–CBD reports; says financial institution keen on investing in energy projects

By Naomi Parris in Barbados

THE Caribbean region’s economy is well on its way to making a full rebound from the shocks brought on by the global COVID-19 pandemic and other international crises, and Guyana’s increased production of its oil and gas resources has been “a significant driver” of regional growth.

This was according to Director of Economics at the Caribbean Development Bank (CDB), Ian Durant, during the financial institution’s annual news conference in Bridgetown, Barbados, on Tuesday.
“Our borrowing member countries have faced several disruptions to social and economic progress, including the COVID-19 pandemic and constant deterioration in macro-economic conditions,” Durant said.

He related that global trade and supply challenges compounded by international geopolitical crises, such as the Russia and Ukraine war and the most recent conflict in Palestine, saw the increase in international commodity prices; however, the Caribbean region has remained resilient and continue to rebound from the economic shocks.

According to Durant, the CDB estimated that the region grew by 6.7 per cent with higher oil production in Guyana being a large contributor to the average regional growth in 2023.
According to the CDB, the country’s production increased by 35.2 per cent, and this influenced growth in non-oil sectors, contributing to the overall expansion of the country’s economy by roughly 32.9 per cent.

Economic activities in other oil-producing Caribbean nations such as Suriname and Trinidad and Tobago also expanded.
“By the end of 2023, 11 of borrowing members had overtaken pre-pandemic output levels …higher oil production in Guyana was a significant driver in average regional growth in 2023,” Durant told the news conference.

The CDB forecasts that an average growth of 8.6 per cent for its 19 borrowing countries in 2024, increases in commodity exports by 18.2 per cent, and an increase in service exporters by 2.1 per cent will contribute to further growth.
The further growth of the region, Durant said, will be “largely attributable to increased oil production in Guyana and continued expansion of the [regions’] tourism industry.”

The CDB’s Director of Projects, Therese Turner-Jones, in an invited comment to this publication, said the institution shares an excellent relationship with the Government of Guyana, and will be open to developing projects in renewable energy
“We are keen on investing in energy projects once we are invited…,” Turner-Jones said.

The CDB, she said, has placed much emphasis on renewable energy projects in Borrowing Member Countries (BMCs).
In fact, Turner-Jones said that any project which could provide cheaper electricity is welcomed.
Guyana, she underscored, has the potential to provide the region with energy resources, however, the CDB is pursuing sustainable projects which limit the use of fossil fuels.

“[The]CDB is committed to advancing the region’s transition to sustainable energy in the face of climate change…our focus rests on energy security lowering electricity cost, reducing greenhouse gas emissions and climate proofing our grids,” Turner-Jones said.

In Guyana, the government is currently working to lower electricity costs by at least 50 per cent through an energy mix which includes several renewable energy initiatives that incorporate natural gas, solar, wind, and hydropower.
The energy mix being crafted by the government targets well beyond the country’s current energy needs, focusing on well-forecasted future demand.

Several major projects which include the construction of a gas-to-energy project in the country’s coastal region and a hydropower facility the— Amaila Falls Hydropower Project (AFHP)—are on the cards
Both projects aim to reduce the country’s energy costs. Officials have already said that Guyanese will save about US$100 million each year when electricity rates are cut when the gas-to-energy project comes on stream.

Currently, Guyana is hosting its third edition of its Energy Conference and Supply Chain Expo under the team, “Fuelling Transformation and Modernisation,”
The major oil and gas forum was rebranded this year, adding the ‘supply chain’ component.

In his address to regional and international stakeholders, Guyana’s Head of State, Dr. Irfaan Ali said this was added to the oil and gas conference because investments in logistics and transportation are crucial to fostering development and, therefore, it needed to be recognized.

While explaining how Guyana’s energy potential could only be translated into value, Dr Ali stressed that the Caribbean region needs to define the market.