Guyana approved for US$45M in Norway funds

Dec 22, 2012 News

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Guyana has been approved to receive an additional US$45M from the Government of Norway for its climate services in maintaining extremely low levels of deforestation while advancing the nation’s landmark Low Carbon Development Strategy (LCDS).
This now brings all three contributions from the Norway-Guyana climate and forest partnership to a total of US$115M since the programme was announced in 2009, the Office of the President announced yesterday.
Guyana and Norway, in November 2009, signed the historic deal that will see the Scandinavian country invest $250m (£150m) to preserve the rainforests of Guyana.
According to Office of the President yesterday, there are now clear signs that the monies are beginning to flow to important climate change and poverty alleviation investments that will improve the overall economy, support Amerindian peoples’ development and land rights while keeping carbon pollution well below the rates of leading developed countries.
Money from the allotted US$115 million, which is facilitated through the Guyana REDD+ Investment Fund (GRIF), is now beginning to flow to investments identified in Guyana’s Low Carbon Development Strategy, including the Amaila Falls Hydro Electric Project.
The hydro project is Guyana’s most expensive investment and will cost upwards of US$840M, coming from loans and some of the Norway money. Government insisted that the project is beneficial despite being marred by delays of the access roads and still ongoing negotiations with IDB and funding agencies for a large part of the cash.
“This project will deliver a steady source of renewable energy that is affordable, reliable and is envisioned to meet Guyana’s domestic energy needs while removing dependency on fossil fuels. The Government of Guyana projects that Amaila will save consumers and businesses approximately $3.5B over the next 20 years, while at the same time reduce carbon emissions and creating jobs.”
Part of the Norway funds is also being used for the Amerindian Development Fund which will enable almost 200 Amerindian villages to advance their Community Development Plans.
According to Office of the President, in 2013, some two dozen Community Development Plans will start implementation.
In addition, funds for micro and small enterprise development are coming on line in order to provide vulnerable groups with access to capital and business support.
“Yet another project to receive Government funding from the GRIF will be the Cunha Canal Rehabilitation Project, a climate adaptation effort to reduce the risks of the embankment overtopping and flooding of areas along the East Bank of the Demerara.
This will help to reduce threats to life and livelihoods from changing weather patterns, such as the floods that occurred in 2005 and caused damage equivalent to 60 percent of Guyana’s economy.”
Office of the President stressed that the projects are being funded by the Government of Guyana based on contributions from Norway and will join a suite of LCDS investments being funded directly by the Government, including the installation of 11,000 solar panels in Amerindian households across the country.
“This latest contribution from our partnership with Norway will help achieve the vision that we laid out through our Low Carbon Development Strategy more than three years ago. Our vision is to create a strong and vibrant low-carbon economy that benefits our people, reduces pressures on our forests and provides valuable climate services to the world,” President Donald Ramotar said in the statement.
“With this payment, Guyana can continue on this important path while showing that economic growth is compatible with sustainability.”
The contribution from Norway to the GRIF is part of an agreement between the two nations, which was announced when former President of Guyana, Bharrat Jagdeo and former Minister of
Environment of Norway, Erik Solheim signed an agreement in Fairview in November 2009. The partnership’s progress is governed by terms set out in a Joint Concept Note (JCN).
The JCN seeks to create a replicable model that can lead to a global framework for action on forest climate issues. Under this model, Guyana is paid for delivering results against a set of key carbon and other metrics, which are verified by independent auditors.
For the latest payment, two independent verification audits were conducted by Det Norske Veritas (DNV), which reviewed deforestation rates; and the Rainforest Alliance (RA), which reviewed 10 different “indicators of enabling activities” related to responsible governance of the investment program, along with the protection of the rights of Amerindian peoples and communities.
During the period from October 1, 2010 through December 31, 2011, (a period of 15 months),
DNV verified that Guyana had a deforestation rate of 0.054 percent – one of the lowest, if not the lowest, in the world. .
The RA report found several areas of positive performance, and also pointed out several areas related to the governance of the partnership that should be improved, including the fact that the expected financing was delayed.
“When reviewed as a whole, the Guyana-Norway partnership represents the leading edge of efforts to protect forests while also supporting developing countries by offering economically attractive alternatives to deforestation and forest degradation.”
Guyana and Norway had asked the World Bank to act as a trustee of the GRIF, utilising the bank’s treasury function to generate further investment income for the LCDS. But while the monies have been sitting in the accounts, there have been delays in drawing down as Guyana will have to produce projects, under strict external monitoring, to have access.

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