– major Brazilian investors expected soon

By Navendra Seoraj
GUYANA’S economy, like many others around the world, has taken a hit because of the novel coronavirus (COVID-19), but investors are still eyeing the local market and will soon make their presence known.
The country can expect investments on all fronts, but major attention will be placed on the new oil and gas sector, which recently welcomed the US$9 billion Payara Development Project.

Former Chief Executive Officer (CEO) of GO-Invest, Owen Verwey, while serving as CEO, had told the Guyana Chronicle that interested investors are mainly the tier-1, tier-2 and tier-3 contractors for the oil and gas industry.
“They have to do something to be able to deliver for the Liza 2 development and the Payara development,” said Verwey, adding that the country did not lose any investor, but investments have just been postponed because of the pandemic.

Just Friday, Vice-President, Bharrat Jagdeo, confirmed that ‘a lot’ of companies are knocking at Guyana’s doors, especially companies from the oil and gas sector.

Considering the potential investments, including the US$9B Payara project, President of the Guyana Oil and Gas Energy Chamber (GOGEC), Manniram Prashad, had said that Guyana needs to position itself to gain a significant portion of the spill-off commercial opportunities.

The US$9 billion project has been described as the single largest investment in Guyana and is twice the size of the country’s Gross Domestic Product (GDP), which is close to US$4 billion.

The $9billion development will target an estimated resource base of about 600 million oil-equivalent barrels. Ten drill centres are planned, along with up to 41 wells, including 20 production and 21 injection wells.
“During this period, and up to 2024, there will be significant increase in the demand for goods and services to sustain this level of operation which will have at least 10 drill centres,” said Prashad.
He believes that Guyanese will be better able to capitalise on these opportunities once there is a ‘solid’ Local Content Policy.

Oil, however, won’t be the only source of opportunities, as Verwey said there are a number of hotels in the making. Accommodation, he said, is still an issue in Guyana. And, with the growing oil and gas sector and other activities, which are expected to ‘rebound’ after COVID-19, the country will need hotels with accommodating prices.

Investors are also examining other areas of focus, such as agriculture and agro-processing, a key sector which is expected to complement and sustain economic growth.

Verwey said with the settling of elections and providing that COVID-19 subsides soon, Guyana could also see the return of Brazilian investors, who were “knocking at Guyana’s doors.”
President, Dr. Irfaan Ali, had said recently that the country is expected to see a ‘flurry’ of development projects in 2021.

Guyana, which sits on the edge of South America and has a population of about 750,000 people, is expected to ‘boom’ with its new-found oil wealth, wealth which will drive infrastructural development and other sectoral advancements.

According to reports, the country has already raked in close to US$150 million from its oil-and- gas sector, with lots more to be earned. But the focus, as outlined by the new People’s Progressive Party/Civic (PPP/C) government, will be on maintaining a diversified economy.
Progress is expected on all fronts said President Ali, noting that 2021 will be the year of investments and development.

“What you will see next year is a flurry of development… there will be active work on the new Demerara Harbour Bridge, the new four-lane road, new hotels and the creation of 50,000 homes,” said the President, following an inspection of the site for the new harbour bridge, on Saturday.

He said work will commence on the construction and rehabilitation of roads in hundreds of communities; new infrastructure will be created; and there will be major developments in every sector.
Additionally, private-sector investments are expected to increase, stretching from the construction of new shore bases to service the oil-and-gas sector, to new office complexes and other private development projects.