– World Bank mission in Guyana to verify, supervise SBCP
A World Bank mission to conduct initial verification and supervision of the Skeldon Bagasse Cogeneration Project (SBCP) under the Clean Development Mechanism, met Friday with Minister of Agriculture, Robert Persaud, at the Ministry’s boardroom.

Minister Persaud pointed out that the SBCP will attract funding from the CDM which will benefit both the Guyana Sugar Corporation (GuySuCo) and residents of the community. He was optimistic that the power generation facility will contribute up to 15 megawatts of energy per week.

Minister Persaud expressed confidence that the project, microcosmic of Guyana’s Low Carbon Development Strategy (LCDS), can gain Guyana significant incentives from the CDM. He anticipated up to US$3M in flows.

On May 4, 2008, the Skeldon Sugar Modernisation Project (SSMP) became the first project in Guyana to be registered with the United Nations Framework Convention on Climate Change (UNFCCC). As a result, the project qualified to receive incentives under the CDM of the Kyoto Protocol. With the new bagasse cogeneration plant being part of the SSPM, clean energy will be generated in keeping with Guyana’s obligation to the Kyoto Protocol – Article 12 in particular. As a party to the CDM, GuySuCo will be able to sell Certified Emission Reductions (CERs) that result from electrical energy generated from bagasse fuel.

The Bank’s Senior Environmental Specialist, Carbon and Environmental Finance, Africa Region, Noreen Beg, confirmed that the SBCP, within the broader SSMP, is the first project in Guyana and the Caribbean to be registered with the Kyoto Protocol’s CDM. She explained that the team had gone to review the environmental, agricultural and social practices relating to the project in Skeldon, and the operation of the factory. She submitted that the team was satisfied with the project and related realities.

Beg expressed hope that by next year August, the project would have undergone the first year of emission reduction power generation to the grid.

She added that within the next month, subsequent to final consultations, the Bank will be able to make a first payment to community benefits. Despite declining to disclose a specific amount, Beg assured the sum will be substantial, and will be used for community skills training; purchase of books for the library; and support for the Community Centre. She stressed that, initially, the hope is to ‘beef’ up the Community Centre with computers, sewing machines, and good sporting facilities.

Further payments will be made and expended toward the public dispensary, garbage disposal, transport for students, and generally in areas the community would deem to be necessary.

The other members of the mission present at the meeting were George Ledec, Lead Ecologist; Manuel Luengo, Carbon Finance Specialist, Carbon Finance Unit; and Adelaida Schwab, Natural Resource Economist, Carbon Finance Unit. (GINA)