Month:

-Over $47B secured for transport infrastructure, security, support to electricity companies

Georgetown, Ministry of Finance, December 5, 2022: Supplementary allocations totaling over $47 billion for support to various major sectors including transport infrastructure, energy and security were today secured when Senior Finance Minister, Dr. Ashni Singh successfully piloted the Supplementary Appropriation Act, Number 2 of 2022.

The Supplementary Appropriation Act comprising Financial Papers Numbers 2 and 3 of 2022 and totalling $2.9 billion and $44.4 Billion respectively were presented by the Minister on November 30, 2022, after which they were meticulously scrutinized and debated, with the Opposition A Partnership for National Unity/Alliance for Change (APNU/AFC) posing a number of questions before the Motion was passed on Monday.

As Government continues to aggressively implement its transformative development agenda, funding was secured for a number of key development interventions. Provisions totalling $2.9 billion Contingency Fund advances for the period August 15-November 29, 2022 in Financial Paper Number 2 include $740 million to conduct urgent drainage works including rehabilitation of drainage channels, access bridges, revetments and dams along with the installation of stainless steel sluice doors in Regions 2 to 7 including Georgetown. Also included in this paper is $1.7 billion of additional resources for the Linden Electricity Company Inc.

As Guyana continues to be a global leader in the fight against climate change, $360 million was provided for the payment of the issuance fee for forest carbon credits under the Architecture for REDD+ Transactions (ART) TREES programme for the period 2016-2020. It was only on Friday last that Guyana became the first country in the world to be issued with carbon credits for forest protection when ART issued the world’s first TREES credits to Guyana. It marked a historic milestone for the country making it the first time a country has been issued carbon credits specifically designed for the voluntary and compliance carbon markets for successfully preventing forest loss and degradation — a process known as jurisdictional REDD+. This occurred following the completion of an independent validation and verification process and approval by the ART Board of Directors. ART issued 33.47 million TREES credits to Guyana for the five-year period from 2016 to 2020. Then, on Friday last as well the Government of Guyana signed an agreement with Hess  Corporation, a global oil and gas firm, with HESS committing to purchasing a minimum of US$750 million in carbon credits from Guyana with respect to the period 2016 to 2030.

With respect to Financial Paper No 3 of 2022, $44.4 Billion was approved. This included supplementary funding of close to $1.4 billion under the Office of the Prime Minister for provision of additional resources to support electricity companies in Linden, Lethem, Mabaruma, Kwakwani, Port Kaituma, Mahdia, and Matthew’s Ridge. Also significant in the Supplementary provisions is $6.6 billion for the provision of additional resources for the payment of electricity arrears to the Guyana Power and Light Incorporated (GPL). Back in March, 2022, President Ali had committed that the government would absorb the impact of rising fuel prices on the cost of services provided by electricity companies so that it does not translate into high electricity bills for the Guyanese people.

With respect to transport infrastructure, a priority area of Government, $18.2 billion was provided under the Ministry of Public Works for the provision of additional resources to facilitate the upgrading of roads and drains in various communities and $938.2 million for additional inflow under the Caribbean Development Bank’s programme to facilitate advancement of civil works on the Linden to Mabura Road Project.

With the ultimate goal of providing 100 percent water coverage for Amerindian Villages across the county by 2025, an additional $275.9 million is provided to facilitate water supply interventions in hinterland areas and the procurement of a new drilling rig.

Under the area of security, a sector which is of vital importance to the administration to ensure that the security sector is modernized to keep abreast with the modernization of the country, $371.1 million for the provision of additional resources to procure vehicles to boost the operational effectiveness of the Guyana Police Force under the Ministry of Home Affairs was also provided as part of the Supplementary Appropriation.

– for critical interventions of national importance

Georgetown, Ministry of Finance, November 30, 2022: Senior Minister in the Office of the President with Responsibility for Finance Dr. Ashni Singh today presented a Supplementary Bill Comprising Financial Papers Numbers 2 and 3 to the National Assembly to address a number o urgent interventions across several key sectors including Energy, Agriculture, Infrastructure and Amerindian Affairs.

