Latest update November 26th, 2024 1:00 AM
IDB loans Guyana $121M to boost expertise in Energy Dept.
The Inter-American Development Bank (IDB) has loaned Guyana US$606,062 (approx. G$121M) which will go towards strengthening the technical functions of the Department of Energy (DE).
According to procurement documents perused by Kaieteur News, the loan will go towards three areas. Component one of the project which is set at US$331,062 (approx $66M) will support the operationalization of the protocols for the management of the Stabroek Block Production Sharing Agreement (PSA) and all other contracts. The protocols were recommended to the Department of Energy, the Guyana Geology and Mines Commission Petroleum Unit (GGMC-PU), the Environmental Protection Agency (EPA) and other critical agencies in the regulatory framework.
These protocols include the forms and reports that outline the tiers compliance commitments of both the Government and the Operators. Particularly, this component will support contractual compliance monitoring and records management; facilitate an increase in Guyana’s organizational capability in relation to the oil and gas sector by adopting best practices and improved interagency information cooperation and communication during the contract management process.
The protocols also take into account, the provision of advice regarding IT platform functionalities for the collection, processing, and retention of contract and regulatory compliance data. The IDB was keen to note that the management and retention of the volume of data generated by exploration, appraisal, field development, production, and decommissioning are also important to improve audit capabilities and transparency.
Component two of the loan which totals US$150,000 (approx. G$30M), will facilitate an increase in Guyana’s organizational and managerial capability and the construction of handbooks and provision of training for government officials in the DE, GGMC-PU, EPA, and other relevant agency in the use of contract management software and tools for compliance monitoring and enforcement of the Stabroek PSA and all other oil block agreements in Guyana.
The IDB said that this component is intended to improve the operational implementation of the PSA compliance forms and other proformas to increase competencies of designated contract management tools users.
With respect to Component Three of the loan, US$100,000 (approx. G$20M) has been set aside to manage the public interest in the oil and gas sector, as well as ensuring transparency among all key stakeholders.
Activities will include the dissemination of products generated under this technical cooperation and other assistance programmes from the IDB to the Guyanese oil and gas sector; and engagement with stakeholders through conferences, events, brownbag lunches, etc. to discuss the most salient issues in operationalizing the PSA protocols for the sector as it evolves.
This newspaper understands that US$25,000 (approx. G$5M) has been put aside for travel contingencies bringing the total of the project to US$606,062.
The Bank, through the Mining, Geothermal Energy, and Hydrocarbons (MGH) and the Energy Division (INE/ENE) of the Infrastructure and Energy Department, will act as the executing agency due to its ability to leverage its extensive network of internal and external subject-matter experts and well-established relationships with involved stakeholders.
The IDB has also said that it will contract individual consultants, consulting firms, and non-consulting services in accordance with the Bank’s current procurement policies and procedures. It was further noted that the IDB will lead implementation, programmatic oversight of the different activities and coordinate results reporting with other organizations operating in the field.
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