–House clears $47B for transport infrastructure, security, support to electricity companies, other initiatives

THE National Assembly on Monday cleared
$2.9 billion in provisions from the Contingency Fund, and $44.4 billion in supplementary finance to further advance development in various economic sectors.

The two financial papers were first presented on November 30 by Minister with Responsibility for Finance Dr. Ashni Singh. On Monday, they were meticulously scrutinised and debated, with the opposition A Partnership for National Unity/Alliance for Change (APNU/AFC) posing a number of questions before the motion was passed.

The Contingency advances, Financial Paper Two of 2022, which covered the period August 15-November 29, 2022, included clearing $1.7 billion in additional resources to support the Linden Electricity Company Inc. (LECI), and $54 million for the Ministry of Amerindian Affairs for the provision of additional resources for the hosting of the National Toshao’s Council (NTC) Conference and Amerindian Heritage Month.

It also included $360 million for the Ministry of Natural Resources for the payment of an issuance fee for forest carbon credits, and $50.5 million for a DNA analysis workflow system for the Guyana Forensic Science Laboratory.

It was only on Friday last that Guyana became the first country in the world to be issued with carbon credits for forest protection when ART (the Architecture for REDD+ Transactions) issued the world’s first TREES credits to Guyana.

It marked a historic milestone for the country, making it the first time a country has been issued carbon credits specifically designed for the voluntary and compliance carbon markets for successfully preventing forest loss and degradation, a process known as jurisdictional REDD+.

Also related to the Contingency Fund was a $740 million expenditure to cover urgent drainage works, including the rehabilitation of drainage channels, access bridges, revetments and dams, along with the installation of stainless steel sluice doors.

Section 220 of the Constitution and Section 41 of the Fiscal Management and Accountability Act (FMAA) gives the Minister of Finance the “sole authority” to release money from the Contingency Fund, which sum should not be larger than two per cent of the annual budget from the last fiscal year.

The supplementary budget request, Financial Paper Three of 2022, included another $6.6 billion to provide additional resources for electricity arrears to the Guyana Power & Light (GPL), $1 billion for operational expenses at the Guyana Sugar Corporation (GuySuCo), and $18 billion for the upgrading of roads and bridges.

FUEL PRICES
The $6.6 billion for GPL represents funding from the government to absorb the impact of increased fuel prices on GPL’s operations.

In addition to the $6.6 billion for GPL, a total of $1.393 billion in current expenditure, and $85.8 million in capital expenditure was requested by the Office of the Prime Minister (OPM) for the Power Utility Upgrade Programme (PUUP), and additional resources to support several electricity companies across the country.

Provisions for electricity include $927.527 million for Linden, Region 10 (Upper Demerara- Berbice); $110.707 million for Lethem, Region Nine (Upper Takutu-Upper Essequibo); $106.016 million for Mabaruma, Region One (Barima-Waini); $103.238 million for Kwakwani, Region 10; $76.809 million for Port Kaituma, Region One; $49.020 million for Mahdia, Region Eight (Potaro-Siparuni); and $20 million for Matthew’s Ridge, Region One.

Provision to the PUUP includes additional inflows under the Inter-American Development Bank (IDB)’s loan operation to facilitate project closure.

The largest component of the provision was allocated to the Ministry of Public Works, which requested $630.4 million for current expenditure, and $28.45 billion for capital expenditure.

Aside from the $18 billion for the roads and drains in communities, there is $2 billion to advance works to support road linkages; $7 billion for the reconstruction of roads from Sheriff Street to the railway embankment; and $938.22 million to facilitate civil works on the Linden to Mabura Road Project.

Due to the expanded work programme of the Guyana Police Force (GPF) and other security agencies, the Ministry of Home Affairs secured $2.7 billion to advance works.

The ministry’s allocation also includes $226 million for drugs, medical supplies and other resources to cater for Guyana’s increased prison population.

For the provision of additional resources to offset expenses for the expanded work programme of the Guyana Office for Investment (GO-Invest), $11.755 million was approved for the agency.

Due to the growing population at the Night Shelter, the Hugo Chavez Shelter, and children’s homes, the Ministry of Human Services and Social Security secured an additional $53 million to meet dietary needs, and to provide additional resources for an increase in security charges.

To complete water supply interventions in the hinterland areas, and procure a new drilling rig, the Ministry of Housing and Water secured $275.98 million.

In terms of provisions for the regions, Region Five (Mahaica-Berbice) was allocated $53 million to cater for increased security charges, and Region Seven and Region Nine secured $99.8 million and $53 million, respectively, to cater for additional resources to meet the needs of the student dorms, due to an increase in enrolment in both regions.