efforts to ensure there is more allowance for businesses to augment their growth potential through invoice factoring, contract borrowing and financing through receivables, that is to say, innovative forms of financing.”

 

Guyana Is Becoming A Top-Tier Oil Producer

Matthew Smith – Oilprice.com-Dec 14, 2022,

The Guyana-Suriname Basin is one of the most promising new oil and gas hotspots on the planet. 40 world-class discoveries by ExxonMobil in offshore Guyana sparked considerable international interest in the petroliferous basin.

Despite the dire predictions of peak oil demand, which is expected to arrive during the next decade as the world transitions to a low-carbon economy, international energy companies are investing heavily in fossil fuel exploration and production. One region which has caught the world by surprise and is attracting significant attention is the Guyana-Suriname Basin.

A swathe of world-class discoveries by ExxonMobil in offshore Guyana sparked considerable interest in the Guyana-Suriname Basin, which after poor drilling results during the 1960s and 1970s saw it largely ignored by energy companies. Recent discoveries with estimated recoverable oil resources of more than 11 billion barrels in the Stabroek Block offshore Guyana alone indicates the U.S. Geological Survey grossly underestimated the basin’s undiscovered oil resources. There are signs that the sedimentary basin could indeed be the world’s last great offshore oil boom.

In a May 2001 report, the USGS estimated that the Guyana-Suriname Basin held somewhere between 2.8 billion and 32.6 billion barrels of undiscovered oil resources with mean resources of 15.2 billion barrels. The latest oil discoveries, since 2020, point to that number being far lower than the actual petroleum potential that exists in the sedimentary basin.

Exxon has found at least 11 billion barrels of technically recoverable oil resources in the Stabroek Block offshore Guyana while nearby Block 58 offshore Suriname is believed to contain as much as 6.5 billion barrels. Oil discoveries in those two blocks alone, out of more than 30 blocks across the Guyana-Suriname Basin, are estimated to total more than 18.5 billion barrels which is substantially higher than the USGS mean of 15.2 billion barrels.

The latest discoveries made since the start of 2022 in the Stabroek and Corentyne Blocks offshore Guyana as well as Blocks 58 and 53 in offshore Suriname point to the volume of recoverable oil resources being considerably higher.

Drilling activity is continuing at a feverish pace in Guyana, where the national government in Georgetown implemented very favorable terms for the Exxon-led consortium operating in the offshore Stabroek Block.

Exxon, which is the operator holding a 45% working interest with partners Hess owning 30% and CNOOC 25% respectively, has made over 30 world-class discoveries in the block and is fast-tracking its development. Aside from the Stabroek Block containing over an estimated 11 billion barrels of recoverable oil resources Exxon’s Liza oilfield, which analysts describe as the last major frontier oil play, is pumping 360,000 barrels per day, well above the nameplate capacity of 340,000 barrels.

Exxon is developing additional assets in the Stabroek Block, notably the Payara and Yellowtail discoveries which on commencing operations, during 2023 and 2025 respectively, will add 470,000 barrels of capacity to the Stabroek Block. That will see Exxon pumping at least 800,000 barrels per day from offshore Guyana by 2025. There is every likelihood that production from the Stabroek Block will keep growing past 2030.

In October 2022, Exxon announced the Sailfin-1 and Yarrow-1 discoveries in the block and continues to advance its drilling campaign. Exxon continues to drill in offshore Guyana, with a focus on the prolific Stabroek Block, where the supermajor is targeting the completion of 25 wells by the close of June 2023 to be followed by a 35-well campaign that will be launched when the current plan is completed.

There have been discoveries outside of the Stabroek Block. Among the most recent is at the Kawa-1 exploration well by CGX Energy and partner Frontera Energy in the northern section of the Corentyne Block located adjacent to Stabroek. That segment of Corentyne is believed to lie above the same petroleum fairway running through the Stabroek Block into Block 58 offshore Suriname.

For these reasons, analysts are forecasting Guyana’s production will reach 1.2 million barrels daily by 2027, seeing the impoverished former British colony overtake Colombia to become the third largest oil producer in Latin America and the Caribbean. Guyana’s oil output is forecast by industry consultancy Rystad Energy to reach 1.7 million barrels per day by 2035, seeing the tiny South American country surpass U.S. offshore production and become the world’s fourth-largest offshore oil producer.

It will be an ongoing investment by energy supermajors in the South American country of around 800,000 people which will drive this rapid growth. Among the latest to enter the fray in Guyana is British global energy supermajor BP, which in November 2022 won the contract to market Guyana’s share of the petroleum produced from the Stabroek Block, which comes from the Liza Destiny and Unity platforms operating the Liza oilfield.

