Guyana complains to IDB about Venezuela threat

Sep 26, 2015 News

By Leonard Gildarie

President David Granger (c) meeting with IDB’s President, Luis Alberto Moreno. At left is Director General (Ag) of the Foreign Affairs Ministry, Audrey Waddell.

Guyana raised the Venezuela threat situation with the Inter-American Development Bank (IDB), yesterday and complained of the negative impact on investors.
President David Granger and his team met with recently re-elected President of the IDB, Luis Alberto Moreno, at the Manhattan offices of the Guyana Mission to the United Nations (UN).
They also used the forum to address the use of Norway funds on developing renewable energy projects was also discussed.
The meeting was one of a number of engagements that the Head of State would be engaged in towards the lead-up to his Tuesday’s address to the UN’s General Assembly, comprising of world leaders, where Venezuela’s aggression to Guyana would be detailed.
Speaking to reporters shortly after the meeting with Moreno, President Granger disclosed that three main issues were raised with the banker. The first had to do with impact of the Venezuela claims on Guyana’s development.
Five regions in Essequibo are suffering because of the claims by the neighbouring country over the last 50 years. It has affected development. Things got worse in 2013, when Venezuela gunboats ejected an oil exploration vessel from Guyana waters.
This year, Granger said, Venezuela stepped up its aggression, publishing decrees which boldly laid claims to not only Essequibo, Guyana’s biggest mineral rich county, but also to waters where oil has been discovered by US-owned ExxonMobil.
The issue has “soaked” up the energy of the new administration which has taken the matter to CARICOM, MERCOSUR, the Secretary General of the United Nations and other international organizations.
The Head of State said that Guyana remains deeply concerned by the pressure mounted by Venezuela as investments in certain hinterland areas- including in gold, oil exploration and manganese- are now being viewed as risky propositions. In terms of the economic impact, Venezuela’s actions have scared away investors.
This much was made clear to the IDB’s President, Granger said of the meeting.
Another issue raised was the development of the renewable energy in Guyana. The stalled US$900M-plus hydroelectric project at Amaila Falls, Region Eight was also raised.
Already, it appears that the project, which was halted after the political Opposition, refused to pass key legislations because of cost concerns, may be the last thing on the mind of the Granger administration.
According to the President, there are maybe 100 places in Guyana where hydroelectric projects could be built.
IDB had spent millions of dollars on the preparatory works for the troubled Amaila Falls. The assessment of the project was never disclosed by the bank but initial indications were that IDB was concerned over costs.
According to President Granger yesterday, IDB has been asked to support renewable energy projects. A major funder for projects in Guyana over the years, IDB, was also asked to work with Guyana to fast-track the disbursement of Norway funds.
The monies, being held by IDB, are from a US$250M agreement with Norway to protect its standing forests by reducing the impact of deforestation. Several millions of US dollars are being held by IDB pending the approval and implementation of a number of green projects. The Amaila Falls hydro was one such project.
According to President Granger, he and Moreno also had broad discussions on the possibilities of concessional funding.
With Guyana facing tough times with rice, sugar, bauxite and gold, all major export earners under-performing, the new Government must find ways to keep the economy rolling, the president said.
Access to concessional funding is but one of the ways to jump-start the economy which showed signs of “anemia” when the new administration took office in May, President Granger said.
“So we have been pursuing measures to bring more people into the economy at the grassroots level through educational and poverty reduction…and at the same time need to keep the economy boiling.”
Also present with Granger for the meeting yesterday with the President and Moreno were Foreign Affairs Minister, Carl Greenidge; Permanent Representative to the UN, George Talbot, and Director General (ag) of the Foreign Affairs Ministry, Audrey Waddell.