GOVERNMENT on Thursday announced that the Kingdom of Norway through the Guyana-Norway partnership (The Norway Agreement) approved the release of funds for some of the government’s “major projects”.

Three Guyana REDD+ Investment Fund (GRIF) projects have been approved this year for the Green State Development Strategy and ICT access and E-Services for hinterland, poor and remote communities, valued at approximately US$18, 530, 752 and the sustainable land development and management project worth US$14, 792, 277 which was approved on Thursday.

Minister of State, Joseph Harmon, made the announcement during the fourth day of the budget 2018 debate at the National Assembly. In his presentation, he said “I can say to you, Mr Speaker, that our agreement with the Kingdom of Norway is alive and well.”

Notwithstanding the aforementioned, Harmon told the House that the major stumbling block relative to the Norway Agreement is the question of the $80M allocated for the hydro development. Norway has not given approval for the release of funds which were geared towards the Amaila Falls Hydro Project. He explained that government this week dispatched a letter to Norway requesting a meeting to discuss elements of the 2009 Memorandum of Understanding (MoU). “Even this morning, we had an acknowledgement that that’s going to happen,” he disclosed amidst heckling by the parliamentary opposition.

A letter was sent to the Minister of the Environment of the Kingdom of Norway, Vidar Helgesen, requesting consideration for a meeting of environment ministers of Guyana and Norway soonest. The Minister of State made it clear to the House that critical to the coalition government’s pursuit of its green agenda and the development and implementation of the Green State Development Strategy, is its bilateral relations with Norway and the 2009 MoU.

He said too that the three joint concept notes that outline the indicators on which the relationship of the agreement is judged and the on-going negotiations and discussions that are currently ongoing. “Mr Speaker, our MoU with Norway seeks to foster partnership between Guyana and Norway on issues of Climate change, biodiversity and sustainable, low carbon development. It envisages the establishment of a comprehensive political and policy dialogue on these issues and close cooperation regarding Guyana’s REDD-Plus effort.

Additionally, Harmon said the establishment of a framework for result-oriented Norwegian Financial support to Guyana’s REDD-Plus efforts is also envisioned. Harmon said when the Agreement was signed in 2009, it was agreed that there would be US$250M to Guyana, but by the time the APNU+AFC coalition government gained office in May 2015, the sum had reduced to US$215M because of penalties attached as a result of non-performance by the People’s Progressive Party (PPP) administration and also because of exchange rates.

The Minister of State said his government has done much with the money since taking office. In fact, prior to May 2015, five GRIF projects worth US$30.4M were implemented. Subsequent to May 2015, three GRIF projects were approved this year for the Green State Development Strategy and ICT access and E-Services for hinterland, poor and remote communities valued and the sustainable land development and management project.

There will be seven GRIF projects in implementation and two completed at a value of US$67.1M. “Mr Speaker, the approval of three GRIF Projects in a year (2017) would be the first under the framework,” declared Harmon. He explained that there are three additional projects that are in difference stages of development: the institutional strengthening phase two, Biodiversity Research Centre, and green tourism. According to the Minister of State, prior to May 2015, there was a 16 per cent financial delivery given to GRIF projects as compared with earnings of US$190M under the partnership and 43 per cent financial delivery as compared with the US$70M of funds transferred to the GRIF trustee account for use on projects.

After assuming office in May 2015, there was a 35 per cent financial delivery given to new projects added for this year as compared with earnings of US$190M under the partnership; something he considers to be more than double in two years the accomplishment of the previous five years. Additionally, a 96 per cent financial delivery as compared with the US$70M of funds transferred to the GRIF Trustee account for use on projects.

Government expects to reach more than 60 per cent delivery by the end of 2018. Norway has since extended the GRIF Trustee account that ended in December 2016 to December 2021 and there have been 285 grants and 120 loans approved under the Micro and Small Enterprise project as against 121 grants and 26 loans prior to the APNU+AFC government taking office. Moreover, 119 indigenous communities and villages have been funded under the Amerindian Development Fund.

“What should be noted is that the 5th payment has already been earned by Guyana, which Norway announced on May 6, 2015. However, when the new government came into office, we requested to produce the Green State Development Strategy and the Renewable Energy Transition Roadmap,” the Minister of State added.

Meanwhile, Harmon explained that in relation to the US$80M allocated for the hydro development here, the former PPP administration identified the Amaila Falls project but that developed a plethora of problems, causing it to halt.
After taking office, government engaged the Norwegians on the matter and agreed to have a consultant (Norconsult) examine the project. This was done and it was found that there were major technical issues which needed to be addressed. “Even if we had proceeded to have it completed, it would have never been done,” he stated.

Harmon stressed that while his administration agrees there needs to be hydro development here, natural gas is the temporary way to go. He stressed that hydropower generation is part of Guyana’s renewable energy mix, which includes solar, wind, biomass and bagasse. “Our commitment to deliver close to 100 per cent renewable energy by 2025 remains in focus,” he stated.

Accordingly, government believes that there are equally competitive hydropower alternatives to Amaila Falls, but this requires additional studies so that it can be confident in delivering value for money. Harmon posited that government believes the best way forward is to use natural gas temporarily. “Natural gas is cheap, clean gas, the emissions are 50 to 60 per cent less than fossil fuels…it is not a renewable resource but it is a national resource,” he stated while stressing that Guyana needs to advance. “What we are saying is that this is a temporary step, a transitional arrangement; and we will at the same time investigate other elements of hydro-electricity.,” Harmon concluded with much objection by the parliamentary opposition.