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Guyanese authorities will also look into options delivering associated gas from Liza and other
for securing loan financing to cover costs under oilfields in the offshore Stabroek block to the
the EPC contract this year, he added, with- onshore Wales Development Zone. This gas
out giving any specific figures for the amount will be used to generate electricity. Eventually it
Georgetown might seek to borrow. may also serve as feedstock for petrochemical
The landmark GTE project is aimed at and chemical production. ™

Guyana’s president: Oil revenues should

not simply be handed out to the public

GUYANA’S President Irfaan Ali said last week building out of the economy? How do you use
that he opposes suggestions to distribute the that revenue in building prosperity in the coun-
country’s oil revenues among members of the try? How do you use that revenue in building
population. out infrastructure, building up the social sector,
Speaking at a press conference in George- health care, education? How do you use that
town, the president argued that handing out a revenue in building a diversified economy that
share of oil earnings to every household would functions on a broad economic platform that
contribute to the development of “Dutch Dis- supports growth, that supports revenue streams
ease”, allowing certain industries to decline at the that are much larger?”
expense of others that might be more viable in Since the Liza field started production in
the long run. 2019, Guyana’s oil industry has skyrocketed,
A better use for the funds would be invest- earning more than $2bn to date. Oil money is
ment in projects designed to foster economic projected to fund 26.7% of the government’s
growth, he declared. GYD781.9bn ($3.73bn) budget for the 2023
Over the last year Guyana’s oil sector has fiscal year.
grown by 124.8%, while the country’s non-oil Some GYD136.1bn ($649.5mn) from the
economy has expanded by 11.5%. This has led 2023 budget is expected to be used towards
overall economic growth rates to rise by 62.3% the upgrade of thousands of bridges and roads,
year on year. while GYD43.3bn ($206.6mn) will be put
Under these conditions, Georgetown must towards a gas-to-energy (GTE) project. Com-
consider its options carefully before distribut- bined, such projects will comprise almost a
ing oil revenues, the president said. “The reve- quarter of the total annual budget. A further
nue that comes from the oil sector has nothing GYD50bn ($238.6mn) has been dedicated to
to do with the Dutch Disease. It is what you do easing the cost-of-living pressures on Guyana’s
with that revenue,” he explained at the press con- citizens through reduced taxes and targeted cash
ference. “How do you use that revenue in the transfers. ™

President Ali, shown on January 17 (Photo: Facebook/@Office of the President)

P10 www. NEWSBASE .com Week 04 25•January•2023