It hasn’t been all plain sailing in offshore Guyana despite the Exxon-led consortium’s tremendous success. CGX, which is 77% owned by Frontera and the operator of the Corentyne Block, was forced to delay the drilling of the Wei-1 well targeted for 2.5 miles northwest of Kawa-1. This occurred because a third party did not release the drilling unit.

CGX and Frontera are committed to drilling the well which, according to the companies, is to be spudded before the end of January 2023. The partners have confirmed with Guyana’s government that the block’s license is unaffected and remains in force.

In August Tullow Oil, which holds a non-operating 37.5% interest in the Kanuku Block, announced it was abandoning operations at the Beebei-Potaro well in the block after it hit water-bearing targets. Repsol, operator and owner of a 37.5% share in the Kanuku Block with the remaining 25% held by a joint venture between TotalEnergies and Qatar Petroleum, has plugged and abandoned the well.

2023 Bid Round

A tremendously positive development for Guyana’s burgeoning offshore oil boom is Georgetown’s 9 December 2022 announcement it had launched the first licensing round for offshore oil exploration and production.

The bid round has a mixture of 14 shallow and deep-water blocks for tender, with submissions closing on 14 April 2023 and contracts expected to be awarded on 31 May 2023. There is a minimum signature requirement of $10 million for shallow-water blocks and $20 million for deep-water blocks. While the terms of the contracts to be awarded to successful bidders will not be as favorable as the agreement secured by the Exxon-led consortium for the Stabroek Block, they will still be on advantageous terms.Guyana is one of the lowest-cost jurisdictions in Latin America for energy companies to operate in, and even globally for that matter.

The Exxon-led consortium claims that the 120,000 barrel per day capacity Liza Destiny Floating Production Storage and Offloading (FPSO) vessel is pumping petroleum with a breakeven price of $35 per barrel. That has fallen to $25 a barrel for the second FPSO, the 220,000 barrel-per-day Liza Unity, which came online in February 2022. Exxon recently announced that both FPSOs are operating above capacity, see the Liza oilfield pumping 360,000 barrels per day.

The energy supermajor continues to develop the Stabroek Block at a rapid clip, expecting production to reach one million barrels per day by 2030. Overall, offshore Guyana is estimated to have an average breakeven price of $30 to $35 per barrel Brent, which will fall further as additional industry infrastructure comes online.

The sweet light and medium oil grades found in Guyana have a relatively low carbon cost to extract and refine, especially when compared to the heavier sourer grades typically found in South America, which magnifies the country’s competitiveness. Those characteristics further enhance the attractiveness of investing in offshore Guyana and is the reason the former British colony is attracting considerable investment from international oil companies.

For these reasons, Georgetown’s inaugural oil auction will garner considerable attention, particularly with Guyana at the top of the leaderboard for yielding the most oil discovered globally since 2015. In fact, aside from the prolific Stabroek Block where Exxon’s world-class finds s yielded 11 billion barrels of recoverable oil resources, it is believed that another 25 billion barrels await discovery. With Rystad predicting Guyana will be pumping 1.7 million barrels daily by 2035 the petrostate will emerge as an elite top-five global producer.

 

 

World Bank loan funds reservoir software

Dec 16, 2022

The Government used US$ 998,489 from its US$20M World Bank loan to pay an ExxonMobil contractor to develop Analytical Geoscience and Reservoir Engineering Software. According to the Bank, the contract was signed on October 11, 2022 with Schlumberger Guyana Inc., one of Exxon’s top clients for oil services here. The contract did not go to open tender.  Schlumberger, the world’s largest offshore drilling company, was directly selected for the task.

The software will help Guyana to ensure that the geological, geophysical and reservoir engineering data provided by Exxon can be validated, utilized, or monetized.

The US$20M loan was approved on March 29, 2019 for the Guyana Petroleum Resources Governance and Management Project (GPRGMP). The programme’s objective is to ensure the enhancement of legal and institutional frameworks and the strengthening of the capacity of key institutions to manage the oil and gas sector.

A Financing Agreement in the amount of US$20 million was signed and declared effective on April 11, 2019 under the David Granger administration. The project has four components

1. 1. 1. Component- A. Enhancement of Legal Framework and Stakeholder Engagement: (US$3.20 M);
      2. Component – B Capacity Building of Key Institutions  US $10.70 M);
      3. Component – C. Enhancement of Fiscal Management Systems  US$3.50 M);
      4. Component – D. Project Management & Project Preparation Facilities  Cost $2.60 M).

For explanatory purposes, the first component being for the enhancement of legal framework and stakeholder engagement, aims to support the update of Guyana’s legal and regulatory frameworks for the governance and oversight of the sector as well as support stakeholder engagement and transparency. This component includes two subcomponents: update the legal and regulatory frameworks for the sector, and support stakeholder engagement and transparency.

