–President Ali says, urges formation of consortiums to find mechanisms to drive logistical investments
PRESIDENT Dr. Irfaan Ali is urging local private sector players to maximise the opportunities available in providing supply vessels and other support to Guyana’s expanding oil and gas sector.
Speaking at the Guyana Oil and Gas Energy Chamber’s Annual Awards Presentation Dinner, held at the Georgetown Marriott Hotel on Friday last, President Ali highlighted the investment returns if a consortium is formed to explore this initiative.
“There is one that we started that we must get done and dusted very quickly. And that is the opportunity in shipping with the supply vessels. I challenged the consortium that we must be able to put together a consortium here in Guyana that can be able to be part of the ecosystem, in terms of the supply vessels and other support vessels to the operation, and we have to get that done, “the President said.
This he said will be high on the government’s agenda in the new year.
“We have to get that done quickly, so one of the first things in the new year is for us to find the mechanism and the vehicle through which we will and must achieve this.”
Notably, he said, Guyana’s economic expansion, infrastructure integration and development trajectory could see greater growth, with these pillars providing a multiplier effect to unlock more opportunities.
To this end, the President explained that in the transport and logistics sector there is a surprising multiplier effect of US$3 to US$4 on every US$1 invested, meanwhile, in the technology sector it is about US$2 US$5 on every US$1 invested.
These trends are similar for the tourism and manufacturing sectors, he noted.
Reiterating his administration’s priorities, President Ali said the government remains focused on converting oil revenues into durable national assets, infrastructure, human capital, energy security and a diversified economy capable of thriving long after the volatility of the market.
“That is the multiplier effect; the economic value of every dollar invested in every sector, and if you’re looking at the strategy we are pursuing, it is in alignment with these sectors.”
The President noted further that Guyana’s economy is expected to see continued boost as more investments pour in, however he noted what remains principal is the country’s prudent strategic management of its oil resources, pointing to the massive gas related projects unfolding at Wales and Berbice.
These areas, he noted will become Guyana’s anchors playing an expansive role in the country’s modern, integrated national energy ecosystem.
At Wales on the West Bank of Demerara, he said more than US$4 billion is expected to flow into projects over the next five years, including the gas-to-energy initiative, power generation facilities, a fertiliser plant, fabrication operations, manufacturing and industrial zones, marine infrastructure, and gas bottling and logistics services.
In Berbice, he highlighted plans for a second gas project, the establishment of a deep-water port, expanded industrial activities, and a gas pipeline estimated at more than US$2 billion.
Together, these two regions are expected to push close to US$10 billion in fresh infrastructure and energy-linked development.
