Prime Minister Mark Phillips says: Guyana building out infrastructure to support local and foreign investors

Aug 27, 2023 News

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Kaieteur News – The major infrastructural development taking place countrywide is geared towards supporting local and foreign investors.

Prime Minister, Brigadier Ret’d Mark Phillips on Friday evening during the American Chamber of Commerce (AmCham) Guyana’s fifth anniversary celebration said that the government will continue to create a suitable environment to welcome investment. He was at the time addressing the businesses gathered at the Marriott Hotel, Kingston, Georgetown for the celebration.

He said, “Since taking office in August 2020, our government has been working to ensure that we have in place a framework required to support local and international investors in Guyana.”

To this end, the Prime Minister shared, “You would have seen major infrastructural works such as the expansion and construction of roads and highways and even the development and passage of legislation…to facilitate a modernized way of conducting business in Guyana, especially as we adapt to the digital age. These are just a few of the many initiatives and policies that are being implemented by our government to support the business community in Guyana.”

Phillips assured that government will continue to work with AmCham Guyana since it aids in fostering the environment required for investors to thrive. The Prime Minister told the Chamber that it is welcome to engage government.

He noted, “Our government remains committed to strengthening our international ties and AmCham has been playing a key role in promoting trade and economic relations between Guyanese and United States interests. We continue to encourage American investors to explore and look for opportunities in the various sectors, and not just, as somebody said, be limited to oil and gas.”

The Prime Minister’s statement regarding investment inroads to support investors come at a time when stakeholders have been questioning the rationale behind the massive expenditure on infrastructure projects while ordinary citizens continue to complain about the high cost of living.

In fact, Director of Financial Analysis at the Institute for Energy Economics and Financial Analysis (IEEFA), Tom Sanzillo does not believe that the revenue stream from Guyana’s oil and gas sector is being prudently managed to ensure future generations benefit.

During a panel discussion focusing on the local energy sector back in June, Sanzillo pointed out that the government has not been prioritising saving the funds generated from the industry like Norway but has instead embarked on a massive infrastructural and energy development scheme which may very well benefit its partner, ExxonMobil more than the citizens in the country.

The financial expert said with a national budget of approximately US$3.6 billion, Guyana used about US$1 billion of its oil revenue to support its development scheme. He noted, “The Budget’s doubled in the last two years from just under US$2 billion and what you have is large expenditures on capital.”

Based on his analysis, Sanzillo said the expenditure will not improve the living conditions in poorer communities which is desperately needed in Guyana. “Local leaders choose how that money gets spent every year and they have been spending it so far on capital expenditures and that is not going to support the kind of economic development in poorer communities that you want,” the financial expert detailed.

Instead, he stated that, “It may work to Exxon’s benefit to put in new roads, it may be Exxon’s benefit to build a new gas plant but they don’t need that kind of electricity system in Guyana and who knows if they actually need the roads that are being built because there is no public process so what you have is a plan and the plan is to use the money to keep the existing political structure in power and that’s what is going to be done.”

The national budget was passed in January this year to the tune of US$781.9 billion. A huge chunk of the funds was streamed to the Ministry of Public Works to enhance the infrastructural landscape across the country.

Kaieteur News understands that the Ministry received the highest allocation this year when compared to the other government ministries. It received some $149.5 billion in February to support its development plans. Earlier this month when Parliament approved $61 billion in Supplementary funds, the Ministry of Public Works received another $33 billion, taking its total allocation this year to $182.5 billion.

In the meantime, a meagre $5 billion was set aside by the administration to cushion the high cost of living triggered in part by the global COVID-19 pandemic. Citizens have been complaining about the spiraling cost of food, transportation and other basic items, but instead of significantly improving wages for public servants, it has for the past two consecutive years increased salaries by only seven and eight percent, respectively.

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• Government, Infrastructure, investment, investors, support

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