GPL and IEG: Why Even Consider the Dominican Republic? – Lall

By GHK Lall- Think of a very sick man seeking help from another sick person who has shown improvement, but still grapples with continuing troubles.  This is how I assess the hookup between the GPL and the Inter-Energy Group (IEG) of the Dominican Republic (DR).  With respect to the industrious and capable people of the IEG, I think that Guyana made a serious mistake.  It could have done better, if its leaders were committed to what is best for Guyanese.  The DR is not a good place to start.

Some background first.  The history of governance in general, and PPP governance more than any other, offers considerable proof re secrets that incorporate the sleazy.  Public procurement stands as Exhibits 1 to 100.  Even on the few occasions when matters seem to start on the right foot, controversies appear and multiply later, with the worst outcomes resulting.

Procurement in general has been a national embarrassment, and an incurable cancer for the PPP Government and its leadership.  For one of the more glaring examples, there is the Belle View pump station project for over three quarters of a billion in taxpayer’s money producing nothing but arguments, dodges, and farces.

The US$2 billion and counting Wales gas-to-shore project continues that longstanding pattern.  Locals have seen how secrecy has led to an information vacuum, with shaky leadership denials and drifts only fueling the worst convictions.  This is a glimpse in what is now Guyana’s procurement environment, the heart of its culture.

From that primer, I now turn to the Dominican Republic, with two questions pressing: why go there, why not elsewhere?  And, which Guyanese political player is benefiting?

Almost exactly two years ago (08/03/23), in its Country Focus on the Dominican Republic, the IMF had this to say:

“To fuel higher potential growth, the Dominican Republic can prioritize key structural reforms. This includes enhancing the quality of education to boost workforce productivity; completing electricity sector reform to improve distribution, eliminate blackouts, and enhance renewable energy adoption…” (emphasis mine). The IMF’s analysis revealed while the DR has made strides, it still has much ground to cover relative to its energy sector.

Then, just under four months ago, this came from the World Bank (04/23/25):

The government has shown a strong commitment to addressing the long-standing challenges posed by the electricity sector through a comprehensive package of reforms aimed at increasing transparency, accountability, and efficiency in the sector, continuing the diversification of the energy matrix to include less polluting energy sources, and increasing access to reliable and affordable energy. However, there is still work to be done in the transmission sector, which has historically suffered economic losses (again, emphasis added).  In a nutshell, the DR still has energy challenges.

The case could be made that the DR is still working through its own electricity challenges on the job.  I go further to make the point that the DR is still in the reforming and growing stages re energy, as both the IMF and World Bank pointed out two years apart.  Therefore, of all the places to assist with what has been Guyana’s equivalent of a longstanding stroke, I think that a company from the DR was not the best choice for Guyana.  Certainly not with the degree of energy challenges still there and very much present here.

It is like sealing a consultancy deal with GUYSUCO for advice on managing a troubled sugar industry.  Or the Guyana Office of the Commissioner of Information for guidance on the timely and consistent delivery of information provisioned for in law.  Let this note register: this isn’t about IEG, but Guyana’s PPP Government even starting out with, then settling for, a company in the DR.  History teaches that personal relationships have their weight, produce results.  Could that be operating here?

To add another layer of intrigue to the GPL-IEG development, representations came from APNU’s Vice Presidential candidate, Mr. Ganesh Mahipaul that Prime Minister Mark Phillips himself had disclosed in parliament that Method4, a Canadian firm was “allocated” the contract.  A curious word, considering the disagreements that have since erupted.

Per PPP Government sources, PM Phillips spoke too quickly as the deal wasn’t finalized.  But how can anyone even begin to speak of “allocated” when a bid criterion/component as showstopping as Method4’s ‘experience’ was lacking?  Aside from clerical areas to be scrutinized, a bidder’s ‘experience’ for a project is a drop-dead matter.  It passes that bar immediately, or it doesn’t.  Thus, “allocated” should never enter the conversation because Method4 never got started in that direction.

There is no value in making the Hon PM look poorly, but government damage control is unpersuasive.  It only adds to that word used earlier: intrigue.  In the circumstances, my conclusion is simple: clarity and comprehension are not served.  Cover-up is.  Secrecy, the sinister, and shabbiness stain this GPL-IEG deal.