GEORGETOWN, Guyana, CMC – The Guyana government has sought to defend its policies and programs over the past three years, insisting that the country has had transformational benefits.
“The type of analyses that I’ve been seeing are self-created to convey a message that the transformational benefit of the investment by the government is completely ignored in the propagandistic messaging of those editorials and those analyses,” President Irfaan Ali said in a broadcast on Thursday night.
Ali told the nation that his administration had adopted a strategic model to support the country’s short- and long-term development and that an integral portion of this model was the creation of sustainable wealth.
He said the government had spent billions of dollars (One Guyana dollar=US$0.004 cents) to fund initiatives that place disposable income into the pockets of ordinary Guyanese, also providing financial assistance for dialysis patients, disability grants, and the ‘Because We Care’ cash grant have been instrumental in easing financial strains.
In addition, he said his administration has removed over 200 taxes, including value-added tax (VAT) on essential services such as water and electricity.
There have also been Investments in infrastructure and housing, and property value increases with continued investment in transportation links and additional services and facilities.
“Over the last three years, the net present value of some of these properties would have increased by 25 or 30 percent and some as much as 50 percent.
“Wealth is not only built-in salaries. Wealth is built on the net effect of the impact of policies and programs. So, the net present value of your asset going up means that your wealth, [and] your household wealth also goes up,” Ali told the country in his broadcast.
He said that many people were taking advantage of the newfound wealth by investing in businesses or additional assets that they could use to generate income.
Ali said that the flagship Local Content Act, which prioritizes Guyanese nationals and Guyanese companies in the procurement of goods and services, seeks to ensure that nationals have adequate access to opportunities to participate in the oil and gas sector.
“The purpose of government is to invest and create the opportunity so that the population can grow wealth. That is what policy formulation is about. This did not happen by accident. These were carefully formulated policies that targeted and created opportunities for the population to benefit from,” Ali said.
He said these investments will continue as the government forges ahead with its “careful” approach to financial management that promotes transformational benefits to the country.
Meanwhile, Vice President Bharrat Jagdeo says an oil refinery is a possibility for Guyana, and the government is currently negotiating with five potential investors.
“We’ve been having discussions with several people who have expressed interest. That group has narrowed to about five,” he told his weekly news conference.
Last year, during a state visit to the Dominican Republic, President Ali and his counterpart, Luis Abinader, signed a memorandum of understanding (MoU) to address the possibility of setting up a refinery here.
Jagdeo told reporters that one of the five groups signed the MOU during Ali’s visit to the Dominican Republic.
However, he said that the discussions have seen some divergence from the parameters initially established by the government.
“The parameters we established initially; people want to change those parameters. So, if you change the parameters, you often change the nature of the project and wonder whether it would be fair to other people. So, the need for energy security is vital”.
He said the government is simultaneously exploring the possibility of strategic reserves, which may negate the economic viability of an oil refinery. Georgetown is exploring all options to ensure that the investment is economically viable and sustainable and will bring added benefits to the country.
“This is not something we will just do on a whim. We are looking at every option, all the studies, and numbers, because often the numbers will influence the decision.
“These things have to be viable and good for our country in the long run because an investment of that nature is about 30, 40 years, so you have to think it through carefully,” Jagdeo said.
A Request for Proposals was issued in 2022 for the design, finance, and construction of the refinery at Crab Island, Region Six (East Berbice-Corentyne), which is expected to produce 30,000 barrels of oil daily.
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