THE modernisation process in Guyana is picking up momentum. This is manifested in the establishment of several new mega-projects which included the oil-and-gas project at Wales on the West Bank of Demerara, which, when completed, will see a drastic reduction in the cost of energy not only to Guyanese consumers, but also to the business or commercial sector.
One immediate consequence of that development, apart from a steep reduction in the energy bills to consumers, will be the enhancement of the country’s competitiveness on the international market.

Only recently, the Government of Guyana through a Cabinet decision gave the green light to construction of the 300-megawatt combined cycle power plant and natural gas liquids (NGL).
According to President, Dr Mohamed Irfaan Ali, this is a significant move forward which will allow not only for energy security, but will also see the reduction of energy costs. The cost of manufacturing and industrial development will be significantly lowered and consumers will see a substantial reduction in the cost of electricity.

This is indeed transformative and exactly what the country needs at this stage of its development. Only recently, Vice-President, Dr Bharrat Jagdeo announced that the government has commenced the process of inviting interested bidders to submit proposals to finance and build the country’s first oil refinery.

The decision, according to Dr Jagdeo, was taken in order to enhance the country’s energy security, especially against the background of the ongoing Russia-Ukraine conflict which has taken a severe toll on the supply of oil on the world market and, as a consequence, the cost of energy.

Energy cost is an important element in production cost and any hike in energy cost is bound to impact negatively on the overall cost of living as the current war in Ukraine has demonstrated.
As noted by the Vice-President, the emergence of Guyana’s oil industry has attracted considerable interest from across the world to build a refinery. This, he pointed out, will be done in a measured and calibrated manner as the country has no interest in becoming the “refining capital” of the region.

The administration, according to Dr Jagdeo, is intent on avoiding a large refinery since that would involve signing an agreement with the company for continued supply.
The PPP/C administration is fully cognisant of the fact that the window for exploiting our oil and gas resources is limited, but it does not follow that such exploitation will be done in a hasty and irresponsible manner, having regard to our embrace of a Low Carbon Development Strategy (LCDS), and our commitment to the carbon-emission goals set by the United Nations sponsored Conference of Parties (CoP) currently in session in Egypt.

Indeed, Guyana is ahead of most countries in terms of its carbon footprint and its net zero carbon emissions status. It is among few countries in the world to have committed itself to complete deforestation by the end of this current decade.

The above, notwithstanding, it would be equally irresponsible for the country not to optimise the proceeds from its new-found petroleum resources, especially given the historical underdevelopment of the country and the concomitant need to enhance the quality of life of the Guyanese people.

These are indeed transformative projects which will change the economic and social landscape of the country in deeply profound ways. For one, it will result in the creation of thousands of new jobs, in particular high-paying jobs. The fact is that Guyana still lags behind several countries in the region when it comes to high-paying jobs and the establishment of petroleum and petroleum-related jobs will most likely bridge the income gap between Guyana and other countries in the region.

Guyana is on a clear path to prosperity based on the principles of social and economic justice and equity. But in the final analysis, it is the creation of wealth and the manner in which that wealth is distributed that is the defining characteristic of a socially just society.

President Ali and the PPP/C administration are committed to the building of such a society, one in which, in the words of the President, no Guyanese, regardless of race, religion or political affiliation will be left behind.