The Financial Papers, together amounting to over $47 Billion, include Financial Paper No 2 of 2022 totalling $2.9 Billion which caters for Contingency Fund advances covering the period August 15-November 29, 2022 and provides for a number of interventions, including provision of additional resources to support the Linden Electricity Company and provision of additional resources to conduct urgent drainage works including rehabilitation of drainage channels, access bridges, revetments and dams along with the installation of stainless steel sluice doors in Regions 2 to 7 including Georgetown.

With respect to Financial Paper No 3 of 2022, $44.4 Billion is being sought, including supplementary funding of close to $1.4 Billion under the Office of the Prime Minister for provision of additional resources to support electricity companies in Linden, Lethem, Mabaruma, Kwakwani, Port Kaituma, Mahdia, and Matthew’s Ridge. Additionally, $6.6 Billion is being sought for the provision of additional resources for the payment of electricity arrears to the Guyana Power and Light Incorporated (GPL). Government remains committed to absorbing the impact of rising fuel prices on cost of services provided by electricity companies to ensure that it does not translate into high electricity bills for the Guyanese people. Approval is being sought for $1 Billion for the provision of additional resources for operational expenses to the Guyana Sugar Corporation (GUYSUCO) and $2 Billion for the National Drainage and Irrigation Authority (NDIA).

Meanwhile, $18.2 Billion is also being sought under the Ministry of Public Works for the provision of additional resources to facilitate the upgrading of roads and drains in various communities, $938.2 Million for the provision of additional inflows under the Caribbean Development Bank’s programme to facilitate advancement of civil works on the Linden to Mabura Road Project, $275.9 Million for the provision of additional resources to facilitate completion of water supply interventions in hinterland areas and the procurement of a new drilling rig, and $371.1 Million for the provision of additional resources to procure vehicles to boost the operational effectiveness of the Guyana Police Force under the Ministry of Home Affairs.

-during meeting with British officials committed to partnering with Guyana

Georgetown, Ministry of Finance, November 28, 2022: Senior Finance Minister Dr. Ashni Singh today outlined Government’s plans including to utilize its oil revenue to diversify its non-oil economy into a globally competitive one and to invest in citizens to create a suitably equipped and skilled workforce in line with the current and future demand for new sets of skills. The Finance Minister was at the time holding discussions with Development Director for the Caribbean, Foreign, Commonwealth and Development Office and UK Director to the Caribbean Development Bank Malcolm Geere, and Economics Adviser, Team Leader, Inclusive Economic Growth, Caribbean, Foreign, Commonwealth and Development Office Liz Brower at the Ministry of Finance during an introductory meeting. The British Officials were led by British High Commissioner to Guyana Her Excellency Jane Miller.

Besides its introductory purpose, the meeting served as an opportunity for the British team to discuss with the Minister how the United Kingdom could partner with Guyana to increase mobilization of development support as Government continues to forge a number of international partnerships to catapult its current development agenda.

“Notwithstanding the commencement of oil production in Guyana and this illusion that there is windfall revenue, we still feel strongly about utilizing as much development support as we can,” Dr. Singh explained to the UK officials as he reminded that Guyana values its longstanding relationship with the UK.

The Senior Finance Minister explained that Government plans to ensure that revenues earned from oil currently being extracted will be used to lay the foundation for the future as he listed agriculture, transport infrastructure (for improved access to productive land and to improve access to continuous markets), energy infrastructure (to provide reliable and affordable energy as this would be important especially to facilitate a competitive manufacturing sector), physical infrastructure such as roads, bridges schools and hospitals, investing in people ensuring they are adequately equipped with the skills to meet new demands.

Dr. Singh also noted that Government intends to fully capitalize on its Low Carbon Development Strategy (LCDS) and will continue to manage Guyana’s tropical rainforest in a sustainable manner in order to be compensated by the world for its forest conservation and clean air contribution.

