Wales Estate oil-to-shore project

Announcement by the Government that the closed Wales Sugar Estate compound will be converted into a gas-to-shore facility, in the absence of more information, sounds like the typical ad hoc approach to development. The presentation of no feasibility study sounds like another effort at political pandering that will incur financial burden on Guyanese. It sounds like a doubling done on spending as was done with Skeldon Factory and is being done in the reopening of closed sugar estates.

The Government has to be mindful the money of the state is not for them to do as pleased. They cannot be unmindful to concerns that what they are doing or about to do will or will not benefit the country. They continue to give the impression decisions are being made based on accommodating allies and hairy fairy schemes, acting unconcerned about the burgeoning debts they are racking up on the back of taxpayers. If this is not what the Government intends to do then they must prove the Wales Estate project is above board and for the good of Guyana.

The first thing that should be made known is the feasibility study.  Was any of this done, and if so, it must be made public. Guyanese should have the opportunity of reviewing the study, knowing the authors of the study, the cost of the project, including the environmental implications if any.
Oil and gas have their consequences. Where Guyana petroleum and environmental laws are archaic and the government acting as though disinterested in modernising them in order to comply with international acceptable standards there are reasons for concern. There is already flaring happening in our waters in violation of the World Bank Sustainable Development Goal and other international environmental standards.

Vice President Bharrat Jagdeo, who has responsibility for the industry, has already said the Government’s approach to exploiting oil and gas is to do so within the shortest possible time. The admission is enough to send alarm that Guyana is proceeding in the industry without regard for best practices and upholding our side of the United Nations Paris Climate Change Agreement, among other environmental commitments.

The other aspect of concern is financing. Where is the money to execute the project coming from? It needs to be known who the investors will be or are identified to be. Government should also make it known whether the project would be state or private ownership? If private, will Guyanese be given the opportunity for investment, and if any, who are they? Will there be equity, meaning would non-financiers or non-supporters of the government be given equal opportunity?

If neither of the above, will it be a private-public partnership similar to the Berbice Bridge. In that project allies of the People’s Progressive Party/Civic were given an entrée to shares while the National Insurance Scheme (NIS), which has the greatest financial investment was given minimal say. At year end 2020 NIS has a deficit of more than one billion dollars. Would there be a repeat as in the Berbice Bridge where the government would once again take NIS contributors’ money and put it into this project for the benefit of a few?

Mr. Jagdeo ought to know, given his record on the Skeldon Factory and the Berbice Bridge, Guyanese are very skeptical the Wales Estate project will be any different to Skeldon Factory which is white elephant and Guyanese incurred a debt of over US$250 million. Government cannot ignore there will be skepticism that like the Berbice Bridge it could ignore original study to locate the project because the original recommended location was in the area (New Amsterdam) where supporters of its political rival dominate.

Projects like that proposed for the Wales Estate require national consensus. Oil, gas and all Guyana’s extractive resources belong to all Guyanese not a political party or group. Guyanese having benefitted from the experiences of other nations where these resources were used to front massive corruption by government and private interests, perpetuate social, economic and political divisions accompanied by violence, all precautionary measures should be taken to avert similar experiences. The government must come clean on the Wales Estate project.