Open letter to the President:

May 07, 2023 Letters

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Dear Excellency,

Kaieteur News – As a concerned citizen, I have previously corresponded with your esteemed office regarding conflicts of interest involving members of the Environmental Assessment Board (EAB). According to a Kaieteur News Article of May 4, 2023, entitled: “EAB still reviewing appeals on waiver of impact study for 300-megawatt gas plant”, the members of the EAB are presently finalizing their Decision Report on citizens’ challenge of the Environmental Protection Agency’s (EPA) waiver of an Environmental Impact Assessment (EIA) for apublicly funded300MW power plant at Wales.

Unfortunately, my earlier letters to you on the violation of the Environmental Protection Act Cap. 20:00 1996 (The EP Act), Third Schedule, Section 8, due to direct and indirect conflicts of interests involving individuals appointed to the EAB, seem to have been overlooked or ignored. The individuals in question, Mr. Joslyn McKenzie and Dr. Mahendra Sharma continue to serve without addressing the concerns raised.

Mr. McKenzie, the Permanent Secretary of the Ministry of Natural Resources, has been party to the development of the Gas to Energy Project and specifically the power plant from its inception and continues to actively administer parts thereof as the individual handling proposals from third parties for various aspects of the design, construction, and operation of the power plant.

These include, for example:

(1) The Ministry’s “Request for Expressions of Interest (EoI) – Gas Related Investments” dated January 10, 2021, which invited Expressions of Interest from Interested Parties for, inter alia: “(i) Joint participation with the GoG (Government of Guyana) and EEPGL (Esso Exploration & Production Guyana Limited), in designing or utilizing the outputs from an NGL/LPG facility and related facilities; (ii) Design, construction , and financing of a power plant fuelled by natural gas, where the power will be delivered to the GPL (Guyana Power and Light Grid)”;

(2) The Ministry’s “Request for Proposal (RFP) for Consultancy Services for the Supervision of the Guyana Integrated NGL Plant and 300 MW CCGT Power Plant” issued July 2, 2022; and

(3) An RFP for: “Provision of Engineering, Procurement and Construction (EPC) Services for the Installation of Transmission Lines and Substations for the integration of the new 300 MWe CCGT Power Plant” issued on December 8, 2022, by the Government of Guyana/Office of the Prime Minister (OPM)directing proponents to send their submissions to Mr. McKenzie. This project includes components that form part of the Power Plant project, including a “Double-circuit 230K Transmission Line 300 MWQ GTE Project Site to Demerara River” and “69kV Wales Industrial Substation located at the 300 MW GTE Project Site ending at 13.8kV take-off structure.”

I could go on with a longer list of outrageous conflicts of interest. Suffice it to say that Mr. McKenzie’s direct and indirect conflicts of interest relate to his function at the Ministry of Natural Resources, which is promoting oil and gas development projects in which the Government of Guyana is a stakeholder in a profit-sharing arrangement. These conflicts of interest include his role as part of the EAB quorum that reviewed and approved EIAs and issuance of Environmental Permits for Exxon Mobil’s Yellowtail and Uaru offshore projects, and they extend to the current appeal process regarding the EPA’s waiver, again, of an EIA for Schlumberger Guyana’s  radioactive source storage and calibration facility at Lot 1 Area X Houston, East Bank Demerara (EBD), a facility exclusively providing service to EEPGL’s offshore production projects in which the Government is a profit-sharer.

Dr. Sharma, Chairman of the EAB has conflicts of interest related to his functions, including fiduciary functions; he performs as a director of the Guyana Power and Light, which is inextricably involved in the Power Plant application. Also, in his role as Head of Guyana Energy Agency, a state entity responsible for promoting and developing efficient management of energy, Dr. Sharma has an interest in seeing to the construction and operation of the power plant. In addition, he is the spouse of Ms. Marcia Nadir-Sharma, one of the directors of Guyana Power and Gas Inc., the applicant for the Environmental Permit to construct the power plant.

Dr. Sharma’ and Mr. Mckenzie’s official duties conflict with their duties as members of the EAB, they cannot act in the best interest of all concerned entities.

Allow me to reiterate the gravity of this situation and emphasize the detrimental effects it has on the credibility and effectiveness of your government’s management of both environmental matters and development projects.

The Environmental Assessment Board, as you are aware, plays a crucial role in upholding the principles of transparency, impartiality, and objectivity in reviewing and adjudicating appeals against decisions made by the EPA. It is disheartening to witness that the board’s integrity is being compromised due to the persistent presence of members with unresolved conflicts of interest.

During the March 22, 2023, Public Hearing called by the EAB on objections to the waiver of an EIA for the Power Plant, Dr. Sharma and Mr. McKenzie displayed a regrettable lack of ethical responsibility. Despite being directly implicated in conflicts of interest, they shamelessly participated in the proceedings, refusing to acknowledge or recuse themselves from the case. These individuals cannot be entrusted with any role that requires unbiased judgment, as their actions have demonstrated a blatant disregard for ethical standards and an alarming willingness to prioritize personal interests over public welfare. Their behaviour not only undermines the principles of justice and fairness but demonstrates that the EAB is incapable of functioning independently and making impartial decisions. No decision taken in which any member of the EAB’s quorum has a conflict of interest will be lawful.

The ongoing situation not only casts a shadow on the entire EAB, but it also raises doubts about your government’s trustworthiness and ability to discharge your duties on behalf of the people of Guyana with the necessary impartiality and integrity required by the EPAct and elementary standards of good governance. By turning a blind eye to the conflicts, the government inadvertently condones the erosion of public trust in its institutions, thereby undermining its own credibility and the effectiveness of both its environmental policies and development programmes. The government is unnecessarily placing itself, the public, and investment partners at risk.

Considering the foregoing, I urgently request your intervention to rectify this situation and restore the integrity of the Environmental Assessment Board. I remain optimistic that you will give due consideration to this matter and take the necessary steps to address the concerns raised.

Yours sincerely,
Simone Mangal-Joly

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• Dr. Mahendra Sharma, EEPGL, Environmental Impact Assessment, the Ministry of Natural Resources

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