According to a Reuters May 30th report, Guyana stands on the verge of receiving one of the largest financial windfalls in its history. The report notes that Guyana’s economy has already grown from one of the poorest in South America to the fastest growing economy in the world. Since oil production began in 2019, the country’s GDP has expanded to approximately US$27.5 billion, more than quadrupling in just a few years. Reuters further reports that if oil prices remain around US$100 per barrel, Guyana’s share of oil revenues this year could reach approximately US$4.3 billion, representing a 67% increase over last year.
More importantly, Reuters highlights that Guyana is expected to begin receiving a substantially larger share of oil profits sooner than anticipated. As ExxonMobil recovers its development costs, Guyana’s share of profit oil is expected to increase from 12.5% to 50%. This was also an acknowledgment by Exxon’s CEO.
These are not opposition figures. These are not estimates from political commentators. These are figures reported by Reuters and acknowledged by you and your Government. Yet while billions flow into the treasury, ordinary Guyanese continue to ask a simple question, “If the country is earning so much more money, why are so many people still struggling?”
President Ali, you argued that higher oil revenues are offset by rising commodity prices and increasing import costs. While there is some truth that global inflation affects all economies, that explanation alone cannot account for the reality facing Guyanese families.
The greater challenge confronting Guyana is not simply the price of imported goods. The greater challenge is the waste of public resources, poor project management and corruption. The Government cannot ask citizens to accept rising living costs while billions of dollars are being lost through projects plagued by overruns, delays, redesigns and questionable spending decisions.
Take the Gas-to-Energy Project, for instance. What was sold to the nation as a transformational project has already seen costs balloon far beyond initial projections (from US$500 to US$2 Billion). Guyanese taxpayers continue to absorb expenses associated with storage, maintenance, redesigns and supporting infrastructure. We have witnessed reports of pipeline maintenance and repair activities even before the project has delivered the benefits promised to the people. Only, last week millions of US dollars were spent to maintain a pipeline, that is still awaiting the completion of Wales Gas-to-Energy facility.
The Bellevue Pump Station has faced significant cost concerns and questions surrounding execution. The Hero’s Highway has already required additional spending and modifications after initial construction. Across the country, infrastructure projects repeatedly return to the public purse for supplementary funding. This is not a shortage of money. This is a failure to manage money.
Even the Government itself has acknowledged that corruption remains a serious national problem. The Minister of Finance, in presenting the national budget, spoke of strengthening anti-corruption mechanisms. Both Vice President Bharrat Jagdeo and yourself have publicly recognised the need for stronger systems to address corruption and abuse that your government have presided over for years.
The question therefore becomes, if corruption is acknowledged, if waste is evident and if revenues are growing at unprecedented levels, why are Guyanese not seeing greater returns in their daily lives? Why do blackouts remain common? Why do communities still struggle with drainage related issues? Why do hospitals continue to face shortages? Why do teachers, nurses, public servants and pensioners continue to feel left behind despite record national revenues?
Reuters pointed out that despite Guyana’s impressive GDP growth, more than 75% of economic activity remains concentrated in the oil and gas sector. That should concern, not only you President Ali, but every Guyanese.
President Ali, lasting prosperity will not be built by relying solely on oil while neglecting investments in people, agriculture, manufacturing, education, healthcare and community development. The lesson of oil-producing nations around the world is clear. Oil wealth alone does not guarantee development. Good governance does. Strong institutions do. Responsible spending does. Transparency does. Every dollar wasted by your government through poor planning is a dollar that could have built a school.
Every dollar lost through corruption by your government is a dollar that could have improved healthcare. Every dollar squandered by your government through inflated contracts is a dollar that could have reduced the burden on working families.
Your government wants Guyanese to believe that rising commodity prices explain the gap between oil wealth and people’s lived reality, but the evidence suggests a different truth. Guyana’s challenge is not a lack of revenue. Guyana’s challenge is ensuring that unprecedented revenues are managed honestly, efficiently and in the best interest of the people.
The oil is flowing. The money is coming. The government must now show it has the discipline, it is transparent and competent to ensure that the benefits reach the citizens who own the resource.
The people of Guyana deserve more than headlines about billions. They deserve to see those billions reflected in better roads like the LINDEN-TO-KWAKWANI trail, better healthcare, better education, lower living costs, stronger communities and greater opportunities for future generations.
Hon. K. Sharma Solomon
Member Parliament