The second component on the capacity building of key institutions includes four subcomponents: support immediate technical needs at key institutions with responsibility for oil and gas, support critical training needs at key institutions with responsibility for the sector, build up petroleum data management, and strengthen environmental and social management.

The third component is the enhancement of fiscal management.

Finally, the fourth component gives proper management and coordination of all project activities financed under the project. More specifically, it provides support and builds the Government’s systems for procurement and financial management, while allowing for the implementation of safeguards for proper management, monitoring.

 

ECLAC

December 16, 2022

Guyana –country to continue growing exponentially as economic advancement slows across the region

GUYANA remains on course to growing significantly next year and beyond, despite the slowdown in economic advancement expected across the region.

In its annual report, Preliminary Overview of the Economies of Latin America and the Caribbean, the United Nations Economic Commission for Latin America and the Caribbean (ECLAC) projects that regional growth next year will be a third of the rate forecast for 2022.

“All the sub-regions will post lower growth in 2023: South America is set to grow by 1.0 per cent (3.7 per cent in 2022); the group comprising Central America and Mexico by 1.6 per cent (3.3 per cent in 2022); and the Caribbean (excluding Guyana) by 3.3 per cent (4.5 per cent in 2022).

“With these growth estimates for 2022 and 2023, the region would complete the decade 2014–2023 with average growth of 0.9 per cent, which is below, less than half, in fact, even that of the “lost decade” of the 1980s during the external debt crisis.”

The International Monetary Fund (IMF), in October, said Guyana continues to rank among the countries worldwide with the fastest rate of economic growth, as the country is on course to growing 57.8 per cent this year. Driven by continued progress in the oil and gas sector, and enhanced productivity in other productive sectors, Guyana is well set to record significant growth this year and beyond.

Specifically, in addition to the massive level of growth projected for this year, the country whichon the edge of South America, is set to grow 25.2 per cent next year. The IMF, in a recent report, said increasing oil production could help transform the economy, address development needs and build substantial buffers to absorb shocks.

Oil production is expected to increase significantly with the coming on stream of two large oilfields during 2023–2026. And, as it is now, Guyana’s commercially recoverable petroleum reserves are the third largest in Latin America and the Caribbean, and one of the highest levels of oil reserves per capita in the world.

The IMF said: “This could help Guyana build up substantial fiscal and external buffers to absorb shocks while addressing infrastructure gaps and human development needs.”

This is expected at a time when ECLAC is reporting that after the dynamism seen in the first half of 2022, the region’s economic activity has slowed, reflecting, on the one hand, an end to the rebound effect on the recovery from 2021, and on the other, the effects of restrictive monetary policies, greater limitations on fiscal spending, lower levels of consumption and investment, and the deterioration of the external context.

One aspect that the report highlights is that the changes seen in the trajectory of regional inflation in the second half of 2022, coupled with the deceleration in economic activity that is expected to continue next year, will reduce the pressure on monetary authorities in Latin America and the Caribbean to continue raising monetary policy rates.  ECLAC indicates that the current situation poses challenges for macroeconomic management.

“On fiscal matters, officials must avoid premature spending adjustments and expand fiscal space by reducing evasion and avoidance, reviewing tax expenditures, carrying out reforms to increase tax collection and the tax structure’s progressivity, and with multilateral support via the mobilization of global liquidity. It is also necessary to make progress on improving the efficiency and effectiveness of public spending to enhance fiscal policy.

“In the monetary-financial realm, it is important to diversify the toolbox for facing the current scenario. Along with the monetary policy rate, officials should use macro-prudential and regulatory instruments that would help manage aggregate demand, minimizing the effects on growth and investment,” ECLAC said.

 

 

US, Canadian investors interested in Amaila Falls hydropower project

December 16, 2022
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President, Dr Irfaan Ali said investors from the United States of America and Canada signalled their interest in the Amaila Falls hydropower project (AFHP). Several bilateral partners made proposals for the project.

“We are doing assessments now, we have a lot of interesting proposals from different bilateral partners. When I was in the US, I had a meeting with the energy secretary and her entire staff and I mentioned this project and the importance of this project and opening to the US… the Canadians have expressed some interest,” Dr Ali said, adding that those investors are being engaged.

“So, there is a lot of bilateral talks going on and then we will have to make a structured decision as to how we go forward.”

In May Vice-President, Dr Bharrat Jagdeo announced that the project will go back to tender, as the then executing company, China Railway Group Limited (CRGL), had difficulties in honouring its commitment to the Build-Own-Operate-Transfer (BOOT) contract that it signed.

The company had requested to change the BOOT contract’s arrangement to an Engineering, Procurement, and Construction (EPC) contract.

