Latest update April 18th, 2025 8:12 AM
Slow delivery of funds delays renewable energy projects
The Guyana Energy Agency (GEA) has encountered problems in delivering renewable energy projects on schedule for Government and related entities.
This issue surfaced in 2017 and was flagged by auditors. The GEA had entered into Memoranda of Understanding (MoU) with Government agencies for executing projects on their behalf.
GEA indicated that on signing of the MoUs, the Agencies are required to transfer the budgetary allocations to the GEA account. 
“The timeliness with which this is done accounts for the delay in implementation of the projects and could result in the expiration of the MoUs even before the projects are completed. However, it must be noted that once the funds are in GEA’s account, the projects must be completed even if the MOU expires.
“GEA is currently addressing this issue by renewing those MOUs that fall into this category,” the GEA stated.
It was pointed out that the MoUs have a termination clause which contemplates the expiry date for each MOU. At the date of expiration, there were unspent funds remaining at the Agency’s disposal. It was unclear from the contract whether the Agency can continue to spend the funds to complete the projects where the MOU has expired.
In cases where the MoUs have expired, and the projects completed but funds remain on the account, the GEA indicated to have preparing the necessary documentation to hand over those projects and any outstanding balances to the concerned Agencies.
Highlighting the problem, it was noted that on October 5, 2017, the GEA and the National Drainage and Irrigation Authority entered a six-month MOU where the Agency is responsible for the procurement, oversight and installation of energy efficiency and renewable energy systems identified by the Authority.
By December 31, 2017, no funds were received from the Authority and the amount expended represents advertisement costs incurred by the GEA.
On June 27, 2017, the GEA and the Ministry of Public Health entered a 12-month MoU where the Agency is responsible for the procurement, oversight and installation of energy efficiency and renewable energy systems identified by the Ministry.
As at December 31, 2017, no funds were received from the Ministry and the amount expended represents advertisement costs incurred by the Guyana Energy Agency.
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