Norway Money… Guyana yet to submit projects plan

Dec 11, 2010 News

---

The money that head of State Bharrat Jagdeo is fuming over and which is yet to be released cannot be deposited until the steering committee approves projects proposed for funding.
This was pointed out by World Bank Director for the Caribbean Yvonne Tsikata who stressed that US$30M deposited by Norway into a fund under the bank’s supervision cannot be released until the green light is given by a steering committee comprising representatives from Oslo and Georgetown.
This was also reiterated by Country Representative in Guyana, Giorgio Valentini, who said that to date there has been no projects submitted to the steering committee for consideration. As such the World Bank are merely spectators right now.
Valentini reiterated that all of the conditions which are being seen as stalling the process have been signed onto by both Guyana and Norway.
On Wednesday last, President  Jagdeo publicly questioned why it’s taking so long for Guyana to get its first installment of funds under a $250 million forest conservation agreement with Norway.
“The international community has a very poor track record of delivering help,” he said, blaming World Bank officials for a recent delay.
Tsikata responded by saying that her institution was just serving as a “financial intermediary” and was awaiting the sign-off from a steering committee comprising officials from Guyana and Norway before transferring the funds.
She said that as the World Bank Director for the Caribbean, and as an individual who cares about the environment, “I believe that Guyana’s pristine forests are its most valuable natural asset and provide critical environmental services to the world.”
The World Bank official further stated, “We at the World Bank want to help preserve Guyana’s vast tropical forests and that is the reason why we have agreed to become the Trustee for the GRIF multi-donor trust fund (Guyana REDD+ Investment Fund) at the request of Norway and Guyana.”
She stated that it is a pioneering pilot effort to pay for environmental services.
The agreement, signed October 9, 2010, will be funded initially by US$250 million from Norway, based on independent verification of initiatives to reduce deforestation on Guyana’s part.
“Here is the most glaring misconception: as a trustee we cannot disburse any funds to the implementing partners –such as the UN and the Inter American Development Bank- before getting the green light from a Steering Committee comprising representatives of Norway and Guyana.
“Up to now, the Committee has not instructed us to transfer any funds…We cannot act faster than the Steering Committee.”
She stated that since the money is considered development assistance, Norway wants to make sure that funds are used in the most transparent and effective way.
Once transferred to project implementers, GRIF funds must be spent applying adequate financial management, safeguards and controls.
“This is why they have asked an institution with solid track record such as the World Bank to become the project’s fiduciary agent,” said Tsikata.
“We have a lot of friends and good people in the World Bank…but the institution as a whole is not ready and they harm success stories,” Jagdeo said whilst speaking at a gathering in Cancun, Mexico, organized by an international forest network.
“We don’t have a problem with all the safeguards, particularly ensuring the money is not spent in a corrupt way,” he told a gathering at the Marriott Hotel. “You can do hundreds of audits, but just let us move forward.”
Norway, which has committed to giving Guyana US$250M over five years, insists it wants to see results, and has appointed the World Bank to manage the delivery of the funds, but Jagdeo is impatient.
“Although we have fulfilled the condition to receive payment from Norway a year ago….We have not seen a single cent expended as yet on the projects that are so vital to transformation,” he said at the event organized by Avoided Deforestation Partners.
In an interview after the panel discussion, Jagdeo explained that, while his government proved in January that it had fulfilled the first part of its commitment to Norway, it was just on the verge of getting the first $30 million of Norway’s pledge.
He placed the blame for the delay squarely on the World Bank, which he said has repeatedly stalled in handing over the money.
In one meeting where Norway, Guyana and World Bank officials met to discuss dispersing the money, Jagdeo said, his country sent two representatives, Norway sent half a dozen, and the World Bank sent three dozen.
“It’s a waste of money,” Jagdeo said of the World Bank’s role as an intermediary. When it comes to turning on the spigot for the funds, he said, “It’s not Norway. They can’t get it.”
During the panel discussion, Stoltenberg responded by explaining that Norway was willing to disburse its forestry funds only once the country in question had proven it had sequestered carbon in its trees.
“Results is what we’re looking for,” said Stoltenberg, who noted that his country finances its large foreign aid budget through high taxation on petroleum, among other things. “It’s hard to win elections on a message of high taxation.”

---

---