“We have been in discussion since November last year. The negotiations are very difficult. As of April 2022, they are having a hard time doing the BOOT contract and want EPC financing. We’re still trying to get them to meet the commitment that they bid for [but] for the last six months we have been struggling to reach the conclusion; we will have to give a deadline [on negotiations],” Dr Jagdeo related.

The AFHP project was slated to commence this year and be completed in 2025; this will add 165 megawatts (MW) of energy to the national grid.

 

Nigerian assassin at State House

 December 16, 2022

The police cordoned off Carmichael Street following the incident at State House Carmichael Street following the incident at State House

AFTER being brutally stabbed by a Nigerian man who tried to gain entry into the State House compound on Thursday morning, Presidential Guard Telon Perreira gave President, Dr Irfaan Ali and many others a ray of hope when he regained consciousness later that evening.

“Today my spirit was renewed in hope of what humanity is capable of. Determination and will to serve this country and people of this country was further strengthened by a man who spent most of today undergoing surgery at GPHC [the Georgetown Public Hospital Corporation],” President Ali said during his address at GCCI’s annual dinner and award ceremony on Thursday evening.

In his address, President Ali said: “Forty-five minutes ago, he regained consciousness and I was pleased to speak to him directly… and his words to me were: “Sir, I am back to work with you tomorrow.” It is these incredible moments in life that allow one to reflect on humanity and human nature, and with his words, I ask all Guyanese to recommit to ourselves by saying we renew our efforts to serve your sweet Guyana.

“We will not only be living in a country with great prosperity, but a country with great humanity built on strong and steady foundation of love and commitment, and strong character in which the people of this country uplift each other and protect each other… a society that enables a prosperous, beautiful, developed life in a society second to none.”

According to a police report, the incident occurred at the southern guard hut of State House on the Carmichael Street side.

“A security detail was on duty at [the] south-eastern guard hut adjacent to Carmichael Street, when a male of mixed-race ethnicity confronted the security, stating: “I want the President.” The said male then drew a knife from his pants waist and stabbed one of the male police rank[s] that was on duty five times to his neck and about his body,” the police report said.

According to the report, the injured rank, who was part of the security detail, was subsequently relieved of his firearm by the suspect. The suspect then drew the firearm, and fired several rounded while retreating to Carmichael Street.

“The security detail returned fire, injuring the suspect,” the police said.

A 9MM pistol and seven 9MM spent shells were retrieved. The Nigerian man was identified as 25-year-old Bethel Ikenna Chimezie, who has been living in Guyana since 2019. He was reportedly shot three times during the ordeal.

The incident has left the entire country in shock as to what motivated Chimezie to carry out the attack at the official residence of the President of Guyana. Thankfully, President Ali and his family were safe and well. Both Chimezie and the Presidential Guard were rushed to the GPHC for treatment, and reports are that the Nigerian remains in a serious condition in the hospital’s intensive care unit (ICU).

President Ali, lifted by the news that his guard regained consciousness, said: “All of us must continue to our work in achieving a society and a country that deliver a beautiful and prosperous life to our children.”

Since the incident, there has been an outpouring of support and concern for President Ali and his family. Several entities issued messages of concern and dismay over the incident, including the main political opposition A Partnership for National Unity+Alliance For Change (APNU+AFC), the private sector, the (FITUG), and members of the diplomatic community.

APNU+AFC i noted their condemnation in the strongest possible terms for violence in any circumstances.

“We welcome the news that the President and family are safe. We also take the opportunity to commend the Presidential Security Guard for his courage and wish him a full and speedy recovery from his serious injuries,” the Opposition said.

Condemning the attack in the strongest terms was the PSC, which congratulated the President’s security force for a highly effective and controlled response which saw the apprehension of the suspect. The effective and well-coordinated response of the armed forces also saw the situation being de-escalated quite quickly and no further injuries resulting.

Federation of Independent Trade Unions of Guyana (FITUG) said that it was horrified by the attack but was happy that the President and his family were safe. The body of trade unions wished for a full and speedy recovery of the officer who was injured during the melee.

“We recognise the bravery and heroism of the security detail which sprang into action to ensure that the situation was quickly brought under control. It is a testimony to the training and skills of our men and women in uniform. The FITUG like many Guyanese wonder what could be the motivations for the attack. We do trust it is an isolated incident and not connected to any larger plot. At this time, we join with all Guyanese in praying for peace and tranquility for all citizens,” FITUG said.

The High Commission of India, issued a statement welcoming news that the First Family of Guyana is safe.

“We also take this opportunity to commend the Presidential Security Forces for the effective response and the rapid de-escalation of the situation. We also appreciate the injured Presidential Security Officer for his act of courage and wish him a speedy and full recovery,” the Office of the High Commissioner said.