Monday, September 26, 2022

US$1.8M IDB loan to push involvement of private sector in Gas-to-Energy project, other major initiatives

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The Ministry of Finance is in receipt of a US$1.8M loan from the Inter-American Development Bank (IDB), a portion of which will be used to push the involvement of the private sector in major projects such as the Gas-to-Energy initiative.

Guyana’s Ministry of Natural Resources has issued a request for proposals (RFP) for consultants to supervise the development of the integrated Natural Gas Liquids (NGL) plant and the 300 megawatts (MW) combined cycle gas turbine (CCGT) power plant.

The IDB, in collaboration with the Guyana Government, is moving to ensure locals are not locked out of key investment opportunities like the foregoing project which will no doubt underpin the nation’s economic prosperity. In light of this joint objective, the IDB loan documents state that US$369,000 will be used to create more investment opportunities for the private sector in terms of strengthening the institutional capacity of the government to promote Public Private Partnerships (PPPs) in strategic projects.

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This component will support the development of a PPP strategy for Guyana, including proposed legal and regulatory, environmental and social recommendations. Importantly, it will pave the way for dialogue with local and foreign investors on the need for creating a more enabling environment for strategic private sector investment into large infrastructure initiatives such as the deep-water harbour, the Georgetown to Lethem road, the natural gas power plant, the hydroelectric dam, and national bridges.

Technical study visits and training for building capacity on structuring successful PPPs, by contracting an individual consultant through a competitive method (IICQ) with experience in developing legal and regulatory frameworks for PPPs will also be pursued by the government.

OilNOW understands that two individual consultants will be contracted through a competitive method with proven experience in the design and implementation of PPPs, to support the design and implementation of two pilot PPP projects in areas such as assessing the risks involved in a PPP and defining mitigation measures, including integrity, social and environmental risks.

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According to the IDB, priority will be given to projects that have a positive impact on climate change and environmental sustainability.

Overall, the outputs of this component of the IDB loan include: a study on PPP best practices and proposed legal and regulatory framework for Guyana, including integrity, social and environmental aspects, with identification of specific PPP opportunities; and strategic government stakeholders being trained, including training of professionals, institutions, and personnel from the Ministry of Finance’s unit in an environmental and social capacity.

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