The Minister also touched briefly on Guyana’s Sovereign Wealth Fund which he reminded comprises part of the oil proceeds being put aside for future generations but added that along with this, Government wants to ensure the improved well-being of Guyanese such as allowing for them to have their own homes, are educated and have marketable skills and careers while the future generation will also be able to enjoy a modern, diversified economy where they can continue to thrive as well as be provided with modern health care once the country’s oil would have been exhausted in the future.

Guyana and the UK have been collaborating on a number of development projects with recently the UK Caribbean Infrastructure Fund providing US$66 Million toward the US$190Million Linden to Mabura road project. The two-lane highway between Linden and Mabura Hill forms part of the arterial link between Linden and the Lethem Highway and links Georgetown to the Brazilian border. Additionally, through the UK Export Finance (UKEF) the Government of Guyana is constructing a Pediatric and Maternal Hospital. The building and equipping of the state-of-the-art hospital will cost 149 Million pounds.

Meanwhile, Co-operation programmes/projects between Guyana and the UK also include the Diamond Diagnostic Centre, the Lethem hospital, the Leonora Cottage Hospital, the Mabaruma Hospital and the Paramakatoi Hospital.Through collaboration between the two countries as well, earlier this month Guyanese have been able to visit the UK visa-free. President Irfaan Ali had stressed as well during announcement of this waiver on visas, that the two Governments aim to further expand bilateral relations with the hope of furthering investments, including expansion of Guyana’s tourism market.

-in pursuit of deepening investment and trade relations between Guyana and Britain

Georgetown, Ministry of Finance, November 14, 2022: Senior Finance Minister Dr. Ashni Singh today participated in a Roundtable Meeting with the British Trade Mission to Guyana to further discuss how Guyana and the United Kingdom can forge closer ties. The meeting was held at the Marriott Hotel. The Mission was led by British High Commissioner to Guyana Her Excellency Jane Miller.

The British Trade Mission to Guyana is a partnership between the Department for International Trade of the British High Commission, the Caribbean Council and the Georgetown Chamber of Commerce and Industry (GCCI). Its aim is to increase growth in trade and investment between Britain and Guyana.

During the meeting Dr. Singh alluded to Guyana and the United Kingdom’s longstanding relationship grounded in diplomatic and political ties as well as economic ties through investment and trade, people and culture. It was pointed out that the British Trade Mission to Guyana presents an excellent opportunity for both Guyana and British companies to forge closer ties and look forward to the expansion of the British business presence and relations in Guyana.

The Minister indicated that as a result of its ramped-up oil-production, Guyana is now the fastest growing economy in the world, with growth of over 50 percent now forecasted for 2022 and medium-term average annual growth projected at 25 percent. He added that Guyana is considered as the premier investment destination in the world, attractive for investment in the oil and gas sector, infrastructure and requisite support services. There also exists avenues for investment and expansion in the non-oil extractives, such as gold, bauxite, agriculture, tourism and hospitality, ICT and energy. Dr. Singh also said that under President Ali’s One Guyana vision, Government is committed to leveraging the skills and investment potential of the Guyana Diaspora in the United Kingdom as it continues to implement its aggressive development agenda.

Guyana has recently collaborated with the UK Caribbean Infrastructure Fund with the latter providing US$66 Million toward the US$190Million Linden to Mabura road project. The two-lane highway between Linden and Mabura Hill forms part of the arterial link between Linden and the Lethem Highway and links Georgetown to the Brazilian border. Additionally, through the UK Export Finance (UKEF) the Government of Guyana is constructing a Pediatric and Maternal Hospital. The building and equipping of the state-of-the-art hospital will cost 149 Million pounds.

Meanwhile, Co-operation programmes/projects between Guyana and the UK also include the Diamond Diagnostic Centre, the Lethem hospital, the Leonora Cottage Hospital, the Mabaruma Hospital and the Paramakatoi Hospital. As of November 9 last, through collaboration between the two countries, Guyanese are now able to visit the UK visa-free. President Irfaan Ali had stressed as well during announcement of this waiver on visas, that the two Governments aim to further expand bilateral relations with the hope of furthering investments, including expansion of Guyana’s tourism market.