Following the signing of a Memorandum of Understanding (MoU) between U.S Secretary of State, Michael Pompeo and Guyana’s President, Dr. Mohamed Irfaan Ali, on energy and infrastructure finance and market building cooperation, a Working Group comprising representatives from the U.S.A and Guyana will soon be formed.
The MoU was signed on Friday, September 18, and according to the agreement, the Working Group must now be established within 90 days.
The MoU is geared towards strengthening cooperation on energy. Investments in energy and infrastructure are expected to increase the reliability and diversification of the participants’ national infrastructure systems and help counter threats posed by supply disruptions from natural and manmade events including cyber threats.
According to the agreement, it also aims at “furthering cooperation between the participants [Guyana and the U.S] on solutions that are capable of addressing the various policy, legal, regulatory, institutional, and market barriers that are impeding the flow of private capital solutions.”
The two countries will now partner to identify key legal, regulatory, and institutional barriers inhibiting broad-based investments in energy and other infrastructure, and mutually determine actions and/or technical assistance to achieve desired improvements.
Guyana has also agreed to increase U.S. private sector awareness of “strategic energy and other infrastructure projects in Guyana and exploring potential financial support from the U.S International Development Finance Corporation, the Export-Import Bank of the United States and the U.S Trade and Development Agency to facilitate private sector participation and investment in such projects.”
“The United States Department of the Treasury, Office of Technical Assistance, working jointly with the Ministry of Finance of Guyana and other ministries and institutions, as appropriate, intends to explore the development of financial capacity-building and technical collaboration programs contemplated under this framework,” the agreement outlined.
The Working Group will be tasked with facilitating training and capacity building through seminars, workshops, courses, and exchange; as well as facilitating meetings between partner networks such as private companies, universities, research institutions and other relevant organisations.