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Finance Minister outlines Government’s plans for Guyana realizing its full potential including diversification of its non-oil economy, investing in its people

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-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.

Finance Minister holds productive meeting with British Trade Mission

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-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.

Finance Minister meets with President of CAF Development Bank of Latin America

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-as Government continues to forge partnerships to catapult its development agenda

Georgetown, Ministry of Finance, November 14, 2022: Senior Finance Minister Dr. Ashni Singh today met with Executive President of the CAF (Corporacion Andina de Fomento) Development Bank of Latin America, Sergio Díaz-Granados and a team from the Bank, at the Ministry of Finance.

CAF is the development bank of Latin America and the Caribbean which promotes a sustainable development model and the integration of the Latin American and Caribbean (LAC) region through credit operations, non-reimbursable resources, and support in the technical and financial structuring of projects in the public and private sectors of Latin America.

During the meeting Minister Singh welcomed the Bank’s President to Guyana explaining that Government is open to partnerships with financial institutions such as CAF as it forges ahead on its development agenda. Discussions centered on how the financial institution can partner with Government to ensure its newly found oil and gas resources are steered toward boosting its economy and diversifying a number of critical sectors such as agriculture, tourism, social services and infrastructure. Government is also pushing its Low Carbon Development Strategy (LCDS), an area which the Bank expressed keen interest in pursuing.

Dr. Singh pointed out as well that the Bank's visit is a historic one and explained that Government would like to see the Bank play a role in Guyana in the exciting transformation underway in the country while the Bank’s President highlighted that the bank belongs to the Region and it would be a priority to increase its presence in the Caribbean and to assist its members in their development drives. He noted the Bank’s focus is on regional integration, stressing that CAF would like to increase its presence and expand operations across the Caribbean.

CAF was created in 1970. It comprises 21 countries, 17 of which are Latin American and the Caribbean. It also includes Spain and Portugal and 13 private banks in the region. CAF was originally established by five Andean member countries namely Bolivia, Colombia, Ecuador, Peru, and Venezuela. Its relationship with the Caribbean started in 1994 when Trinidad and Tobago (T&T) signed the agreement to become a Series “C” CAF following which Jamaica and the Dominican Republic became a Series “C” shareholder in 1999 and 2004, respectively.

 

Over $44 billion in Supplementary Funding sought in support of major developmental initiatives countrywide

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Georgetown, Ministry of Finance, July 21, 2022: Supplementary funding to cater for a range of developmental initiatives countrywide including to provide additional resources for Amerindian and Hinterland Communities, Infrastructural Development in new and existing housing schemes and improvement and expansion of Coastal and Hinterland water supply among many other areas, were today sought when Senior Finance Minister Dr. Ashni Singh presented a Supplementary Appropriation Bill to the National Assembly during the 48th Sitting of the 12th Parliament.

The Supplementary Bill comprised Financial Paper Number 1 of 2022 totalling $44.8 billion which will see $21 Billion being spent in the Housing and Water sector for infrastructural development in new and existing housing schemes and improvement and expansion of coastal and hinterland water supply; $5.5 Billion for the Agriculture Sector for various provisions including additional resources for the Black Belly Sheep project and the provision of additional resources for drainage and irrigation interventions and support to the Sugar Industry; $307 Million for the education sector for the provision of additional resources to facilitate the purchase of school furniture consequent to the reopening of schools in the new COVID environment, the provision of additional resources to facilitate the construction of a primary school in Wakenaam.

Meanwhile, under the Ministry of Public works, $4.4 Billion was identified for various programmes under this sector including for the provision of additional resources to facilitate the upgrading of roads and drains in various communities, additional resources to facilitate the advancement of preliminary works to support the road linkage project, and resources to complete critical sea and river defence works.

Under the Ministry of Amerindian Affairs, over $3 Billion is catered for to provide for additional resources to support Amerindian and Hinterland Communities, while for the Ministry of Public Service, $250 million is provided for to allow for additional resources for the Guyana Online Academy of Learning (GOAL) scholarships and $700 million provided for public assistance to citizens living with permanent disabilities under the Ministry of Human Services and Social Security. The initiatives being provided for cover a range of sectors, as Government continues to make efforts to transform and improve the lives of Guyana’s citizens.

Gov’t, a committed partner in the cause of advancing renewable energy resources – says Finance Minister

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– ‘Solar energy playing an important role in achieving energy inclusivity’

-30,000 off-the grid households to soon be electrified with solar through GOG/EXIM Bank project

Georgetown, Ministry of Finance, August 5, 2022: During his remarks at the Fourth Regional Committee Meeting for the Latin America and Caribbean Region of the International Solar Alliance (ISA) today held at the Arthur Chung Conference Centre (ACCC), Senior Finance Minister Dr. Ashni Singh pointed out that the Government remains strongly committed to advancing the national energy transition agenda including through promoting the use of renewable sources of energy, including solar energy. He said that solar energy is playing an important role in achieving energy inclusivity, particularly through the deployment of solar solutions in hinterland and remote communities.

The Minister reminded those at the meeting that Guyana has an off-the-grid population with these persons residing in hinterland and outlying areas. As such, he posited that ‘with the support of the Indian Exim (Export-Import) Bank, we have already concluded a project to procure and deploy 30,000 household solar units to bring solar electricity to 30,000 homes’.

Dr. Singh said further, ”Even though our energy transition might not comprise solar as the bulk producer to the grid, solar energy is playing a tremendous role in achieving energy inclusivity because even though it is at a small level, at the community level, from that one project, 30,000 households which did not have electricity will now have electricity. They were too far away from the grid to be able to connect but 30,000 households are now going to get electricity for the first time ever and similar solutions can be deployed for other remote areas.”

Minister Singh re-emphasized that Government is open to exploring various renewable energy resources and he also outlined its commitment and focus on ensuring that the administration achieves all of its goals in relation to its Low Carbon Development Strategy (LCDS) as contained in its Manifesto.

Key to Guyana’s Low Carbon Development agenda is clean energy. Government intends to utilize its access to low carbon development energy resources (Solar, Hydro, Wind, Biomass and Natural Gas) as a means of decoupling its economic growth from using fossil fuels for electricity. This will ensure that the rising demand is met and greenhouse gas emissions are kept low.